what is hotel management?
Hotel management is really about overseeing every operation of the property. This requires knowledge of distribution strategy, finance, customer service, staff management, marketing, and more. In no way should any of these be treated as ‘set and forget’. Hotel management is about constantly evaluating performance is every facet of the business and making necessary adjustments.
Ultimately effective hotel management will not only ensure your hotel stays in business, but is able to profit and grow over time. Think of the hotel as an ecosystem that will get healthier the better you manage it. As your hotel becomes more successful you can upgrade and charge higher rates, pay staff higher wages, and create an experience that guests want to come back for.
Hotel management definition
A nailed down definition of hotel management is that it’s ‘a field of business and a study, that tends itself to the operational aspects of a hotel as well as a wide range of affiliated topics. Such as: Accounting, administration, finance, information systems, human resource management, public relations, strategy, marketing, revenue management, sales, change management, leadership, gastronomy and more.’ Clearly there’s a lot to be aware of and many of these functions do require specialists. However not all properties have the luxury of hiring a full team of staff, so it’s certainly not impossible to run a successful small hotel business without a range of degrees..
Hotel operations management: Inventory and revenue
Hotel operations management: Inventory and revenue The day to day operations of a hotel are pretty all encompassing. Is everything that guests need in order? Are staff and cleaning schedules organised? Is the occupancy rate where you’d like it to be? Obviously a core aspect of hotel management is to manage your rooms; or your inventory. Effective inventory management for hotels involves both creating and managing demand, and maximising returns. The investment backing a hotel is tied up in its rooms and the returns can only be gained from selling those rooms optimally. Here are some strategy basics: Pricing By driving prices up during high peak periods and knowing how much to discount prices by to ensure rooms are rented during low peak periods, hotels can maximise their return. Through dynamic pricing, businesses can provide discounts and incentives in a controlled way during different seasons. Distribution Hotels generally advertise their rooms through multiple channels, such as online travel agencies, to optimise reach and promote sales. Distribution management is essential and this involves calculating the minimum numbers of rooms needing to be sold for any given period by each channel. In doing so, you then have the ability to make informed choices regarding reallocation from cancellations or where to list spare rooms to maximise sales. Market segmentation Being aware of your market and the variable preferences, demands and affordability of different demographics are paramount to understanding how to price and distribute your room sales across the various channels. Not only does this help in managing your existing rooms, but it can also allow you to capture more of the market and increase sales and revenue. Flexibility is an important virtue required of hoteliers and being able to understand your clientele and adapt to their needs is vital to building loyalty and guaranteeing profitability.