Blog

Hotel Data Reveals the
Latest Factors Driving Operational Success

Hoteliers from independent bed-and-breakfast concepts, global hotel chains, and everything in-between have faced immense challenges throughout the pandemic.

As hospitality evolves to meet the needs of today’s complex environment, widely adopted processes and procedures have now expired in favor of safety, secured profitability, and lean operations.

“Our primary driver of business had been removed, and our world as we knew it had been turned completely upside down.”

– Jeff Bay, Managing Director of HayMax Hotels

A critical financial metric in the hotel industry, RevPAR, measures the revenue generated per available room. Hilton, one of the largest hotel chains in the world, showed their second quarter RevPAR plummeted by 81% compared to the same quarter last year.

“Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill”

  – Christopher Nassetta, Hilton CEO

So how are hoteliers measuring new success metrics?

Understanding Today’s Market

A recent hotel report by SevenRooms shared that even though we’re still in the midst of this pandemic, nearly half (46%) of Americans they polled would be open to booking with a hotel under the right circumstances.

As you might expect, health & safety was at the top of their priority list when considering booking a hotel stay:

  • 34% were more inclined to book at hotels operating at a reduced guest capacity
  • 41% would stay at a hotel that offered pre-stay communications related to health & safety measures
  • 30% would only book at hotels that offered health screenings for guests upon arrival

Customers have said that health & safety is a top concern for them, so hotels have to first focus on instilling guest confidence through cleanliness and safety certifications and protocols. Bottom line, up front: these are your new engagement metrics.

“People want to be safe and social distance, but they still want to be around people” 

– Rebecca Gallagher, Owner & Innkeeper of Historic Smithton Inn

According to SevenRooms, there are also some clear deal breakers that would cause a guest to leave or end their stay early:

  • 67% – if hotel staff and servers look or sound ill
  • 63% – if the hotel is too crowded and does not enforce social distancing
  • 63% – if staff and servers are not required to wear masks
  • 58% – if hotel guests look and/or sound ill
  • 55% – if hotel guests are not required to wear masks

“Making the guest feel comfortable, no matter the situation, is and always will be the aim of a hotel and its staff” 

  – Terry King, Regional Director at Guidepost Solution

Things may not be back to their pre-Covid levels yet, but hotel operators are navigating new operational challenges and they’re adapting to changing guest considerations as they chart their way forward back into profitability.

Protecting Hotel Profitability

According to recent research, new health & safety measures have added $9B in incremental expense to the hotel industry. When you have increased costs and decreased revenues, how do you protect hotel profitability in spite of those challenges?

Look at the tools readily available to you. Internal processes and technology, when leveraged to the extent of their purpose, will deliver time and money savings opportunities.  It starts with a plan and a sincere desire to examine every aspect of running your hotel and serving guests, including the technology you are using (or not using) to make it all happen.

You need to find answers to questions like:

  • How can you streamline processes?
  • How can you reduce costs?
  • How can you eliminate time-consuming and error-prone manual processes?
  • How can you optimize purchasing and maximize buying power?
  • How can you pivot Food & Beverage to meet changing demands?
  • What are your most popular and profitable menu items?
  • How can you track waste and identify where savings can be made?
  • How can you build more accurate forecasts?
  • How can you leverage your data and apply analytics?

Get answers to all these questions and many more in our latest eBook, Protecting Hotel Profitability in Disruptive Times – Six Ways to Position your Hotel for Success

Related Posts

End of Year To-Do List for HR and Payroll Teams

End of Year To-Do List for HR and Payroll Teams

Who is ready to say goodbye to 2020? I think the answer to that question is one that we can all agree on. But before we take off for the holidays and get ready to put it all behind us, there are some end-of-year tasks that Payroll and HR teams need to take care of to get ready for the new year.

read more

Learn more about our New HotSchedules Health Survey feature.

Get a demo, learn more, or just ask some questions. We’re here to help! Complete the form to the right and a product specialist will be in touch!

HotSchedules is now Fourth. Along with a simplified name, we also have an updated look!

X

HotSchedules is now Fourth. Along with a simplified name, we also have an updated look! LEARN MORE

X