<img alt="" src="https://secure.leadforensics.com/265710.png" style="display:none;">

Strategies to overcome conflicting goals

28 February 2023
Without effective marketing, sales, and revenue management, a hotel risks losing guests to competitors, experiencing low rates, and facing financial challenges. Therefore, these commercial roles are essential to a hotel's success and must work together to drive business growth and revenue.

Marketing teams promote the hotel's brand and create campaigns to attract guests. Marketing is essential for creating awareness of the hotel and its offerings, building brand loyalty, and driving demand. Sales teams are responsible for contracting direct customers and travel trade for rooms and events to generate revenue. Sales teams play a critical role in managing relationships with guests and event organizers in generating long-term revenue for the hotel. Finally, revenue management teams use data and analytics to optimize pricing strategies and ensure the hotel charges the right price for its services to maximize revenue and profitability.

Conflicting goals and bonus programs

While these roles are critical to a hotel's success, each function's goals can often conflict, creating tension within the commercial team. In addition, in commercial roles such as marketing, sales, and revenue management, bonus programs are often tied to specific metrics and goals that can create conflicts within the organization. For example, marketing may be incentivized to focus on brand awareness metrics rather than long-term goals, sales may prioritize short-term revenue generation over the long-term health of the hotel, and revenue management may overprice services to maximize revenue, leading to guest dissatisfaction and a loss of repeat business. As a result, these conflicting goals and bonus programs can undermine the hotel's overall success, leading to a fragmented and disjointed approach to business growth.

Strategies to overcome conflicting goals

Hotels can implement these four strategies to overcome potential conflicts and create a more cohesive and successful bonus program that delivers value to guests and other stakeholders.

Communication and collaboration between departments

One of the most effective ways to overcome conflicts in commercial roles is to encourage communication and collaboration between departments. Regular meetings, cross-functional projects, and shared goals and metrics can help promote a more unified approach to business growth. It's also essential to ensure that each department's goals are aligned with the overall hotel strategy so that everyone is working towards the same objectives.

Balanced bonus programs

Bonus programs should be designed to incentivize individual and team performance and include short-term and long-term goals. They should also be regularly reviewed and adjusted to ensure they are promoting the right behaviors and achieving the desired outcomes.

Aligning short-term goals with long-term objectives

Promoting a customer-centric culture within the hotel is important, emphasizing the importance of brand loyalty and reputation. This can help ensure that short-term goals are aligned with long-term objectives, such as driving repeat business and maximizing long-term revenue growth.

Regularly assessing the impact of bonus programs

It's essential to regularly assess the impact of bonus programs on guest satisfaction, revenue, and profitability metrics. This can help identify any unintended consequences of bonus programs and allow for adjusting goals and metrics as necessary.
By implementing these four strategies, hotels can overcome conflicts in commercial roles and promote a more cohesive and successful operation. This will lead to a better guest experience, higher revenue growth, and excellent long-term financial health for the hotel.