Many hotels think that they capture their fair share or more than their fair share of the market when looking at benchmarking data. The figures can be misleading since they are accumulated over time and do not show the necessary granularity.
It is not only getting harder to capture the revenue that the hotel needs to stay profitable. It is also more difficult than ever to find the right team members, with the right skills and knowledge, since all hotels are competing for the best people.
Many hotels struggle with sales, marketing, and revenue management working in silos which often cause more problems than benefits. Lack of alignment towards the overall goals creates much contradictory work which slows down the process and increases the costs.
Not working as a team as well as confusion about the accuracy of data will make decisions harder and lead to missed opportunities, increased costs and loss of profit.
Goals and targets are not aligned between functions
Lack of clear leadership
There are no processes for planning and follow-up
Revenue management spends a lot of time on non-profit activities such as compiling reports for the GM and other departments
Reservations convert business poorly due to lack of guidelines, updated forecasts and accurate data
Clear guidelines and policies are missing and leads to inefficiency
There is no overall pricing strategy
Tactical pricing is not based on facts and timely information
Marketing is spending money on campaigns when the hotel does not need any more business
There is no annual marketing plan based on market demand
There is no follow-up on return on marketing spend
Sales spends unnecessary time on admin, compilation of reports and on preparations instead of meeting customers
Sales spends time on the "wrong" customers
Sales contract customers that are not profitable for the hotel
There are no guidelines from revenue management to sales