7 min read•Albert Barra
When Common Sense Is Not So Common: The Unexpected Wisdom of Hotel Management
Albert BarraSeptember 11, 2023 · 7 min read
Throughout my hospitality career, I have found that common sense can lead to decisions not everyone understands. Explore how experience, intuition and data can shape better hotel management decisions.
LEAD HOSPITALITY·INSIGHTS
HOTEL MANAGEMENT
Common Sense and Its Enigma
We often say that common sense is the least common of all senses. Although this phrase may sound like a cliché, in the hotel industry it translates into realities that directly affect profitability and sustainable growth. Some decisions, even if they seem counterintuitive, can lead to surprising results.What Do We Mean by Common Sense?
We can define common sense as the ability to make rational decisions based on an immediate, straightforward perception of a situation, without the need for in-depth analysis or an elaborate process of reflection. But is it really that simple?Advantages and Disadvantages
- Advantages:
- Quick decision-making
- Adaptability to different contexts
- Disadvantages:
- Lack of detailed analysis
- Potential for making emotional decisions
Data-Driven Decisions vs. Common Sense
In a world where data is increasingly accessible, there is a tendency to relegate common sense in favour of data analysis. According to one study, approximately 60% of hotel companies are investing in data analytics technologies. But is this always the right approach? In the digital age in which we live, data has become an invaluable resource for businesses in every sector. Data analysis has proven to be a powerful tool for identifying patterns, trends and opportunities for improvement. However, in the pursuit of data-driven decision-making, it is important not to underestimate the value of common sense. Common sense is the body of accumulated knowledge and experience that enables us to make quick, effective decisions in everyday situations. It is often based on intuition, judgement and practicality. Although it may seem subjective compared with data analysis, common sense brings a human element that cannot be replicated by machines. In many cases, data analysis can provide clear, objective answers to specific questions. However, there are situations in which data may be limited, incomplete or contradictory. In these cases, common sense can fill the gaps and help us make informed decisions. Moreover, common sense can also help us question the results of data analysis. At times, data can lead to incorrect conclusions due to biases or errors in its collection and analysis. Common sense can act as a filter for assessing the validity of data and ensuring that decisions are made fairly and in a balanced manner. It is important to note that common sense and data analysis are not mutually exclusive; they are complementary. Both approaches have their strengths and limitations, and combining them can lead to more robust, well-founded decisions. In short, while data analysis is becoming increasingly important in the business world, the value of common sense should not be underestimated. Both approaches play a crucial role in decision-making, and combining them can lead to optimal results. Finding a balance between the objectivity of data and the intuition and experience of common sense is essential to succeeding in an information-driven world.The Perfect Balance
Effective management combines sound data with insights grounded in experience and common sense. Data can show us trends and patterns, but it lacks the ability to understand human behaviour and the nuances of organisational culture. Effective management seeks to find the perfect balance between using sound data and applying insights based on experience and common sense. While data can be valuable for showing us trends and patterns, its usefulness is limited when it comes to understanding human behaviour and the nuances of organisational culture. Data provides us with quantitative information that can be analysed and used to make informed decisions. It allows us to identify long-term trends, detect recurring problems and measure performance objectively. However, data alone does not give us a complete view of the situation. This is where intuition based on experience and common sense comes into play. Experience enables us to understand how people react to certain situations and how they operate in a specific working environment. Intuition guides us in interpreting data and understanding its relevance within the organisational context. Effective management requires combining these two elements in a balanced way. On the one hand, it is important to base our decisions on concrete, objective data to avoid falling into assumptions or prejudices. On the other, we must trust our intuition and experience to understand the subtleties and particularities of each situation. Understanding human behaviour and cultural nuances is essential to achieving effective management. People do not always act in line with data or expectations, and organisational cultures can vary significantly, even within the same industry. Therefore, it is essential to take these aspects into account when making decisions and designing strategies. In short, effective management means finding the perfect balance between using sound data and applying insights based on experience and common sense. Data gives us objective information, but it lacks the ability to understand human behaviour and cultural nuances. That is why it is essential to combine these two dimensions to achieve effective management and make informed decisions.Intuition in Hotel Management
There is a fine line between common sense and intuition, and in hotel management, that line is often blurred. Intuition is that inner voice that sometimes urges us to make decisions that challenge conventional logic. However, in the world of hotel management, intuition plays a crucial role. Hotel managers and directors must trust their instincts to make quick, effective decisions that can make the difference between the success and failure of their property. Intuition develops over years of experience and knowledge within the industry. Hotel management professionals learn to trust their intuition as they face complex and challenging situations in their day-to-day work. Intuition can often be seen as an innate skill among hotel management leaders. These leaders have the ability to read between the lines and pick up subtle signals that enable them to make sound decisions. Intuition helps them understand guests’ needs and expectations, anticipate potential problems and adapt quickly to market changes. Intuition also involves trusting accumulated knowledge and experience. Hospitality industry leaders are constantly keeping up to date with the latest trends and developments in the sector. This enables them to make informed decisions based on their intuition as well as the available data and analysis. However, it is important to note that intuition should not be the sole guide for decision-making in hotel management. Logic and analysis also play a fundamental role. Managers and directors must balance their intuition with objective data and detailed analysis to ensure that their decisions are well-founded and supported by solid evidence. How Can We Cultivate Intuition?- Experience: There is no better teacher than lived experience.
- Active Listening: Pay attention not only to the data, but also to your team and your guests.
- Reflection: Take time to understand situations from multiple perspectives before making a decision.
Real Examples: Successful Decisions and Failures
Throughout my career, I have witnessed surprising cases in which common sense has proved to be both an ally and an enemy. Let us look at some generic examples that demonstrate this:Success Stories
- Renovating Spaces: A hotel decided to renovate its public areas rather than its guest rooms, going against industry trends. Guest satisfaction levels increased by 25% in six months.
- Focus on Experiences: Another hotel chose to focus on offering local experiences instead of luxury services. The result was a 15% increase in bookings.
Failures
- Technology Adoption: A hotel invested in state-of-the-art check-in technology but overlooked the importance of human interaction. Guest satisfaction fell by 10%.
- Menu Change: With the aim of attracting a younger audience, a hotel completely changed its menu, alienating its regular clientele and reducing revenue by 20%.
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