Hotel management is not always easy. Hotel managers often have to juggle a range of tasks at any given time, ensuring that everything runs smoothly.
In this article, I outline 6 issues that must be managed within the circus in which those of us working in this field perform every day.
As the hotel industry is one of the fastest-growing sectors in the world, it is also characterised by continuous technological advancements. These advances have worked wonders in improving organisation, efficiency and the guest experience.
However, they have also brought significant challenges for the sector, affecting the way hotels and other services are operated.
These issues create bottlenecks that hinder expected growth. A better understanding of these management challenges would give hoteliers a clear advantage over the competition.
In my view, these are the 6 main management challenges in the hotel industry:
1. Constantly changing guest expectations.
The guest is king in the hotel industry, and in hospitality in general. The entire purpose of our sector is to keep guests happy. But margins are shrinking.
Keeping guests happy is no longer enough. As a hotel manager, you now need to find ways to delight them. This means finding a way to bridge
the gap between perception and genuine delight.
The service that delighted guests the last time they stayed is now an expectation. Therefore, delighting guests in the hotel industry is becoming increasingly difficult as their expectations evolve.
Changing times have brought changes in guest demands. Hotel managers face entirely different challenges today than in the past, due to new technological advances and changing guest behaviour.
With the emergence of apps, for example, consumers now expect a level of convenience and efficiency that must be met.
Therefore, following the guidelines set by social media and online channels, hoteliers must act to exceed expectations and delight guests every time they arrive at our property.
2. Continuous technological change and innovation.
Today, guests are more tech-savvy than ever. Managing this effectively and cost-efficiently is one of the main challenges we encounter in day-to-day operations.
When they choose to stay at one hotel rather than another, they expect to find free Wi-Fi, smart TVs with access to online services, HDMI ports, and so on.
Hotels rely heavily on technology to optimise their services. Keeping pace with technology is one of the main challenges facing hotel managers, but when handled properly, it is certainly worthwhile.
Technology in the hotel industry is helping to transform businesses in today’s competitive environment.
Over the past two decades, the greatest innovation in the hospitality industry has been technology-based.
3. Political and security challenges.
Again, this is one of the key management challenges in the hospitality industry: managing issues related to socio-political and economic challenges.
The threat of terrorism today has changed how and where people travel.
Hotel managers are tasked with ensuring that appropriate surveillance systems are installed and maintained so that guests feel comfortable and safe.
To address security challenges, managers must rely on high-tech devices and software, which can be expensive to acquire and maintain.
Many countries, such as Egypt, Turkey and Syria, have faced issues due to terrorism, while political and economic problems have harmed economies such as ours, as well as those of Greece, Portugal and others in the past.
The issue becomes even more serious when data and credit card security are added to terrorist threats. Hotel managers must anticipate and assess any potential threat and be prepared to minimise losses in such a situation or prevent it altogether.
Risk management is therefore a crucial area for every hotel manager to address.
4. Shortage of skilled labour, staff turnover and irregular working hours.
This is one of the main challenges in the hotel industry.
Staff turnover in the hospitality industry is almost double the average across industries. Arguably, this is the greatest management challenge in the hotel industry.
In recent years, high turnover and increased competition have only heightened the issue of skilled labour shortages across the hotel industry.
Because guests expect far more today, industry professionals are in turn forced to deal with long and sometimes irregular working hours.
To ensure that everything runs smoothly at all times, managers must find new ways to manage their stress, as they cannot afford to lose control or burn out.
It is widely known that pay is the most important factor in retaining the best talent in the hotel industry.
Another important factor in maximising staff retention in the hotel industry is investing in training.
The best training programmes, hotel industry certifications, online courses and on-the-job training can help reduce these challenges and improve the proportion of skilled employees.
However, as a hotel manager, the responsibility falls on you to ensure that turnover remains low and that every member of your team is well cared for.
Compassionate leadership is one of the key attributes of today’s managers. Proper team management is considered one of the best management practices for hotel managers.
5. Booking and revenue challenges.
Today, guests have several options to choose from, forcing managers to improve their marketing and advertising strategies.
This has created revenue management challenges: if managers cannot keep pace and compete on equal terms with their competitors, they risk losing loyal guests and local market share.
Therefore, it is important to understand the booking ecosystem and have the best strategic partners to play the sales game.
Rising costs and declining revenue have become one of the main management challenges in today’s hotel industry.
6. Hotel industry seasonality.
Peak seasons in the hospitality industry tend to generate substantial revenue, but they also place undue stress on management and staff.
Managers are also responsible for keeping pace with ongoing changes in booking flows and pricing, which can at times be daunting for anyone.
They must make the most of the high season. While more staff and resources are required during peak season, these levels fall considerably during the low season, making it difficult to ensure profitability during such periods.
Innovation, diversification and effective management will continue to be key to addressing the challenge of seasonality in the hotel industry.
