This article continues the series launched in the previous post on the importance of strategic and people-focused management in turning around struggling hotels. In the previous instalment, we explored how the key to reversing a complex situation does not lie in trying to ‘fix’ a hotel’s culture, but in making consistent decisions and aligning processes and structures. Now, we will delve into why people are the most valuable asset and how to involve them effectively in driving transformation.

In the hotel industry, facing complex situations is not unusual. When a hotel experiences operational or performance difficulties, it is easy to fall into the narrative that “the problem lies with the people”. However, this perspective is as misguided as it is harmful. The existing team is the most valuable resource for turning around any crisis. Various studies, such as Gallup’s 2023 employee engagement report, reveal that highly engaged teams deliver a 23% increase in business profitability, underscoring the importance of trusting and empowering employees during difficult times. The mistake lies in assuming that a lack of results is down to staff without thoroughly exploring the true causes. In my experience, the most common reasons tend to be linked to inefficient processes, poor communication or a lack of strategic clarity, rather than a lack of capability or commitment within the team. According to a McKinsey & Company report (2022), 70% of failures in implementing business strategies are associated with internal communication issues, rather than a lack of team skills.

Engage and Listen

To unlock the team’s true potential, it is essential to listen to and understand the perspectives of those on the front line of service. Ignoring this source of knowledge can perpetuate problems rather than solve them. Some essential steps include:

• Open meetings: Create spaces where employees can share ideas and concerns without fear of repercussions. A Harvard Business Review report (2021) highlights that companies with open feedback channels improve their performance by 20% compared with those that do not have them.
• Anonymous surveys: Useful tools for gathering honest insight into the workplace environment and perceived obstacles. Implementing internal satisfaction surveys has been shown to increase employee retention by 25%, according to SHRM (2022).
• Two-way feedback: It is not only about correcting, but also about learning from those who interact directly with guests. Ongoing feedback is key to service improvement.

By listening, you are likely to uncover practical, actionable solutions that may not have been considered by management. For example, a Korn Ferry study (2020) found that 45% of operational innovations in high-performing hotels stemmed from suggestions made by operational staff.

Empower and Train

A team that feels its voice matters and has the right tools to improve becomes a powerful asset. Some key strategies include:

• Continuous training: Training programmes in technical and service skills. According to Deloitte (2022), well-structured training programmes increase employee productivity by 24%.
• Purposeful delegation: Allow employees to make decisions within their areas of responsibility. A CIPD study (2021) showed that workplace autonomy increases employee satisfaction by 30%.
• Recognition: Celebrating both individual and collective achievements fosters motivation and a sense of belonging. According to Great Place to Work (2022), employees who receive frequent recognition are twice as likely to stay with the company in the long term.

The human team is at the heart of hospitality. They are not the problem; they are the key to transforming a hotel in crisis. Investing in listening, training and empowerment is the most effective strategy for turning around any complex situation and moving towards sustainable excellence.

To achieve real and lasting change, it is essential to stop viewing the team as an obstacle and start seeing it as the organisation’s most valuable resource. Only through a people-centred approach, supported by sound strategic decisions, can a struggling hotel truly be transformed into a benchmark for success.