Who Stole the Golden Goose?
Albert BarraJanuary 21, 2024 · 5 min read
For a small or medium-sized business owner—not to mention a self-employed professional—it seems almost miraculous to be able to pay debts, bills, payroll and taxes at the end of the month with the level of revenue they are generating, yet they work diligently towards it every day. If you are an employee, however bad things may be, you may feel more at ease if you believe you are doing your job, because as long as you are paid at the end of the month, all is well. But you would be wrong—very wrong indeed.
The situation is even more complex for anyone who, for whatever reason, intends to set up a new business, become an entrepreneur and grow professionally solely through their own resources and personal effort, alongside those around them. Indeed, the World Bank recently published a ranking of administrative, bureaucratic and, ultimately, practical ease in starting a business, examining a total of 183 countries and placing Spain in 147th position. The African Republic of Congo ranks 146th.
In the tourism sector—primarily hospitality, which is the field we work in—the situation varies from place to place. Major cities such as Barcelona and Madrid, with enormous hotel capacity, have improved their results so far this year compared with last year’s figures, while in smaller markets, no improvement is yet apparent and day-to-day business is becoming almost unbearable.
Whether it is an independent hotel, one affiliated with a hotel group or a hotel belonging to a small or large hotel chain, what it simply cannot afford at present is to waste money or resources in any line item on its balance sheet. What is more, this should be its daily prayer and followed to the letter at all times, whatever the economic climate.
But what is clear—although not to many of our political leaders—is that I can never spend what I do not have, and what I need is revenue. Sales from my hotel, my rooms, breakfast and any other services available for my guests to enjoy, in short.
I recall cases in which, whenever exceptionally high-demand events take place, reports invariably emerge—particularly in Spain—criticising hotels to extraordinary lengths for increasing their rates during those periods. I have a healthy admiration for those who, first, are able to do so without inhibition, but even more so for those who excel without showing off and who, through the fruits of their efforts, have enabled their company, their hotel, to achieve excellent results when it needed to do so. The key lies in consistency, effort, and the shared good and common goal of each and every employee in that company. These are not times for carrying dead weight, but for standing out, redoubling efforts and working as a team with determination and conviction, with leadership and constant analysis of the situation, then taking the most appropriate measures.
All that glitters is not gold, and some people are afraid of setting genuinely high rates, yet they do not care in the slightest that their hotel, without their even knowing it, is being sold below the price it should achieve throughout the year, simply through lack of knowledge, incompetence or, worse still, sheer neglect. These are luxuries that come at far too high a cost and must be eradicated at the root through common sense and hard work.
Nor is the labour market we are subject to pleasant: it is voracious in some cases, unfair in others and mediocre in many. Yet it is the company’s responsibility to surround itself with a competitive team, even if that means spending more money than expected; never has it been more evident that ‘less is more’.
How can I analyse my situation and my capacity to respond to sales? How can I know whether the path I am charting is the right one, or whether I am going to crash at the first bend? Through effort and determination. There is no other answer. And with the whole team committed to the same goal, all pulling together, it will undoubtedly lead to a wealth of ideas, projects and aspirations which, with dedication and willpower, must become successes, achieved objectives and realities. That said, if you do not believe in it yourself or are not fully convinced, it is almost better not to try at all. The ‘everything easy’ and ‘zero sacrifice’ mindset leads nowhere but to failure. It has been proven. And that really is ruinous.
Nobody has a magic wand or a crystal ball. Nor is there a worse enemy than complacency or following the crowd. Anyone can surround themselves with capable people who strive to improve, and it is easy to turn to professionals who advise, guide and even carry out actions aimed solely at success.This article ends here. The archive does not.
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