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Top 4 challenges for the hotel industry and how to handle them

Being a part of 24/7 guest facing service business, hotel industry world-wide faces many critical issues on daily basis. Right from handling operations to serving guests, hoteliers have to handle numerous bottlenecks. For example, they sometimes have to make their guests wait for longer time due to the absence of right technology to speed up the check-in process.

Here are top 4 issues impacting the performance of the hotel industry across the globe. Hotels across segments and offerings face these issues –

Operational Issues

Hotel operation is quite a complex matter. From front desk to back of the office, from housekeeping to concierge, every department needs to run in sync to ensure faster automation. Thus, this can be achieved only by adopting an integrated Hotel PMS System. Furthermore, hotel staff would find it quite easy to work on Hotel PMS as the application ensures streamlining of major operational areas. The hotel software significantly reduces the work burden from hotel staff, thus enabling them to attend to guests’ needs.

Cost Control

Like in other industries, saving costs is a must for hotels, too. But for hotel industry, this is slightly tricky. Yet, they can’t simply cut costs and do away with the quality of services. For example, they can’t switch off the AC when the guest steps out of the room for an hour. Because upon his return, the guest would not like to enter a room that is hot. Adoption of modern HVAC system integrated with energy saving solution can help a hotel in this. Also, there are other areas where hotels must check revenue leakage and pilferage. Here too, Hotel PMS plays quite a major role. Its integrated modules like Food & Beverages Costing and Materials Management helps hotels tally total cost of consumption against F&B revenue.

Increased Competition

Be it Africa, Asia or Europe, competition is highly prevalent. For today’s guests, options are in abundance. This has led to a fall in occupancy rate and ARR. This no doubt hurts the health of hotel business. Subsequently, to beat the completion and to attract guests, a hotel must have a strong online presence. For this, the Hotel’s PMS System should be integrated with a channel management solution. It will help a hotel to better distribute its inventory across multiple channels. Thus, a hotel can sell more rooms and increase occupancy which leads to increased revenue.

Increased Guest Expectation

Now, this is the most nagging challenge for global hotel industry. This is the area where they have to fare extremely well to stay ahead of competition. Today, guests have become demanding and they expect the hotel to offer them value for their money. They need free high speed Wi-Fi, sophisticated in-room entertainment system, less time consuming check-in and check-out etc. They also expect the hotel staff to respond to their requests and complaints at the earliest. In short, they are looking for personalized services. Hotels can leverage right mobile app to offer them what they want. They can introduce Hotel APP or guest service app to help guests manage their post booking activities. Guests would feel better and empowered if they get to use their own smartphones to utilize as door key, to order service and to chat with hotel staff etc.

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Senior Vice President – Sales, South Asia & Southeast Asia IDS Next. He manages a growing sales team in India, Nepal, Bhutan, Bangladesh and Myanmar Singapore, Thailand, Malaysia, Philippines, Indonesia, Brunei, Laos, Cambodia and Vietnam He has accumulated tremendous knowledge on our enterprise class Hotel ERP solution.