What are Hotel Operations?
Hotel operations collectively refers to the day-to-day activities and processes followed across each department of the hotel, right from front office and housekeeping to maintenance, bookings/reservations and more. Guests usually do not view what happens behind the scenes, but smooth operations are what keep them happy, while enhancing occupancy and revenues simultaneously. What’s the goal of proper operations? To maintain the highest standards of customer experiences, while boosting revenues and optimizing costs simultaneously. So, essentially, it deals with the entire process and the multitude of jobs involved, once a reservation is made by a customer to the final check-out.
If you’re a hotelier, then you’ll naturally understand the importance of proper operations, along with coordination and supervision of activities across multiple departments. Your basic duties may include managing the hotel and all processes, guaranteeing service levels, tracking revenue progress, costs, and other financials, ensuring property maintenance, looking after food and beverages, and managing employees. Other job components include reservations processing, promotions, and housekeeping. Any hotel can run smoothly only when all these components are in sync with each other.
Let us take a look at some of the top trends and tips for the space in 2025 along with a few best practices that will benefit you.
Key Aspects of Hotel Operations Management
Hotel operations management involves various aspects or components which are listed below.
- · Front Office- This department directly interacts with guests and is usually accessible at the main entrance. Being the first touch point, the department takes care of guest service, bookings, check-ins and check-outs, payment processing, accounting, foreign exchange, reservations of rooms and inquiries. It is also the best place to up-sell/cross-sell and build better connections with guests.
- · Sales & Marketing- These teams have to work in close collaboration to boost the growth of any business. They strive to increase revenues by focusing on lead generation, communication with staff members for guest insights, loyalty programs, advertising/promotional campaigns, PR and offers, e-commerce/OTA operations, client relationship management, and market research.
- · Financial- This division keeps a track of operating expenditure and makes sure that revenues are sustainable in the long run. Key tasks include revenue tracking and management, budget forecasting, cost accounting, managerial accounting/auditing, and tax accounting.
- · Housekeeping- This division takes care of cleaning and sanitization of hotel rooms, furniture, etc. They also take care of waste collection and disposal, making beds and bedding replacements and the availability of supplies and toiletries for guests.
While all these teams are essential for smoother hotel operations, they have to work more efficiently and in sync with each other to succeed. There are various systems and tools that can help in this regard.
Five Signs You Need to Improve Hotel Operations
Now that you know what is hotel operations, here are a few signs that indicate the need for immediate improvements.
- · Negative reviews and feedback- Maintaining a positive brand reputation across online forums, i.e. blogs and social media is crucial for overall performance. If your hotel frequently gets negative reviews and lower ratings from guests, then it’s time to rework your operations strategies.
Any property with ratings lower than 4 stars will find it hard to achieve full occupancy levels. It’s not just about positive reviews in the past; customers want to see these in recent times as well.
- · Inaccurate details of guests- Reports show that a majority of customers are happy to share their preferences/needs for personalized stays.
Whenever your data is inaccurate, your personnel will naturally miss out on multiple chances to connect with guests. If your team fishes around for guest information vaguely, then it shows that you need to build a system with centralized data. Building customer profiles with segmentation is another need, complete with demographic data, preferences, behaviors, etc. This will help you create customized offers and boost brand loyalty and word-of-mouth marketing. Gathering accurate guest data at the right time also matters in this case.
- · Missed bookings/reservations- Room reservations can be problematic to handle without suitable tools. All hotel operating systems have to be in sync with direct and marketplace/OTA bookings, gathering data in a timely and streamlined manner.
Missing bookings, particularly those generated by third-parties may lead to issues like revenue losses, negative ratings/reviews, and guests finding it impossible to find rooms. Thus, every hotel requires a platform that consolidates and integrates this data to avoid missing bookings.
- · Long turnarounds- The length of major processes, right from the start to the finish is known as turnaround time. Most entities look for faster turnarounds in comparison to those taking longer. It is the same for hotels, particularly if there is higher traffic of customers at front desks. Longer wait times have a negative impact on customer satisfaction and overall reviews.
Thus, a good example would be digital check-ins and check-outs that overcome the issue, with full integration of hotel management software solutions.
- · Issues with day-to-day operations- One of the biggest indicators of operational issues is problems in undertaking daily tasks. It usually leads to lack of proper revenue monitoring, gaps in information and poor service/support. Hence, hoteliers have to focus on proper integration between multiple departments, including personnel supervision, revenue management, maintenance, front desk management, etc.
This is where suitable software solutions may help, in terms of digitizing all guest information and integrating all major departments to achieve better results.
Trends in Hotel Operations for 2025
Here are some of the biggest trends for hotel operations in 2025:
- · Automation- It is fast becoming a preferred tool for enabling hotels to take care of repetitive and manual tasks. AI integration is anticipated for most hotel operational procedures, including communication with guests, revenue management, and automated workflows. It will also play a part in translating guest feedback, pricing algorithms, and internal workflow automation.
- · Self-service tech- This became immensely popular in the pandemic and the trend has led to revamped front desk experiences. Guests can now check-in digitally and connect with personnel to know more about local activities, amenities, etc. Hotels can instead focus on more personalized services and recommendations.
- · New job descriptions- Self-service and automation have transformed conventional job descriptions. Jobs are steadily adopting a more technical hue, while the criteria for training and recruiting staff members is also evolving. Analytical and technological skills are becoming crucial with a blend of conventional hospitality attributes.
Strategies to Improve Hotel Operations
Here are a few ways to enhance operations in hotel:
- · Keep gathering customer testimonials and feedback. This will help you get valuable insights that can enhance occupancy and revenues in the future. You can use tools like guest surveys, emails (using CRM automation), and other feedback collection systems. Have front desk personnel interact with guests at the end of every stay.
- · Integrate your teams and centralize information. Unified information will help you get vital insights, while process integration will help avoid common misses. Use the right PMS tool to track check-in, check-out, front desk, etc. Track financial health with a revenue management system and get regular financial reports on where you stand.
- · Customize experiences for guests- Leverage data insights to build customer profiles and personalize offerings for them. This boosts loyalty and revenues massively in the long run. Use proper tools for marketing, offering loyalty programs, upgrades, add-ons, and so on.
Tools that Can Help Boost Performance By Integrating
There are several hotel operations tools that you can rely on these days. Some of the top choices include:
- PMS- This is the core of any hotel management system. PMS is what helps you take care of front desk, operations, housekeeping, maintenance, revenues, and bookings through a centralized console. It helps you get reports and all data on bookings and housekeeping, along with automating routine administrative tasks. There are several other add-ons that you can use, including check-ins and check-outs, guest apps (for up-selling or cross-selling), and so on.
- Revenue Management System- This will help you use data to come up with proper and consistent pricing strategies. You can forecast pricing, offer real-time pricing updates and dynamic/open pricing. You can also get analytics and reports on revenue, ADR, rivals, etc.
- Customer Relationship Management (CRM)- This helps you build and maintain your guest relationships. These tools enable better management through automated lead distribution and generation, conservation tracking, booking inquiries, client segmentation and profiling, automating marketing tasks, etc.
- POS- The point of sale system is where you can collect all the revenue generated by customers who eat at your hotel and choose other services. They don’t have to immediately pay for it if you have a POS system in place. The tool usually comes with receipt printers, POS terminal displays, QR code scanners, and debit/credit card readers. The key functions include transaction records/reports, payment processing, inventory management, etc.
For more information, you can download check out popular and effective hotel management software - aPerfectStay.
Divya Bansal
Published on Nov 23, 2024 🕒 minute read
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