Throughout my career, I have been asked what makes a great Hotel General Manager? This is a thought-provoking question as the importance of a strong leader has taken on a new meaning in today’s environment.
Adaptability
Words like passion, commitment, and understanding always top the list, though adaptability comes to front of mind as we navigate this new Covid world. Adaptation, as defined in The American Heritage Dictionary, “is an alteration or adjustment, often hereditary, by which a species or individual improves its condition in relationship to its environment”. The last part of this definition, “improves its situation in relationship to its environment”, is key in defining what a great leader needs to do today in the hospitality industry. Even with mass vaccine distribution, there remains many market unknowns including the return timing of significant group and business transient clientele.
This uncertainty, combined with less brand support due to corporate layoffs, requires an aggressive adaptation of sales and marketing initiatives as hope is not a strategy. There is opportunity for great leaders to grow market share through creative adaptation in order to drive the value proposition for all three parties – guests, employees, and owners.
Back on the offensive
Over the past year, hotel teams have done a great job implementing aggressive cost control initiatives, and now is the time to go on the offensive to drive revenue. Today’s General Manager needs to:
- Understand respective ownership’s cash commitments, as it relates to the asset
- Develop a break-even game plan, including a thoughtful sales strategy for achieving this goal
The importance of the Executive Committee understanding this financial requirement cannot be overstated. While no one can predict the future, group demand and business travel will continue to be severely impacted this year, and being realistic to this point, will help drive appropriate strategies. With a break-even game plan, critical thinking is key and while certain strategies have been successful before, the traditional demand that resulted from plugging into a distribution channel will not automatically drive demand to your asset today. Stepping back and understanding your property attributes as compared to your competitive set are imperative.
Overnight stays at your competition are eye-opening events that will allow for an appropriate understanding as compared to the traditional 30-minute walk-through visit after a guest room or meeting space renovation. Dining at the various outlets and speaking to the associates sheds a great deal of light on that operation. New ideas and opportunities abound from this simple approach.
While understanding the traditional set is a start, the need to expand this competitive set is greater today than ever before. No matter the property type, there are demand generators available that previously may have never been considered. For example, for a full-service hotel, select service, extended-stay, and mid-tier properties all have demand that can add much-needed occupancy points that will help improve the bottom line. Simply put, shifting 10 rooms a night from a secondary competitor has a lasting effect of 3,650 room nights annually. This demand can come from a variety of areas, including project work in a market. Hotel teams should look at how they need to adapt any particular offerings to accommodate a potential demand segment, while being thoughtful of the capital expenditure requirement.
Package offerings and amenities
Another area of opportunity includes taking the time to review your respective package offerings and update accordingly. Today’s traveler is looking for safety and security with amenities that provide these attributes. What packages can be offered that accommodate today’s leisure traveler? The adage of less is more is relevant as a few thoughtful packages can have a major impact as compared to a dozen different offerings. In addition, expanding on the current property offerings is an easy and effective update.
Creative programming has taken on a new meaning with today’s leisure traveler. The major brands have come out with a work/live/learn program. While this is a great initiative, there are unique experiences that can be further explored, which today’s traveler is looking for even during a quick weekend get-away. Opportunities include utilizing vacant meeting space for cooking classes, fitness programs, or wine tasting, all of which can be safely implemented.
Appropriate rates
Appropriate pricing and strong revenue management continue to be fundamental. The opportunity to drive demand should not come at the expense of rate as we have historically seen the negative effects of this strategy. A strong General Manager pushes their team to be thoughtful and stretch in this initiative. New demand channels and market segments can further assist in driving rate. Today’s traveler is willing to pay for a socially distanced experience and when combined with creative programming it can truly drive this opportunity.
Communication
Last, but certainly not least, the importance of communication cannot be overstated. Constant communication with ownership has and continues to be imperative, and a great leader over-communicates to their team in uncertain times. The need for additional town halls explaining demand levels, sales approach, and ownership requirements helps alleviate doubt and confusion.
The opportunity for change is upon us, and the excitement behind the vaccine rollout provides great anticipation for the future. Today’s new leader will now be defined by their ability to adapt and enhance the value proposition.