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As part of HSMAI’s Commercial Strategy Week in Toronto, HSMAI hosted a roundtable for ownership executives. Through insightful discussions, industry leaders identified five key challenges and shared strategies to navigate through them.
1. Talent Acquisition and Development
Challenge: One of the foremost concerns shared by participants revolved around talent acquisition and development in revenue management roles. The industry seeks individuals with a rare combination of analytical prowess and effective communication skills. Ensuring a pipeline of qualified talent remains a pressing worry, prompting the need to foster career growth and nurture rising stars.
Strategy: To address this, hotels and management companies can invest in talent development programs, mentorship initiatives, and attractive career advancement opportunities. By creating a conducive environment for growth, the industry can attract and retain the best minds in revenue management.
2. Revenue Management
Challenge: Participants also emphasized the importance of focusing on both revenue and profitability. While driving revenue is crucial, it should not come at the expense of overall profitability. The concern lies in ensuring revenue teams understand the financial implications of their decisions, striking a balance between revenue optimization and sustainable financial success.
Strategy: By integrating financial training into revenue management programs, industry professionals can equip revenue teams with a comprehensive understanding of financial performance. This alignment ensures decisions are data-driven and contributes to the long-term financial health of the organization.
3. Technology
Challenge: The ever-evolving technology framework in the hospitality industry poses a formidable challenge. Integrating various technologies can be complex, placing a burden on frontline employees. The participants expressed concerns about the juggling act of handling multiple technologies simultaneously, impacting operational efficiency.
Strategy: To address this, hotels and management companies can invest in comprehensive training for employees to enhance their tech-savviness. Additionally, implementing user-friendly and interconnected technologies can streamline processes and minimize the strain on staff, fostering a more efficient and seamless operation.
4. Safety and Security
Challenge: Safety and security concerns have become paramount. Roundtable attendees worry about the well-being of both staff and guests, highlighting the need for robust safety measures and protocols.
Strategy: The industry must prioritize safety and security by investing in advanced security technologies, enhanced staff training, and proactive risk assessments. By instilling a culture of safety and vigilance, hotels can offer guests peace of mind and create a secure environment for all.
5. Career Growth and Development
Challenge: Participants expressed concerns about the limited career growth opportunities within hotels and management companies. Addressing wage pressures and finding ways to offset increased labor costs emerged as crucial focal points for industry professionals.
Strategy: By offering competitive compensation packages and implementing incentive-based structures, hotels can attract top talent and reduce employee turnover. Moreover, providing clear pathways for career advancement and continuous professional development can instill a sense of loyalty and dedication among staff.
The executives gathered from ownership group executives certainly are facing their share of challenges, but they also recognize and are hopeful about the opportunities for progress and growth.
Thank you to the companies sponsoring this roundtable Dragonfly Strategists and MyDigitalOffice. This Roundtable was attended by ownership groups such as Apple REIT Hospitality, Ohana Real Estate Group, Park Hotels, Summit Hotel Properties, and Trinity Investments. HSMAI hosts this unique by-invitation only forum annually for executives from ownership groups who specialize in a commercial role at their company. If you are interested in being invited next year, please email Bob Gilbert.