By Amy Infante, CEO & Visionary, GitGo, HSMAI Sales Advisory Board Member
We face a transformative period as we enter budget planning for 2024. While the process remains, the focus and strategies are evolving. The HSMAI Sales Advisory Board recently met to dig into the best practices.
1. Holistic Perspective is Key:
Budgeting isn’t just about top-line numbers or expenses; it’s about having a holistic perspective. This requires understanding where profits are originating and adapting accordingly.
2. Technology Investment for Data-Driven Decision Making:
One of the best practices that stood out was investing in technology, not just for efficiency but for obtaining a comprehensive data perspective. Centralized platforms are essential for some organizations. They are treated as coworkers, helping to back every decision with data.
3. Commercial Alignment:
Do all team members share a common goal? Metrics such as top-line revenue, market share, and productivity can be complemented with other factors like online reputation and turnover. This comprehensive approach ensures that everyone works in harmony.
4. Agile Budgeting:
Dynamic forecasting allows for a more fluid and adaptive approach to static budgets. While numerical goals remain consistent, the strategies to achieve them must be nimble, adapting to changes throughout the year.
5. Sales and Marketing Synergy:
One suggestion was a monthly meeting involving all leaders, including the GM and F&B heads, aligning everyone on hotel performance and strategy. Using an agency model can enhance commercial alignment and speed up progress.
6. The Commercial Strategy Scorecard:
Look at both KPIs and alignment, some companies have a scorecard that is updated every day.
7. Guarding Against Data Overwhelm:
While data is essential, there’s a danger in getting too tied up and not acting. It’s also important to ensure that the data collected is truly relevant.
- A KPIs Guide for the Commercial Strategist | HSMAI Americas
- HSMAI Commercial Strategy Week Insight: Death of the Marketing Plan | HSMAI Americas
Questions to Bring to Your Team:
- How is your organization changing the process of how you plan for 2024 tying in a more commercial approach?
- In an era where customer experience is paramount, how are your hotels reallocating budget to prioritize initiatives that enhance guest satisfaction, loyalty, and overall revenue?
- How is your organization harnessing data analytics and technology, taking inspiration from other industries like e-commerce and finance, to make informed budgeting decisions that drive commercial success?
- What strategies are you adopting to ensure seamless alignment between sales and marketing teams, optimizing their budgets to maximize revenue generation?
- In light of disruptive changes brought on by recent global events, how can hotels incorporate agile budgeting practices, drawing inspiration from other industries, to adapt quickly to evolving market conditions and customer preferences?