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As part of HSMAI’s Commercial Strategy Week in Charlotte, HSMAI hosted a roundtable for ownership executives. Industry experts pinpointed five main challenges and offered tactics to tackle them. Below are the identified challenges and their corresponding strategies:
1.Rising Costs and Profitability Challenges
Challenge: Rising sales, marketing, and operational costs are outpacing revenue growth, creating profitability challenges. Innovations and fundamental revenue management are needed to address these increasing costs. Accurate forecasting and strategic cost management are essential to maintain profitability.
Strategy: Implementing advanced revenue management systems and techniques can help mitigate rising costs. Focusing on accurate forecasting and strategic cost management, hotels can optimize resources and improve profitability. Regularly reviewing and adjusting operational practices to align with market conditions is also crucial.
2. Data Management and Utilization
Challenge: Organizations face difficulties in prioritizing and effectively analyzing the growing amounts of available data. There’s a struggle to derive actionable insights from this data, necessitating sophisticated analysis and integration. The acceptance of AI and algorithms is increasing to enhance decision-making processes.
Strategy: Investing in advanced data analytics tools and training staff to utilize these technologies can help extract meaningful insights. Integrating AI and machine learning algorithms into data analysis processes can improve accuracy and decision-making. Creating a centralized data management system ensures consistency and accessibility.
3. Talent Acquisition and Development
Challenge: The lack of skilled talent to drive revenue and make informed decisions is a significant issue. The post-pandemic workforce has seen a decline in quality, with many skilled professionals leaving the industry. Developing business acumen among staff is crucial for effective negotiation and strategic implementation.
Strategy: Establishing robust talent development programs and offering continuous learning opportunities can attract and retain skilled professionals. Implementing mentorship initiatives and career advancement opportunities fosters growth and loyalty. Focusing on business acumen training for staff enhances their ability to negotiate and implement strategies effectively.
4. Customer Preferences and Market Trends
Challenge: Understanding and adapting to changing customer preferences is critical for maintaining competitiveness. Normalizing leisure demand impacts profitability and necessitates adjusted revenue strategies. Staying ahead of market trends and evolving expectations is essential for success.
Strategy: Conducting regular market research and gathering customer feedback can help hotels stay informed about changing preferences. Adapting marketing and revenue strategies to align with current trends ensures competitiveness. Offering personalized experiences and flexible booking options can meet evolving customer needs.
5. Alignment and Collaboration within Organizations
Challenge: Misalignment between property management, brands, and ownership on success metrics is a major challenge. Effective communication and education about profitability and long-term goals are needed to align stakeholders. Fostering collaboration and breaking down silos is vital for strategic alignment and improved performance.
Strategy: Establishing clear communication channels and regular alignment meetings between stakeholders can improve collaboration. Educating all parties on the importance of profitability and long-term goals fosters a unified approach. Encouraging cross-functional teams and shared objectives enhances strategic alignment.
Thank you to the companies sponsoring this roundtable Dragonfly Strategists and FLYR. This Roundtable was attended by ownership groups such as Apple REIT Hospitality, Ashford Hospitality Trust, Hospitality Investors Trust, Newcrest Image, Noble Investment Group, Ohana Real Estate Group, Summit Hotel Properties, and Trinity Investments.
HSMAI hosts this unique by-invitation 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.