While popular in the Western world, third-party management of hotels has only recently started gaining ground in maturing markets. Here are eight issues hotel owners should consider when considering which operations model is right for them.
Though many hotels are undertaking cost rationalization to get ready for the after-effects of the Covid-19 lockdown, this is not the time for hoteliers to pause marketing which would end up severely impacting their recovery. Instead, every hotel chain or independent should devise their marketing strategy for two phases – during lock-down and post lock-down reopening.
Travel demand will continue to be low and extremely volatile for the coming months and booking patterns will be drastically different from pre-Covid-19 times. As such, hotels will be in the novel position of starting to build demand from scratch once they reopen.
Hotels must utilise their human capital with far greater efficiency levels. Questions have to be asked, rules have to be rewritten and mindsets have to change. WIll we be thanking this crisis for bringing about the much-needed renaissance to the modus-operandi of the lodging industry?
Chinese outbound traveler numbers have taken a hard it, but there is also a drop in global business travelers who are holding off travel to Asia. What can hoteliers do?
Unfortunately, investments made towards training and development of human resources are poorly measured and tend to skew disproportionately in favour of operations delivery, resulting in a zero-sum-game.
The importance of not just the brand, but also patents and trademarks, technology and intellectual property as well as human capital is now being ascribed value, which in many cases, has caused a measurable shift in the market value of hotels when compared to their book value.