Objectives for a Hospitality Business

 

Objectives for a Hospitality Business

The hospitality business, encompassing both cozy bed-and-breakfasts and high-rise brand-name hotels, provides a warm welcome, comfortable accommodations and friendly service. Travelers have choices and look for the best experience at a reasonable price. To win repeat business from loyal customers, hospitality providers must set challenging yet realistic objectives, supplying the training and resources for service providers to meet their objectives and exceed guest’s expectations.

Customized Service

In “The Little Golden Book of Rules,” Dale Carnegie stated: “Remember that a person’s name is to that person the sweetest and most important sound in any language.” An objective of the hospitality business is to provide personalized service, using technology to capture guests’ preferences in rooms, pillows, amenities and other conveniences. Recalling a guest’s name -- using it at check-in and throughout his stay -- makes him feel comfortable and important while he is away from more familiar surroundings. Delivering customized service before a guest makes a request shows extraordinary attention to detail and dedication to exceptional service.

Exceptional Value for Price

Price is often a determining factor when you choose a hotel, but a $100-per-night room at a budget hotel should offer the same value as a $400-per-night room at a luxury hotel. Value is often measured by added services, such as free Internet access, daily newspaper delivery or organic soaps and shampoos in the bath. An inexpensive hotel is not a bargain if the rooms, amenities and service are substandard. The objective of all service providers should be to deliver fast, friendly and thoughtful service with relentless attention to detail. Hot food items on the breakfast bar and premium coffee in the rooms are small things that can add value to the guest experience.

Cleanliness

Providing immaculate housekeeping throughout the hotel sets the bar high and challenges everyone on the staff to take responsibility for exceptional cleanliness. With this objective, everyone -- from the CEO to the maintenance crew -- is responsible for picking up trash, straightening pictures and clearing room service trays left outside guest rooms. Instead of calling for a housekeeper, the staff member who notices a smudged restroom mirror or an overflowing trash can assume the responsibility to either take care of the situation himself or contact the appropriate department and follow through to ensure resolution of the situation.

Continuous Employee Training

Dealing with guest demands, solving problems and handling complaints require training in customer relations, interpersonal communications, problem resolution and customer service. Employees need support from management when dealing with unruly or unreasonable guests. Management could offer continuous training, encouragement for employees in the form of incentives and recognition programs to motivate and reward exceptional service.

 

Objectives for a Hospitality Business

 

Elegant hotels, budget motels, quick service restaurants, upscale dining establishments, travel and tourism are all part of the hospitality business. Setting objectives for your hospitality company is part of the business planning process that leads your company down the path to success. Share the objectives with employees so everyone is on the same track.

Generate Maximum Hotel Revenue

Hotels and motels are a $138 billion business in the United States, according to IBISWorld. Hotels generate revenue through renting rooms to guests. Any hotel can generate 100 percent occupancy by cutting the room rate significantly. The key is to find the room rate and occupancy percentage combination that maximizes revenue. For example a 200-room hotel that has a 75 percent occupancy -- 150 rooms filled -- and a room rate of $99 generates $14,850 per day. If the room rate increases to $149 and the occupancy drops to 60 percent, the hotel generates $17,880. Another metric for hotels is RevPAR -- revenue per available room, not just rented room. In the first example, the RevPAR is $74.25. In the second example, the RevPAR is $89.40. The higher the RevPAR, the better the hotel is doing.

Achieve Maximum Hotel Profit

Minimize housekeeping costs by training workers to clean each room in an allotted time. Reduce utility bills by turning down air conditioning and heating in unoccupied rooms, although you might want to keep a light on so the hotel looks full from the outside at night. Consider changing the bed linens only on the first day the room is rented and then by guest request on subsequent days. Overstaffing wastes money, and understaffing negatively affects customer satisfaction, so schedule just enough workers to fill need.

Boost Food and Beverage Revenue

Restaurant revenues were projected to reach $660.5 billion in 2013, the National Restaurant Association website reports. Restaurants generate revenue based on the number of customers served each day and the average price per order. Increasing either of these factors increases revenue. As in the hotel industry, the challenge is to find the combination of menu items and prices that generates the highest average order while keeping the restaurant close to or at capacity. Restaurants that turn over tables -- seat new customers -- more often have the potential for higher revenue.

Optimize Food and Beverage Profit

Keeping food and beverage costs as low as possible while maintaining quality and service are the first steps toward generating a profit in a restaurant. The optimum food cost of goods sold is between 25 to 30 percent, which means the gross margin is between 70 to 75 percent, according to the Food Service Warehouse website. Cost out each dish and drink, and modify prices accordingly. Review the menu to see which items are the best sellers. It may be possible to raise the prices on those items without affecting the number of orders.

High Customer Satisfaction

Guests who have an unpleasant stay, poor service or a dirty room won't return. Patrons notice if the food is cold and the wait staff is rude or inattentive. They may post a detailed account of their negative experience on review sites, and at the very least, they'll tell friends and family what a disaster their visit was rather than recommending your establishment. Keep customer satisfaction high through quality control methods, employee training and monitoring.

Satisfied Employees

High employee turnover costs your business in several ways. Training costs increase as new employees get up to speed on their jobs. For example, a new chef unfamiliar with the kitchen and menu may waste food preparing the dishes or not have a handle on portion control. Unhappy employees convey their emotions to guests through expressions and actions, detracting from the guests' experience.