A well-designed pricing strategy must be effective and lead to improved operating results for our hotel—that is , to an optimization of REVPAR (average revenue per available room)—and, consequently, to an increase in our gross operating profit per room (GOPPAR).
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Strategic Objectives to Be Achieved in a Hotel Analysis
Efficiency, competitiveness, and profitability are the three goals a hotel must achieve. To do so, it is necessary to approach and conduct a hotel analysis or operational analysis from a comprehensive perspective, taking into account changes in the business environment.
In an industry as complex as the hospitality sector, certain aspects often force companies to devote more time to operational tasks, causing them to neglect key objectives. That is why one of the central aspects of the business is analysis from a global perspective. Successful hotel companies maintain core values and a fundamental purpose that remain constant over time, while their business strategies and practices continually adapt to a changing world.
The Importance of a Strategic Plan in Operational Analysis
It is important to emphasize the importance of implementing a process and a sound strategic plan, and highlight the key tools for implementing them in operational analysis. Strategy can be either proactive—that is, intentional—or adaptive to a changing environment. To this end, key players must develop new management tools aimed at efficiency, competitiveness, and profitability, in conjunction with a strategy that also incorporates a long-term vision. Those at the helm of a hotel must not only manage day-to-day operations but also plan for the next 5 to 7 years. Likewise, it is necessary to stay attuned to changes in the industry, including tourism trends, emerging market segments, and the specific characteristics of each.
When it comes to the international context, it is also important to analyze a hotel’s target audience and the context in which it operates. For example, if the target customers are fishermen from Northern Europe, it is also necessary to consider what is happening in that region.
The Importance of Studying the Competition in a Hotel Analysis
Conducting a competitive analysis at the same time is key to determining our hotel’s strategic position in this highly competitive market. Understanding the strengths and weaknesses of our direct competitors will allow us to determine whether our pricing and service offerings are in line with the market and sufficiently competitive.
What is strategic management?
The strategic management model is underpinned by premises, principles, objectives, and basic conditions for its implementation and execution. Among the premises, the following stand out: the commitment from the organization’s members and the establishment of an organizational culture that fosters teamwork. Similarly, the principles are based on a comprehensive management model that ensures consistency between strategic, tactical, and operational levels. In addition, it is recommended that staff be trained in the tourism and hospitality sectors, which would facilitate their participation in the strategic process.
Objectives of the Analysis of a Hotel
Additionally, the objective is to contribute to improving the quality and efficiency of services in the sector, as well as the conditions under which the management tool is used, to monitor and control the model according to each hotel’s specific needs. Operational analysis is a very important tool, as it identifies areas of opportunity in the hotel’s results. These results reflect the business strategies, actions, and decisions of everyone who works there; therefore, reviewing and analyzing the results should not be the sole responsibility of the general manager. Today, division managers also participate in the entire process because they have decision-making authority that makes them responsible for achieving their objectives.
Conclusion
Times have changed; management requires executives who, in addition to running operations, manage their resources; let’s remember that the money is in the operations. A management process that involves area managers actively in the administration and evaluation of results—in coordination with the hotel’s internal control and general management—helps identify opportunities through the analysis of various profit margins.
