It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change
- Charles Darwin
Given the market tumult of the last couple of seasons and ongoing economic pressures, we felt it would be valuable to bring our community of hoteliers together to share insight into what is happening and more importantly, what it means for hospitality the road ahead.
Today we all see a reflection of uncertainty about customer demand, changing labor market conditions, uncertainties in the economy after the crisis, and etc. These are all factors that have already ultimately affected your businesses or will do in the nearest future.
No one can predict how bad the economy will get, but things don’t look good. Skilled labor shortage, operational issues, rising cost of daily consumables, booking and revenue challenges, constantly changing expectations of customers - and the other daily problems every Hotel Management Company faces.
The safe move is to plan for the worst. If the current situation is as bad as the last two economic downturns, the best way to prepare is to cut costs and extend your runway.
Remember that many of your competitors will not plan well, maintain high burn, and only figure out they are screwed when they try to raise their next round. You can often pick up significant market share in an economic downturn by just staying alive.
According to the Deloitte Outlook 2022, we expect the market downturn to impact guests behavior, labor markets, supply chains and more. It will be a longer recovery and while we can't predict how long, we can advise you on ways to prepare and get through to the other side.
New technologies could help to address hotels’ challenges, but there are no centralized fixes. Increased adoption of robots, IoT, additional hotel tech tools or contactless check-in clearly eases the need for reception staff and help in some ways, but cleaning rooms and operating restaurants still requires human labor. Adoption of a dozen tools is also not the recipe to success, because some of them may disconnect with each other, cover different areas and be decentralized at all. So instead of having a full picture and perspective of your business you may work with pieces of puzzles.
“If the world outside your company is changing faster than the world inside your company, the end is near.” - Jack Welch
It is hard to predict the future, but whatever happens, we want to give you a framework to emerge from any crisis stronger with HKeeper.
With HKeeper you get a fully centralized ecosystem that increases revenue and reduces operating costs by automating workflows and controlling the expenditure of material resources and labor cost in every department at the whole property or/and multi-properties.
By going digital with HKeeper, you synchronize all the individual moving parts of your workforce, turning them into cogs in your back and front office management machine. For more thoughts watch this video we’ve created.
The only thing constant is change, growth is your choice!
The primary goal of this article is to shift our collective mindset. We are at a moment of uncertainty and change - a crucible moment where your decisions will have a major bearing on the outcome for your company.
Control what you can control. Be steady but decisive. And most importantly, build a sustainable business where you are in control of your business with HKeeper!