The idea behind the establishment of any business organization is to make profits and eventually achieve business success. This implies that managers are tasked with the responsibility of ensuring that their businesses succeed.
Although all business ventures are challenging, the hospitality industry has more challenges that require a manager to work hard failure to which losses occur.
A hotel manager should be able to measure the success of the business and if success cannot be measured, then this implies that it is difficult to manage the business. There are several success indicators that a hotel manager should look out for.
The first success indicator that a hotel manager should look out for is the profit made by the hotel. Making profit is the ultimate business goal and any business organization that does not make profit stands little chances of success.
The manager should identify whether the hotel makes enough profit to meet its expenses and other costs. If the hotel generates income that caters for all expenses and leaves reasonable profit, this is a good indicator of success.
On the other hand, if the hotel is left with a small profit after meeting the expenses, then this implies that its performance is not satisfactory.
The second success indicator that a hotel manager should look out for is customer service. Customer service forms an important part of the hotel business. Front desk workers in hotels function as the gatekeepers of the specific hotels.
They are the employees who sale the image of the hotel by creating the first and last impressions to customers. A hotel manager is interested in knowing whether the staff is courteous, well informed and able to solve any crisis that may arise in the hotel.
Quality service also comprises of the ability to remember the names of regular customers. Customer service is therefore a key success indicator that a hotel manager should look out for.
The third success indicator that a hotel manager should look out for is cost control. Cost management is an important success indicator in the hotel industry. Hotels vary the rates they charge depending on whether it is the high or the low season.
Hotels usually have forecasting programs that help them determine their demands. Successful hotels should be able to balance the cost of foods and beverages, employee wages and electricity with the profits raised. Good management of the costs incurred by a hotel is a crucial success indicator.
The fourth success indicator that a hotel manager should look out for is product differentiation. The success of a hotel lies in offering special services to its customers.
The location of the hotel determines the types of services offered to the customers since customers from different locations have varying preferences.
A hotel should therefore strife towards offering services that inform its theme for the customers to identify with it. This is a success indicator that a hotel manager should look out for.
The fifth success indicator that a hotel manager should look out for is advertising. Advertising is a very important activity for hotels since it is a major way of attracting customers who generate profits.
A hotel manager can measure advertising as a success factor by keeping records of the number of customers visiting the hotel. This enables the manager to determine whether the advertising methods are effective towards achieving the set goals.
Reference List
Kasavana, M., & Brooks, R. (2009). Managing front office operations. New York: American Hotel & Lodging Association, Educational Institute.