Hotel upselling is excellent for enhancing the guest's experience and increasing revenue. However, understanding how to...
- What Is Hospitality Management and How It Can Help Your Business Grow
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Whether you're a veteran in the hospitality sector or looking for a new role in a managerial position, now is the best time to increase your knowledge. Technological advancement is helping hospitality managers improve their productivity while staying on top of guests’ wants and needs.
This "What is hospitality management?" blog post focuses on the particulars of hospitality management, highlights the most critical areas of the practice, and shows hoteliers how to implement best practices to enhance the guest's experience while boosting revenue.
What Is Hospitality Management?
Lodges, resorts, and hotels are establishments that utilize general hospitality management to keep their guests satisfied. The guest experience is created, managed, and maintained by experts in this field.
General hospitality management often oversees sales, housekeeping, and front desk staff. Locating new ways to improve every aspect of the patron's visit and giving them the best experience possible are the primary goals of hospitality managers.
The properties that hospitality managers work at include but are not limited to the following:
- Large integrated resorts
- Boutique hotels
- Retreat hotels and resorts
Besides these locations, hospitality managers can work in restaurants, retail spaces, private transportation, food and beverage establishments, and more.
Various daily duties of hospitality managers include but are not limited to:
- Hiring new employees
- Calculating expenses
- Monitoring monthly budgets
- Communicating with staff members in different departments
Chain or large hotel hospitality managers may also be required to perform training to assist other staff members in growing within the hotel.
What Is the Difference Between Hospitality Management and Hotel Management?
The key difference between hotel and hospitality management is the sectors each covers. Hotel management is generally only focused on managing hotel operations, while hospitality management is used in retail, entertainment, lodging, casinos, and more.
The table below shows the key differences between hospitality and hotel management services.
People and performance management
Management of hotel services and operations
Wages start in the low to medium income range and can increase with experience
Entry-level jobs typically start at the higher-end of the pay scale compared to entry-level hospitality management positions
Positions available in various hospitality and entertainment sectors including resorts, casinos, theaters, and events
Typically only jobs available in the hotel sector, such as housekeeping, hotel manager, concierge, etc.
Area of Work
Events, travel, food and beverage, restaurant management, etc
Hotel daily operations range from coordinating fresh cut flowers for the lobby to staffing, and long-term responsibilities may include physically upgrading the hotel, negotiating leases with on-site shops, or managing contracts with vendors (such as cleaning supplies.)
Regarding training and education, hospitality and hotel managers generally require a bachelor's degree in a correlating field. Especially with large hotels, candidates need to prove sufficient experience combined with a certificate or degree in hospitality administration or hotel management. A bachelor’s degree can help candidates stand out because of the massive competition for hotel management positions.
However, for small chain hotels in particular, it’s easier for individuals to start in an entry-level position, and if they stay with the same hotel for years, they may be promoted to manager. Generally, people on this path may start working in guest services, such as housekeeper, valet, or bellhop, and slowly move their way up the ranks through promotions.
Hospitality managers are faced with various daily tasks that software can augment. These activities include but are not limited to:
- Evaluating and supervising staff - Luxsell URS gives hospitality managers, sales agents, and front desk staff the ability to work collaboratively on a single work terminal. Managers can view front desk agents upsell performance and increase peer-to-peer motivation with Luxsell URS’s Leaderboard feature. The software provides front desk employees with a basic script they can use until finding their voice, making it easier to close more deals and generate more revenue.
- Assist in pricing products, inventory, or services - Hospitality managers working in a hotel may be responsible for handling room or inventory prices. With software like HouseCount RMS, revenue or hospitality managers can ensure pricing is the same across all networks, including private and public channels, OTAs, and the hotel's website. HouseCount RMS also has an autopilot pricing feature that uses an engineering technique called “feedback control theory” to provide accurate inventory rate recommendations based on data entered into the system.
- Coordinate and organize operations to ensure maximum efficiency - When hotels or restaurants run at optimal levels, it not only improves customer satisfaction but also boosts employee productivity. A standard operating procedure helps maintain consistent quality in all work activities and shows employees what is expected. Software like HouseCount RMS and Luxsell URS can be amalgamated with a hotel’s existing tech stack while giving hospitality managers automatic pricing and suggestion tools.
On the other hand, hotel managers may be required to deal with many tasks that are more focused on the hotel they’re working at. The scope of work and the type of establishment typically determine the primary responsibility of a hotel manager.
Let’s look at a few activities a hotel manager may be in charge of.
- Overseeing operations, including efficiency, cleanliness, and maintenance - Keeping a hotel well-maintained and clean goes a long way in impressing guests and walk-in customers, such as one’s visiting on-site shops or gaming areas. Hotel managers can use software, like HouseCount RMS, to gain a multi-campus view of all pricing for different hotels or towers on their properties. The platform also offers casino yielding where reinvestment level by player segment is fully adjustable. HouseCount RMS helps hotels increase ancillary profits from their casino segment while defining margins and values per the establishment’s guidelines. The software then utilizes this information to determine an optimal comp and rate level for each segment, giving the hotel manager more time to focus on other important tasks.
- Handling employee and guest issues - Patrons and staff make up the foundation of a hotel business, so without them, an establishment will fail to succeed. Hotel managers are trusted with the responsibility for any internal problems, whether between the guest and the hotel or staff members. Tracking previous client and employee interaction data with a CRM system gives hotel managers the insights required to resolve any pre-existing issues.
- Managing budgets - Staying within a specific budget is important no matter what type of business you run. HouseCount RMS and Luxsell URS provide a work terminal that connects with the native software a hotel already uses and gives hotel managers in-depth details on specific rooms sold and for how much. The software’s autopilot pricing feature can also help hotel managers stay on top of price changes, especially during economic uncertainty or off-season. Because HouseCount RMS integrates with your PMS quickly, the platform becomes the all-in-one solution for managing budget and room rates across channels.
Tasks such as customer relations, coordinating staff, marketing and promoting the company, and ensuring the guest's positive experience could be expected from both hospitality and hotel managers.
Best Practices for Hospitality Management
A "What is hospitality?" article wouldn't be complete without some advice on the best practices to improve hospitality management services.
An establishment may risk losing prospective patrons or repeat customers without an effective service strategy. Here are four helpful best practices that ensure a particular standard across an organization is acceptable to guests.
Have a Team Mentality
Understanding that employees are crucial to the success of a hospitality business is key to creating a winning team. A good practice would be to host regular team meetings or building events where staff can form stronger relationships. Happy (and educated) employees mean satisfied guests.
The table below highlights the advantages and disadvantages of working in teams or groups:
Increased productivity: When people work together in the hospitality environment, they can often accomplish more than they could individually. This is because team members can divide tasks, share knowledge and skills, and support one another.
Groupthink: There is a risk of groupthink, where hotel staff may be reluctant to express dissenting opinions or ideas to maintain group cohesion.
Improved communication: Teamwork in the hospitality environment can help improve communication and collaboration, as employees can share ideas and offer feedback to one another. For example, when front desk employees and managers have good communication, it ensures the guest has a consistent experience.
Conflict: Team members may have different views, goals, or working styles, which can lead to conflict. For instance, managers and staff may argue about how a specific procedure is handled.
Enhanced creativity: Teams can often devise creative solutions to problems that individuals might not have thought of on their own. These new perspectives include having knowledge of the local target market, understanding a particular patron's preferences, and informing management of a new way to perform a specific task.
Free-riders: Some team members may not pull their weight, leading to resentment from other team members. For example, some housekeeping employees may do less than others, leading to inconsistent cleaning of the establishment.
Greater job satisfaction: Working in a team can provide a sense of accomplishment and provide social support, leading to increased job satisfaction.
Time-consuming: Working in a group can take time to reach a consensus or complete tasks. If front desk staff and bellhops aren’t working together effectively, it could lead to further time constraints.
Better decision-making: Hospitality teams can make better decisions than individuals because they can consider a broader range of perspectives and experiences.
Dependence on others: Some hotel or restaurant team members may become reliant on others to complete tasks, which can be problematic if someone is absent or unable to fulfill their role.
Rewarding staff when they accomplish client satisfaction goals and teaching them about the importance of customer service should be a primary focus during meetings. Some hospitality brands even utilize gamification techniques during the education process to keep employees engaged and make learning fun.
Whatever the approach, investing in staff development can significantly boost guest satisfaction.
Follow a Standard Operating Procedure
A standard operating procedure (SOP) gives employees a shared set of instructions that the establishment has to ensure any operation is carried out smoothly, safely, and effectively.
Hospitality managers will see an increase in productivity and reduce costs when establishing a better structure. An SOP can be valuable to hospitality managers and make grading and ranking procedures much more manageable. A standard operating procedure framework allows hospitality managers to monitor employee performance based on clear expectations.
Here are five steps that may be included in a standard operating system for hospitality management:
- Establish clear guidelines and policies, including how to deal with customers, the steps to take when a new guest enters the building, and how to deal with complaints.
- Set performance benchmarks and goals for all staff, and provide continuous support and training to assist them in achieving these goals. Hospitality managers use KPIs, such as average daily rate, occupancy rate, RevPAR, and software like Luxsell URS, to determine sales agent performance and develop robust revenue-boosting strategies.
- Develop and implement a marketing plan to attract new clients and promote the restaurant or hotel. This involves creating a clear plan of action and setting SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) goals that help drive new business to the establishment.
- Respond to customer complaints and feedback professionally and promptly. Hospitality managers can host training sessions that help employees learn how to treat guests during conflict situations.
- Take steps to ensure the well-being and safety of customers and employees, including implementing the appropriate safety protocols, such as adapting an actionable plan for emergencies, incorporating training procedures to mitigate risks, communicating potential hazards to stakeholders, and documenting hazards in the hotel or restaurant environment
Depending on the requirements and policies of the business, the specific steps included in this sample SOP may vary. Top hospitality management companies use factors in these general guidelines to keep restaurant and hotel operations running optimally.
Know Your Customer
Hospitality managers can use Luxsell URS to monitor front desk representatives while switching between admin and agent mode to make price changes or compare employee performance and identify coaching opportunities Luxsell URS offers sales staff the tools to upsell inventory to guests or customers.
Once guests visit a hotel for the first time, front desk staff can enter basic information into the software and allow LuxSell, Luxe Pricing’s advanced pricing algorithm, to take care of everything. The more data entered into Luxsell URS, the better the system selects the appropriate deal for a specific customer segment.
One of hospitality management's most vital best practices is providing excellent customer service. This means training employees to be attentive, helpful, and friendly to all guests' requirements. Hospitality companies rely on word-of-mouth referrals and repeat customers, meaning providing an expectational service is critical for building positive rapport.
This can be achieved by hosting training programs that educate staff on handling difficult situations and complaints while interacting with guests courteously and professionally.
There are also many tools hospitality professionals have at their disposal, including the following:
- Tracking tools: CRM (Customer Relationship Management) or CX (Customer Experience) platforms.
- Online surveys: Available through third-party vendors or can be implemented directly on the establishment's website.
- Customer feedback software: Various online tools and websites can be used to manage and respond to feedback.
These programs give hospitality managers full access and control over customer relationships, helping them to improve the client's experience.
Addressing guests' concerns is of the utmost importance. Once feedback is received, a hospitality manager should act on it timeously. Acknowledging and rectifying any issues quickly will result in fewer business complaints.
Everything from responding to a guest's email complaining about the cleanliness of a room or replacing a customer's meal that was served cold must be handled with timeliness and care. An organization's ability to take on criticism and feedback while utilizing these inputs to improve the business is key to maintaining customer satisfaction.
Here are four reasons why incorporating guest feedback is crucial to businesses in the hospitality industry:
- Improves the customer experience: By listening to what patrons have to say about their experience, hospitality businesses can make changes to enhance the guest's experience and identify areas for improvement.
- Identify issues and problems: Guest feedback can help establishments identify issues or concerns they may not have noticed. For instance, if multiple guests report issues with the cleanliness of a particular room, the hotel can take steps to improve housekeeping.
- Improving the organization's reputation: Positive feedback can help attract new customers and enhances a business's reputation, while negative feedback can achieve the opposite. Hospitality businesses must listen to what patrons say and address any problems.
- Increases revenue: Providing high-quality guest experiences allows hospitality businesses to build stronger brands. This encourages guests to recommend a company to others or return to the establishment themselves in the future.
Irrespective of whether it's a written questionnaire card or an online review site, continuously taking and implementing guest feedback will ultimately lead to better customer satisfaction. Client feedback is essential to running a successful hospitality business and helps ensure guests have a positive experience.
Develop a Strong Brand
Another vital aspect of hospitality management is developing a strong brand. This can help the company create a sense of purpose and identity while simultaneously allowing it to stand out in a crowded market.
Let's look at three of the significant benefit of developing a solid brand:
- Positive word-of-mouth marketing - When restaurants, hotels, or other hospitality organizations tell stories their audiences want to hear, they'll repeat them to family, friends, and strangers. These individuals become "brand ambassadors'' for the establishment by utilizing word-of-mouth advertising, which can increase a marketing campaign's impact by up to 54%.
- Increases brand recognition - Potential customers and target audiences identifying products or recalling indicates how well the target market differentiates the hotel or restaurant from its competitors.
- Higher advertising effectiveness on clients - Any advertising from a restaurant, hotel, theater, or event with a well-known brand is generally met with reliance and curiosity. With a strong brand identity, patrons will feel more confident in what's being offered, which can spark the excitement of booking a table or reserving a room.
Hospitality managers can work with owners to develop a clear mission statement, brand message, and consistent brand identity. Visual branding, memorable logos, and defining the culture and values of the business can go a long way in impressing the customer.
Hospitality Management Benefits
Hospitality managers run the day-to-day operations of a hotel or restaurant and help the business function efficiently. Here are three benefits of incorporating hospitality management into your organization.
Improves Customer Relationships
Because hospitality management dives into the guest's needs, wants, and preferences, it allows businesses to be ahead of the customer. Hotel management companies use customer relationship management software to keep track of client interactions and can use this information to tailor their communications.
Guests receive personalized messages or deals that suit their taste, increasing the likelihood of revisiting the establishment. If customers have had a pleasant experience at a business, they'll not only tell their friends and family about the experience but also book a table or room again.
Hospitality management can benefit customer relationships in many ways:
- Improved guest satisfaction: By providing excellent customer service, solving issues, and offering personalized experiences, hospitality management can help to increase guest satisfaction. This can lead to repeat business and positive word-of-mouth referrals.
- Increased customer loyalty: When guests have a positive experience with a hospitality business, they are more likely to return and recommend the establishment to others. For instance, when hospitality managers go out of their way to fulfill the guest’s requirements, this can lead to increased customer loyalty.
- More substantial brand reputation: Good customer relationships can help to improve the establishment’s reputation and build a strong brand identity. This can attract new customers and lead to increased revenues.
- Growth opportunities: By building strong customer relationships, hospitality management can identify opportunities for growth and expansion. For example, if customers consistently request a room or spa package, the hotel may consider adding it to its offerings.
Building strong customer relationships is essential to running a successful hospitality business and can significantly benefit the company and its customers.
Hospitality managers can take advantage of revenue management or upselling software, like HouseCount RMS and Luxsell URS, to increase revenue optimization. Cross-selling, upselling, and promotions can be easily managed and presented to guests at the right time with little manual management needed, making it easy to unlock more revenue. This ensures all revenue-generating possibilities are taken advantage of, no matter how or where the customer books.
Luxe Pricing developed these tools to help teams collaborate while keeping track of booking and selling activities. Integrating the platform into an existing tech stack is quick and requires minimal effort from the hotelier or business owner.
Effective Hospitality Management Improves Operational Efficiency
The primary benefit of improved operational efficiency in hospitality management is reducing costs. This can be achieved through various means, such as implementing new technologies or systems to automate tasks, reorganizing workflows to eliminate constrictions, and streamlining communication channels and protocols.
For example, by using data analytics to track and measure key performance indicators, hotels can identify areas of inefficiency and take steps to improve them. This could involve reorganizing housekeeping schedules to reduce the time it takes to clean rooms or implementing a new reservation system to streamline the check-in process.
Effective hospitality management improves operational efficiency by optimally handling all the tasks required to run a hotel or restaurant. Hospitality managers play a core function in maintaining the various nuances involved in hospitality businesses, such as events, theaters, casinos, cruises, amusement parks, and other tourism-related services.
Final Thoughts on Hospitality Management
Hospitality managers take care of various activities, including employee management, marketing, financial reporting, providing guests with an exceptional experience, and more.
These tasks can be more straightforward with Luxe Pricing's dynamic software solutions, HouseCount RMS and Luxsell URS. Managing room bookings, upsell opportunities, and agent performance is centralized in a cloud-based system that makes price recommendations utilizing machine learning.
Our software is helping hotels, casinos, and top hospitality management companies maximize their revenue autonomously while offering a platform that makes managing multiple properties easy.
Now that the question of "What is hospitality management" has been answered, there is only one thing left to do.
Request a demo to see how Luxe Pricing's solutions boost revenue and increase your team's productivity. Once you have checked out our revenue management software demo, we're sure the results will speak for themselves.
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