Revenue Managers and Marketing Directors understandably are keenly focused on the top-line impacts of revenue decisions - including pricing. Owners and most General Managers are more attentive to figures further down the P&L statement including Gross Operating Profit (GOP) and Net Operating Income (NOI), since performance at this level is most often directly tied to the value of their hospitality asset.
Fortunately, a simple pricing formula has been created that will help clarify the risks associated with a given pricing decision on GOP - before that pricing decision is implemented. While tolerance for risk varies from one individual to the next and from one corporate culture to the next, at least all parties involved may now have a common starting point from which smart pricing decisions can be made.
The hospitality industry is slowly waking up from a slumber it was forced into due to the recent economic downturn. Thankfully, things are looking up now and hotels are not wasting time making up for the low occupancy they had to endure. Incidentally, there are number of things that hotels can do to increase sales. The trick is to use a multi-pronged approach.
Discussed here are some strategic ways through which hotels can increase their sales and profit margin:
I’m a tremendous fan of Steve Pressfield’s writing. If you haven’t read him, pick up a copy of The War Of Art or Turning Pro. I reread each a several times a year. Every once in a while, when I seem to lose my focus or purpose, rereading either helps me rethink what being a Professional is about. It helps me rediscover what I am here to achieve,
As we wrap up the year, reflecting on what it is to be a professional is important, so I thought it would be useful to highlight the qualities Steve says the Professional possess. I’m just listing them, they are pretty self-explanatory, but if you need explanation, look at the books.