Hotel operations and management

Hotel operations management is all about staying three steps ahead, solving problems before anyone notices, and keeping everything – and everyone – in check. Whether it's guest services, housekeeping, or boosting revenue, your hotel needs to be a well-oiled machine. So let’s break down the essentials of hotel operations and how you can keep things running like clockwork while keeping guest satisfaction high and rooms booked.

Elements of hotel operations and management

Running a hotel isn’t just about keeping rooms clean and guests happy. Effective hotel operations management is all about making sure every department runs smoothly and efficiently. Let’s break down the key parts of hotel operations management:

Guest services

Guest services are what your guests see first – front desk, room service, concierge services. As a hotel manager, part of your job is to make sure guest satisfaction stays sky-high. That means your team needs to handle guest requests like pros, whether it's a quick digital check in or sorting out room assignments using the right property management system (PMS).

Don't forget about collecting guest feedback! Online reviews can make or break you in the hotel industry, so keeping an eye on those and responding quickly is key to running a successful hotel operation. Whether it’s solving guest problems before they write that dreaded 2-star review or making sure their check-in is smooth – your job is to keep everyone happy.

Over 80% of guests say that they would return to a hotel that provides exceptional customer service. This means the guest experience directly impacts your bottom line.

Human resources

You need a team that can actually deliver exceptional guest experiences. And with staffing shortages being a hot topic in the hospitality industry, with 65% of hotel owners reporting a staffing shortage this year, holding on to good employees is a must. As a hotel operations manager, you’ve got to make sure your team is not only hired and trained but also happy enough to stick around.

Scheduling staff can be a headache, but when it’s done right, you’ll have just enough people to keep things running without looking like a ghost town or, worse, a place where guests have to wait forever. Oh, and don’t forget those ongoing training programs – you want your staff to know how to use your hotel management software and systems without constantly asking for help.

Housekeeping and maintenance 

The unsung heroes of hotel operations – housekeeping and maintenance teams – are the ones making sure guest rooms are spotless and nothing’s falling apart. It’s all about efficiency here. You don’t want guests walking into a room with towels still on the floor or broken air conditioning. No bueno.

As the hotel operations manager, you’ll want the housekeeping team to have an easy system to follow, with room assignments that make sense and inventory management that doesn’t leave them running out of linens at 11 a.m. The same applies to maintenance. A proper preventative maintenance schedule can save you from major headaches (and guest complaints). It’s never ideal to be dealing with busted plumbing in the middle of their stay.

Revenue management

Revenue management is an ongoing challenge, making sure you’re not giving rooms away too cheaply but not outpricing your competition, especially with increasingly competitive markets. You’ll need a good revenue management system (RMS) to adjust room rates based on demand – holidays, events in town, and so on.

And your food and beverage department can bring in a major share of revenue too, so pricing here is key, too if you’re going to maximise profits. It’s a balancing act, but when done right, it makes all the difference to hotel performance.

Sales and marketing

Hotel managers need to stay on top of their sales and marketing management to bring in guests during both the busy and slow seasons. You’ll be working closely with your team to ensure marketing strategies are on point and actually working.

From managing brand reputation to tracking what campaigns are pulling in guests, it’s a crucial part of running efficient operations. You’ll also want to stay ahead of hotel industry trends and adjust your marketing game accordingly – so you’re not stuck with empty rooms while your competitors are fully booked.

Events and meetings

From weddings to corporate meetings, this part of hotel operations management can bring in serious money – but it can be labour intensive so you’ll have a tight focus on planning, efficiency and processes. Managing meetings and events means working across multiple departments to ensure everything runs smoothly. Your housekeeping team has to get rooms ready, the food and beverage department needs to cater, and everyone needs to be on the same page.

As the hotel manager, you could be overseeing it all, from room setups to the AV systems, making sure nothing goes wrong on the big day.

What systems do hotels use for their operations

There are some powerful tools out there to make sure your hotel runs more smoothly than a perfectly fluffed pillow.

Point of sale systems (POS)

First up, the Point of Sale (POS) system. It's the system that handles all your payments from room service to your restaurant, and even your hotel’s boutique if you’ve got one. POS systems streamline the entire process – no more scribbling down orders on paper like it’s the 90s. Plus, having all that customer data on hand is gold for guest preferences, so you can know if Bob from room 303 always orders two espressos with breakfast.

A good POS system means your staff can take orders, split checks, and process payments easily. It also ties right back to your hotel PMS (more on that below), so everything stays connected and synced up for efficient operations.

Property management system (PMS)

The Property Management System (PMS) is the hub of your hotel operations, managing room assignments, tracks guest requests, logs housekeeping schedules, and even keeps tabs on billing.

The right hotel management software will handle everything from check-ins to room upgrades to one-click reporting. You’ll know at a glance which rooms are available, which are being cleaned, and which guests are due for a wake-up call.

The best part is, a solid PMS integrates with all your other hotel technology – POS, RMS, you name it. When everything’s connected, your team can work together perfectly, delivering exceptional guest experiences and keeping those online reviews glowing.

Revenue management system (RMS)

A Revenue Management System (RMS), can take all the guesswork out of pricing rooms. Instead of sitting there with a calculator, trying to figure out what you should charge for a suite on a random Tuesday in September, your RMS does the math for you. It looks at demand, competitor pricing, and even local events, then spits out the best rates for maximum profits.

Strategies to improve the hotel operational efficiency

These hotel operations management strategies will complete change how you run your hotel business:

Improve internal communication

Internal communication is the key to effective hotel operations management. If your hotel staff aren’t on the same page, things are going to fall apart, and fast.

Start with a solid hotel management system that keeps everyone in the loop. Whether it’s managing guest requests, adjusting room assignments, or coordinating room service, you need a platform that streamlines communication. Also, encourage regular team huddles and feedback loops. This will result in fewer (or hopefully no more) mix-ups over who’s doing what, and your hotel guests will get exceptional guest experiences instead of excuses.

Optimize revenue management 

Knowing how to balance pricing, guest expectations, and the hospitality industry’s peaks and troughs is key to successful hotel operations. You don’t want to be the hotel giving away guest rooms for pennies while your competitors are cashing in.

Hotels that rely on a revenue management system (RMS) tend to use it religiously. This hotel technology tracks demand, compares prices, and maximizes profits. RMS basically makes sure you’re not leaving money on the table, and with the right data, you can outsmart the competition.

Improve guest satisfaction with real time data

If you want to keep your hotel guests happy and coming back for more, you need to know what’s going on with them at all times. Here’s the scoop on what data you can gather to make their stay exceptional.

• Guest preferences: Are your guests all about that 7am wake up call or do they prefer housekeeping to leave them sleeping until the afternoon? What are their favorite food and beverage? Knowing this can really set you apart from the rest. When they arrive and find their room stocked with their go-to snacks, you’ll get serious brownie points. This kind of personalization shows you care and helps you exceed their guest expectations.

• Feedback and reviews:If guests mention something like "room service took forever," you can address it ASAP. Or if they're loving that super helpful concierge you just hired, be sure to praise him so he feels valued. Don't ever let a review go unnoticed or unresponded to either. Quick responses show potential guests that you’re listening and eager to improve.

• Operational status: Use tech to track the status of your operations – like how many rooms are clean and ready. If a guest shows up and their room isn’t ready yet, you’re setting yourself up for disaster.

• Guest interactions: Are guests frequently having to call the front desk receptionist for basic info like the wifi password or what time to check out? This tells you where to improve guest services. Maybe it’s time to create a FAQ section or step up your concierge game to help guests out before they even think to ask.

• Booking trends: Keep tabs on booking patterns to see when guests are booking or canceling. If you notice a drop during certain times, roll out some killer marketing strategies or special offers to keep the bookings coming in.

• On-site behavior: Track what guests are doing while they’re at your hotel. Are they hanging by the pool or hitting the gym? This helps you figure out where to allocate resources. 

Automate administrative tasks 

So, you’ve got room assignments, guest requests, inventory management and payment processing on your to-do list today. How long is that going to take you if you’re doing it all manually? Let’s talk about how automating these tasks can save you a ton of time and energy.

Some common hotel automation strategies:

• Room assignments: Let your PMS system handle room assignments based on guest preferences.

• Guest requests: Set up automated requests through an app.

• Inventory tracking: Keep tabs on your inventory automatically.

• Payment processing: Speed up transactions by automating payments at check-out.

• Guest profiles: Automatically update guest profiles with their preferences. So you can wow them with their favorite snacks when they return.

• Reporting: Ditch the spreadsheets and use one-click reporting features via your hospitality POS system.

• Staff scheduling: Automate your staff scheduling to keep everyone in the loop. Less team drama means more time to focus on your awesome guests.

Train your hotel workforce regularly

If you want your hotel operations to shine like a diamond in a boutique hotel showcase, you need to keep your workforce sharp and ready for anything.

Regular training is the key to keeping your hotel staff engaged, efficient, and able to handle guest expectations like pros. 

What to focus on:

• Customer service: A smile and a friendly “How can I help you?” go a long way.

• Hotel tech: Get everyone up to speed on the latest POS software, tools and self-service technology.

• Sales and marketing: Equip your team with knowledge on upselling and cross-selling.

• Health and safety: Regularly train your staff on health protocols and emergency procedures.

• Cultural Awareness: With guests coming from all over the globe, it’s super important for your team to understand different cultures and customs. It’ll make for smoother interactions and fewer awkward moments!