Are you a lodging laggard or a leader?

By Rob Käll, president, Bookt

Published: 13 Jul 2009

By Rob Käll, president, Bookt

About a week ago, I spoke with several Property Managers who feel helpless in the face of today’s economic climate.

“Chin up,” I said to the audience. “All is not lost; in fact, there is plenty to gain during this turbulent time. Lodging Leaders will manage not only to sustain through tough times, but also emerge stronger, while Lodging Laggards may end up weaker or losing their business altogether.”

True, an economic downturn can and usually does lead to massive industry upheaval. It can challenge standards and best practices, and test your mettle and your company’s key strategies and processes. But how you respond and adapt, what new strategies you adopt, and the decisions and measures you take now will not only improve your chances of survival, but can also propel you forward in your local marketplace while others are paralysed and standing still.

So how do you make sure that you’re a Lodging Leader, and not a Lodging Laggard? Try some of these strategic moves that can advance your business and brand, to make sure you emerge after the recession better and stronger than ever before.

The Steps You Can Take Now! While no single strategy is a cure-all to the real world challenges businesses are currently facing, look at this downturn as an opportunity to examine your costs, products, services, offers and your technology to find winning ways to greater online success because online is the channel of the travel and lodging future.

Despite market pressures, Lodging Leaders will:

1.Lead by example and instill confidence in their staff.
Focus internally on increasing employee (stakeholder) motivation (in non-monetary ways if you can’t afford to incentivise financially). Straightforward, honest communication about the company’s action plan is very important because you need your employees to feel settled and sure about their positions. By getting your team involved and motivated, Lodging Leaders will empower their staff to better achieve shared goals – and will ensure that their employees feel that their good performance will tie directly in with the health of the company and security of their jobs.

2.Invest in channel development, innovation and new niches/services.
Lodging Leaders will examine their local competition and analyse their strengths and weaknesses. Lodging Leaders will reexamine their own brand and objectively evaluate their own strengths and weaknesses. Lodging Leaders will try new things to strengthen their market position and fuel greater demand for their properties.

3.Leverage technology.
Lodging Leaders will find ways to tap into technology to improve efficiency, reduce costs, collaborate with suppliers and customers, as well as to provide customers with a unique experience.

4. Partner with thought leaders.
You don’t need to have all the answers yourself. Lodging leaders will connect with experts, make new alliances, and expand their distribution models. Lodging Leaders will enhance their reach and influence, during which time their competitors will keep doing the same-old-same-old, watching their market share dwindle. Whether you are a hotel or vacation rental company owner or manager, you must have your finger on the pulse of the market to stay competitive.

It’s The Laggards Who FAIL!
While winning strategies can be leveraged in today’s climate, equally useful is looking at common mistakes made by companies who ultimately fail. You don’t want to be like them.

Lodging Laggards will:

1.Fail to differentiate with innovation and services that offer customers the price and value they’re looking for in the lagging travel market.

2.Struggle with decisions and respond slowly to changing market conditions and buying behaviour, such as down trading by travel consumers.

3.Fail to invest in new approaches, and continue to invest in under-performing and money-squandering practices and technologies.

4.Take the entire burden on their shoulders and not seek guidance, support or tools from experts, advisors and specialists.

Which Lodging Manager Are You?

Now is the time to get in a position to help your organisation compete during, and emerge stronger from, today’s economic reality. Get online. Value and incentivise your staff. Open internal communication is key. Evaluate what’s working and what isn’t. Fix your weakness and play up your strengths. Technology is your friend. Don’t be afraid to ask for advice or create new strategic partnerships.

In short, be a Lodging Leader and let the Laggards fall by the wayside. The time is now, so what are you waiting for?

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