Taking a More Proactive Approach to Profit Optimization
As a GM I had a number of different assignments during my career and soon realised that one of the main reasons hotel companies bring in a new GM is to initiate change in order to achieve better results. Whether we like it or not, change is usually a good thing, even if it isn’t always easy. When you stay still for too long, you can stop seeing the forest for the trees and it’s natural to slip into a routine where the same tried and tested practices become the comfortable norm.
That’s why in any new environment I always used to do two things - play "what if" exploring different scenarios to tackle common challenges and I would also ask "why do we do it that way?" Unfortunately, the most frequent answer was also the most disappointing: "because that's the way we’ve always done it!" That was when I knew straight away it was time for a change.
Being open to change is not only important in a new position and welcoming positive change with enthusiasm is vital for the continued success of your hotel. One of the most critical areas where a questioning approach can add value is profit optimization and, like many, people I believe the most effective way to make your mark as a GM is to impact the bottom line.
Profit optimization requires a forensic view of every cost line and every potential revenue stream. There should be no 'sacred cows' or unchallenged ideas, no such thing as a stupid question and it’s certainly not enough to rely on doing things the way they’ve always been done.
Learn more about profit optimization from our new advisory services, where our expert consultants can assist you with an in-depth analysis and clear project plan. It’s an investment that will create real financial benefits for your business and who doesn't want to make more profit?