problem solving in hotel industry

10 Common Hotel Problems and Solutions

Being a hotelier can be both rewarding and exhausting. Tending to guest needs and ensuring an exceptional experience at your hotel for everyone who walks through the doors of your lobby is a busy job — a job that is regularly made all the busier when problems inevitably arise. Hotel problems can present themselves in many forms. Whether it’s a guest complaint, a busted thermostat, paperwork problem, long line in the lobby, or cold showers, there’s almost always problems that need to be solved at a hotel.  

However, when problems rear their ugly heads, it doesn’t always have to be a giant distraction. Conceiving a plan of action for how to deal with various hotel problems and figuring out effective solutions ahead of time will allow hoteliers to roll with the punches and solve issues quickly.

Each hotel, depending on its location, facilities and customer types, will have a somewhat distinct set of problems they can expect to receive. Regardless, there are some common problems consistent across hotels, no matter their differences. 

The most common problems hotel staff members may encounter in the course of running a property include: 

• Lack of complimentary supplies
• Long lines at the front desk 
• Slow room turnover
• Lack of guest information from OTAs
• Low guest satisfaction scores 
• Closed amenities
• Credit card authorization forms that aren’t PCI compliant
• Staff shortages 
• Low hotel app adoption
• High call volumes at the front desk 

Let’s now take a brief look at each of these problems in detail and review a corresponding solution.

Lack of Complimentary Supplies

‍ Problem: Although it may not appear to be the most critical thing to consider, many guests will anticipate complimentary amenities such as shampoo, soaps, coffee and tea, despite the type of property at which they are staying (e.g., full service, limited service, luxury, etc.). Unfortunately, a lack of these types of basic room commodities can result in low guest satisfaction scores and negative online reviews — even if the rest of their stay is fantastic.

Solution : To keep your visitors as pleased as possible, hoteliers would be wise to stash large quantities of complimentary room supplies in closets and cleaning stations around their property. This ensures that housekeeping teams are able to easily access a reliable storehouse of these supplies quickly, no matter where they are on the property. 

And if your property belongs to a larger hotel group or management company, be sure to see if there are promotional deals available with certain brands that provide these types of products. 

Long Lines at the Front Desk 

Problem: Nobody likes long lines, and this is especially true when a person is waiting on something they don’t just want, but need — like a comfortable room with a bed in it. Long lines at a hotel’s front desk can be a real problem for desk agents as they can cause guests to become frustrated and argumentative.

Solution : Front desk staff at any hotel can improve their overall efficiency, streamline the guest experience and eliminate long lines in the lobby by offering a Contactless Check-In solution to guests before they ever set foot on the property. Contactless Check-In enables guests to go through the check-in process conveniently on their own mobile devices. This tool frees up front desk staff to spend more time fielding questions from guests and less time dealing with administrative paperwork.

Slow Room Turnover

Problem: The ability to turnover rooms quickly is one of the essential keys to success in the hospitality industry. If a property is short staffed, or just generally having issues running a housekeeping department efficiently, this can result in negative consequences for both guest satisfaction scores and a hotel’s revenue. 

Solution : Hoteliers need to do everything they can to ensure their housekeeping teams are able to turnover rooms quickly. This can include ensuring things like all housekeeping stations across a property are well stocked with cleaning supplies and accounting for other logistical challenges. However, technology also has a role to play in boosting housekeeping efficiency.

Contactless Checkout solutions enable guests to checkout at their own convenience from their mobile devices. These types of tools are highly valued by guests because they make a hotel visit all the more streamlined and peaceful. However, they also have the added benefit of informing hotel staff as to which rooms are ready to be turned at the precise moment a guest leaves. Essentially, this provides a housekeeping team with a real-time map that shows where staff members need to be on the property.

Lack of Guest Information From OTAs

Problem: OTAs can be very useful in generating reservations at a property, but they are not without their downsides. In addition to the problems inherent in the concept of rate parity, OTAs usually don’t provide a hotel with crucial guest information such as their email address. This lack of information can keep properties from building their own database of marketing contacts that could be used to promote loyalty programs and direct sales campaigns.

Solution : The key to solving this problem is to somehow add the registration of an email address to the check-in process. This information can be collected in person at the front desk, but this approach has the disadvantage of potentially provoking an uncomfortable question about why the hotel is requesting an email. Additionally this will slow down the overall check-in process and may lead to longer wait times for guests looking to collect their room keys.

Instead, forward-looking hoteliers should search out technology solutions that enable a Contactless Check-In flow that can be customized to capture this crucial customer data.

Low Guest Satisfaction Scores 

Problem: Bad reviews happen. It’s unfortunate, but it’s so. They can occur for nearly infinite reasons and they are the bane of every hotel manager’s existence.  

Solution: When one- or two-star reviews occur it’s generally best to find out why as soon as possible. Including a star-rating step in a Contactless Checkout flow that can be accessed through a guest’s mobile device allows hoteliers to identify dissatisfied guests early and potentially resolve any issues before they depart the property.

Closed Amenities

Problem: For a variety of reasons, a hotel may need to close services and amenities. The reasons why can range from the sun has gone down and the masseuses have gone home to a maintenance with a hot tub or sudden thunderstorm over a lakeside resort. Understandably, when amenities are closed, but guests are expecting them, this can leave patrons feeling less than pleased. After all, a property’s particular amenities may be one of the reasons guests wish to stay at the location in the first place. 

Solution: To minimize surprises, hotel management should do its best to ensure guests are made aware of the operating hours of guest services. It’s wise to include this information during the check-in process and make it available in each hotel room in the forms of brochures, pamphlets, etc.

If a hotel’s management team is forced to close amenities and guest services unexpectedly, it’s best to be proactive with your communication. Using a guest messaging tool that allows you to broadcast text message guests at scale with the relevant information enables you to ensure guests know before they find out on their own. Better to get ahead of this problem while the engineering team works on it. 

Credit Card Authorization Forms That Aren’t PCI Compliant & Lead to Fraud 

Problem: Many hotels are still using paper credit card authorization forms despite the fact that it is no longer considered PCI compliant to do so. Obviously, collecting sensitive guest information in such an insecure way is a significant problem for many hotels and can lead to thousands of dollars in lost revenue from fraud and chargebacks.

Solution: Hoteliers that wish to reduce fraud and chargebacks at their properties should look for PCI compliant Digital Authorizations solutions that are guest-friendly and easy to implement. It’s time to say goodbye to paper forms forever. 

Staffing Shortages 

Problem: Staffing shortages have been a problem for hotels since there have been hotels. For most hotels, staff shortages can be due to regional issues in the job market. However, as demonstrated by, and in the wake of, the COVID-19 pandemic, sometimes the worldwide hospitality industry suffers a staffing shortage at the same time. 

Solution: The solution to a staffing shortage is twofold. The first step is to build a recruiting program for staff at your hotel. Look at surrounding properties and find out if they offer bonuses and try to match them. Also, it never hurts to let candidates know that advancement opportunities are available.

‍ The second step in solving a staffing issue, is to lean on guest-facing technology solutions that can automate messages to guests and enable them to operate more independently during their stay. 

Low Hotel App Adoption 

Problem: Many hotels have adopted new technologies in recent years to address changing consumer behaviors (thanks to COVID), which is good news. However, many of these hotels have bet big on developing a native app for their properties, and that’s less good. Native apps have a relatively high barrier to entry as they need to be downloaded onto a person’s smartphone. For a variety of reasons, hotel guests generally fail to adopt native apps at scale .  

Solution: Hotels should opt for web-based technologies that can be accessed through the browser of a mobile device. This avoids the need for downloads entirely and allows for a more streamlined experience. Plus, hotels will find much higher adoption rates than they otherwise would with a native app.

High Call Volume at Front Desk 

Problem: High call volumes can be both good and bad at a hotel. A large call volume generally means (hopefully) that a hotel is full of guests, which is great. However, too many calls to the front desk can overload staff and leave guests waiting for answers. This is a problem that almost every hotel will have to deal with at one point or another. 

Solution: Offering a messaging solution to hotel visitors that works with the existing messaging apps on their mobile devices can go a long way toward cutting call down call volumes. Hoteliers that plan to add a messaging solution to their guest experience should look for tools that enable them to save valuable time through automated, broadcast and direct messages.

As stated at the beginning of this post, running a hotel is an incredibly busy job that requires hoteliers to plan ahead for problems. Knowing what levers to pull on and solutions to deploy beforehand can keep everyday issues from turning into minor catastrophes. As outlined above, the two most useful things for any hotelier in a time of need are reliable technology tools and thought-out plans of action. With these in hand, a savvy hotel staff will be able to ride out any problems they may encounter. 

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Top 8 Crucial Hospitality Challenges in 2024 and Their Solutions

The hospitality industry is rapidly changing with many challenges that must be addressed. Let’s discuss their impact on the industry, what steps should be taken, what is important to pay attention to, and initiatives that need to be implemented for your business to succeed.

• 1. Technologies in hospitality: keeping up with the latest innovations

From AI-powered chatbots to integrated systems for booking and reservations, businesses in the hospitality industry must stay abreast of the latest technological developments. These advances can help streamline internal processes, reducing manual labor while improving productivity and customer experience.

10 Must-Know Technology Innovations in the Hospitality Industry

As technology becomes ubiquitous, embracing its potential is key to staying competitive in the hospitality industry. Consider launching your own website development with payment gateway integration. This will make your hospitality business one step closer in a technological sense and an order of magnitude higher among competitors and in customers’ eyes.

• 2. Health and safety concerns for hospitality workers

The hospitality industry is particularly vulnerable due to the close contact with guests and the array of workplace processes. Here is a list of some health and safety measures that are recommended for implementation:

• Personal protective equipment (PPE) such as gloves and masks;
• Cleaning and sanitizing high-touch surfaces such as door handles and tables;
• Proper ventilation in work areas to reduce heat stress and improve air quality;
• Non-toxic cleaning products and chemicals;
• Safety training for employees who use potentially hazardous equipment or chemicals;
• Developed emergency plans for fire or other accidents;
• Conducting regular risk assessments of the workplace;
• Proper lighting to prevent slips or falls;
• Encouraging hand hygiene and providing sanitizers for employees.

Considering the above, hospitality businesses can create a safe workplace environment for their employees while protecting their customers or guests from potential harm. 

• 3. Hospitality industry and its impact on social media

Despite the advantages, social media poses various challenges for business owners. The 24/7 nature of their operations means companies must constantly be on their guard for negative reviews and customer feedback. This can have an immediate and potentially damaging effect on a business’s reputation.

Social media challenges and solutions for hospitality businesses

All hospitality businesses should explore social media to maximize their reach in today’s market. A strong presence on social media platforms is critical for engaging customers and keeping their interest—so ensure you’re prepared!

• 4. The growing importance of sustainability

The hospitality industry is a significant contributor to environmental pollution. However, increasing public awareness has pressured it to become more sustainable. The survey of Luggage Hero clearly shows that 87% of travelers want to travel more sustainably.

Number of sustainable travelers

So, there is still room for growth in developing the eco-friendly and sustainable hospitality industry. Here are a few key strategies to follow:

• Investing in renewable energy sources such as solar and wind power;
• Utilizing green building materials such as bamboo and recycled materials for construction and furnishing;
• Offering guests to buy sustainable products such as organic foods, eco-friendly toiletries or reusable water bottles;
• Implementing green cleaning practices that minimize the use of harsh chemicals and maximize efficiency in water usage;
• Offering guests the option to go paperless when booking services or checking out from the hotel or restaurant.

By taking steps towards sustainability, hospitality businesses will not only be able to reduce their carbon footprint but also save money in the long run by utilizing more efficient technologies.

• 5. Labor shortages in the hospitality industry

Finding and keeping qualified staff is crucial in the hospitality sector. To help combat labor shortages, businesses must ensure their workplace is attractive to potential employees:

• Offering competitive wages and benefits packages  such as health insurance, retirement savings plans, paid time off, and other perks like employee discounts, can attract top talent and distinguish a business from competitors.
• Create a flexible work environment.  Part-time or remote work arrangements can help attract a wider pool of candidates and improve employee satisfaction.
• Foster a positive work culture.  Make your employees feel valued and motivated to stay with you. This may include opportunities for professional development, regular feedback and recognition, and team-building activities.
• Develop training and career development programs : Invest in building employees’ skills and advancing within the company. It can increase job satisfaction and reduce turnover.
• Streamline hiring processes : Simplifying and expediting it can help businesses attract and secure top talent before accepting competitors’ offers.
• 6. Rising competition in the hospitality

Greater emphasis on experiences and customer service means businesses must work harder to differentiate themselves from competitors. So it is essential to be aware of both direct and indirect competition.

Examples of direct and indirect competition for hospitality businesses

Hospitality companies must create unique experiences to help set a business apart. If you are stuck with this issue, you can use our consultation services from experts with 10+ years of experience and find a solution instantly.

• 7. Preparing for the digital transformation of the hospitality

The industry must stay abreast of the trends and invest in digital solutions. This can range from leveraging AI for customer service and personalized offerings to investing in mobile applications and other digital infrastructure. Consider these points:

• Analyze your customers’ digital behavior.  Understanding what your customers want today and what they may need in the future. Look closely at their behavior when engaging with your brand online and use this data to craft a better experience.
• Invest in robust technology.  Investing in it is necessary for initial setup, maintenance, and upkeep. Research all options before choosing a technology that best suits your budget and needs.
• Adapt strategically.  As technology changes, so should your strategy for using it effectively. Regularly assess how well you leverage these tools to ensure you are seen as modern and relevant in an ever-changing landscape.

By taking these steps, you can confidently prepare for the digital transformation of the hospitality industry — setting yourself up for success now and in the future.

• 8. Embracing maintenance 5.0 into the hospitality industry

As the hospitality industry’s demands evolve, many industry leaders are turning to Maintenance 5.0, a web-based maintenance management system that acts as an integrated platform to streamline processes and help businesses increase efficiency.

Maintenance 5.0 applications in the hospitality industry

With Maintenance 5.0, it is easier to address the challenges. You can quickly identify potential problems, prioritize repairs, and establish preventive maintenance programs that turn challenges into opportunities.

To thrive in the competitive hospitality industry, businesses must stay up-to-date on industry trends and challenges. By staying agile and adaptable to evolving customer expectations and technological advancements, professionals can ensure a prosperous future for the industry.

• Frequently Asked Questions Related to the Hospitality Industry Challenges

1. What are three issues in the hospitality industry?

There are many issues that the hospitality industry faces, but here are three common ones:

• Labor Shortages : The industry faces a staff shortage, leading to lower-quality service and higher staff turnover rates.
• Online Reviews : Customers have the power to influence a business’s reputation through online reviews, making managing feedback crucial for businesses.
• Sustainability : Heavy use of resources in the hospitality industry contributes to environmental degradation, and businesses that do not address sustainability concerns risk losing customers and damaging their reputation.

2. What is the biggest issues and challenges faced by the tourism and hospitality industry?

The biggest challenge facing the tourism and hospitality industry is the COVID-19 pandemic. Other ongoing challenges include sustainability, digitalization, changing consumer preferences, labor shortage, and some regions’ political instability/security concerns.

3. What are the 7 critical risks facing the hospitality industry?

While there may be various critical risks facing the hospitality industry, here are seven common ones:

• Economic Fluctuations : The industry is vulnerable to economic downturns, leading to reduced travel and revenues.
• Natural Disasters : Disruptions and property damage can occur due to natural disasters.
• Cybersecurity : Businesses are vulnerable to cyber attacks that can lead to data breaches and financial losses.
• Regulatory Compliance: Compliance with regulations is necessary in areas such as health and safety, labor laws, and the environment.
• Reputation Management : Negative publicity or reviews can damage a business’s reputation and decrease bookings.
• Geopolitical Risks : Political instability, terrorism, and security concerns in some regions can lead to decreased bookings and revenues.
• Health and Safety : Businesses must implement strict health and safety protocols, including for COVID-19, food safety, and the spread of infectious diseases.

4. What are the challenges faced by tourism industry?

The tourism industry faces a range of challenges, including:

• COVID-19 Pandemic;
• Sustainability;
• Digitalization;
• Changing Consumer Preferences;
• Safety and Security;
• Political Instability;
• Economic Fluctuations;
• Infrastructure;
• Talent Shortage.

5. What is the biggest challenge in hospitality?

The biggest challenge in hospitality at present is the COVID-19 pandemic, which has caused a significant decline in travel and tourism, leading to revenue losses for businesses, as well as operational challenges due to new safety and health protocols.

6. What are the international issues in hospitality?

Some of the international issues in hospitality include:

• Travel restrictions and visa policies;
• Political instability and conflicts;
• Cultural differences;
• Global economic trends;
• Sustainable tourism;
• Labor laws and employment practices;
• Global health issues like the COVID-19 pandemic.

7. What are the weaknesses in hospitality industry?

The weaknesses in the hospitality industry include dependence on external factors, high competition, seasonal demand, high labor costs, high initial investment, technological challenges, and sustainability issues. It perfectly demonstrates the need for businesses to continually adapt and evolve to changing market conditions. By focusing on customer needs, implementing sustainable practices, and investing in technology, hospitality businesses can better position themselves for long-term success.

8. What is problem solving in hospitality industry?

Problem-solving in the hospitality industry involves identifying and addressing challenges and issues while providing services to guests. Some common problems that may arise in the hospitality industry include guest complaints, staffing issues, equipment failures, supply chain disruptions, and financial challenges.

9. What are the big five in hospitality?

The “Big Five” in hospitality refers to the five major segments of the hospitality industry, which are:

• Food and Beverage;
• Travel and Tourism;
• Entertainment;
• Recreation.

These five segments are interdependent and work together to provide an overall experience for customers. Each segment presents unique challenges and opportunities for businesses, and success in the hospitality industry often involves effectively managing all five segments.

10. What are the negative impacts of hospitality?

The hospitality industry can negatively impact the environment, society, and economy. Here are some of them:

• Environmental impact . Environmental degradation, such as waste generation, water and energy consumption, and greenhouse gas emissions;
• Cultural impact . The rapid growth of tourism and hospitality can lead to cultural commodification, loss of authenticity, and cultural clashes.
• Social impact . Social issues such as overcrowding, labor exploitation, and gentrification.
• Economic impact . The hospitality industry may create economic imbalances by driving up prices and creating wealth disparities between local communities and tourists.
• Health impact . Hospitality can pose health risks, such as the spread of diseases, food poisoning, and accidents.

It is important for the hospitality industry to recognize and address these negative impacts by implementing sustainable practices, respecting local cultures and communities, providing fair labor conditions, and prioritizing the health and safety of guests and employees.

11. What are the pros and cons of hospitality?

Here are main pros and cons of the hospitality industry:

The hospitality industry has many benefits. However, some challenges may arise. They can be effectively addressed by management and strategic planning.

Updated on: 2024-05-06 . Author: Karina

Tags: Hospitality management

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🌟 Mastering Problem-Solving in the Hospitality Industry: Effective Strategies for Success 🛎️

In the dynamic world of hospitality, challenges are inevitable. From guest complaints to operational hiccups, every day presents new obstacles that demand swift and effective solutions. To thrive in this fast-paced environment, mastering problem-solving techniques is essential. Here are some insights into effective strategies for problem-solving in the hospitality industry:

Anticipate and Prevent : Proactive problem-solving starts with anticipation. I believe in anticipating potential issues before they arise. Conducting risk assessments, analyzing past data, and staying updated on industry trends can help identify potential problems in advance. Implement preventive measures to mitigate risks and minimize the likelihood of problems occurring.

Effective Communication : Clear and open communication is crucial in resolving issues efficiently. I encourage open dialogue among team members to share concerns, ideas, and solutions. Training staff members to actively listen to guests and colleagues ensures that issues are fully understood before attempting to solve them. I utilize various communication channels such as face-to-face interactions, digital platforms, and meetings to facilitate effective communication.

Empower Frontline Staff : Frontline employees are often the first point of contact for guests and are instrumental in resolving issues promptly. I empower them with the authority and resources needed to address common problems on the spot. Providing comprehensive training equips staff with problem-solving skills and decision-making capabilities. I foster a culture where employees feel confident and empowered to take ownership of resolving issues independently.

Utilize Technology : Technology can streamline problem-solving processes and enhance efficiency in the hospitality industry. I implement innovative solutions such as guest feedback systems, task management software, and predictive analytics tools to identify and address issues in real-time. Automation helps streamline repetitive tasks, allowing staff to focus on more complex problem-solving tasks.

Collaborative Problem-Solving : I encourage a collaborative approach to problem-solving by involving cross-functional teams and stakeholders. Different perspectives bring diverse insights and creative solutions to the table. Organizing brainstorming sessions or problem-solving workshops where team members can collaborate to address challenges collectively is key. I foster a culture of teamwork and collaboration, where everyone feels valued and motivated to contribute to problem-solving efforts.

Continuous Improvement : Problem-solving is an ongoing process that requires continuous evaluation and improvement. I encourage a culture of continuous learning and improvement within any organization. Conducting regular reviews to assess the effectiveness of problem-solving strategies and identify areas for enhancement is essential. Soliciting feedback from guests, employees, and other stakeholders helps gain valuable insights and make necessary adjustments.

By implementing these effective problem-solving strategies, I navigate challenges with confidence and ensure exceptional guest experiences. Embracing a proactive and collaborative approach to problem-solving, leveraging technology to streamline processes, and empowering frontline staff to address issues effectively are my key strategies. With the right mindset and tools in place, any challenge can be turned into an opportunity for growth and success in the hospitality industry. 🌟🏨

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Challenges faced by Hoteliers in 2023 and How to Solve Them

Jul 02, 2023   •   7 min. read

Running a successful hotel comes with its fair share of challenges. In this blog, we will dive into some of the most common challenges that hoteliers face and explore the best solutions to overcome them. From the impact of the COVID-19 pandemic to addressing sustainability concerns and embracing digital transformation, and more.

Here are the top challenges faced by hoteliers and how to solve them:

COVID Recovery

The COVID-19 pandemic has presented hoteliers with many challenges impacting the hospitality industry on multiple fronts. They have had to navigate and invest in extensive sanitation measures, personal protective equipment, and staff training to ensure the well-being of guests and employees.

Additionally, fluctuating demand and travel restrictions have posed significant obstacles, resulting in reduced occupancy rates and revenue streams. To overcome these challenges, hoteliers have had to adapt their business strategies and diversify their offerings to attract local guests who have become the primary source of business amidst the uncertainties brought about by the pandemic.

To address these challenges, hoteliers can adopt several strategies. Firstly, continuing to prioritize and enhance health and safety measures is crucial to instilling confidence in guests. Regular sanitation, implementing touchless technologies, and maintaining social distancing protocols can go a long way in reassuring visitors.

Also staying informed and flexible is essential to adapt to changing travel restrictions and market conditions. Monitoring local and global trends, engaging with industry associations, and collaborating with local authorities can help hoteliers make informed decisions and adjust their strategies accordingly. By combining adaptability, innovation, and a guest-centric approach, hoteliers can navigate the challenges posed by COVID-19 and emerge stronger in a post-pandemic world.

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Sustainability.

Sustainability presents a significant challenge for hoteliers as they strive to balance environmental stewardship with operational efficiency and guest expectations. Reducing the environmental impact of hotel operations requires high cost investments which can be a barrier for some hoteliers, especially smaller establishments.

Moreover, educating guests about sustainable practices and encouraging their participation can be challenging, as it requires a change in mindset and behavior. Overall, achieving sustainability goals requires a comprehensive approach and the commitment of hoteliers to overcome these challenges.

To address the sustainability challenge, hoteliers can adapt a holistic approach that encompasses energy and water conservation, sustainable procurement, guest education, and collaboration within the industry. Things like conducting energy audits and implementing energy-saving technologies, such as LED lighting and smart thermostats, can significantly reduce energy consumption and operational costs.

Similarly, implementing water-saving measures, such as low-flow fixtures and rainwater harvesting systems, can contribute to both water conservation and cost reduction. Additionally, educating guests about sustainable initiatives can be achieved by providing information on sustainable practices and local attractions, and offering incentives for guests to opt for eco-friendly options. By adopting these strategies, hoteliers can make significant progress in achieving their sustainability goals while meeting guest expectations and contributing to a more environmentally conscious and responsible hospitality sector.

Digital transformation

Digital transformation poses a challenge for hoteliers as they navigate the rapidly evolving technological landscape. Embracing digital technologies requires new infrastructure, software systems, and staff training. This can be particularly challenging for smaller hotels with limited resources.

Additionally, integrating various digital platforms and systems, such as property management systems, online booking engines, and customer relationship management tools, can be complex and time-consuming. Overcoming these challenges requires a strategic approach and a willingness to adapt to the evolving digital landscape.

To address the challenge of digital transformation hoteliers must first conduct an assessment of existing technologies and identifying areas for improvement is essential. This includes evaluating current systems, identifying pain points, and determining the specific digital tools and platforms that will best meet the hotel’s unique needs.

Implementing the right technology can streamline operations, automate processes, boost revenue and improve overall hotel efficiency. Guest experience platforms can be seamless to adapt for hoteliers and simplify processes that create the best guest experience. From online check-in, to upsells, to hotel information, communication and way more. The right technology upgrade can be the difference between a good hotel and a great one.

Labor shortage

Labor shortage has emerged as a significant challenge for hoteliers, impacting their ability to maintain optimal staffing levels and deliver exceptional guest service. The hospitality industry heavily relies on a skilled and dedicated workforce, but the COVID-19 pandemic has disrupted the labor market, leading to reduced availability of qualified personnel.

Hotels are facing difficulties in recruiting and retaining talented individuals across various roles, including housekeeping, food and beverage, and front desk. Moreover, the increased competition for labor and rising wage expectations have put additional pressure on hoteliers, especially those operating on tight budgets. The labor shortage has resulted in increased workloads for existing staff, potential service gaps, and ultimately, a negative impact on the guest experience.

To address the labor shortage challenge, hoteliers can invest in employee retention, create a positive work environment, provide competitive compensation and benefits, and offer opportunities for career growth and development which can enhance employee satisfaction and loyalty. This can include implementing recognition programs, fostering a supportive culture, and offering flexible scheduling options.

Hoteliers can explore partnerships with local educational institutions and vocational training centers to develop talent pipelines. By establishing relationships with these organizations, hotels can provide internships, apprenticeships, and training programs to attract and nurture aspiring hospitality professionals. Lastly, hoteliers can implement technology to alleviate labor pressures. Implementing automation and self-service technologies, such as automated check-in kiosks, mobile concierge services, and AI for repetitive tasks, can optimize operational efficiency and reduce the reliance on human resources. This allows staff to focus on delivering personalized and high-value services that require human interaction.

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Market competition.

Marketing competition presents a challenge for hoteliers, as they strive to differentiate their properties in a crowded and highly competitive marketplace. With numerous hotels vying for the attention of potential guests, standing out and capturing their interest becomes increasingly difficult.

The proliferation of online booking platforms, travel agencies, and alternative accommodations further intensifies the competition. Hoteliers face the challenge of effectively positioning their property, showcasing unique features and offerings, and conveying value to potential guests. Overcoming this challenge requires a strategic and comprehensive approach to marketing.

Hoteliers can employ strategies like conducting thorough market research and competitor analysis, understanding the target audience, identifying gaps in the market, and studying successful strategies employed by competitors to understand effective marketing tactics. Hoteliers can also focus on the unique selling points of their property, to develop compelling messaging and differentiation that resonate with potential guests.

Hoteliers should also establish a strong online presence. Optimizing website content for search engines, and leveraging social media platforms can help increase visibility and engage with a wider audience. Implementing effective search engine marketing (SEM) and search engine optimization (SEO) strategies can improve the hotel’s ranking in online searches and drive organic traffic to their website.

Also implementing customer relationship management (CRM) systems and leveraging guest data can enable personalized communication, tailored offers, and loyalty programs. A comprehensive and innovative marketing approach will enable hoteliers to attract and retain guests, ultimately driving occupancy rates and revenue growth.

Customer expectations

Customer expectations present a significant challenge for hoteliers as they strive to meet the ever-evolving demands and desires of discerning guests. With increased access to information, online reviews, and social media, customers have higher expectations when it comes to the quality of service, personalized experiences, and value for their money.

Hoteliers must navigate the challenge of consistently delivering exceptional customer experiences that exceed expectations while balancing operational efficiency and profitability. Meeting individual guest preferences, providing seamless and personalized services, and anticipating needs can be complex, especially in a fast-paced and dynamic industry. Hoteliers need to understand and adapt to the changing expectations of guests to maintain their competitive edge and foster guest satisfaction and loyalty .

Ensuring that frontline employees have the knowledge, skills, and autonomy to deliver personalized and attentive service can significantly enhance the guest experience. Training programs that focus on empathy, communication, and problem-solving can enable staff to handle various guest interactions effectively. Also leveraging technology can help hoteliers streamline operations and enhance guest experiences.

Implementing guest management systems, mobile apps, and self-service options can offer convenience, personalization, and seamless interactions throughout the guest journey. Utilizing data and analytics can also provide insights into guest preferences and behavior, enabling hoteliers to tailor services and offers to meet individual needs. Actively seeking guest feedback and regularly monitoring online reviews and social media mentions allows hoteliers to address any concerns promptly and take proactive measures to improve the guest experience.

Revenue Management

Hoteliers face the challenge of balancing demand fluctuations, market trends, and price sensitivity while maintaining profitability. Factors such as seasonality, events, competition, and changing guest behaviors influence revenue management decisions. Determining the right pricing strategy, setting rates that reflect demand and value, and effectively managing inventory require expertise, data analysis, and a deep understanding of market dynamics.. Overcoming these challenges is essential to achieving revenue goals and maintaining a sustainable business.

Leveraging data analytics and technology is important when it comes to revenue management . Implementing revenue management systems and utilizing data-driven insights can enable hoteliers to make informed pricing decisions. By analyzing historical data, market trends, and competitor performance, hoteliers can identify demand patterns and adjust rates accordingly. This allows them to optimize pricing strategies, identify revenue opportunities, and effectively manage inventory to maximize revenue potential. Hoteliers should also adopt a dynamic pricing approach that can help respond to changing market conditions and demand fluctuations in real-time. By understanding data analytics, adopting dynamic pricing strategies, effectively managing distribution channels, and implementing strategic marketing initiatives, hotels can optimize revenue and achieve their financial goals.

In conclusion, hoteliers face a multitude of challenges in today’s dynamic hospitality industry. From recovering from the impact of the COVID-19 pandemic to addressing sustainability concerns, embracing digital transformation, managing labor shortages, facing intense marketing competition, meeting customer expectations, and optimizing revenue management, each challenge requires strategic solutions and adaptability. By adopting a guest-centric approach, leveraging technology and data analytics, collaborating with industry partners, prioritizing employee satisfaction, and continuously monitoring market trends, hoteliers can overcome these challenges. Embracing innovation, staying ahead of the curve, and delivering exceptional guest experiences will not only help hotels thrive in a competitive landscape but also pave the way for long-term success and sustainable growth in the evolving hospitality industry.

About the author

Hi, I'm Tal Lavi, a hospitality enthusiast dedicated to transforming your guest experience to an unforgettable one. With a passion for crafting engaging narratives and deep insights into guest behavior, let me take you on a journey to the future of guest experience.

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Six most important challenges faced by the hotel industry

Eva Lacalle

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No industry is perfect, and of course when running a hotel, challenges are sure to arise. These challenges are amplified by the fact that there is a strong seasonality component, which can make it difficult to find qualified personnel who are the motor behind any successful hotel. Among other important issues that come about are payments, housekeeping and managing your online reputation, to name a few. 

In this article we look at the different challenges faced by the hotel industry and some solutions to overcome these obstacles. Any problem can be mitigated with excellent service, the right software choices and by making strategic, data-based decisions.  

What are the most important hotel challenges?

There are many obstacles that the hotel industry faces and we’ll look at each of them one by one. 

Underqualified staff

Finding qualified staff is one of the most important hotel challenges as your personnel are the face of your business. You need them to handle guest services, housekeeping, manage operations, take care of administrative tasks and take payments. However, there can be a qualification gap in the industry as many who work in the service industry may only have a high school education. 

So how can you overcome this challenge? By upskilling your staff. Upskilling is about finding out where there are knowledge gaps or where there is room for improvement and start regular training. Learn more about upskilling staff . 

Another important lesson is to empower staff to make decisions. When staff lack confidence you need to rely on more Human Resources to tackle problems that might be easily solved. By upskilling, staff will feel more confident to make these important decisions and solve problems that will then de-escalate problems into manageable situations. After all, your hotel is only as strong as those who are managing it, so make sure you have the best and most skilled team out there. 

Housekeeping

Housekeeping is without a doubt one of the most important and the most problematic areas of the hotel industry. Nothing is like first impressions, and the first impression a guest has when they arrive at your hotel can make or break their stay. When the hotel room and common areas are not impeccable, it can lead to bad reviews and unhappy clients. 

This is why you should invest time and resources in finding qualified staff that clean well and take care of the little details. It’s about doing regular deep cleanings, finding the nooks and crannies that can be easily overlooked and going the extra mile to make sure they are attended to. This is where improving and automating housekeeping service can make a difference because it improves communication, and allows you to log areas that need to be cleaned or service requests and needs from guests. 

Accounting is a fundamental part of any business and having a trustworthy accountant and staff who know how to handle payments well and without error, are few and far between. When juggling so many things, it can be hard to pay providers on time, and have sufficient cash flow that’s not being reinvested into operations to make payments. Furthermore, there are few things that can ruin guest satisfaction more than badly managed payments . 

This is why a service like Mews’ hotel payment processing is so important. You can lose the risk of human error and free your staff from repetitive tasks like credit card data entry by automating payments in a single gateway with a single click. It’s the perfect solution to overcome the challenges presented by payments.

Online reputation

One of the most important and perhaps one of the most difficult challenges hotels face is to create lasting relationships with their guests. With so many channels available, guests have more and more opportunities to comment on their experiences through online review sites like Tripadvisor and Google reviews. 

While this can be a good thing if guests are satisfied, if guests are not satisfied, reputation management can be one of the biggest challenges a hotel meets. To overcome this, it’s important to have a protocol in place as to how to respond to a negative review and how to leverage good reviews to help you sell hotel rooms. Nowadays, your online reputation can make or break your hotel, so make sure you take care of it. Read more about how to boost your Tripadvisor ranking .

Operations should be like a well-oiled machine. From managing reservations, handling guest requests, housekeeping and front desk duties, there’s a lot to juggle on a daily basis. However, if this machine stops working in an effective manner, it can lead to guest dissatisfaction, which can greatly harm your hotel’s online reputation. It is for this reason that operations are so important to look after.

This is where a hotel property management software like Mews comes to the rescue – by automating operations at check in and check out, having a booking engine, a front desk revenue management system all in one. This software helps ensure that operations run smoothly and automate processes so that human resources can be invested in more important areas. 

Ever-more demanding guests

With more information available at our fingertips before traveling, guests are becoming more and more demanding because they feel like they know exactly what to expect and if their expectations aren’t met, they get easily disappointed. Since guests are able to see the rooms and the property and read reviews, when those needs aren’t met, it’s the cause of dissatisfaction. This is why meeting their demands is one of the biggest challenges faced by hotels in the digital age. 

The most important way to prevent this from happening is to be transparent about what you offer and what you don’t offer. Make sure the rooms that are shown in the picture online are accurate representations of what their actual experience will be like. Another way to mitigate guest expectations is to provide a top-notch customer experience with excellent customer service, because nothing leaves a lasting impression on guests (or inspires positive reviews) like excellent guest services. 

We’ve looked at some of the most important hotel challenges faced in the hospitality industry, including operational issues, reputation management, payments, housekeeping and human resources, to name a few. It goes without saying that one of the best ways to overcome these challenges is by investing in human resources. Finding qualified staff that is capable of running your hotel from operations to housekeeping and front desk services, is the surest road towards guest satisfaction and guest retention. 

Wherever you can’t meet the needs with human resources, you can cover with good quality hospitality industry software that can streamline and automate processes, freeing up your staff’s time to handle more important matters like ensuring a first-class customer experience.

Eva has over a decade of international experience in marketing, communication, events and digital marketing. When she's not at work, she's probably surfing, dancing, or exploring the world.

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Mastering Guest Problem Resolution – Important Tips for Hotels

Effective problem resolution not only ensures guest satisfaction but also plays a pivotal role in maintaining the reputation of the hotel. From minor inconveniences to more significant issues, how hotel staff handles these situations can make or break a guest’s experience.

In this article, let us discuss the best practices for hotel staff to master the art of guest problem resolution.

• Active Listening is Key: When a guest presents a problem, the first step is to listen attentively. Allow the guest to express their concerns fully without interruptions, showing that you value their input.
• Stay Calm and Composed: Maintain a professional and composed demeanor, even when faced with irate guests. Your calmness can help diffuse tense situations and reassure guests that their concerns will be addressed.
• Empathy and Understanding: Put yourself in the guest’s shoes. Understand their perspective, emotions, and expectations. Empathy goes a long way in building rapport and trust.
• Apologize Sincerely: A sincere apology can go a long way in resolving issues. Even if the hotel isn’t directly at fault, apologizing for the guest’s inconvenience shows empathy and a commitment to solving the problem.
• Resolve Issues Quickly: Timeliness is crucial. Act promptly to address the issue, whether it’s a faulty appliance, a room concern, or a service complaint. The faster the resolution, the more impressed the guest will be.
• Offer Solutions, Not Excuses: Instead of making excuses or assigning blame, focus on finding practical solutions to the problem. Guests want their issues resolved, not a list of reasons for the problem.
• Ask for Feedback: Encourage guests to share their thoughts on how the issue can be resolved to their satisfaction. Their input can help tailor the solution to their preferences.
• Follow Up: After resolving the problem, follow up with the guest to ensure they are satisfied with the solution. This extra step shows your commitment to their well-being.
• Document Guest Feedback: Keep records of guest complaints and resolutions. This data can help identify recurring issues and improve the hotel’s overall operations.
• Empower Frontline Staff: Give your frontline staff the authority to make decisions and resolve issues promptly, reducing the need for escalation.
• Learn from Guest Feedback: Analyze guest feedback and complaints to identify patterns or areas where improvements are needed. Use this information to enhance the guest experience.
• Prevent Recurrence: After resolving a problem, take steps to ensure it doesn’t happen again. This proactive approach demonstrates a commitment to quality service.
• Offer Compensation Wisely: When appropriate, consider offering compensation, such as a complimentary meal or room upgrade. However, use this option judiciously, as it can be costly if overused.
• Stay Informed: Keep your staff informed about the latest policies, services, and amenities. Well-informed staff can better assist guests and provide accurate information.
• Continual Training: Implement ongoing training programs for staff to enhance their problem-solving and communication skills. Regular training helps staff stay sharp and adaptable.
• Use Technology Wisely: Leverage technology for quicker problem resolution. For example, a mobile app that allows guests to report issues or request services can expedite solutions.
• Delegate Responsibilities: Ensure that different departments within the hotel are responsible for specific types of issues. This streamlines the resolution process and avoids confusion.
• Stay Professional in Written Communication: When communicating with guests through written channels like email or messages, maintain a professional tone and use clear, concise language.
• Maintain Guest Privacy: Be mindful of guest privacy when discussing issues or solutions. Avoid sharing personal or confidential information.
• Seek Supervisor Input When Necessary: For complex or high-stakes situations, it’s acceptable to seek guidance from a supervisor or manager. Don’t hesitate to escalate when appropriate.

Departing Words

Mastering guest problem resolution is a critical skill for hotel staff. It not only enhances guest satisfaction but also upholds the reputation of the hotel in the competitive hospitality industry.

Effective problem resolution isn’t just about fixing the issue – it is more about leaving a lasting positive impression on your guests and ensuring their loyalty in the long run. Through continual training and a commitment to guest-centric service, hotels can elevate their guest problem resolution processes and stand out in the competitive landscape.

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The Most Important Challenges Faced by the Hotel Industry

One of the most affected industries drastically changed by the COVID-19 pandemic is the hospitality industry. While the lifting of restrictions has helped the industry bounce back in some ways, there are still some issues to overcome. But technology just might be the answer to ensuring a quicker solution.   

In the first episode of Be Our Guest, host Gabrielle Bejarano spoke with two people who know the industry best — Jeff Aguiar , the Vice President of Partnerships and Business Development at Aavgo and Kelley Coats , the Senior Director and Head of Commercial Business at SkyTouch Technology . Both Aavgo and SkyTouch are hospitality platforms meant to facilitate day-to-day hotel operations.   

Some challenges are just hard to avoid. “I think hoteliers are already focused on these challenges, when I speak with owners they’re focused on finding new ways to drive profitability, specifically they’re looking at … finding new ways to address labor shortages, or how do they control rising labor and operational expenses, while still delivering secure services,” said Aguiar.   

“The labor shortage in the hospitality industry has been incredibly resilient through this entire pandemic, and so while from a positive we continue to see pent up demand and probably many of us out traveling,” said Coats.     

Coats added how the lack of resources and misconceptions about the field can be a setback in progress but stated that the right tools can play a beneficial part in improving odds. “On the other side, [we] continue to have the challenges of shortage of labor and finding the right talent. And so we’re really trying to help with having the resources, and I think it’s really an opportunity to reinvent the perception of the hospitality industry,” said Coats.  

Coats said that the belief that jobs in the hospitality industry offer poor pay and aren’t jobs for career growth is something that needs to be challenged. Employee retention is a major aspect in the functioning of hotels. Aguiar said that companies have robbed themselves of decent retention rates with a mindset that there will always be someone to do the job. As the labor shortage has shown, that is not the case and he said that it actually creates more turnover.   

Oftentimes companies in the hospitality industry think pay increases are the main draw factor for new employees. But Aguiar disagrees. He stated that the concerns of employees are one of the things that need to be met alongside salary.  

“It’s just not sustainable to nearly ratchet up pay to try to attract and retain employees. I think it’s important that owners, managers, leaders, build a culture and programs that reflect what employees need and want, and ultimately create a great working environment,” said Aguiar.   

Not only can hotels revise how to attract new staff, but also how to attract new customers. Aguiar added that the expansion of these tools like Aavgo are being used by both high-end and economy hotels — something that normally started with luxury hotels first before reaching others.   

“That’s not traditionally been the way in which new technology is adopted. Typically technology, it would start on the upper end segment of the industry, but with our solution we’re seeing the gamut,” stated Aguiar.   

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Which Problems does your Hotel Concept Solve?

The Qbic concept is unique in many ways answering the needs of today’s world. It solves problems that hotel businesses, travelers, and destinations are dealing with on a continuous basis.

For a business to be successful it should be solving a challenging problem. Differentiate your concept by solving a problem your competition is not addressing. This will truly make you stand out from the pack and give you a unique story to build the success of your brand around.

Qbic Hotels took this approach a bit further. It actually decided more than one problem the hotel industry is facing; it addressed issues concerning real estate, economic downturn , traveler needs, and hotel business inefficiencies.

Yes, they set the BAR high for themselves, looking to create a new standard.

Here a list of common problems in the hotel industry they set out to solve:

• Underutilized commercial real estate
• High construction costs
• Long construction lead time
• Inefficient use of space
• High personnel and operations costs
• Cash flow challenges
• High quality comfort tends to be expensive

Underutilized Commercial Real Estate

Over the last decade many office buildings and other commercial projects have been developed in cities all over the world. Unfortunately due to the current economic climate many of these properties are not fully occupied or even empty. Qbic has developed a plug and play concept that can easily move into these vacant buildings, and requiring new build.

In London Qbic moved into an empty office building and converted it into a hotel right next to the business district of London City. And in Amsterdam Qbic is actually taking within an operating office complex, the World Trade Center, renting a few floors.

This conversion approach is becoming a very viable solution for owners of underutilized commercial real estate offering clear value.

High Construction Cost & Long Lead Time

The build-out of a hotel or conversion of a building is usually a lengthy process lasting from anywhere between 1 or 2 years. During this period a lot of costs are accrued, which will need to be written once the hotel has opened.

So it is essential key to keep construction time to a minimum and costs very much controlled.

Qbic has developed a plug and play room module, which significantly pushes back the construction time and cost. The pod unit, called Cubi, is pre-fabricated in China and shipped to the construction site. It is assembled inside the room. All you need is four walls and plumbing and electricity to plug into.

Here a video of the assembly of the Cubi:

The development of Qbic London City took only 6 months and stayed within the original cost budget. This is quite unique for our industry. Qbic Amsterdam WTC increased its capacity from 55 to 88 rooms (simply renting another floor) within just 1 month.

Again another important challenge new hotel development generally faces has been tackled.

Inefficient Use of Space

Using the Cubi module, we were able to reduce room size by 20% without the guest feeling cramped. The unit combines both the bed, TV, lighting and bathroom, requiring less space for a room. And the stylish design of the Cubi, adds to the uniqueness of the Qbic experience.

The lobby space is also smaller as due to the use of check-in machines a large reception desk is not needed.

To summarize, the Qbic concept can get more rooms out of a building, and still deliver a high quality and unmatched experience.

High Personal and Operation Cost

‘The Best Service is Self Service’, I would not be able to explain it better, hence a quote by the man behind the Qbic concept, Paul Rinkens.

People do not care if they have to go get something themselves. Actually they probably prefer to get refreshments themselves, rather than an unhandy and moody waiter serving them an overpriced drink or snack, potentially after a bit of a long wait as well.

What consumers are after is a quality experience at a good price.

Qbic is an efficient hotel all-round. The low cost hotel uses self check-in machines, coffee machines and vending machines on the guest floors (instead of in rooms), vending machines for drinks and healthy snacks in the lounge.

All food and beverage products are locally sourced and are of good standard. The price is much lower than you would normally pay in a hotel, so getting it yourself by swiping your credit card is a trade off our guests wholeheartedly welcome.

To run the operations of a 200 room hotel we only need 2 FTE’s per shift, plus a manager responsible for the overall property. Housekeeping is outsourced and works on a cost per cleaned room basis.

Unhealthy Cash Flow

A classic challenge we have been facing in the hotel industry for decade. Payment terms of 30, 60, 90 days or worse, are not healthy for any business.

Hence at Qbic Hotels all reservations are pre-paid. Just imagine, you launch a marketing campaign today, and reservations start coming in immediately and are paid for at time of booking

You actually have money coming into your accounts before you even have to pay your supplier invoices and payroll.

Affordable High Quality Comfort

Great, so we save a lot of cost. We could put it all in our pockets. But we would only end up with a boring stripped down hotel concept.

Wrong. You still have to offer a great value proposition. Part of the cost savings from construction and operations efficiencies are used to create the unique Qbic experience.

The Qbic concept offers the following basics that travelers are really looking for in a hotel:

• Perfect Bed
• Perfect Shower
• Soundless Room
• Immaculate Cleanliness

For the beds king-size mattresses from NaturalMat, all made from natural materials, are used. You will enjoy a night sleep at Qbic most will not even get at home. It’s a key value proposition of this low cost hotel concept.

Special wooden flooring, insulation and uniquely manufactured doors ensure for a sound proof room, also adding to an undisturbed night sleep. And in the bathroom you will find a large rain-shower to set-off your day on the right note.

It is seldom I sleep the entire night in a hotel, without waking up. The super comfy bed at Qbic did the trick for me however. Heads off to this smart investment!

And as they say, the Lounge is nothing like home. A comfortable living room built around a fire place and large cooking isle, which serves as the breakfast buffet. The carefully picked mash-up of furniture and decoration creates a cozy setting, in which after 8 hours of working I still felt at very much at ease.

Qbic Hotels is a very exciting project for Xotels to work on. We get the opportunity to challenge any industry dogma or ‘standard’. We have just recently launched a £1 promotion, offering 450 rooms at just  £1 to create brand awareness for the newly opened Qbic Hotel London City.

I hope this article will help when you are thinking of developing a new hotel concept. You should really go beyond a nice looking concept and challenge the status quo if you want to have a blazing success.

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How to Deal with Common Challenges in the Hotel Industry?

Travel and hospitality is a lucrative industry. Over the years, the industry witnessed a tremendous rise in business.

However, despite the gains, inevitable challenges in the accommodation sector make running hotel businesses a little more difficult.

So, if you are frustrated and truly wondering how to overcome these hospitality challenges, then you’re at the right place.

This article talks about all the common challenges in the hotel industry and their possible solutions.

Table of Content

• Why Should You Know About the Challenges?
• Common Challenges in Hotel Industry and Their Solutions
• Hiring and retaining the staff
• Change in marketing trends and dynamics
• Operational issues
• Rising cost of daily consumables
• Housekeeping issues
• Change in guest expectations
• Irregular cash inflows
• Data security challenges
• Maintaining online reputation
• Losing loyal customers
• Change in technology
• Hotels are not data driven
• Rising competition
• Restoring business post crisis

Why Should You Know About All the Challenges in the Hotel Industry?

Running a hotel business isn’t a cakewalk. The level of risk involved is immense.

Therefore, hoteliers must keep an eye on every hurdle that comes their way.

Numerous hotels around the world tend to overlook most of the challenges. As a result, they face serious repercussions.

Let me share an incident.

There’s this hotel I visited in Prague. The property was just marvelous and I was loving my stay. On day 2 of my stay, I met the hotel manager and had a colloquy. And I got to know a lot.

They had to close two of their POS outlets. Reason? The system they were using to manage the outlets was sort of old school and didn’t have the automation aspect.

Initially, it didn’t seem to be a big issue, but when they had to perform certain tasks manually, discrepancies increased, and at one point it went out of hand.

Now, if you still think that you don’t have to emphasize every challenge, then that’s not correct. To keep a hotel running; in fact, prospering, an all-around inspection of all the challenges of a hotel business.

Common Challenges in Hotel Industry and Their Solution s

You don’t need rocket science to overcome challenges. Rather, you need to have a strategic approach.

Over the years, many hoteliers shared many pain points with us. So, in this section, we address a few global issues and challenges in the hospitality industry and their solutions.

1. Hiring and retaining the staff

Hiring and retaining staff has always been one of the most common problems in the hospitality industry.

Every hotel requires quality staff on all fronts; be it administration, maintenance, kitchen, housekeeping, or frontdesk. Lack of skill in the educated youths graduating from education houses is also proving to be a major challenge in the hotel industry.

Training the new workforce on a regular basis is the only remedy available. Retaining a qualified staff requires you to employ a few tactics. For example, cultivating a feeling of belongingness (culture) and value for the team members will make them attached to their jobs and instill a sense of responsibility in their minds.

2. Change in marketing trends and dynamics

Marketing is one of the most common challenges faced by the hotel industry.

Changes in the advertising and marketing trend often create problems for hoteliers. Also, traditional marketing methods aren’t that effective now. So, for those who have always stuck to the old-school ways, getting the strategy right is one of the biggest challenges of the hospitality industry. 

Online marketing is a surefire method, though it would take years for hotel owners to establish their strength. Online deals are booked by genuine guests and major transactions are paid in advance. 

Engaging your guests on social media , messaging apps, and other online sources can work wonders and give you results in a few months. Implementing effective digital marketing strategies is a strong solution to such issues in the hospitality industry. Be consistent and patient with whatever tactics you apply. It is inevitable that with the right strategies.

3. Operational issues

There are countless operational challenges in the hotel industry. Ranging from reservations management, attending to guests, performing all front office operations , maintaining cleanliness in hotel rooms and premises, and more. However, hotel departments often fail to perform all tasks in sync which leads to chaos and customer dissatisfaction.

Besides operations, front office problems and solutions are connected to an integrated hotel PMS system . The faster you adopt it, the better it is for your property. Your operations are automated and departmental functions are synced with a PMS because it simplifies communications to a large extent.

4. Rising cost of daily consumables

Price inflation of daily use products, eatables, and other supplies has risen steeply in the last few years. While that has affected all industries, it takes a huge portion of the issues and challenges faced by the tourism and hospitality industry.

A visible solution to this would be to keep a constant check on the inventory, control stock, and reduce wastage as much as possible. Consider implementing useful cost-saving strategies at your property, which would help you manage the rising costs.

5. Housekeeping issues

Cleanliness is a basic requirement of every guest. In fact, you’d also ask for a clean and tidy hotel room when you are traveling. A majority of hotel guests would prefer a clean room over complimentary amenities, any day. 

Also, if you think about it, an unclean and messy room is also a common guest complaint .

But there are times when it becomes a little difficult for hotels to stay true to this. After all, there are various housekeeping challenges involved and strategies are needed to be made to cope with them. 

Housekeeping challenges in hotels need to be managed well with effective strategies and thought processes. The housekeeping process needs to be aware of the clean and dirty rooms and constantly maintain common areas. Do highlight these measures on your website and social media handles to gain your guests’ trust.

This is the best way to manage tasks, and keep track of the arriving and departing guests, and you can prepare yourself well in advance. This way, you can easily avoid challenges in housekeeping operations.

6. Change in guest expectations

Changes in guest expectations are one of the biggest hurdles in the hotel industry. You’ve witnessed that nowadays guests demand a lot more from a hotel. Be it free WiFi, entertainment system, unique stay experience, or swift check-in check-out services.

And lately, people have also started expecting contactless hotel services to ensure a safe stay and eliminate their dependency on hotel staff. Certainly, it’s quite difficult to abide by these demands because of resource or capital bandwidth, but it will be imperative to do it.

So, contactless hotel services can be provided with the right technology. Consider deploying a self-service guest portal that will facilitate quick check-in and check-out services, share the location of your property, and even let guests request pick-up and drop-off services. Keep yourself updated with the latest hotel industry trends . Doing that will help you meet the changing guest expectations in a better way.

Check out the video below, to get an idea of how to provide a contactless guest journey at your property.

7. Irregular cash inflows

One of the major challenges in the hotel industry is the credit menace. Dealing with parties who pay after 30, 60, and 90 days or even later. While these types of dealings are bigger, they don’t help much during a cash crunch. On top of that, many payments are delayed or go into bad debt.

Consider changing vendors and suppliers following a long payment term. Or strike a deal with them to collect their due payments in installments rather than in one go. This will keep your boat sailing for a longer duration. On top of that, you can launch an online marketing campaign to attract bookings, since these strategies provide a quick ROI.

This way, you save on hiring extra personnel for payment collection and even get to pay your bills on time. In short, you have an ample cash reserve for working capital. And that’s the best thing you can do about dealing with such hotel industry challenges.

8. Data security challenges

The question of security is not a new one. While our data security methods have advanced considerably, so have the possibilities of data leaks and virus attacks. Threats of digital data theft and confidential data leaks are a matter of concern for hoteliers globally.

The first step to take toward secure data is to ensure proper data storage. Stop dealing with excel sheets and registers. Incorporate a secure hotel technology that prevents your data leaks. Technology today is PCI-DSS compliant as well as HTTPS secure, leading to better data encryption . This way you build your hotel’s credibility to bring in more guests.  

9. Maintaining the online reputation

Today, internet-savvy visitors look for the brand reputation first before booking a hotel room. But, maintaining an online reputation is another big challenge that hotels often face. However, this has not been a current issue in the hospitality industry. Reviews and reputation have been neglected across all industries since the beginning. Little do they know, that an unmanaged reputation leads to poor brand image.

According to a survey, 93% of travelers check hotel reviews before booking a room and 33% of guests do not prefer to book a hotel with no reviews. Moreover, it is always crucial to track what guests are saying about your brand and the services you provide. Review management systems help you monitor, manage and respond to your online reviews – regardless of the platform and language.

I also have something to assist you in responding to reviews.

10. Losing loyal customers

Since various hotels are constantly pouring in attractive offers, guests tend not to be limited to a single brand. Rather, they’re open to options; especially if you fail to connect and engage with them personally, and deliver a memorable guest experience.

Running loyalty programs is the MOST practical way to increase your loyal customer base. These include offering amenities, discounts, and reward points to guests against their membership. So, even if they’ve stopped using the services, you can approach your guests and offer them deals or packages. At the same time, do not forget to consider implementing ways to increase repeat guests at your hotel.

11. Change in technology

The advancements in technology are altering every aspect of our daily lives. Gone are the days when guests used to wait for hours or a day to receive answers to any query. Today, customers are expecting a fast response and services from hotels. Such constant changes are extremely arduous to adapt to, which poses a challenge.

Hotels have begun tailoring guest experiences with chatbots. Chatbots allow hotels to respond to visitors at once, answer every query instantly, and more. This further increases hotel bookings, and revenue.

12. Hotels are not data-driven

You are well aware that some hotels do not rely on any surefire data for business decisions. And because of the decisions based on assumptions, many hotels are forced to close down in a short span.

For instance, business decisions to spend for promotions on OTAs, interiors, room rates, and room types aren’t decided on the basis of actual statistical reports.

In order to fight one of the prominent challenges in the hotel industry, you are required to use software that‘ll give you all the business insights . It can help you in making informed business decisions and save on extravagant spending. Using the complete data analysis tool, you can even apply proper revenue management strategies to earn higher revenue.

13. The growth of local hospitality hosts and rising competition

These days, more and more property owners are renting out their rooms or property occasionally. Homestays and vacation rentals promise an authentic local experience besides being convenient. Owing to this, travelers prefer to choose those homestays over hotels and resorts. Other than that, new hotels are entering the market every day. This growing number of homestays and competition is one of the challenges in the hospitality industry of 2022.

First and foremost, solid competition analysis is needed. You need to know how your competitors are doing, monitor their strategies, and then devise better plans for your property. On top of that, you need to offer something significant to attract your guests. Constant innovations and personalized services are eventually the only way to beat the competition.

14. Restoring business post natural calamities and crisis

So, I think this is a recently faced challenge (or rather, ISSUE) in the hospitality industry. The whole world shut down traveling during the COVID-19 outbreak, because of which the hotel industry also had to shut down its operations. Canceled reservations, indefinite lockdowns, and shutdown hotels; this was probably the worst hit times for the tourism and hospitality industry.

While it is a challenge to survive these times, it is an even bigger challenge to come out of these times as a winner. And the hardest to restore the business in these uncertain times.

To be honest, none of us would have imagined a situation like this, where we would be fighting for our survival. But it is entirely up to us how we see these challenges, learn from them and come out even more potent than we were.

Businesses took this opportunity to evolve and innovate. and prepare themselves for the future. While these are all-natural calamities and not in our control, we can surely work on optimizing our operations and ensuring that our business stays alive amid the chaos. In the current times, you can use and implement strategies mentioned in our COVID-19 survival kit for hotels .

Every industry is prone to challenges and pitfalls, and the hospitality industry is no exception.

The last couple of years is accurate proof of it. But that same period is also proof that there’s nothing the industry can’t overcome. The way the industry has got back on its feet is indeed commendable.

Through this article, I have tried to help you have a clear idea of what challenges are common in the hotel industry. Try to determine the ones you are facing or likely to face, and then accordingly go about implementing the solution.

Smart hoteliers are using this for revenue optimization! Are you?

Check out eZee Mint, the latest addition to our solutions.

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• Feb 11, 2022

How To Deal With Common Problems In The Hotel Industry

Hotelier Raj wants to start a hotel business. He is full of optimism and excitement. He does market research, looks at competitors and key players, learns about hotel revenue management, and even learns social media marketing. However, there is one thing he forgets to do, which will hamper his business. What's that? You may ask. The answer is simple: Jim was so excited that he forgot to learn about the problems in the hotel industry. For any business, to do something great, we need to know what not to do.

You need to know how to deal with common problems in the hotel industry, and we are going to explain how to do it smartly and efficiently.

How To Solve The Common Problems In The Hotel Industry

Recruitment and management of staff.

The staff are the representatives of your hotel. You need good quality staff to start and run the hotel. The hotel also needs a diverse staff since the industry itself is diverse.

You need staff for housekeeping, food and beverages, reception, digital marketing, client servicing, purchase and sales, and so forth.

Managing staff is a challenge too. Hotels need to ensure that the staff is well paid and all their grievances are met. Hoteliers need to also ensure that they are following the policies of the hotels.

The best solution to this common problem in the hotel industry is to list your property on recruitment platforms such as LinkedIn. You should also have an option on the hotel’s website wherein the candidates can directly apply for any position.

Hotels need to constantly monitor their performance and ensure that they are following the parameters.

Ever Changing Marketing Trends And Dynamics

Hospitality is a competitive industry. Hotel owners need to understand what the market wants and when. Trends which were popular in 2021, can be obsolete a few years down the line.

Not being able to follow the trend is one of the most common problems in the hotel industry. For example, if it is a natural resort, you will be behind your competitors if you don't include camping in the package. Customers expect instant redressals of their grievances.

The best way to understand the new trends is to research upcoming hotels and the categories they are targeting. Google Search can be used for identifying various emerging marketing trends.

You should keep on researching the emerging marketing styles to reach the consumers more efficiently.

Housekeeping Issues

Housekeeping is one of the most important aspects of the hospitality industry. It also means that housekeeping issues are one of the most common problems in the hotel industry.

The way the rooms are maintained will either make or break your hotel. A hotel may offer the best services and the best amenities. However, if the room is unkempt when the guests enter the room after checking in, the hotel is guaranteed a less than a three-star rating.

Regularly inspect the rooms and follow up with your housekeeping staff. Keep reviewing their performance. The management should also personally inspect the rooms and see if the housekeeping is doing its job. If any flaws, explain them and ensure that they perform their tasks well.

Competition

The hotel industry is dynamic and competitive. Hotels that are able to establish themselves, manage to stay for a longer time. However, if a hotel doesn't then they will have to shut down.

A hotel doesn't only face competition from other hotels, but the hotel industry itself is facing competition from other types of accommodation such as homestays, resorts, villas and holiday homes. Not keeping yourself at par is one of the common problems in the hotel industry

If the hotel is a franchise, it can diversify into different segments such as Aparthotels, Villas and homestays.

Hotels can also include upcoming and trendy vacation experiences. Even a single property hotel can host several types of accommodations to diversify choices.

As far as your existing offering is concerned, hotels need to modify and upgrade the existing offering to shine amongst their competitors.

Cost Management

One of the most common problems in the hotel industry is cost management. A hotel incurs a lot of costs to run. From perishable items, furniture, utensils, bedding, and regular maintenance, you have to deal with these expenses. Perishables are the most crucial since they cannot be carried forward beyond a certain point.

On top of regular expenses, hoteliers will also need to deal with unexpected expenses, such as malfunctioning of an amenity, massive damage, or sudden increase in public relations costs due to some incident. You need to also keep depreciation in mind.

Cost Management is something that the hospitality industry can't escape from. It is one of those inevitable problems in the hotel industry. Wastage and unexpected costs are inevitable, but you will need to manage those costs effectively through budgeting as well as proper classification of costs.

Improve your service and use resources efficiently to reduce costs and make the business more profitable.

Food And Beverage Quality

The quality of the food and beverages will determine whether the hotel is loved or is hated. You need to manage this sector delicately since many goof-ups can lead to your hotel getting cancelled for good.

Any inferior quality food or beverage can make the guests sick, ruin the taste of the dining experience and give your hotel a bad reputation.

Keep strict quality control standards. Your purchase department should be made to understand that they need to source their food and ingredients from the best place. Regularly inspect the quality of food, fruits, vegetables and other groceries.

In case you detect that the food is spoilt, discard it immediately. The dish being cooked is exactly the way it is supposed to be cooked.

Customer Relationship Management

The hotel depends upon your customers. If you can gain as well as retain customers, the hotel business will flourish. Customer Relationship Management means managing relationships with the customers to not only sell a service but also retain them and persuade them to continue the relationship in the future.

This is where many hotels are floundering. They may succeed in gaining customers but fail in maintaining a good relationship with them.

The first step in Customer Relationship Management (CRM) is to collect data of the customers. Hoteliers can do this by asking them to register on the website by asking for their email addresses. Hotels can ask for other details as well, such as age, gender, and location. Through this, A hotelier can segment the customers and target them accordingly.

Chart out a sales funnel to identify the stages which the actual, as well as potential customers, go before they finalise the purchase.

Hoteliers need to identify who are their most profitable customers and then try to maintain that relationship. Tracking CRM helps identify the effectiveness of your campaign. There are many CRM tools that can be used. Some of them are Scoro, Sugar CRM, Salesforce and many others.

Revenue Management

Revenue Management is at the very core of the hotel industry. It involves analysing and forecasting customer demand and then devising the best rates to gain maximum revenue.

It also involves identifying the best rooms which can be given to a type of hotel guest.

Identifying the right platform to sell the hotel is also an integral part of revenue management.

It is also one of the central problems in the hotel industry. Improper revenue management will cause hoteliers to incur losses.

In order to tackle revenue management effectively, hoteliers need to first make a budget and forecast. Keep certain estimates in mind and then devise the budget to meet those needs.

Forecasting provides you with a reference to check the actual performance. A Hotelier should also analyse its competitors to understand what they are doing and further improvise on it.

Online And Digital Presence

If a hotelier wants to attract customers, it needs to be first visible to the customer before anything else. If the property is not on the internet, it doesn’t exist for the modern customer.

Another problem is not only inadequate online presence but improper social media presence. If you don’t reach the right platforms, the business will not succeed.

SEO or Search Engine Optimization can be a hotelier's best friend. Before anything, you need to first optimize your website to generate more organic traffic. A Hotelier also needs to use social media intensively and extensively to reach more audiences.

A focus on content marketing can also make a lot of difference since people need more innovative content. Hoteliers should also include blogs on their websites to make them more attractive to those who are looking for informative content.

Technological Changes

Hoteliers are using more advanced technology in order to improve their efficiency. Data marketing has become a major force, with many software being able to compile data of their guests and market and remarket them.

Not adapting to these technological changes is one of the major problems in the hotel industry. The hotels that are able to adjust to the technological changes will be ahead of those who don’t.

The best solution to this problem is to gradually adapt to the changes. Adapting too fast without proper planning can do more harm than good. You need to learn about the technology in detail and slowly but surely make your workforce accustomed to it.

Change In The Expectations Of Customers

Customers’ tastes and preferences have changed and will keep on changing. For example, a customer now wants to enjoy ‘Glamping’ - the luxurious camping experience, rather than a standard resort. Customers also want a property that offers a ‘woods’ experience. Of course, there are certain categories that will garner tourists.

However, even they have to adapt quickly to the changes. For example, there will be customers who want to stay at a luxury hotel. However, the very definition of luxury is being changed. Now, a luxury resort with a spa isn’t even considered a true luxury resort now!

A hotelier needs to first understand what your hotel represents. If it is a mid-range hotel, it doesn’t have to include too many luxuries since the target customers need a comfortable bed and good amenities. However, hotel owners should always try to add something which will make the property stand out from others.

For example, the hotelier can add a sauna area or a relaxation area. This will help the property stand out. If a property has a large green area on your property, especially if you are a nature resort, camping can also be organized.

Inadequate And Improper Marketing

If you want to gain customers, you will need to do proper marketing. Marketing involves advertising, sales promotion, public relations, direct marketing etc. A hotelier needs to understand these tools of marketing to reach the right customer at the right place. Not managing this properly is one of the common problems in the hotel industry.

Understand each marketing strategy tool and how you will use it to promote the hotel. Understand that these tools work together and hence, coordination is required.

Malfunctioning Of Amenities

The amenities define the hotels. Whether your amenities deliver or not can affect the business’s reputation. An unclean swimming pool, a broken toilet spray etc, can ruin the guest experience, no matter how good the property is.

A hotel needs to regularly inspect the hotel amenities to ensure that they are working. A dedicated supervisor is required to inspect the rooms, amenities, and other areas of the property.

Unexpected Crisis

Your hotel can face an unexpected crisis, such as fire or leakage. Hoteliers need to be prepared for such crises to minimize damage. Lack of preparedness is one of the major problems in the hotel industry.

Arrange for fire extinguishers and have people at hand who can come and manage the crisis. Also, ensure that the panic is managed. If there is any other goof up, it should be sorted out as soon as possible.

Post-Covid Crisis

Covid has adversely impacted the hospitality industry. One of the biggest problems of the hotel industry is how to recover from the lockdowns and lack of business. Even the potential customers are hesitant to explore as there is still concern about Covid.

The hotel needs to take covid appropriate measures such as ensuring social distancing, providing sanitisers, and masking up your staff. You need to instil confidence in your customers that their safety is guaranteed.

Losing Loyal Customers

A business can lose loyal customers for several reasons. The quality of the service may degrade or the customer isn’t being provided with the service regular customers expect. A customer can also find other hotels better than yours. Retaining customers is one of the common problems in the hotel industry.

Retaining your loyal customers is the core of Customer Relationship Management. Offer loyal customers better service and discounts, so that they have an incentive to stick with you.

By tackling these problems in the hotel industry, you will be able to navigate your business in an efficient manner and also gain new customers. Bigfoot Hospitality is here to provide you with effective Hotel Revenue Management as well as Hotel Marketing. Check our blog page to learn more about the hotel industry.

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The wild dash to get Billy Amick his No. 11 jersey for Tennessee baseball vs Vanderbilt

NASHVILLE − Chad Zurcher dashed through the lobby of Hilton Green Hills in Nashville on Saturday.

The Tennessee baseball director of operations opted for stairs over elevator. He only had to get to the second floor. Zurcher bolted into the second room on the left and spotted the orange Vols jersey he needed. 

The Vols were less than 15 minutes from first pitch against Vanderbilt as Zurcher barreled back through the hotel lobby with Billy Amick 's No. 11 jersey in tow.

“You are just trained to do,” Zurcher said. “You can ask any ops person, you are ready to go. That is what you are here for — to make sure they can play.”

Zurcher jumped into action before Tennessee’s 7-6 win against Vanderbilt at Hawkins Field. He had 36 minutes until first pitch when he found out Amick didn’t have his jersey. He got it done in 32.

How Chad Zurcher got Billy Amick’s jersey for Tennessee at Vanderbilt

Amick approached Zurcher and assistant director of baseball operations Adam Low at 1:26 CT Saturday. The starting third baseman realized he had forgotten his jersey after batting practice. 

Zurcher grabbed his car keys and Amick’s room key. He ran out of Hawkins Field, letting a security guard know the situation. It was a 15-minute drive to the hotel down Hillsboro Pike, which gave him red light after red light. 

“I looked down and realized I didn’t have my wallet,” Zurcher said. “I was like, ‘I hope I don’t get pulled over.’ "

Zurcher hurtled into the hotel to retrieve the jersey as Amick warmed up in a No. 29 jersey.

That was the easy part. Getting back in time through Nashville traffic and Vanderbilt construction was another. His GPS offered a solution with a 10-minute route back on different roads. He got back to the ballpark with minutes to spare, parking the car beyond the centerfield fence and ran.

The security guard he notified waved him home, holding up lines of fans to get Zurcher through. He jogged into the dugout at 1:58 to Amick waiting to put on his jersey with four minutes before first pitch.

“I was pretty exhausted when I got done,” Zurcher said. “I don’t do much running these days.”

Chad Zurcher is always solving Tennessee baseball problems

Zurcher, a South-Doyle alum and Memphis hall of famer, has spent the past nine seasons solving Tennessee’s problems like Amick’s jersey issue. 

He did the same for Maui Ahuna last season before UT's opener at LSU, tossing the jersey over the fence to the former Vols shortstop. Former Vols shortstop Cortland Lawson forgot his glove at the hotel during the 2022 SEC Tournament. Zurcher went and got it.

DOBO: Meet the Tennessee basketball superwoman who keeps the Vols running in March Madness

Zurcher once hustled to get Garrett Crochet food after the former Vols ace forgot to eat breakfast, did his off day running and was struggling. 

“You are always prepared,” Zurcher said. “You want these guys to play and not worry about that kind of stuff.”

Zurcher gets it done so the players can get it done on the field. The No. 1 Vols (42-9, 19-7 SEC) did that again against Vanderbilt (33-17, 11-14). 

They’ll go for a sweep Sunday. Maybe Zurcher will have another problem to solve — and maybe Amick will make sure it’s the same one. 

“He said he will probably do it again tomorrow so we can win,” Zurcher said.

Mike Wilson  covers University of Tennessee athletics. Email him at [email protected] and follow him on Twitter @ ByMikeWilson . If you enjoy Mike’s coverage,  consider a digital subscription  that will allow you access to all of it.

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The Possible Collapse of the U.S. Home Insurance System

A times investigation found climate change may now be a concern for every homeowner in the country..

Hosted by Sabrina Tavernise

Featuring Christopher Flavelle

Produced by Nina Feldman ,  Shannon M. Lin and Jessica Cheung

Edited by MJ Davis Lin

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Across the United States, more frequent extreme weather is starting to cause the home insurance market to buckle, even for those who have paid their premiums dutifully year after year.

Christopher Flavelle, a climate reporter, discusses a Times investigation into one of the most consequential effects of the changes.

On today’s episode

Christopher Flavelle , a climate change reporter for The New York Times.

Background reading

As American insurers bleed cash from climate shocks , homeowners lose.

See how the home insurance crunch affects the market in each state .

Here are four takeaways from The Times’s investigation.

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We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

Christopher Flavelle contributed reporting.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

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Christopher Flavelle is a Times reporter who writes about how the United States is trying to adapt to the effects of climate change. More about Christopher Flavelle

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