TOP TWENTY TIPS FOR SURVIVAL IN THE HOTEL INDUSTRY HKICPA Ian Graham 19 July 2010

TOP TWENTY TIPS FOR SURVIVAL IN

THE HOTEL INDUSTRY

HKICPA

Ian Graham

19 July 2010

© The Hotel Solutions Partnership Ltd

Make sure you have the right LEADER


Trust your PEOPLE


Instil a sense of URGENCY


Manage BRANDED channels to the full


Challenge all other on line and direct to hotel DISTRIBUTION channels


Look for support from MARKETING PARTNERS


Put your best talent into on REVENUE MANAGEMENT and increase the focus


Force Sales and Marketing to look for NEW MARKETS AND SEGMENTS


Stay close to high life time value CUSTOMERS


Leverage MEMBERSHIP schemes


Conduct an independent PROCUREMENT AUDIT


Stop SALARY increases and look for reductions in headcount and payroll


But should you reduce your labour force?

Companies that focus simultaneously on increasing operational efficiency, developing new markets, and enlarging their asset bases show the strongest performance on average in EBITDA growth after a recession (percentages refer to the three year compound annual growth rate. Source: Harvard Business Review March 2010


Reduce cost of and/or scope of BENEFITS


Introduce targeted BONUSES


Institute UTILITY usage reductions


THINK RETAIL (revenue and profit per sq meter) and close down inefficient restaurants, bars etc


Drastically reduce CAPEX through postponement or cancellation


Institute tight CASH FLOW MANAGEMENT


DELEVERAGE


Get shareholder agreement to new DIVIDEND POLICY


Top Twenty Tips

Make sure you have the right LEADER

Trust your PEOPLE

Instil a sense of URGENCY

Make sure you are managing to the full BRANDED channels

Challenge all other on line and direct to hotel DISTRIBUTION channels

Look for support from MARKETING PARTNERS

Put your best talent on REVENUE MANAGEMENT and increase the focus

Force Sales and Marketing to look for NEW MARKETS AND SEGMENTS

Stay close to high life time value CUSTOMERS

Leverage MEMBERSHIP schemes

Conduct an independent PROCUREMENT AUDIT

Stop SALARY increases and look for reductions

Reduce cost of and/or scope of BENEFITS

Introduce targeted BONUSES

Institute UTILITY usage reductions

THINK RETAIL (revenue and profit per sq meter) and close down inefficient restaurants, bars etc

Drastically reduce CAPEX through postponement or cancellation

Institute tight CASH FLOW MANAGEMENT

DELEVERAGE

Get shareholder agreement to new DIVIDEND POLICY

© The Hotel Solutions Partnership Ltd © The Hotel Solutions Partnership Ltd

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TOP TWENTY TIPS FOR SURVIVAL IN THE HOTEL INDUSTRY HKICPA Ian Graham 19 July 2010