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Caterer & Hotelkeeper Magazine

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Your Shout: Melvin Gold, Melvin Gold Consulting

Karl Cushing
Friday 16 April 2004 15:41
 
Beware, the giant is awakening! For all those running hotels, take note: at last things are on the up. That may be good news for small and large hoteliers alike, but with so many distractions it is important to remember one thing: the bottom line is, well, the bottom line.

What distractions? A plethora of regulations for a start; then there's the internet and how to take best advantage of it; labour and skills shortages; new competitors, especially from the budget sector; and changes in licensing laws, to name but a few.

For all hoteliers, the best way to add to business value is to focus on the bottom line and take advantage of the distractions as best you can for the benefit of your business.

But I forgot one thing - or rather, I didn't, and nor should you: the customer. For we forget the customer at our peril. Why mention this now? During any downturn it is natural to review costs and to cut them wherever possible. In the long term the most successful and sustainable businesses are built on loyal, satisfied customers. So, adding value to the customer experience is likely to add to the bottom line and build sustainable relationships for the next time that things get tough. For, surely, the day will come again.

So, think about staff retention - for they, too, will have greater choice of opportunities - service standards, property upkeep and enhancement, and "extras with value".

Statistics show just how well the hotel industry did after the downturn in the early 1990s. Revenues increased and costs stayed low relative to historic levels; profits grew and the industry developed as an attractive proposition for financiers. But those that did best in this recent downturn are surely those who maximised customer loyalty.

So wakey wakey, rise and shine, it's time to have a good look at the best ways to add value to your business.

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