Visit Bandung Hotels

If you have a hotel business, one of your primary objectives is to increase hotel revenue. Revenue in business definitions means the subtraction of total price and total costs of a business. So obviously we must start by considering these two factors in general.

The Price

The price here is determining whether our room or other rates are already correct or eligible. In simple words   is the price already right ? For what ? Remember the TV show : The Price is Right ? For a hotel with our specific class and our specific target market. If we were a 2 star bandung hotel, for example, we must conduct a small research on the price versus amenities that a customer gets for the class we are in.

The easiest way is to list amenities or hotel features that we provide and do a comparison against competitors in our area.  The more specific the features are, the better. For example if you can quantify the human factors i.e service attitude (how many ‘may I help you sir’ with a smile), the more accurate the comparisons will be.

If the results of the study shows that our price is too cheap for the service we offer then adjustments of prices must be made which will increase revenue. Otherwise, if our price is too expensive for the same same kind of service comparing to our competitor then an adjustment of lowering the price will increase occupancy which then would increase profit.

The Costs

Items that are regarded as costs in a hotel are many things. It consists of overhead or human resources costs and of course operational expenses. The target is to reduce these costs but there’s a but. But we must not compromise with quality. How is that possible?

Innovating and thinking out of the box. We must ask inputs from our staffs all level on how can we reduce costs. It could be from the operational manager or even a from a bell boy. For example reducing energy usage for the hot water facilities can be done by investing in solar technology of do a combination with the current technology (hybrid system).

Another example of innovation is to reduce overhead of the Marketing section (reduce marketing guys) by automating the booking system with an e-commerce interface. Make an interactive web that ease ordering of rooms. Did you know that Toyota only assemble cars that are already ordered by customers.. If the schedule of rooms is already booked for months ahead we don’t have to worry much about orders and we can concentrate on operations, and take a close look in our service people in giving the best service to our guest.

Tresna

About the author : Tresna is independent blogger that has interest in management (holds an MBA degree) with research interests in:  performance management, human resource and project management.