Stubborn GMs Sabotage Success: Time to Embrace Tech or Fall Behind
15 August 2024
When I entered the hotel industry and became General Manager (GM), the landscape was quite different from what we see today. Back then, it was customary to have a secretary who ensured every report was neatly placed on my desk before I walked into the office. As a baby boomer, I could have quickly settled into that routine, relying on those printed reports to run the hotel. But I've always been fascinated by how technology can simplify our work and enhance business operations. So, rather than just accepting what was handed to me, I took it upon myself to dive into the data. I taught myself how to extract information from all the various siloed systems and create my own Excel reports—reports that offered the insights I needed to make informed decisions that would grow revenue and increase profits.
Many GMs—especially those from my generation—are hesitant to change. They cling to their outdated systems, reluctant to embrace the new tools and technologies that could make their lives easier and their hotels more successful. They don't see the benefits and often don't understand the technology enough to recognize its potential. It's holding back hotels from reaching their full potential and preventing GMs from making the informed, real-time decisions crucial in today's competitive environment. In this blog post, I want to discuss why GMs need to embrace technology, why it's no longer optional, and how they can take the first steps toward becoming more tech-savvy. It's time for a change—and here's how to make it happen.
The Problem with Relying on Built-In PMS Reports
The primary purpose of a PMS is to manage guest reservations, handle housekeeping schedules, process guest transactions and payments, and prepare the necessary financials for integration with the hotel's accounting system. These systems ensure a hotel's smooth day-to-day operations, but their built-in reports often fall short regarding decision-making.
One of the main limitations of PMS reports is that they are primarily designed to report on historical data and limited on-the-books information related to future reservations. While these reports can show you what has happened and what is currently booked, they are mainly retrospective, offering little forward-looking insights. Relying on these reports for decision-making is akin to driving a car while only looking in the rearview mirror. You can see where you've been but may miss the road ahead, leading to missed opportunities and potential pitfalls. Additionally, PMS reports operate within a very specific scope—they are focused on handling transactions within operations.
Another critical limitation is that guest review data, increasingly vital to today's digital landscape, is not stored in the PMS. Instead, it resides in separate, siloed systems. This separation means there is no direct connection between the guests' stay data and their reviews, making it difficult for GMs to correlate guest feedback with operational data. Without this connection, a GM might miss vital insights, such as recurring issues highlighted in reviews that could be addressed to improve guest satisfaction and loyalty or opportunities to upsell services to satisfied, repeat guests.
All in all, while PMS reports are essential for managing the operational aspects of a hotel, they have significant limitations when it comes to strategic decision-making. They primarily report on operations within a narrow framework, missing out on broader trends and insights that could drive better outcomes. To truly make informed decisions that enhance revenue and guest satisfaction, GMs need to look beyond the built-in reports of their PMS and incorporate data from other systems into advanced analytics tools. This holistic approach is necessary to understand the full scope of the hotel's performance and to make decisions that will lead to sustained growth and profitability.
The Hidden Cost of Manual Reporting
Wasting Labor Hours on Manual Reporting: A Thing of the Past
In the digital age, manually generating, printing, and delivering reports to a General Manager's desk every morning is not just outdated, inefficient, and costly. While it might seem like a small task in the grand scheme of hotel operations, the cumulative impact of this practice reveals significant hidden costs that can no longer be ignored.
Wasted Labor Hours That Could Be Better Utilized Elsewhere
Every day, valuable staff time is consumed by compiling data, formatting it into reports, printing these documents, and physically delivering them to the desk. This routine repeated or multiple times daily, adds to a substantial number of labor hours over a year. These hours could be better spent on more productive tasks, such as improving guest services, engaging in proactive revenue management, or enhancing operational efficiency.
Increased Risk of Errors in Manual Report Generation
Manual processes are inherently prone to errors. I experienced this firsthand when I compiled data in my Excel reports. Whether it was a simple typo, a data entry mistake, or an outdated figure, these errors often crept in and led to flawed reports. When you make decisions based on inaccurate information, the consequences can be costly. Automation reduces the likelihood of these errors by ensuring data is pulled directly from source systems without human intervention. This improves the accuracy of reports and enhances the reliability of the decisions made based on this data.
Delay in Decision-Making Due to the Time Lag in Report Delivery
Timely decision-making is crucial. However, the manual process of generating and delivering reports introduces a time lag that can delay critical decisions. When a printed report reaches the GM's desk, its data might already be outdated, especially in dynamic situations like managing overbookings, responding to sudden changes in market demand, or addressing guest service issues in real time.
Conclusion
Manual reporting is not just a relic of the past; it's a costly inefficiency that modern hotels can no longer afford. By embracing automated reporting tools, hotels can save labor hours, reduce errors, and make faster, more informed decisions. The hidden costs of manual reporting add up quickly, directly impacting the hotel's bottom line. It's time for hotel GMs to leave these outdated practices behind and embrace modern technology's efficiencies.
Why Modern GMs Must Embrace Technology
The Strategic Advantage of Being a Tech-Savvy GM
The role of a hotel GM has evolved beyond traditional leadership. Modern GMs must embrace technology as a strategic advantage to stay competitive and drive their hotels to success. By becoming more tech-savvy, GMs can unlock many benefits that streamline operations, enhance decision-making, improve guest satisfaction, and boost financial performance.
Real-Time Access to Data: Make Informed Decisions Quickly
One of the most significant advantages of being a tech-savvy GM is accessing real-time data. Unlike traditional methods that rely on periodic reports, modern technology platforms provide GMs instant access to the latest information on key metrics and trends. This real-time access allows GMs to make informed decisions quickly, whether adjusting pricing strategies in response to changing market conditions, optimizing staffing levels, or responding to guest feedback.
Better Data Analysis and Visualization Tools: Gain Deeper Insights into Hotel Performance
Modern technology provides GMs with robust data analysis and visualization tools that go beyond the basic reports generated by a PMS. These tools allow GMs to delve deeper into hotel performance, uncovering insights that would be difficult or impossible to detect using traditional methods. For instance, advanced analytics can help identify trends in guest behavior, such as preferences for certain room types or booking patterns, enabling the hotel to tailor its offerings to meet guest needs better.
Visualization tools, such as dashboards and interactive graphs, present complex data in an easily digestible format, allowing GMs to quickly grasp key trends and make data-driven decisions.
Automation: Save Time and Reduce Human Error by Automating Routine Tasks
Automation is another critical benefit of embracing technology. By automating routine tasks like report generation, data entry, and even some guest interactions, GMs can save valuable time and reduce the risk of human error. This improves operational efficiency and frees the GM and their team to focus on more strategic activities, such as enhancing the guest experience or exploring new revenue opportunities.
For instance, instead of manually compiling daily reports, a tech-savvy GM can set up automated reports generated and delivered directly to their inbox or dashboard every morning. This ensures that the GM always has the most up-to-date information at their fingertips without staff spending hours on manual tasks.
Conclusion
The strategic advantage of being a tech-savvy GM cannot be overstated. By embracing technology, GMs can access real-time data, leverage advanced analytics and visualization tools, and automate routine tasks, leading to more informed decisions and improved hotel performance.
Practical Steps for GMs to Become More Tech-Savvy
Actions GMs Can Take Today to Harness the Power of Technology
Becoming a tech-savvy GM is not just about understanding the latest tools and systems; it's about adopting a mindset of continuous learning and innovation. Here are practical steps that GMs can take today to harness the power of technology and lead their hotels to greater success.
Learn the Basics: Enroll in Online Courses or Attend Industry Seminars
The first step to becoming more tech-savvy is to build a strong foundation in critical areas such as data analytics, revenue management, and cloud-based systems. Fortunately, numerous online courses and industry seminars are designed for hospitality professionals. Industry-specific organizations like HSMAI offer courses that can help GMs understand the fundamentals of data analysis and the benefits and latest trends in hotel technology.
By dedicating time to learning these basics, GMs can gain the knowledge needed to make informed decisions about which technologies to implement and how to use them effectively. Additionally, attending industry seminars and conferences provides opportunities to network with other tech-savvy leaders and learn from their experiences.
Collaborate with Tech-Savvy Staff: Work Closely with the IT Team or a Data Analyst
No GM is expected to be an expert in every aspect of hotel technology, so collaboration with tech-savvy staff is crucial. Whether it's the IT team, a data analyst, or a revenue manager, working closely with these experts can help GMs identify and implement technology solutions that align with the hotel's goals.
For instance, a data analyst can assist in interpreting complex data sets and translating them into actionable insights. The IT team can ensure systems are integrated and functioning correctly and help automate routine tasks such as report generation. By fostering a collaborative environment, GMs can leverage the expertise of their team to maximize the benefits of technology.
Experiment with Tech-Driven Initiatives: Pilot New Technologies
Innovation often comes from experimentation. GMs should not hesitate to pilot new, tech-driven initiatives that have the potential to improve hotel performance. The first step is to implement a business intelligence tool to analyze the potential for revenue growth and profit improvements. The following steps could include implementing AI-driven pricing tools that automatically adjust room rates based on demand, introducing guest personalization platforms that tailor the guest experience based on preferences, or adopting mobile check-in solutions that enhance guests' convenience.
Seek Continuous Improvement: Regularly Review and Update theHotel'ss Technology Stack
Technology is constantly evolving, and what works today might not be the best solution tomorrow. GMs should regularly review and update their technology stack to ensure their hotel remains competitive. This involves assessing current systems for performance and efficiency, staying informed about emerging technologies, and being open to change when better solutions become available. A tech-savvy GM would never be happy with a 15-year-old legacy system when there are solid cloud-based systems with features that make processes more efficient for guests and hotel team members. By proactively upgrading their technology, GMs can ensure that their hotel continues to operate at peak efficiency and deliver exceptional guest experiences.
Conclusion
Becoming a tech-savvy GM is an ongoing process that requires commitment, collaboration, and a willingness to embrace change. By taking practical steps such as learning the basics, leveraging built-in tools, collaborating with tech-savvy staff, experimenting with new technologies, and seeking continuous improvement, GMs can harness the power of technology to drive their hotel's success. These actions are beneficial and essential in an industry where technology increasingly shapes the guest experience and operational efficiency.
The Long-Term Benefits of a Tech-Savvy GM
Driving Revenue and Profit Growth Through Tech-Enabled Leadership
The long-term impact of a GM embracing technology goes far beyond immediate operational improvements. Integrating technology into every aspect of hotel management allows a tech-savvy GM to drive sustained revenue growth, enhance the guest experience, and create a more efficient, profitable operation. These benefits improve the hotel's bottom line and position it for continued success in an increasingly competitive and digital world.
Sustainable Revenue Growth Through Better Data-Driven Decision-Making
One of the most significant long-term benefits of being a tech-savvy GM is the ability to foster sustainable revenue growth through data-driven decision-making. By leveraging advanced analytics tools and real-time data, GMs can make informed decisions based on accurate, up-to-date information.
Enhanced Guest Experience Leading to Increased Loyalty and Repeat Business
Technology is also crucial in enhancing the guest experience, which is directly linked to increased loyalty and repeat business. Tech-savvy GMs can utilize guest data to personalize the experience, ensuring that each guest feels valued and understood. From offering room preferences to suggesting relevant amenities or experiences, technology enables a level of customization that was previously unimaginable.
Furthermore, GMs can make guests' stay more convenient and enjoyable by implementing mobile check-in, smart room controls, or seamless in-room entertainment options. These enhancements not only differentiate the hotel from its competitors but also build a loyal customer base that values the consistency and quality of its experience.
More Efficient Operations, Reducing Costs and Improving Profit Margins
Embracing technology also leads to more efficient hotel operations, reducing costs and improving profit margins. Automating routine tasks, such as report generation, inventory management, and even specific guest interactions, frees up staff time and reduces the potential for human error. This operational efficiency translates into cost savings, directly impacting the hotel's profitability.
Moreover, streamlined operations enhance the guest experience by reducing wait times, minimizing service disruptions, and ensuring that staff can focus on providing high-quality service rather than being bogged down by manual tasks. This contributes to guest satisfaction and allows the hotel to operate more profitably, as resources are used more effectively.
Final Thought: The Modern GM as a Leader in a Digital World
The hospitality industry is rapidly evolving, with technology playing an increasingly central role in shaping the guest experience and driving operational efficiency. The modern GM who embraces technology is better equipped to lead their hotel to success in this digital age. By leveraging data-driven insights, enhancing the guest experience, and streamlining operations, tech-savvy GMs can drive sustained revenue growth, improve profitability, and build a loyal customer base.
As the industry continues to innovate, the role of technology in hotel management will only become more critical. GMs who commit to staying ahead of the curve by continuously learning and adopting new technologies will ensure their hotel's success today and position it for long-term growth and resilience in the face of future challenges. The future of hospitality belongs to those who combine traditional leadership with a forward-thinking, tech-enabled approach.
Conclusion
The difference between a hotel that thrives and one that merely survives often comes down to the GM's ability to harness the power of technology. Moving beyond outdated practices—such as relying solely on printed reports and manual processes—is not just a matter of efficiency; it's a strategic imperative. A tech-savvy GM can access data, leverage advanced analytics, and implement automation to drive revenue growth, enhance the guest experience, and streamline operations.
Becoming savvy isn't about mastering every piece of software or technology available. It's about embracing continuous learning, collaboration, and innovation. By exploring the full potential of their PMS and other hotel management technologies, GMs can unlock new opportunities for their hotels and lead with greater confidence in a data-driven world.
Key Takeaways
- Embrace Data: Use data to make informed, timely decisions that optimize revenue and improve guest satisfaction.
- Utilize Advanced Analytics: Leverage data analysis and visualization tools to gain deeper insights into your hotel's performance and identify growth opportunities.
- Automate Routine Tasks: Implement automation to save time, reduce errors, and allow staff to focus on enhancing the guest experience.
- Collaborate with Experts: Work closely with tech-savvy staff or consultants to fully utilize technology and integrate it effectively into your hotel's operations.
- Continuously Improve: Regularly review and update your hotel's technology stack to stay competitive and meet your guests' evolving needs.
Call to Action
It's time to take the first step toward becoming a tech-savvy GM. Start by exploring the full capabilities of your PMS and other hotel management technologies. Invest in learning the basics of data analytics and revenue management, and don't hesitate to experiment with new tools that can drive your hotel's success.
Closing Statement
The future belongs to those who innovate. As the hospitality industry continues to evolve, the GMs who are in charge of adopting and leveraging technology will be the ones who drive their hotels to new heights. Now is the time to embrace change, harness the power of technology, and lead your hotel to success in an increasingly digital world.