The 2018 Travel and Hospitality Industry Outlook from Deloitte reports that the global travel industry is one of the fastest growing sectors in the world. While increased corporate travel demand, stiff airline competition and a healthy economy paint a rosy picture for the hotel industry, the report also warns that the industry is a delicate ecosystem that is vulnerable to threats from multiple fronts.
The hospitality industry is becoming more cost and profit conscious, while potential guests are placing increased importance on price, quality, and the level of services they receive. With greater attention on increasing revenue, minimizing costs and maximizing profits without affecting service quality, hotels of all sizes are seeking out technology solutions to address their specific needs.
These unique challenges require hotels to be nimble, educated and equipped with the latest technology to streamline processes and drive financial performance. In addition, owners are becoming more demanding and relying on financial benchmarking data to insure they are getting the most out of each asset and each management contract. Today’s most successful hoteliers realize that these challenges are a balancing act and rely on robust accounting tools to lead the way. It all starts with the core system. A hotel-specific accounting partner can address the unique needs of hotels.
Here are 3 ways that a smart accounting partner can address unique needs of hotels:
Unlike some businesses that may only have a few types of employees, hotels employ maintenance staff, housekeeping, pool cleaners, front desk, gift shop, restaurant, café, bar, back office, IT staff and security teams. These people can be part time, full time, for tips, etc. Managing payroll is a consistent challenge in the hospitality industry, so it’s critical for hoteliers to have a way to monitor daily labor costs, to manage overtime, oversee daily payroll transactions and have access to simple reporting functions. Adopting a cloud-based reporting system can offer seamless labor monitoring and management from clock-in to paycheck while giving hoteliers on-demand management of earnings to manage transactions in real time.
Multiple Data Sources
Most hotels have access to an array of data sets, including STR reports, PMS data, guest satisfaction surveys, comments and financial data from multiple properties. With an overwhelming amount of data, many hoteliers suffer from paralysis-by-analysis. They “must have” data, but have a difficult time deciphering what story the data is telling and which levers to pull to remedy an issue or to replicate success. With an overload of data, it is critical to have a business intelligence and analytics tool in place to show where efficiencies can be improved and how to best reduce expenses. Adopting an operations management platform that allows hoteliers to import data into one centralized dashboard combines critical accounting and performance data to aid hoteliers in identifying trends and making more informed decisions.
Hotels live or die on the ebb and flow of fluctuations in their business. In-house accounting teams are regularly affected by a variety of foreseeable events such as seasonality, portfolio turn-over and one-time events, but also unexpected events such as a natural disaster. 2017 was no exception. Hoteliers must expect the best, but prepare for the worst and have a back-up accounting team in place ready to resume operations in the event of a disaster. Whether the needs are short-term or necessitate a longer plan, hotel-specific accountants can scale on demand to offer the needed expertise and ramp up quickly.
The rapid spread of globalization and the enormous developments in information technology have led to dramatic changes within the travel industry. Because the hotel industry has a very specific set of needs, it is imperative for hoteliers to implement an accounting solution and lock arms with a provider that is customized and tailormade for the hospitality industry. The global travel industry shows no signs of slowing down any time soon, so hotels must incorporate cutting-edge technology to streamline operations, optimize labor management and access critical data while preparing for the next unexpected event.