Manage the Operations of Hotels Metrics

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Proper management and evaluation of hotel performance is a must for every hotel owner and top management, in case they really want to gain competitive advantage. Learn how Balanced Scorecard can help optimize hotel performance. Check additional information about manage the operations of hotels metrics.

Implementation of Balanced Scorecard in hotels is perhaps a more difficult task as compared to introduction of BSC in other business types. The problem is a tough competition in this market and the fact that hotel business is seasonally oriented. Sure, hotels always have visitors, however, when high vacation season comes, a real war for customers begins. Hotels do not only open doors to everyone who needs to spend a night somewhere, but also for people who want to enjoy their vacations and time off. That's why hotels have to take into account needs and preferences of various customer target groups. Some hotels are quite luxurious and offer lots of extra services. For example, many press conferences, business meetings and presentations take place in hotels. Other hotels provide their guests only with clean rooms, friendly personnel, delicious cuisine and "feel at home" atmosphere. Tastes differ and so hotels should always study customer opinion in order to improve services. It is impossible to succeed in the long term without having a comprehensive strategy. However, it is not enough just to adopt a strategy. It is necessary to implement it and check how the strategy is being implemented at various stages. In this article will talk about hotel Balanced Scorecard and how hotel metrics is introduced.

The hotel metrics does not differ much from other metrics types. Balanced Scorecard is a universal system that works pretty much the same in various businesses. Of course, it is important to choose the right key performance indicators, as well as slightly amend Balanced Scorecard categories which are financial, customer, business processes and learning and growth. In case of hotel Balanced Scorecard these categories may slightly changed their names, however are keeping the same nature. Sometimes the fifth categories introduced, which however depends on hotel structure, approaches to business management and of course strategic goals.

Financial category of hotel Balanced Scorecard covers indicators related to profits and expenses for the hotel. For example, these are such indicators as revenue per guest, revenue per room, cleaning costs per room, total expenses per room, salary costs vs. total expenses etc. In other words, these are indicators that demonstrate financial efficiency of a hotel. But the secret of Balanced Scorecard is that it is possible to improve financial indicators only through improvements in the other categories. Thus, in order to decrease cleaning costs it might be necessary to optimize internal processes (for example, change supplier of cleaning tools and detergents), educate personnel (to book participation in specialized seminars and master classes), use latest technologies (for instance, buy brand new video surveillance equipment) etc.

Through measurement of customer satisfaction it is possible to forecast revenue growth for future fiscal periods. Satisfied customers are more likely to come back to the same hotel each time they actually need hotel services. Besides, satisfied guests are often generous, and thus they give tips. This makes hotel personnel satisfied. As known, satisfied personnel is strongly motivated to show top performance. Thus, every person in a hotel will make own contribution to implementation of strategic goals.

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