Hotel Hospitality Checklist

Access your KPIs online;
Measure your success;

Navigation: All Balanced Scorecard Articles > Strategic Planning

Implementation of strategic goals in hotel industry differs from the same prcesses in other businesses. Hotel industry is highly competitive, and thus every mistake may cost lots of money. Read this article to learn more about hotel BSC and implementation stages. Check additional information about hotel hospitality checklist.

Balanced Scorecard implementation in hotel business is a lengthy and complicated process. Many hotels still hesitate to start using BSC, although this performance evaluation and strategic management tool has already proved its efficiency in various industries, including hotel hospitality business. It should be noted that hotel industry is marked with a high degree of competition. Indeed, people have lots of choices when looking for a hotel to spend a night or two there. Moreover, some people want to feel at home when becoming hotel's guests. These days, high standards of service and moderate prices have become a must for every hotel. Balanced Scorecard does not only help hotels improve performance and cut costs but also implement and measure implementation of long term strategic goals. In this article we will talk about hotel BSC, its peculiar features and key performance indicators.

Balanced Scorecard consists of 4 perspectives: financial, customer, internal processes and learning and growth. In case of hotel BSC these 4 categories remain, although in some cases it is possible to introduce a few more categories. As categories names suggest, they cover critical success factors for virtually any business, including hotel industry. It should be also noted that BSC categories are interrelated and so are the goals. For instance, in order to implement financial goals (making profits, for example) it is necessary to make certain accomplishments in the other categories.

Every hotel aims at making more money. This is only possible through attraction of a greater number of customers or increase of prices. Of course, if prices are increased the hotel will lose many of its regular guests. Thus, it is necessary to offer top quality services at competitive prices. The more guests visit a hotel, the better the outcomes are. BSC helps understand whether or not hotel rooms, staff and facilities are efficiently used.

Regular measurement of indicators in the 4 categories will provide hotel top management with useful information on how well the hotel is performing and whether or not it is on the right track to implement strategic goals. In order to get really important information it is necessary to choose the right KPIs for hotel business. Let's name and analyze a few indicators that can be potentially used in the hotel BSC.

Evaluation of such an indicator as Revenue per guest provides top management with very valuable financial information. However, this information is incomplete without Expenses per visitor. Thus, hotel management must understand how much does it earn on average from one guest.

Room occupancy indicates efficiency of using hotel's rooms. If 50% of rooms are not occupied all the time then hotel management should think of starting advertizing and promotion campaign, introduce special prices and free gifts campaign (for example, every visitor get a free massage or if you book a room for 3 days you get 3 free dinners).

Choice of key performance indicators depends on situation in the market, internal hotel problems, its strategic goals and organization structure. There are no universal KPI sets, however, it is possible to choose necessary KPIs from the lists which can be purchased online.

If you are interested in hotel hospitality checklist, check this link to find out more about hotel hospitality checklist. Also, you can check other articles in Strategic Planning category.

Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about BSC Toolkit.