Top 10 Problems & Challenges in the Hotel Management Industry

Managing a hotel is not an easy task. To succeed in hotel business, managers should work on multiple channels and issues. Here, we have listed out the top 10 issues in the hotel industry. 

Top 10 Problems in the hotel management industry


top 10 hotel problems & challenges

High competition:

Hotel industry is a ever blooming business. Travel and tourism keeps on growing every year. Travellers always look for the perfect accommodation. Due to very high demand in accommodation, the competition is also high in this business. In the crowded travel spots, you can see hotels at each and every locality. High competition is a major challenge in this sector. To reap the high profits, new or existing competitors could significantly reduce rates or provide greater conveniences, services or amenities, or significantly expand, improve or introduce new facilities in the markets.

Improper marketing effort:
As the technology is improving day by day, there are lots of options available for the hotels in capturing their market space online. But according to a recent survey in the year 2016, almost 70% of the hotels across the world still follow the old marketing practices. Due to poor marketing efforts, sales and brand recognition gets affected to high extent. The current trend denotes that hotels are slowly moving towards OTA marketing and hotel management software to ease the workload and increase ROI.

"Hotels need to utilize the online technology such as digital marketing & social media promotions effectively, to reach their potential customers" - Says, Ramesh Devangodi, Owner of a popular Indian restaurant in Edmonton, CA.

Energy management difficulties:
Investing in renewable & eco-friendly resources can help in improving your hotel's overall profit margin. Tourists prefer to accommodate themselves at an environmental-friendly hotel room rather than a ordinary hotel room. With rising electricity prices and increasing pressure to cut carbon emissions, saving energy is the no.1 on a hotelier’s priority list. There are two solutions for effective energy management. One is voltage optimisation, which works to reduce the incoming power to premises for reducing the energy consumption and protect electrical equipment. The other is energy management systems, which switch on and off appliances depending on the occupancy of a room.

Poor customer satisfaction:
With the lack of food resources and staffs, most of the hotels provide low-quality foods to their customers. Once you get a bad recognition in your area / locality / city, it is very difficult to regain the good position. From a hotelier's point of view, customer satisfaction is nothing but providing the good quality foods, amenities, customer support, etc..

Lack of productive chefs and managers:
Finding the right cooks, labors and managers may be a difficult task, especially if you are small hotel owner. Usually, five star hotels (luxurious accommodation providers) recruit professional cooks at high cost. Hence it is a hectic job for the low-budget hotels to find the right persons.

High service rates:
Whether you provide a high-quality or low-quality service, make sure it is affordable to the end users. High service rates can divert the visitors to your competitors. Provide lodging rooms at reasonable rates. Service rate should match with the facilities of your hotel. Avoid taking commissions, high tax charges, etc...

Cleanliness issues:
Make sure the lodging rooms have clean, odour-free, eco-friendly and spacious conditions. This would help to drive more visitors to your hotel. As hospitality businesses usually operate around the clock and slow periods in which staff can conduct some minor cleaning are never guaranteed; many companies choose to hire a professional cleaning service. This is the best way to ensure that all the requirements are met and it doesn’t mean you have to take valuable time out of your day to enforce the fact that everything is completed.

No proper transportation facility:
Hotels should be ready to provide transportation facility 24x7 from all the major pick-up points of a city or town. Even a small cab / van from the major spots (airports, tourist destinations, etc) can make a huge improvement in your hotel business management. Transport facility is a must for hotels situated in the remote locations.

Security challenges:
This is one of the major problems in hotel industry. Different types of security challenges are,

1. General theft and other crime
2. Public violence
3. Terrorism
4. Armed robbery
5. Credit card fraud

6. Cyber crime issues
7. Identity theft
8. Sexual abuse on women
9. Racial discrimination
10. Risk of food poisoning

Lack of refreshing events and entertainment:
Most of the tourists who stay in a hotel room expect refreshing events & entertainment programs for getting relaxation from the stressful conditions. Conduct events & entertainment shows on a regular basis to attract more audience to your business. Go a mile extra to improve the re-visit rate of your hotel.

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