Break Siloes and Foster Synergies to Optimize Hotel Profits

Hotels looking to optimize profits must break the silo mentality. They must align their teams and synchronize their knowledge. In this article, you’ll learn how to break siloes and foster synergies to optimize hotel profits.

Steps to Creating a Connected Commercial Organization

The movement toward commercial revenue is a good start. Many hotels have brought sales, marketing, revenue management, and distribution under a single commercial revenue leader. But it’s not a single person’s job. It takes a village. You still have other departments – housekeeping, food and beverage, and purchasing – all working independently. That often creates conflict.

When operational areas have their own goals, tools, and strategies, they think about what our functional area needs to achieve rather than the organization’s overall goals.

Moving towards total profit optimization requires finding synergies between departments.

1) Establish Goals and Start Measuring

• Start by asking what profit we want to achieve, whether it is realistic, and when we want to achieve it? What departments need to be involved?
• Choose revenue streams you want to measure, starting with your most profitable piece of business or areas that historically are under-forecasted, like meetings & events. Ensure you’re measuring using industry-standard metrics and best practices.
• Establish revenue streams and goals for each, then track all the data and expenses. Don’t get too complicated or go too deep. Stay higher level.

You will naturally gravitate towards more granular, detailed information by establishing processes, tracking data, and getting people from all areas involved. You’ll then start to see patterns, and forecasting will become more meaningful.

2) Profit Optimization Resources

Think about who you can partner with as you embark on the journey to profit optimization. The hotel industry has many resources that can help, including:

• Industry events and conferences
• Ted talks
• Networking and social media
• IDeaS Revenue Solutions offers materials, consulting services, and market intelligence

Putting strategies like these into play enables everyone to work together toward a common goal and create a more connected commercial organization.