Qualities of a profit purpose hotel manager pdf

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Managing hotels is no easy task and the task has got more complicated in the current economic scenario putting enormous pressure on hotel managers. In these times we can clearly gauge the metal of …

Managing hotels is no easy task and the task has got more complicated in the current economic scenario putting enormous pressure on hotel managers. In these times we can clearly gauge the metal of managers, identifying the true professional ones from the so called professionals. What differentiates the two is an interesting topic. Read on to find more.

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  • 1. Qualities of aProfit Purpose Hotel ManagerBY: RAM GUPTAThe changing global economic dynamicshas had its impact not only on fiscal aspectof conduct of a business but a very severe
  • 2. effect on the business leaders – themanagers personally. While this effectconverts into physical and emotionalpressure on the manager, it can also act as akey factor to identify the dead wood withinany management team giving an opportunityto the ownership or entrepreneurship torestructure their organization.Hotel industry, or for that matter, the entireniche of service industry is, as I reckon,worst hit. Why? Simply because the productit carries has no shelf life, it perishes as theclock strikes midnight. You lose anythingthat you could not sell up to 2359 hrs.Vacant rooms, unused restaurant covers,empty banquet and party rooms, unusedmassage beds…all wasted for the day,written off completely.
  • 3. Even in normal economic scenario thenature of product would have remained thesame, but then the market would also havebeen normal. Not shrunk as it is today with avery low surplus spendable income with theuser segment. What this means to thedemands created on those who are managingthe industry outlets, be it a hotel, arestaurant, a travel agency or an airline. Itmeans that the manager has to be one whohas the ability to weather the storm andensures survival of his enterprise, team andhimself.Naturally this is a tough call, but then that ismanagement, to be able to manage asituation rather than getting managed by asituation. All this leads us to concentrate on
  • 4. one seemingly simple aspect. Who shouldhead our hotel? What traits and qualitiesshould he or she possess and what skill setsshould he or she have? Looking at theenormity of the task, the most appropriatesolution to the question will be to opt forsomeone who has multi dimensional skills,but just not superficial, deep and thorough.I personally feel that the present scenariodemands that a result oriented, profitpurpose focused and challenge seeker hotelgeneral manager should have knowledge ofhotel operations and in addition he should bevery strong in hotel finance and marketingfields. He will need all these traits to combatthe competition, capture a fair market shareand establish the property as the sought afterbrand in the city or location.
  • 5. Let us try to analyze the basis for thisconclusion.It is taken for granted that a successful hotelgeneral manager will be an expert in soundhotel operation techniques and skills. Hewill be very thorough in operating systemsof key revenue producing areas like theaccommodation, food and beverage andrecreation and services. I hate to calldepartments like business center, laundry,telephones and other similar revenue areasas “minor operating departments”. Thereason being that the moment you term themas MOD, the executive attention on thisimportant revenue area gets diluted. Theypay “minor attention” to a minor revenuestream. It is a fact that while the revenue
  • 6. from recreation and services areas may beless that other areas, let’s not forgets thatthis revenue has a potential of contributingover 60% as departmental contribution.The next major skill and knowledge need ofa good hotel manager is marketing. Thegeneral manager has to be an expertmarketer more than anything else. He shouldhave a solid grip on the market dynamics inhis city and location, must know hiscompetition on his tips. Unless he has thisknowledge it will be futile to expect thedesired results. While he will have aqualified and experienced sales andmarketing functional head under him, hisability to guide and advice him should beunquestioned. I have come across a numberof independent hotels where the general
  • 7. manager assumes the responsibility of thisimportant function upon himself. I feel thatin such hotels, expecting attainment ofresults could best be left to anyone’s guess.Sound marketing skills in the generalmanager of the hotel will reflect in thesoundness of hotel’s marketing plan. Themost important management tool thatdefines the “how to” for attaining objectives.Having talked about operations andmarketing, let us turn our attention toanother important skill set required of aresult oriented hotel manager. He shouldhave a good knowledge of hotel finance andaccounting functions. He should appreciatethat this knowledge will become his biggestsecret weapon for effective, efficient andprofitable operations. I personally believe
  • 8. that numbers tell the story. They don’t needany elaborations. Those who tend to twistthe story that numbers tell live in illusionsand will make them dispensable. Hisappreciation for numbers will be reflected inhis mastery for crafting a realistic yetchallenging business plan for the hotel. Hisability to analyze and interpret the resultsand above all to take immediate steps toensure that operations and marketing initiateactions that will make them stay on coursewill demonstrate the depth of hisknowledge.There was a time when we saw the hotelmanager walking around, talking to guests,workers, giving instructions to the functionalheads and so on with hardly any time toconcentrate of his core function. Today
  • 9. things have changed drastically. You sensepresence of the general manager by animmaculately kept and maintained property,profitable, efficient and crisp operationsbecause the general manager has re masteredthe art of delegation. He empowers his teamto take decisions in their operating field andholds them accountable for that. The result;a highly charged and motivated team that isaware of what is expected of them. Thisleaves the general manager with enoughtime to sit back at his desk and plan hisoperations, strategies and actions whichestablishes his property as the market leaderby product quality, service delivery, revenueper available room, occupancy and so on.The job of any manager and especially hotelmanager cannot be executed in the 9 to 5
  • 10. time frame. It continues way beyond all timerestrictions till the goals are achieved, overand over again.BCG Global is a hospitality businessadvisory and consulting company whichhelps owners and managers to manage theirenterprise and functions, efficiently andprofitably http://www.bcgglobal.com AUGUST, 2012 © BCG GLOBAL