Today I logged into the Scottish Tourism Alliance's webinar on profitability in Hotels in Scotland. Interesting views from across the panel that made me want to scribble a couple of things down that have cropped up a lot recently. But tell me what you think.
1. OTAs chew up your room rate. Don't be afraid to turn them on and off as you need them.
They are of course a necessary evil, but it's important to remember the basics here (including what I was taught back at University pre RMS 😂). Revenue is a bath that needs filled up, you can do it by filling it up as quickly as possible and getting a cold bath or you can do it to the point when it's just right. Nobody needs to suffer a cold bath.
2. You don't have to be everything to everyone, especially when it comes to F&B.
I always wonder about this with hotels. Is it an insecurity thing? I think we all need to gather a bit of self-confidence and say "Right, this is what we do and we are going to do it well." If you're a cocktail bar with an amazing list and expertise, you don't need to be wasting your time on chasing the pastry, cakes and cream tea crowd. You don't care about anything other than the cash in the till and the customer will see right through it. There's no bigger waste of money than spending time and your hard earned cash on trying to be something that you're not.
3. Learn to use your kit. It does more than you think it does.
One of the things I believe we are all guilty of is underusing our tech. We take it, we install it, we champion it and then we use it at 50%. Next time you have a problem that needs solving I would bet a pound to a penny that within your current tech stack, the support team has been asked the question and solved the problem. Beware of stacking AI solution on top of AI solution on top of AI solution. You're just paying another subscription.
4. Remember value is (and I think will always be) at the front of the customers mind. Especially your regulars.
So here's the thing. I love a pint of Guinness. But it's an expensive barrel and Edinburgh is an expensive place and over the past few years I've learnt that the black stuff is now going to cost me £6/£6.50/£7 where I go. I've accepted that and I'm at peace with it. However, what I have learnt over the past few weeks is that Tennent's Stout at £5 a pint can be just as palatable. The Aberdonian within me is delighted to pay a fiver and enjoy the perceived cost benefit of one last pint with a pal. My point is, regular custom is price sensitive. Entry level food and drink can drive your business all day long and even on lower than usual margin can benefit your business and cashflow in the short and long term.
Want to talk more about easy saves that drive your bottom line? Let's talk.