Critical Analysis of Tourism and Hotel Management

A hotel, like a business system, is composed of many linked components that work together to achieve certain economic and social goals. There are many different aspects of a hotel’s business system to consider. Natural or technical systems are not included in this classification since they fall under social systems’ umbrella. To fully appreciate a hotel’s complexity, one must first grasp the various elements that make up the establishment. For example, a hotel can include subsystems such as those involved in the sale of accommodation capacity, the preparation and provision of accommodation services, procurement, the preparation and provision of food and beverage services, the arrangement and provision of additional services, hotel maintenance, human resources management, finances and accounting and others for management to manage to operate a successful industry. They must be able to make appropriate decisions on various core factors. Outsourcing and contracting, information management, financial management, and health, safety, and security issues are a few topics discussed in this article. The hotel and tourism industry is a sensitive sector that is highly dependent on the quality of service they offer and customer perception of these services. With the advancements in technology and the entry of multiple agencies in the industry, it has become very competitive. However, effective consideration of the factors listed can enable managers to mitigate the competitive environment.

Outsourcing/Contracting

Outsourcing is a technique used by the company to obtain more for less expenditure. An increasing number of hotel sector companies have adopted this approach across many nations. Several countries have been active participants in the practice (Espino-Rodríguez & Rodríguez-Díaz, 2021). Hotel management may outsource services in a variety of ways. Laying off workers is one way some companies try to save operating expenses. This saves money on staff salaries and wages. Some businesses collaborate with other companies that specialize in certain areas of interest.

Hotel management encompasses all of a company’s core operations. In the future, these services may encompass anything from cleaning to culinary assistance, security to building setup, to landscaping (Espino-Rodríguez & Rodríguez-Díaz, 2021). Every one of these tasks is essential for the operation of any company organization. It becomes more difficult for a company to keep track of all of these operations as the industry grows and the rivalry becomes more competitive. Keeping track of several departments of each of these non-business activities becomes a hectic and expensive task. Even the most successful ones, many businesses are looking for ways to cut expenses to remain competitive. Contracting out hotel management alleviates a lot of the stress while also lowering costs. The new key to success is to stay focused and perform well in the things that matter most.

However difficult it may be to outsource facilities management, there are important benefits to consider while weighing the pros and disadvantages. Previously spent time on these duties may concentrate on key business operations when outsourcing a job that a company may find difficult or time-consuming to handle. When it comes to outsourcing, business leaders are more inclined to turn to experts that are well-versed in the subject matter and have access to the latest technologies. Managers may rest easy knowing that their job is being done to the highest standards possible using cutting-edge technology.

However, picking a company to work with maybe challenging since there are so many to select from and a wide range of services available. An all-in-one supplier or a team of experts may be used for convenience (Espino-Rodríguez & Rodríguez-Díaz, 2021). An organization’s ability to successfully execute an outsourced facilities management contract is frequently determined by the quality of its relationship with its supplier. When managers outsource, they must do so to an organization to establish a solid relationship. This will simplify communication and expedite procedures as the two parties work together to create improvements. Businesses that collaborate with organizations that share their goals and beliefs are more likely to customize their services to suit their clients’ requirements.

Espino-Rodríguez, T. F., & Rodríguez-Díaz, M. (2021). The influence of outsourcing activities on the perception of service quality. An empirical study based on online reviews by hotel customers. Journal of Hospitality and Tourism Technology.

Consumers expect more information about the conditions of the goods and services they are consuming, which is changing the tourist industry. Additionally, they expect that goods and services will be created in a sustainable and ecologically responsible manner. Because of this, hotels need to rethink their business models and search for new ways to be sustainable. As a result, understanding how outsourcing affects a hotel’s long-term viability is critical to the industry.

The degree to which external providers supply a hotel’s operations and services may be called the outsourcing level. Alternatively, the number of outside employees at the Hotel may be used as a proxy. As the Hotel’s level of outsourcing increases, so does its reliance on outside vendors and employees. It’s rare for hotels to outsource anything that has a significant effect on their competitive edge. When outsourcing is chosen strategically, it allows for increased financial performance, flexibility, and satisfaction while enhancing customer relations. Additionally, it enables the company to concentrate on its core competencies while still accessing cutting-edge technologies.

Management’s perception of outsourcing should shape Inter-organizational interactions. It becomes essential to manage relationships as a component of the productive system when hotels outsource some of the operations required to offer client service (output). Since more operations are being outsourced, managers’ responsibilities have shifted to managing inter-organizational connections rather than their departments. The management of the productive system is only one part of their job; they also have to handle the relationships with external suppliers

Many organizations have realized the challenge of developing and maintaining the diversity of skills and knowledge needed to compete effectively and economically due to the high level of competition and the fast growth of globalization. Companies also seek to reduce the time it takes to create new goods via innovation which makes it more difficult to do all of this development on their own in the first place A new notion called “network organization” has progressively supplanted the old concept of a “firm,” in which the various value chain activities are carried out internally, with an ever-decreasing number of operations being carried out inside the company. It is only necessary to implement internally those tasks that create additional value and give the company a competitive edge while outsourcing the rest.

Information Management

The hospitality sector generates over half a trillion dollars’ worth of income, including hotels. A hotel management information system, often known as an MIS, aids in making sure everything runs well for visitors. To make things run more smoothly, hotels use a property management information system (PMI). As a result, data is more easily accessible. It makes it possible to evaluate data in various ways, which is critical for day-to-day operations and long-term planning. For optimum customer service, hotels need a business information system to keep operations running smoothly when staff changes shifts throughout the day and night.

All hotel choices are based on facts, no matter how small they may seem. For the best results, gather as much information as possible and act quickly (Ezzaouia & Bulchand-Gidumal, 2020). A fundamental idea in hotel management is recognizing how dependent they are on information. This knowledge begins with a basic grasp of how essential information management is in facilities. Enough relevant information on the Hotel should be available to the hotel manager. Because of this, we become reliant on whatever vehicle delivers the data, whether an inventory list, an automated database, a calendar, or some drawings. It is impossible to make choices without considering more information due to the interconnectedness of hotel systems than we had to while planning.

Hospitality is a significant contribution to the economies of both developed and developing nations, and it has never been stronger thanks to the advent of information technology (IT). The IT (information and technology) sector has changed dramatically in the last two decades. It is now revolutionizing the global hospitality industry with cutting-edge technologies that have set numerous records and made significant breakthroughs for future technological advancements in the years to come.

The introduction of the internet and the IT world seems to have altered the whole IT structure and hospitality business process. The IT sector has now established a significant position in the hotel business, and it would be wrong to associate it with data processing. Traveling to a hotel has become a more enjoyable experience for customers because of advancements in the hospitality industry’s use of information technology (Ezzaouia & Bulchand-Gidumal, 2020). Dynamic change in the sector results from agile improvement, which has sparked a revolution in global travel and tourism.

Ezzaouia, I., & Bulchand-Gidumal, J. (2020). Factors influencing the adoption of information technology in the hotel industry. An analysis in a developing country. Tourism Management Perspectives, 34, 100675.

It is becoming more critical for the hotel industry to make investments in IT. However, it’s important to examine how IT helps hotels be “agile” in reacting to environmental changes. Every second, the hotel industry generates a colossal amount of data. When a traveler makes an internet reservation for a hotel, that’s brand-new information. Checking a visitor in at the front desk generates new information. The information that a housekeeper adds by marking a room as clean as brand new. When something occurs, new information is generated. The wide range of information accessible in hotel data management poses a significant problem. Metasearch platforms, social media, and internal papers, as well as reports and systems, may all be used to gather this data.

Managers should have access to up-to-date and correct information if they are to make sound business choices. Customers, comment cards, reports, and accounting data sheets are all examples of places where you may get this information. The facilities manager is no different from any other manager when it comes to the need for information and the sources from which they obtain it. Recognizing that all indications, gauges, and data sources offer information is critical. Only when the hotel manager has noticed and evaluated the significance of the data does it become useful. Data analysis begins with determining which datum has the most useful information. For this reason, a critical data or system indicator system must be created to enable urgent requirements for action to be recognized quickly. At the same time, more regular needs are scheduled for appropriate action in an organized and structured manner.

A facilities manager must gather information from various sources to successfully manage a property in the hospitality sector. For a long time, operations managers paid little or no attention to whether or not the facilities manager should be included in the management decision-making process. Because of this growing awareness, facilities managers must work hard to access the senior ranks of their company’s hospitality operations. Improved management information will benefit the operations manager. Still, the facilities manager and the property will also benefit since it will help them assign work priorities, plan projects, determine personnel needs and ensure that the Hotel remains profitable.

Financial Management

The foundation of a successful business is laid by sound financial management. Successful hotels have done so by adhering to a set of basic financial management standards. The hotel industry’s best practices for financial management include developing a yearly budget, establishing a comprehensive financial monitoring model, and conducting audits regularly. Accountability – holding workers and managers accountable for accomplishing financial objectives in their particular functional areas – and a team of highly trained finance experts is equally important on the human resources side of financial success (Țurlea et al., 2020).

The pricing of hotel rooms is a difficult financial management decision in the hospitality industry. Finance models are developed to help in the decision-making process because of the complexity. The pricing model must take into account factors such as demand, occupancy, and costs. Yield management is the process of adjusting hotel prices such that occupancy and revenue are optimized simultaneously.

If the price of a hotel room rises, demand for the room will inevitably fall. If the interest rate is reduced, on the other hand, demand is likely to rise. Increased demand or a price increase will reduce profits if they are not enough to offset the increase in revenue. To reduce this risk, it helps to have a solid grasp of supply and demand.

Finance in hospitality is primarily concerned with making sure a company’s financial resources are appropriately managed. Other kinds of companies may have to cope with problems comparable to this one. Any business must balance incoming income with expenditures given to workers and distributors of goods utilized by that business, regardless of what they do. Rent or taxes spent on the actual site of a company, which may be very expensive in certain profitable areas, can also be a significant issue in hospitality financial management.

Managers of facilities must be adept at managing money to do their duties effectively. Facilities managers should know how to make the best use of the money they have been given to get the most bang for their buck (Țurlea et al., 2020). The facilities manager should design and justify the distribution of that money to support property upkeep. Most hospitality operations managers are unaware of the expenses involved with facilities activities and must be persuaded of more financing to maintain a profitable environment. To safeguard the property’s tenants, workers, and owners’ best interests, the facilities manager must utilize materials, equipment, and services bought from reputable manufacturers and handle any warranty provisions. Managing financial resources to keep a hotel profitable is the responsibility of the facilities manager.

Țurlea, C., Cazazian, M. R., & Moldoveanu, M. V. (2020). REVENUE AND EXPENDITURE BUDGET, INSTRUMENT OF FINANCIAL MANAGEMENT. New Trends in Sustainable Business and Consumption, 463.

The revenue and expenditure budget outlined in this paper is a tool the management can use to ensure that activities are carried out in accordance with established programs and objectives, that production is efficient, and that it is possible to intervene along the way to correct any problems that arise. The income and spending budget, if followed, guarantees the attainment of productivity and efficiency in any sector. There would not be any order or financial discipline if no income and spending budget were in place. A realistic and well-balanced income and spending budget, carefully monitored by senior management and the executive, will give the final assurance that the balance of operations for one year is genuine and anticipated.

Successful hotel facilities management is powered by effective hotel budget management. Lack of funds for equipment upkeep and personnel is a major hindrance to creating memorable visitor experiences. Because hotel management expenses are unpredictable, Facilities Managers who follow these procedures and use new technology, such a CMMS, increase budget accuracy while also receiving quicker approval from key stakeholders.

Hospitality businesses rely heavily on financial management to be successful. Financial managers in the travel sector must be provided with acceptable methods for dealing with the business company since the account is the lifespan of any enterprise. Without a sale of the company, it would be debilitated, and disappointment will lead to the closure of operations, as financial management is vital to a travel company’s success

Health, Safety, and Security Concerns

The hotels’ safety and security procedures aim to reduce crime, terrorism, natural catastrophes, and other human risks. The Hotel’s security includes a wide range of issues, including the locking of guest rooms, the security of common areas, and the safety of hotel equipment. A successful safety and security strategy requires frequent and ongoing coordination between the Front Office Department and the Hotel’s security department, resulting in a pleasant stay for guests that exceeds their expectations and fosters Customer Relationship Management (Anichiti et al., 2021). To grow their business and produce maximum income, hotels always try to maintain healthy and good guest relations. This can be achieved only when guests like their stay in the Hotel and have no problems or complaints.

In the hospitality business, the relationship between the hotels and their clients is critical. Relationship marketing is the mainstay of this business. Many hospitality businesses have failed to grasp their clients’ true demands and expectations, resulting in subpar service delivery. However, many other hotels could not turn customers’ expectations into their pleasure or contentment despite understanding their wants and requirements (Anichiti et al., 2021). CRM is a method or approach used in business to identify and cultivate the most profitable customer relationships. Guests in the hotel sector may be generally categorized as either business class or leisure class, each having a unique set of wants and demands. To get a competitive edge over other hospitality providers, the sector should retain client loyalty and patronage.

To successfully keep profitable and nurtured relationships with their consumers, hospitality companies should attempt to provide attractive deals and packages to recurring visitors and first-time guests. Hospitality companies should investigate customers’ purchasing habits and post-sale experiences. Customers will grow loyal to the Hotel if the service delivery process (output) meets or exceeds their expectations, which may lead to good word-of-mouth promotion of the establishment. Guests will leave a hotel if the service delivery process (output) does not meet or falls short of their expectations, resulting in customer dissatisfaction and them looking for another option. The requirements of consumers change constantly. Therefore hospitality companies must be prepared at all times to meet those changes. All levels of management must be engaged for CRM to be implemented and adopted in hospitality companies. It should not be limited to one customer but to all customers that come and stay in the hotels, whether they are repeat customers or first-time visitors.

Anichiti, A., Dragolea, L. L., Tacu Hârșan, G. D., Haller, A. P., & Butnaru, G. I. (2021). Aspects Regarding Safety and Security in Hotels: Romanian Experience. Information, 12(1), 44.

Guests are concerned about their safety and security. Research shows that security and safety are the essential factors to consider for some travelers. Safety is defined as the process of preventing customers and workers from suffering serious harm or death as a result of unsafe working conditions. Security refers to measures taken to prevent the loss of human life, property, or both.

Regardless of their size or quality of service, all hotels should implement security and safety measures since guests’ safety is a top priority for the establishment. The hotel business has to train its employees on personal safety and security measures since it may grow or fall depending on how well the sector is trained. The hotels should take advantage of modern technologies and educate their staff to keep their customers safe in an accident or other crisis. Nowadays, visitors are more concerned about their safety than ever before. Therefore hospitality establishments must address this issue. In addition, hotels may achieve their predetermined goal of “guest satisfaction” by effectively using safety and security measures when visitors feel at home in their accommodations. If the Hotel provides world-class security to its customers while staying there, they may develop and preserve their rapport and even retain strong customer relationships. If they move their best security measures for the well-being of the most important workers, the Hotel may make more money while also improving the economy.

The facilities manager is primarily in charge of the management and well-being of a hospitality property’s physical structure and systems and therefore plays a crucial role in the safety of the inhabitants. This involves making plans to keep visitors, workers, and property owners safe and dealing with emergencies and accidents when they happen. When it comes to hotel management, this is a professional responsibility and a moral one. Losses and accidents in the hospitality sector have decreased significantly over the last several years, but improvements are always feasible. Training programs, employee safety committees, and operational safety education are tools the facilities manager uses to share safety responsibilities with all other property workers. Upper management often designates them as the primary organizer and designer of official safety initiatives. When it comes to safety, it’s not about following rules and regulations; it’s about using managerial focus and leadership to reduce accidents, injuries, and costs.

Conclusion

There is an unprecedented amount of change taking place in daily lives due to a combination of changing social views, new technology, and economic and demographic upheavals. The importance of staying on top of hotel sector developments cannot be overstated for any company engaged in the industry. Keeping an eye on shifting trends is essential if managers avoid upsetting consumers and falling behind rivals. Managing hotel income is one of the most challenging parts of running a hotel. Even though many hotel owners realize the value of using revenue management techniques to boost occupancy, many fail to put them into practice in their operations. Although revenue management is not a new concept in the hotel industry, hotel owners and operators who have found success place a high value on it. Traditionally, hotel owners have used a variety of marketing methods and strategies to increase visibility and income. Managers are expected to have the skills and expertise to address the changing environment and deploy the right resources in the industry.

References

Anichiti, A., Dragolea, L. L., Tacu Hârșan, G. D., Haller, A. P., & Butnaru, G. I. (2021). Aspects Regarding Safety and Security in Hotels: Romanian Experience. Information, 12(1), 44.

Espino-Rodríguez, T. F., & Rodríguez-Díaz, M. (2021). The influence of outsourcing activities on the perception of service quality. An empirical study based on online reviews by hotel customers. Journal of Hospitality and Tourism Technology.

Ezzaouia, I., & Bulchand-Gidumal, J. (2020). Factors influencing the adoption of information technology in the hotel industry. An analysis in a developing country. Tourism Management Perspectives, 34, 100675.

Țurlea, C., Cazazian, M. R., & Moldoveanu, M. V. (2020). REVENUE AND EXPENDITURE BUDGET, INSTRUMENT OF FINANCIAL MANAGEMENT. New Trends in Sustainable Business and Consumption, 463.