OperationexcellencestrategiesregardingtherevenueofChineseUp—ScaleHotelIndustry

徐聪

I. Brief introduction to Hotel Industrys cultivation in 5 years

Recent years has witnessed the suffering and the recovering of hotel industry， in short， Chinese hotels has experienced the period of rapid revolution and adaptation these years， especially upper scale hotels. During the period， premium chain hotel has make following reforms， which contributes to the shift of hotel management

1.The dominant costumer：from government to high & middle income individual and enterprise 2.The dominant income component：from official receptions to varieties 3.The price of certain goods and service 4.The quality and the sense of service 5.The eagerness of the opening of the new hotels 6.The redefine of brand value

As far as we can see， due to the shrink of the office receptions which brings high revenue， hotels are engaged in a brand new plan， where they lower the price of certain goods（service） and get narrow income via the emerging of costumers. To get it work， hotels now improves their service quality and make their brand more attractive to costumers. Take Marriott as an example， Marriott purchase Starwood to expand its service coverage and increase the reward ratio to seize more potential costumers.

II. Hotel Industrys revenue components

According to some chain hotels annual report， the revenue components are：

1.Food and beverage 2.Rooms 3.Events and catering 4.Derivative value， e.g. the appreciation of the massif

As a common practice， the traditional income involving the first three components.

According to STRs latest report， the ratio are below.

However， hotels like Jinmen Real Estate， whose property St. Regis Tianjin is suffering from a constant deficit， still sustain its hotel service. Some owners values their derivative value a lot. Still take a look at St. Regis Tianjin， although this hotel lost almost 0.1 billion yuan these years， it has perfectly increase its surrounding estates price， also its massif has appreciated a lot.

III. Factors affect the revenue of Hotel Industry

No doubt， various factors affect the revenue of hotel industry.

Here are some crucial factors which affect the revenue

1.Effectiveness of performance appraisal 2.Owners cooperation 3.Costumers loyalty 4.Governments policy

From my perspective， the first three factors are changeable， if cannot be controlled. Whats more， different factors share different importance. From STRs report， it is fair to conclude that the costumers loyalty is the most crucial， followed by performance appraisal.endprint

As the common practice puts it：the performance appraisal is the core of human resource management. An effective appraisal could effectively motivate employees work activeness.

But the loyalty reveals the hotels overall service level， which determines the costumers decision on hotel groups choices. Mandarin Oriental Hotel is a hotel chain who values guest relations a lot. Once a guest chats with a waiter and unintentionally mentions that his dog appreciate the bones of the hotels restaurant， in the following visit to this hotel， the man receive a bone intended for his dog. In a world where service is eagerly requested， MOs service makes it easily excels. Such is the value of guest loyalty.

However， the governments policy may assume a crucial role in the revenue， but everybody could just adapt to it.

IV. Strategies to the cultivation of hotel industry in following years

Believe it or not， the strategies are diverse. First and foremost， we should place our attention to idea and sense perspectives.

Hotels should make the active service sense anchored in hotel workers minds. If every smile and behavior is compulsory， the services intention and inspiration is likely to be neglected and abused.

So we should place our attention in training process. In such period， we could cultivate them with an active service sense. Consequently， our following management and the anxiety could be eased.

However， an equal assessment mechanism is a must， without which， the works may change their job frequently to conquer new challenges but more importantly to realize ones personal goals.

As to the respect of derivative value， it reminds us of the investment to long-term investment， not just arguing for a tiny interest！

The most thorny problem is the policies. But we should believe， the more important is to adapt to it， for its powerful supporters！endprint