Hospitality News & Business Insights by EHL

How to Become a Great Hotel Manager in 5 Steps

Written by EHL Insights | Nov 11, 2024 2:01:43 PM

In the current climate, hoteliers are constantly seeking ways to become better hotel managers, opportunities to advance their careers and distinguish themselves in what is a competitive industry.

This blog serves as a vital resource for hotel management professionals who aspire to elevate their skills, expand their networks, and embrace the latest trends and innovations in the field.

Whether you are aiming for personal career growth, wanting to enhance guest experience, or seeking strategies to optimize your operation, you will find valuable insights and practical advice here.

Discover the 5 transformative steps that will not only improve your professional knowledge but also propel your career to new heights.

1. Mastering Operational Excellence in a Competitive Landscape

In today’s global hospitality market, operational efficiency is paramount in hotels or any hospitality business. Research by Amercian Express Travel indicates that 77% of travelers now prioritize the overall experience as much as cost when organizing a trip.

To excel, hospitality leaders must therefore prioritize streamlining processes and leveraging innovative technologies, ensuring that the guest experience is seamless and memorable.

Financial Performance Challenges

Hotel managers must balance enhancing guest experiences with managing tight profit margins, which according to Siteminder, the average profit margin is between 5% and 10% depending on the region.

For hotel general managers, understanding revenue management is essential to aligning departmental efforts with the hotel's overarching business objectives.

Do you possess a solid grasp of reading and analyzing financial statements? Mastering your properties' KPIs is essential when it comes to the critical hard skills needed in hotel management.

The Path Forward

Identify where you can reduce costs and save budget, versus where increased spending can yield a smart return on investment.

A few examples of some of the ways hotels can reduce costs and maintain quality are by focusing on energy-efficient technologies, regularly revisiting vendor contracts for better pricing, optimizing labor costs with smart scheduling and automation, and implementing waste management strategies.

These actions lead to a more efficient cost structure, enhancing profitability and financial resilience. Streamlining operations while delivering exceptional guest experiences is crucial to standing out in this fast-paced industry.

2. Fostering Leadership and Driving Collaboration

Effective leadership has never been more important in hotel management, especially as teams become more diverse and geographically dispersed. With the industry becoming more human-centric, leading with  empathy and collaboration is essential.

The ability to motivate and inspire teams, while also fostering a culture of open communication and accountability, is critical for success.

The Impact of Collaborative Leadership

Companies with collaborative leadership styles are 5 times more likely to be high-performing, studies find. This finding underlines the importance of fostering an inclusive and cooperative environment where ideas are freely exchanged and leaders work closely with their teams to achieve common goals.

Creating people-centricity in future leaders will allow them to build empathy, purpose, and commitment towards all stakeholders in the future. This will become a fundamental pillar of their success in an increasingly digitalized world.

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Dr. Achim Schmitt, Full Professor and Associate Dean of EHL Graduate School

Essential Soft Skills

To excel in a hotel management career today, you need a combination of hard and soft skills to remain competitive. Depending on which direction you want to develop your career, you will have a number of hard skills to hone specific to the kind of role you're pesuing.

However, interpersonal skills are truly critical in service-orientated environments and apply to everyone no matter what hospitality management role you're aiming for.

These include:

  • Leadership: Inspire and guide your team towards achieving the hotel's goals.
  • Communication: Clearly convey information to staff and guests.
  • Empathy: Understand and anticipate guest needs to enhance their experience.
  • Adaptability: Quickly adjust to changing circumstances and solve problems efficiently.

3. Building and Maintaining Stakeholder Trust

For hospitality leaders, stakeholder management means effectively organizing and nurturing relationships with clients, employees, suppliers, partners, and owners and operators. It's crucial because it helps align expectations, enhances guest experiences, and ensures smooth operations, ultimately leading to business success.

Effective stakeholder management is increasingly vital, with 83% of business leaders in hospitality viewing stakeholder relationships as crucial to long-term success (PWC).

Balancing Interests

Successfully navigating this landscape requires balancing the diverse needs of stakeholders while upholding operational excellence.

The purpose of effective stakeholder management:

  • Establishing trust: Stakeholders play a crucial role in influencing business results. By fostering trust and strong relationships with them, companies can enhance loyalty and collaboration.
  • Reducing risk: Gaining insights into stakeholder viewpoints enables businesses to foresee and tackle potential issues proactively.
  • Enhancing project success: Aligning stakeholder interests with project objectives can boost the chances of achieving positive results.
  • Boosting satisfaction: Surpassing stakeholder expectations can enhance satisfaction among clients and collaborators.
  • Cultivating a positive reputation: A culture centered on stakeholders can help businesses build a robust and enduring reputation for quality and reliability.

4. Adapting to Industry Trends and Innovations

The rapid pace of change in the hospitality industry—driven by technology, changing consumer preferences, and global economic shifts—means professionals must be agile and forward-thinking.

Sucessful hotel managers need to stay informed about trends such as sustainability, digital transformation, and personalized guest experiences is essential to keeping your property competitive on the hotel market.

By doing so, professionals can not only meet current demands but also anticipate future changes, placing themselves at the forefront of the hospitality field.

Those who can foresee industry shifts and adjust their strategies accordingly will lead the way.

Digital Transformation Strategies in Hotels

Good hotel managers are embracing digital tools to streamline processes, boost guest satisfaction, and support innovative services.

Examples of tech in hotels include:

  • Offering mobile check-in and check-out
  • Enabling guests to manage their stay via smartphone easily
  • AI-powered chatbots for customer inquiries speed up response times and personalize interactions.
  • Use big data analytics to understand consumer preferences and optimize offerings.

The hotel industry's digital transformation has lagged behind sectors like banking, aviation, and retail. This delay is mainly due to the challenges of updating or reconfiguring current technology while maintaining a customer-focused, resource-heavy operation.

Michael Levie, co-founder of citizenM and current board member of CDP vendor IreckonU, told Hospitality Investor that tech-forward operators implementing significant automation in their operations, along with personalized customer interactions, have experienced a 20 to 30 percent increase in GOP (Gross Operating Profit) compared to more traditional operators.

Several tech-driven companies like Numa, citizenM, and Airbnb achieve above-average profits and productivity. Demonstrating that more hotel companies should follow their example and adopt technology in a strategic and aggresive manner.

Prioritizing these digital strategies ensures hotels meet evolving consumer expectations and improve operational efficiency.

Sustainability in Focus

The 2023 Booking.com Sustainability Report reveals that 76% of consumers now prefer eco-friendly travel options. Nearly half of travelers (43%) are willing to spend extra to support certified sustainable travel options, the report found.

This rising trend highlights a growing awareness and dedication to sustainability among travelers aiming to minimize their environmental footprint.

Increasingly, travelers are choosing accommodations and transportation that emphasize green practices and sustainable resources.

Personalized Guest Experiences

Salesforce reports that 65% of customers expect personalized experiences and 82% are willing to share personal data to unlock additional value.

There is mounting evidence which indicates a growing trend that consumers are more open to exchanging information in order to receive enhanced, customized services. Therefore personalization not only delights the customer and enhances their satisfaction of the product or service, it also provides companies will valuable data and insights.

 

5. What’s Your Next Step?

Want to learn how to be a good hotel manager? The final step is all about personal growth. As the hospitality industry evolves, the most successful hotel managers remain proactive in shaping their careers.

Whether you aim to deepen leadership expertise, expand operational knowledge, or stay ahead of emerging trends, investing in personal and professional growth is crucial.

Adopting this growth mindset means looking for opportunities that build on your experience and equip you with tools to excel in a complex landscape.

  • Stay updated: Keep up with industry news and changes by following reputable sources.
  • Attend conferences and events: Attend conferences, trade shows, and networking events to learn from experts and other professionals in the field.
  • Collaborate with colleagues: Share ideas and insights with colleagues within your organization or network.
  • Invest in training: Invest in professional development courses or workshops to enhance your knowledge and skills.
  • Embrace innovation: Be open-minded towards new technologies, strategies, and approaches that can improve your operations or guest experiences.

If you’re ready to take the next step and position yourself as a leader in this dynamic industry, consider exploring executive education options like EHL’s Hotel General Management Program.

Designed for professionals seeking to advance their careers, programs like these offer a pathway to building the leadership and strategic skills needed to drive real impact.

Now is the time to invest in your future and become a driving force in the future of hospitality.