Excessive Outsourcing of the Hotelier’s Role: A Threat to the Trade
By Georges Panayotis, President & CEO - MKG Group
And the hotelier's list of "good friends" entered into play to lighten the polyvalent innkeeper's load in the kitchen, in the dining room, at reception, on the floors, at the tourist office at the town festival, at fairs and the threshold... But each one naturally lays claim to proper remuneration for their services, because every service deserves a salary. Work less, but earn more, while concentrating on welcoming guests can only last for as long as the euphoria of the good years of the hotel cycle. When the market becomes more difficult, turnover drops and the multitude of expenses becomes heavier until it reduces operating results to nothing.
In attempts to sophisticate operations and hotel management, the basic economic model grew heavier. During periods of tension the owner-operator finds himself faced with expenses he has difficulty absorbing while suppliers relieve themselves of the risk but send in the bill. He has no other choice but to increase the price of services to a point that is considered unreasonable to a growing number of clients.
Periods of crisis offer an opportunity to raise questions. The time has come to wonder about the new economic mode or its renaissance based on the fundamentals of the hotel trade. Owner-operators need to come up for air and take a careful look at all those who have drained their resources. They must look at the customers' interest in a product that might be more rustic, but more friendly and more in line with their current expectations. Instead of trying to make an outdated model more complex, it is necessary to take a look at simplicity and the core(s) of the hotel trade. It is undoubtedly not easy, but in order to stop clients from abandoning them for other kinds of accommodations and other destinations.