When it comes to investing in hotel technology, owners can be loathe implementing anything that doesn’t offer a good return on investment. Therefore, it’s important that you consider how much value the product brings you. But, how do you measure this return on investment?
There are three main areas where you should focus on when measuring ROI –
- Reduction in expenditure
- Increase in revenue
- Time savings
Let’s explore each of these in more detail, and how Hybrid Cloud based technology makes a difference:
Reducing your expenses
When using an old system or technology, it can be challenging to switch – particularly considering the investments you’ve already made on your software. However, what you need to think about is the ongoing expenses linked with your system.
To make it even more understandable, we will ignore the various smaller costs associated with integration, maintenance and energy bills, and focus on the major ones instead.
Suppose, the IT guy you hired to manage your in-premise system commands $10,000 a year – a moderate estimate. This cost alone represents a significant cut from your bottom-line.
With a competitively priced hybrid cloud-based system, you’re paying as little as $4 per room. Indeed, even with a 50 room property, that works out to a yearly cost of just $2400 – keep in mind that you are also paying no overhead expenses or running costs.
Increase your Revenue
So perhaps you aren’t using an old system – suppose you operate your hotel with an Excel spreadsheet. With no IT costs, no maintenance costs, it’s absolutely free hence saving you time. Nevertheless, it’s obstructing you from enhancing your hotel for maximum revenue generation.
Hotels are perishable commodities – not unlike food – once it expires, the chance to earn from a room is lost forever. In today’s fast paced hospitality industry, guests make use of the web by being online making reservations every second. Pen and paper ways would have been perfect before the internet, but they simply cannot cope with the pace of incoming bookings today.
Today, hotels have an excellent opportunity to pull in bookings from any part of the world through global OTAs and GDSs, and with large number of travelers visiting these sites, selling your rooms on as many as you can vastly improves your reach. This directly translates into more bookings.
The internet permits you to influence your region’s tourism appeal to build your own occupancy. With a hotel management software (HMS), you get the advantage to integrate with many global OTAs & GDSs in real-time – which means bookings and inventory get automatically updated instantly. This eventually allows you to significantly boost your online exposure and sell on multiple channels, without having to worry about the complexity of handling so many channels.
Time Saving for your Staff
Every minute that your staff spends in the front office is a minute they’re away from the guests. Instead of giving valuable time to your guests, employees are spending on making manual reservations and updates required by spreadsheets and legacy systems.
Since guest satisfaction is not as tangible as costs and revenue, it’s a lot harder to measure this impact – however, its importance is superior. In today’s millennial dominated age, guest expects personalization. They don’t need blanket services that cover everyone. They want to be valued, and traditional old systems are cheating your staff of the opportunity to make them feel special.
A comprehensive hospitality management system allows you to automate main processes at your hotel. Night audits are carried out systematically, reservations are automatically organized with inventory being updated in real-time, and even room prices can be set to vary dynamically as per pre-defined rules.
This strategy allows your staff to continue delighting guests, ensuring that they leave your hotel with a great impression and a big smile on their face. Owners, managers and staff, all have their hotel’s best interests in mind – but that doesn’t mean that they would be happy to work harder. You may be fine with spending your weekends working at your hotel, but you can’t expect your staff to feel the same way.
Looking with their perspective doesn’t just allow you to understand how to derive more productivity from them, it helps you maintain a healthy work atmosphere.
QiK Circle’s Hybrid Cloud based HMS was designed with not just the owner’s best interests in mind – we realize that your employees and manager need to see value in the system for themselves as well.
As an owner, QiK Circle lets you –
- Manage your property from anywhere, anytime with just a internet connection.
- Boost staff confidence by simplifying their tasks and saving time.
- Track occupancy and measure performance with customizable reports.
As a manager, QiK Circle lets you –
- Set special discounts and packages as per market conditions to increase occupancy.
- Track guest history and preferences in order to personalize the experience and increase guest satisfaction & loyalty.
- Monitor the status of rooms, take actions and assign tasks from a single point-of-control.
As an employee, QiK Circle lets you –
- Decrease manual errors and eliminate major issues like overbookings.
- Automate routine operations like night auditing and reservation organization.
- See all tasks for the day and prioritize accordingly, allowing for better time management.