Where Are We Now?

This section is designed to accumulate all the information you can about the current state of the market and your achievements for each of your profit centres. It will look at the competition and your relative position. Make sure that when you make a conclusion it is based on sound information, not speculation or hearsay.

Achievements

List achievements in terms of value, volume and trends. Look at distribution channels and sources of reservations broken down for each profit centre:

• rooms – and the different market segments
• meeting/function space
• restaurant/bar
• leisure.

Competition

• Which ones do you compete with? (Note: different hotels will compete with different segments of your hotel.)
• Their product and price comparisons.
• Is there any new competition?

Swot Analysis

• Strengths and weaknesses – against competition (try and be objective as you list bricks and mortar issues, but also image, staff and customer feedback).
• Opportunities and threats – market changes and external situations such as local economic development and exchange rates.

Where Do We Want To Be?

This section is your opportunity to set some goals for the year ahead, both in terms of specific figures and more qualitative aspects such as awards. Think about your vision and how it can be fulfilled.

Sales Targets

Set targets you want to reasonably achieve next year in each of your departments:

• rooms – by market segments
• meeting/function space
• restaurant/bar
• leisure.

 

It is notoriously difficult to make accurate forecasts of what might transpire next year. All you are really doing is stating some goals that you are going to make plans to achieve. If you forecast more room nights from corporate clients, this either needs to be based on interviews with the clients who confirm that their travel will increase, or based on your estimate that with a bit of effort you consider that you can sign up more clients. Ideally you would start from a zero base each year, since to just add arbitrary percentages to last year’s figures does not imply that any real analysis has been made about the competition and the potential.

Qualitative Targets

What you are trying to achieve next year:

• customer satisfaction comments
• awards for food
• guidebook entries
• star rating.

What Do We Want To Change?

Before you start on your planning, you need to address the key strategic considerations. You need to stand back and decide whether or not what you are doing now is right for the future. It is useful to analyse your situation under product, price and promotion.

Product

Your evaluation of your own product and service and that of the competition will give you some ideas as to whether your offer is still appropriate for the current market or for any emerging market. Feedback from customers will provide much of the input for your consideration.

You need to look at bedroom and meeting facilities to check that you are up to date. If you have been losing restaurant covers despite your efforts, then maybe it is time to consider your whole offer, including the style and pricing. Are there any additional facilities that you ought to consider, such as fitness or leisure? Analyse your product under the three elements of service, environment and physical aspects as outlined in Chapter 1 pages 15–16.

Price

Sometimes it is possible to make a strategic leap rather than just looking at inflation. It could be that some prices could increase by 20 per cent if you can fill a particular gap by slight adjustment to your product. You might also be considering a new restaurant concept that needs an average spend 25 per cent less than your current level but will give you 50 per cent more covers.

If you keep your eyes open you will spot some encouraging signs within your operation. Maybe your wedding venue is booked at least a year and maybe 18 months in advance. If so, this is a major opportunity to look at your pricing policy.