Labor will be a challenge in hospitality for the rest of the 2020s, while tech (and soon AI!) is now needed for every hotel operation. Both must be developed in sync with each other for a hotel to thrive.
Hotel Mogel Consulting’s Teams N Tech (TNT) Hotel Evaluation Program identifies the critical path a hotel organization should take for technological implementation and automation as well as labor improvements so that any property can save costs, grow revenues (both rooms revenues and ancillary spend), increase team productivity and fight against the hotel industry’s unprecedented rates of turnover.
The TNT Hotel Evaluation Program Explained
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Pandemic Problems For Hotels:
- Exit of workers via reskilling into service sector
- Low morale amongst overworked teams
- Accelerated executive retirements and no clear lines of succession
- Inflationary wages, “Quiet Quitting” and “The Great Resignation”
- Focus on work-life balance and mental health
- Supply chain disruptions increasing operating and procurement costs
- Explosion of deployed tech solutions making tech stacks exceedingly complex
Long-Term and Ongoing Challenges:
- Hotel industry workforce already skews older, limiting innovation and succession planning
- Gen Z values STEM and finance over hospitality, leading to a lack of replacement workers
- As baby boomers retire, hotels will compete with caregiving facilities, raising wages further
- With associate-level staff reliant on immigration, a lack thereof further constricts workforce
- Dizzying array of available tech makes finding the best fit incredibly time-consuming
- Recessions and macro-forces restraining travel demand and ability to grow rates
Altogether, Hotels Are Left Spinning!
- IT department is overloaded maintaining current systems, with no time to evaluate new tech
- Without automation, management is burdened with repetitive (and demoralizing) tasks
- Further limiting time is a culture of too many meetings and group decision making
- Teams have no time to properly learn all features of installed systems, leading to inefficiencies
- The end result is that hotels fail to deliver on their service promise
- Stymied by busywork, hotels can’t innovate
To Solve These Business Threats, We:
- Apply decades of client work in defining and resolving organizational issues
- Give an independent, objective perspective on performance and key problems
- Analyze all costs to discern where the most efficient savings are
- Use our inside track for all tech vendors to pick the optimal solutions
- Focus on cultural development to maximize team productivity and retention
- Never lose sight of the guest experience and the core revenue drivers
In-Depth TNT Audit Steps Include:
- TEAMS: Identify opportunities to make your property a better place to work
- TEAMS: Review your hiring process and identify outsourcing opportunities
- TEAMS: Examine your organizational practices to better enable lean teams
- TECH: Perform a tech stack audit to find gaps and opportunities to automate
- TECH: Build a roadmap for ongoing deployment with recommended vendors
- TECH: Develop vision for future that will lead to lucrative revenue generation
The TNT Sweet Spot:
- Independent hotels
- Upscale or luxury
- Multiple departments and services
- Non-union environment
- Active owner or c-level involvement
- (Teams and technology evaluations can be contracted separately, although oftentimes one implies follow-up actions for the other)
TNT Evaluation Costs & Getting Started
Our quote for services are based on the property size and project complexity, with factors including:
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- Number of guestrooms, room type diversity and other property characteristics
- Facilities (such as F&B, spa, convention space, ancillary profit centers)
- Regional issues and business seasonality
- Current state of tech stack and stated tech needs
- Fees are based upon a detailed statement of work and forecasted time requirements
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The timeline and deliverables for a TNT Evaluation:
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- Engagements are typically eight to ten weeks from contract agreement
- Site inspections may be necessary, in which case out-of-pocket and time costs are extra
- Final presentation of findings and recommendations are via written reports and in-depth meetings, including specific actions to optimize labor costs and tech vendor endorsements
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