Managing a luxury hotel is a challenging and rewarding career that requires a combination of skills, knowledge, and creativity. In this article, you will learn some of the best practices for delivering exceptional service, enhancing guest satisfaction, optimizing revenue, and leading your team in a competitive and dynamic industry.
Luxury hotels cater to a diverse and demanding clientele who expect high standards of quality, comfort, and personalization. To meet and exceed their expectations, you need to understand your market segment, their preferences, their motivations, and their feedback. You can use various tools and methods, such as market research, guest surveys, online reviews, social media, and loyalty programs, to gather and analyze data about your target audience and tailor your products and services accordingly.
Understanding your competition is key to understanding how to target your customers. What do they like about these properties? What makes them choose one over the other? And, most importantly, why will they leave these other hotels to come stay with you? Often, hotels focus on the new "shiny thing" but forget to address what is truly important for their guests. It might be 24-hour room service or maybe a 24-hour fitness center. There are several public sites where you can see comments and complaints about other properties - why not leverage this information to fill in the gaps with your offering?
Absolutely! First and foremost step is to determine and understand your target audience. As we say Know Your Customer! As you will be managing a luxury offering, it makes all the more important to know and understand your customer. Go through the booking and stay data of your property to segment the consumers based on the booking patterns, source of the bookings etc. Also go through the reviews and feedbacks received to also get more detailed insights about the end consumer and how are they consuming and perceiving your offered product
One should understand your market well. create a unique value proposition, train and sufficiently empower your staff, manage your revenues and costs well, innovate and adapt well, lead by example and be a team leader
Know the Values your business stands for, enhance the awareness of your staff by coaching and supporting as they are your greatest asset, commit to deliver day in and day out impeccable service even in your lows, be objective and transparent in all matters and work as a team... Keep bringing new ideas, tailored for your clientele and always remain positive and true. Luxury comes in all shapes and styles...just find the right approach to sustain it...
There is no shortage of answers telling you how others have managed this luxury hospitality construct or that, within this market or that. While they all may have their points of relevance and should be considered, what is the "best practice" for your specific construct will be that which best represents the most unique nuances of its character. The more singular your construct, the more scarce and necessary.
A luxury hotel is not only a place to sleep, but also a destination that offers memorable experiences, distinctive features, and authentic stories. To stand out from the competition, you need to create a unique value proposition that showcases your hotel's strengths, values, and personality. You can do this by highlighting your location, design, amenities, cuisine, culture, history, or social responsibility, and by creating signature programs, events, or packages that appeal to your market niche.
A luxury hotel is not only a place to sleep, but also a destination that offers memorable experiences, distinctive features, and authentic stories. To stand out from the competition, you need to create a unique value proposition that showcases your hotel's strengths, values, and personality. You can do this by highlighting your location, design, amenities, cuisine, culture, history, or social responsibility, and creating unique programs, events, or packages that appeal to your niche market.
Managing a luxury hotel requires attention to detail, exceptional service, and a focus on exceeding guest expectations. Here are some best practices:Exceptional Service: Train staff to deliver service excellence.Maintain High Standards:.Invest in Staff Training: Invest in comprehensive training programs to equip staff with the skills and knowledge needed to excel in their roles. Uphold stringent standards for cleanliness, maintenance, and overall presentation of the property. Ensure that all areas of the hotel, from guest rooms to public spaces, reflect the luxury brand and meet or exceed guest expectations Training should cover customer service, etiquette, product knowledge, and problem-solving.Create Memorable Experiences:
One of Amadeus Digital Media clients has a phenomenal gym. The property is located in the heart of LA.We recommended they highlight their fitness offerings in the ads. These campaigns were the most successful ones this hotel has ever had. They never realized how important it was to their guests to have that amenity. Focus on unique offerings and understand what your guests want to use is key to standout from the competition.
Inspired by Alexander Osterwalder's framework, define what sets your hotel apart. Offer something guests can’t get elsewhere, whether it's unparalleled service, exclusive amenities, or unique cultural experiences. Invest in training. Your team should not only excel in service but also embody the hotel's values and UVP, creating a memorable experience for guests. Continual Innovation Stay ahead by adopting the latest trends and technologies that enhance guest comfort and convenience while aligning with your luxury branding :)
Your staff is your most valuable asset and the key to delivering excellent service and building lasting relationships with your guests. To ensure that your staff is well-trained, motivated, and empowered, you need to invest in their development, recognition, and engagement. You can do this by providing regular training sessions, coaching, and feedback, by rewarding outstanding performance and behavior, by involving them in decision-making and problem-solving, and by fostering a culture of teamwork, communication, and respect.
In hotels, a good GM sees the team as their biggest asset. It's all about making sure everyone feels skilled, heard, and truly part of the family. From hands-on training that sparks pride in their work to giving shoutouts for a job well done, it’s the little things that make a big difference. Getting the team's input on decisions shows we’re in this together. This way, when guests arrive, they're met with real smiles and top-notch service. It’s this mix of empowerment, respect, and teamwork that makes our place not just a hotel, but a home for both staff and guests.
Who has a direct relationship and a major impact on your guests? Your front desk? Your restaurant servers? Your housekeeping? Could you ask yourself what level of authority you have given each? Can the housekeeper give away a free bottle of water to a guest? Would the restaurant server be able to give away a complimentary appetizer? Can the front desk send up something special when they learn about a guest's birthday, anniversary, etc.? When if your answer is nothing then you are in the wrong business.
Luxury hotels operate in a highly competitive and volatile environment, where demand and supply fluctuate constantly. To maximize your revenue and profitability, you need to manage your pricing, distribution, and inventory strategies effectively. You can do this by using revenue management systems, techniques, and metrics, such as occupancy, average daily rate, revenue per available room, and total revenue per guest, to monitor and adjust your rates and availability according to market conditions, customer segments, and booking patterns. You also need to control your costs and expenses, such as labor, utilities, maintenance, and marketing, by implementing efficient and sustainable practices and procedures.
Distribution is an essential aspect of cost control in hospitality. Often, hotels don't give this subject the attention it deserves. When considering the cost of OTAs, for example, commission is typically the primary concern, but other factors such as marketing dollars, package discounts, and added value are often overlooked. This is an area where I frequently see properties mismanaging their resources.
Luxury Hotel Segment has been high cost center and it becomes all the more important to work on the costs to have a sustainable business and profitability. Assess across teams and their process and work flows to understand where the costs can be saved. Also, along with this relook at the commercial contracts with all the vendors along with channel partners like OTAs and see if we can rework on the costs accordingly!
In regard to managing revenue, you need to be data driven. Set specific, measurable, actionable, reasonable, and timely goals and budgets. Identify your competitive sets (you should have a primary & secondary) and your value proposition relative to them. Implement reporting structures & dashboards that provide real-time insights and help you make more educated pricing decisions. Learn how to understand the impact of your decisions from many different angles (financially, operationally, etc.). Use technology to be more efficient, not to make decisions for you. Question your strategies often, test your hypotheses and learn from every scenario.
For Luxury Operations I Generally suggest to to the Exclusivity in Pricing Route. Maintain premium pricing for the luxury market, balancing high rates with exceptional service and unique experiences to justify value. Also: Upselling and Cross-selling Train staff to effectively upsell and cross-sell high-margin services and amenities, enhancing the guest experience and increasing revenue.
Luxury hotels face the challenge of keeping up with the changing needs, expectations, and preferences of their guests, as well as the emerging trends and technologies in the hospitality industry. To stay ahead of the curve, you need to innovate and adapt your products and services, processes and systems, and strategies and policies. You can do this by adopting new technologies, such as artificial intelligence, mobile applications, smart devices, and biometrics, to enhance your operations, security, and guest experience. You also need to embrace new concepts, such as personalization, sustainability, wellness, and social media, to create value and differentiation for your hotel.
Innovate with eco-friendly practices and materials, offering sustainable luxury that appeals to environmentally conscious guests. Also -and you won't regret this: Invest in culinary excellence, offering gourmet experiences with renowned chefs or innovative dining concepts that elevate the luxury status.
Managing a luxury hotel requires strong leadership skills, such as vision, communication, influence, and integrity. As a leader, you need to set the direction, goals, and standards for your hotel, and inspire, guide, and support your staff to achieve them. You also need to lead by example, by demonstrating the values, behaviors, and attitudes that you expect from your staff, and by being accountable, transparent, and ethical in your actions and decisions. By leading by example, you can create a positive and productive work environment, and a loyal and satisfied customer base.
Personal touch is the foundation of developing authentic, long lasting relationships, and that’s what luxury is all about. Connect with guests personally and the team will follow suit.
GM: get out of your office, and walk around with eyes and ears open. Benchmark, Auto criticize, leave your ego where it belongs; at home.
Personalized and attentive services in a luxury hotel is very crucial be it a small , medium or big luxury hotel. The Moment of truth should be felt by guest the first time entering the hotel and every contact or services the guest will received during their stay is very crucial for the entire stay.
Managing a luxury hotel means balancing professionalism with genuine hospitality. It involves having a dedicated team delivering impeccable service and warmth, maintaining cleanliness and flawless maintenance, personalizing experiences, providing upscale amenities, embracing technology, creating a welcoming ambiance, seeking feedback for improvement, and effective marketing to attract discerning guests.