Scribd Logo
Upload

Welcome to Scribd!

  • 32 views

    The 3-Ps of Successful Hotel Management: by Bruce Wienberg, CHA, April 2005

    Uploaded by

    De Fitri
    The 3 Ps of successful hotel management are price, people, and property. Price refers to setting rates based on market research and ensuring revenue supports operations. People refers to properly motivating and managing staff to provide good service. Property refers to maintaining facilities and design at a level where guests will pay the desired rate. All three areas must be equally emphasized like a tripod, as imbalance in one area can cause the whole operation to fail. Owners and managers must take a long-term view to ensure all aspects of the operation are running effectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd

    The 3-Ps of Successful Hotel Management: by Bruce Wienberg, CHA, April 2005

    Uploaded by

    De Fitri
    32 views3 pages
    The 3 Ps of successful hotel management are price, people, and property. Price refers to setting rates based on market research and ensuring revenue supports operations. People refers to properly motivating and managing staff to provide good service. Property refers to maintaining facilities and design at a level where guests will pay the desired rate. All three areas must be equally emphasized like a tripod, as imbalance in one area can cause the whole operation to fail. Owners and managers must take a long-term view to ensure all aspects of the operation are running effectively.

    Original Title

    The 3P's

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The 3 Ps of successful hotel management are price, people, and property. Price refers to setting rates based on market research and ensuring revenue supports operations. People refers to properly motivating and managing staff to provide good service. Property refers to maintaining facilities and design at a level where guests will pay the desired rate. All three areas must be equally emphasized like a tripod, as imbalance in one area can cause the whole operation to fail. Owners and managers must take a long-term view to ensure all aspects of the operation are running effectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    32 views3 pages

    The 3-Ps of Successful Hotel Management: by Bruce Wienberg, CHA, April 2005

    Uploaded by

    De Fitri
    The 3 Ps of successful hotel management are price, people, and property. Price refers to setting rates based on market research and ensuring revenue supports operations. People refers to properly motivating and managing staff to provide good service. Property refers to maintaining facilities and design at a level where guests will pay the desired rate. All three areas must be equally emphasized like a tripod, as imbalance in one area can cause the whole operation to fail. Owners and managers must take a long-term view to ensure all aspects of the operation are running effectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 3

    The 3-Ps of Successful Hotel Management

    . By Bruce Wienberg, CHA, April 2005 Having observed many hotels, both as a General Manager for 1 years and as !egional Service Manager for "est #estern $%here & %or' %ith almost () *ro*erties+, the common thread in a successful o*eration can be summari,ed in three -P.s/ Price, Peo*le and Pro*erty. These three basic *rinci*les need to be addressed daily by the General Manager and o%ner, %ith e0ual em*hasis, to ensure a balanced, %ell run hotel that can focus on satisfying its guests.

    The 3-Ps
    Price: also known as your rate. 1ou need to 'no% your mar'et, and %hat your com*etition2s rates are3 and not 4ust %hat they tell you over the *hone. 5o some research into their third *arty %ebsite rates, their local cor*orate rates and grou* rates. Then see ho% their *hysical *ro*erty com*ares to yours, from su**lemental facilities to services to style, design and location. 6rmed %ith this data, you can then do an accurate assessment of %hat your guests %ould be %illing to *ay for each mar'et segment at your hotel. 1ou have to set your rates at a level that %ill su**ort your o*eration. &f you cannot, there are t%o choices. !educe your o*erating e7*enses or increase your revenue through achieving a higher occu*ancy. !emember that it is al%ays better to focus on revenue generation, as you can 8 theoretically- increase revenue to an infinite amount, but only reduce e7*enses by 1))9: People: your management team and staff. 6s every GM 'no%s, %ithout staff your hotel is sun'. 1ou sim*ly cannot o*erate %ithout staff. ;ur industry is notorious for high turnover, and in many cases it is deserved. 5on2t be one of those *ro*erties: Pay a little more than the mar'et rate, and ensure that your staff see you on the floors and at the front des', every day.

    <earn your em*loyee2s names, about their families, about their hobbies. <avish *raise on them %hen it is due, and sometimes %hen it2s not. Host monthly *i,,a lunches= be creative %ith small incentives. These intangibles are far more im*ortant than an e7tra ten or t%enty-five cents in %ages. >onversely, be sure to have a %ritten *lan for disci*lining staff. They have to 'no% %hat is acce*table behavior, %hat the *rocedures are, and that you %ill carry them out firmly, and fairly. 1ou must be consistent to gain their trust. Property: design, maintenance and capital. 1ou can only as'- and get- the rate you desire if your *ro*erty is u* to the tas'. That doesn2t mean everything has to be brand ne%, but it does mean things have to be *erfect. -Perfect. means everything must be clean, and everything must %or'. &t also means that if some items are dated, or %orn out, you %ill need re*lace them. Put a%ay a fi7ed *ercentage of monthly revenue to ensure the ca*ital is there in , 3 or ( years %hen items need to be re*laced. ?nsure you %al' the *ro*erty daily, that you ins*ect rooms and give this feedbac' to the staff %ho can im*rove things 8 your house'ee*ing and maintenance staff. They need to 'no% that any dust, dirt or garbage is unacce*table, any%here on the *ro*erty. Ma'e sure there is a %or'order system, and that you chec' that things are getting done. Ma'e sure you %ould %ant your friends and family to stay at your hotel. The Tripod Thin' of the 3-P2s as a tri*od su**orting the hotel= if too much %eight is a**lied to one leg, the tri*od colla*ses. Similarly, if one leg is too short, the tri*od %ill ti* over. The 3-P2s are so intert%ined, that a hotel cannot successfully o*erate for long if one leg is not su**orted e0ually along %ith the other legs, or if too much em*hasis is *laced on a single -P.. &f your rate $Price+ isn2t *ositioned *ro*erly, you %ill not have enough guests to *ay for u*dating design issues, or for *ro*er maintenance or ca*ital *urchases $Pro*erty+. &f your staff isn2t *ro*erly motivated and managed $Peo*le+, the re0uired guest service, house'ee*ing and other services %ill not ensure

    returning guests, and therefore the income %ill not be generated to su**ort the Pro*erty. 6nd if the Pro*erty is not %ell maintained, in good sha*e and %ith u*-to-date design, then the Peo*le %ill not be motivated and ha**y at %or', and the guests %ill not ma'e their reservations nor *ay the rate you %ould li'e.
    Owners, along with General Managers, must look beyond the next day or the next week, and see the big picture. Their skills, time and (for ownership) money must be applied to ensure all areas of the operation are running e ually effecti!ely. Think about how the "# $%s apply to your operation, and see if your tripod is fully supporting your hotel.

    You might also like