What are your associations with the end of the year? Probably, winter coziness and holiday preparations? Yes, but if you are a hospitality pro, you definitely have one more thing to do during this period. It is time to plan the budget for 2023, which is expected to be a challenging fiscal year. Salaries have increased by 25% since 2019 and may rise further because of inflation. Finding enough staff to cover hotel requirements is still challenging, and guests expect a quick digital experience. Hoteliers need to single out the things that are most pertinent to the ever-changing hotel industry for next year's budget. In this article, we will figure out essential things to consider for your 2023 budget.
At the end of each year, hoteliers create their budgets for the upcoming year. This includes employee wages, cleaning products, new maintenance equipment, and other essential components. However, due to the constant changes in the world, a budget should be more than just an update of what was required in the previous year. Hoteliers must be mindful of their guests' and employees' current needs and challenges. Hence, a budget should be dynamic and reflect external events and conditions. Let's overview key things every hotelier should take into consideration!
Be aware of trends & define demand drivers
To set up an adequate hotel budget for 2023, you should consider key demand drivers, the increased customer expectations for digital presence, technological advancements, and sustainability habits that have come to light in recent times. Investment in such areas should help to generate customer loyalty and trust, leading to greater returns.
Implement digital solutions
Demand for guest-oriented technology is at an all-time high, with 73% of guests preferring a digital experience when engaging with a hotel. Consequently, to provide excellent service and stay competitive, hoteliers must invest in various technologies that improve all aspects of the lodging journey for the guests. Such solutions not only enhance the experience of staying in the hotel but also improve the property's revenues.
In 2022, a business's success is contingent upon its investments in tools and software. If a hotel hopes to remain competitive, it must have trending technologies to facilitate collaborative work between team members, collect and analyze data, etc. Since the hospitality business has been dramatically affected by COVID-19, relying on past data for the future is not an option; instead, data-based systems must anticipate market changes and aid decision-making. HotelFriend software is a perfect solution for hoteliers who want to optimize processes, skyrocket sales and conversion rates. It offers a variety of digital solutions for hoteliers – from digital menus to contactless check-in – and allows you to maximize your hospitality business efficiency.
Provide contactless technologies
The Contactless Check-in/Check-Out solution allows guests to check out of their hotel room whenever they want without going to the reception desk. It also helps the housekeeping teams know when a guest has checked out of the room, and it can be prepared for the next guest. Hotels that consistently use this technology can improve the efficiency of their housekeeping staff significantly.
Concierge App by HotelFriend – is one of the best examples of mobile check-in apps on the market, which helps to shorten the distance between the guest and the hotelier. There is also messaging solution within the app, which eliminates the problems of managing guest inquiries via phone. It lets hotel staff field guest inquiries more quickly and calmly than traditional phone-based methods. Guests can receive immediate responses from staff to their questions through messaging, reducing the need to wait on hold or be shuffled from one person to the next. This helps the hotel provide a more consistent and satisfying customer experience.
What else? Here is the list of other opportunities that Hotel Friends software opens up for hoteliers
- ● Saving reception staff time. It’s a win-win situation for both sides. Live chat allows guests to contact reception faster and avoid queues. Staff can share information with co-workers in the chat, making communication and task management more accessible.
- ● Reducing operational costs. You can easily avoid paying additional fees to third parties. With HotelFriend software, you can save up to 50% on yearly costs.
- ● Increasing the number of orders. A convenient communication tool and managing system allow you to grow the number of sales.
- ● Optimizing guest data. You can analyze guests’ data and convert it into new business solutions to enhance your business processes.
- ● Driving ancillary revenue. The service Management module helps hoteliers to promote their services via an app and control the proper execution of each order. Create a digital menu, generate deals, customize them with pictures, and do all you need to get extra income.
- ● Maximizing sales. This tool will allow you to make the most of your opportunities: provide guests with the best service, analyze your hotel performance and increase your sales.
Invest in digital marketing
Hotels have access to more innovative and advanced marketing tools than they have previously. Furthermore, due to the advancements in guest-facing technologies, it has become much simpler to receive guests' contact information, including emails and phone numbers, even when reservations are made through third-party booking platforms.
Therefore, 2023 is the ideal time for creating an advertising strategy that will result in more direct bookings and higher revenues. You should use part of the budget for the following areas:
- ● Website development/optimization
- ● Local SEO
- ● Search engine ads
- ● Display marketing ads
- ● Email marketing
- ● Sending push-messages
- ● Social media presence
Ensure you make the most of your digital tools to achieve the best results.
Consider the impact of inflation
When creating a yearly spending plan, considering inflation is imperative. Prices of hotel services have been raised due to the financial impact of inflation, leading to fewer people traveling and consequently leaving rooms less occupied. According to the Global Business Travel Association's latest study, there will be a comeback to the level of spending before the pandemic in 2026. This slowdown of revival is believed to be caused by a combination of the still-existing inflation, high fuel costs, major problems with supply chains, and a lack of workers.
Importance of sustainability
Nowadays, sustainability has become a vital part of our life, so travelers tend to select businesses committed to the environment. This may require hoteliers to modify spending and find local, eco-friendly vendors for cosmetics and toiletries. Another option to consider is implementing a compost system to lessen the amount of disposal sent to landfills. Instead of distributing print material, which requires shipping, hotel proprietors may choose digital solutions to facilitate their clientele's access to many publications on their devices.
Another good thing about implementing sustainability methods is that they can save your budget. For example, washing towels less often allows one to economize on water and detergent.
2022 has proved to be quite a successful year for the hotel sector, but it still holds some resenting issues that will need to be dealt with in 2023. Hotel budgeting is the most suitable period to detect and accept these solutions and obstacles. Guests' arrangements are changing, and the financial situation involves managing hindrances.
Yet, resorts that center their strategies on the considerations outlined in this article are sure to stay successful as they will escalate their returns, amplify their efficiency and strengthen the guest experience.