Ethem Zagikyan, Chairman of Continent Worldwide Hotels, a franchise and management company that successfully represents Turkey abroad and has the fastest growing hotel brands abroad, listed his observations that he thinks will be useful for hotel investors and industry professionals according to current market conditions.
Ethem Zagikyan, in his statement to Turizm FM, emphasized that economic fluctuations, the competitive environment and ever-changing trends create difficulties in determining financial strategies, and that hotel owners who invest in tourism and hotel management and embark on this journey, so to speak, are nowadays trapped between the ever-changing market dynamics and have to constantly struggle with the obstacles they face in order to maintain, let alone increase, profitability, and said:
''In an environment where the hotel industry in Turkey has undergone many changes after Covid 19, constant economic fluctuations, constantly changing trends and the course of the industry is constantly changing due to the high level of competition, it is vital for investors and hotel owners as well as hotel management companies to constantly update and review their forward-looking financial strategies in order for the hotel to continue its activities in a healthy way. Generally, in such uncertain environments, the formula that hotel operators often turn to, and the most important factor influencing their decision-making processes, is how to effectively increase revenue growth, and making decisions that will help them build their strategy in this direction is their priority. However, rather than blindly relying on market statements and forecasts from independent survey firms and analysts, it is critical that operators utilise real-time data, available from their own facilities, to inform their decisions and strategies. By analysing existing metrics and adjusting forecast models accordingly, hotels can draw a more accurate roadmap in their planning processes.''
Managing expense items correctly...
Zagikyan noted that it is necessary to manage and closely monitor expense items with monthly reforcasts (monthly reassessments) and that inflation and price fluctuations require regular review of budget projections and possible occupancy rates, and that it would be useful to take the necessary measures in a timely manner:
"Flexibility and agility will benefit hotels to reconsider their financial expectations to ensure their financial sustainability and operational efficiency through 2024. In addition, in order to maximise profitability, labour levels need to be optimised and the internal operation needs to be built in as simple and simplified a model as possible. In these recent times, when labour is also a major problem and not enough qualified personnel can be found, there is more than ever a need for personnel training, personnel trained in sales techniques. Of course, by utilising technology and reviewing time management approaches, hotels can reduce costs and increase efficiency without reducing the quality of the guest experience. Establishing a direct relationship between management and staff, creating a culture of communication, can facilitate quick action in line with the observations and ideas of staff in the field and support long-term productivity gains.''
Personalised service...
Ethem Zagikyan, Chairman of the Board of Directors of Continent Worldwide Hotels, pointed out that it is important to follow the trends in hotel management, to learn from the globalising world and to adapt to change, and added that tourism and the guest portfolio are constantly changing, that the ideal conditions in hotels will no longer occur spontaneously as before, and that supply and demand are certain:
''Hotels need to proactively adapt to changing trends and guest preferences. Staying away from technology is no longer a choice. In today's conditions, it is necessary to utilise all accessible technology to be ahead in this marathon. The reputation of your hotel now depends on the comments written on google. Personalised private facilities put the necessity of personalised sales policies in front of us, and make the relationship between sales teams and travellers compatible with guest-oriented goals.''
In conclusion, Ethem Zagikyan, Chairman of the Board of Directors of Continent Worldwide Hotels, emphasised that success in the hospitality industry depends on the harmony in providing high level guest experiences and responding to market dynamics, and noted that when strategic decision-making, operational efficiency and guest orientation are prioritised, hotels can take more confident steps towards profitability in today's environment.
About Continent Worldwide Hotels:
Founded in 2003, continent worldwide hotels is a privately owned hotel management, franchising and consultancy company with nine hotel brands covering nine different segments and concepts.
For more information:
http://www.ContinentWorldwide.com/
E-mail: management@ContinentHotels.com
