‘Tis the Season for Hotel Budgeting

In Hotel Financing, Hotel Management, Hotel Revenue, Revenue Goals, Revenue Management by HMG Hospitality Team

Be prepared, not scared. Budgeting season has rolled around once again, and with it tends to come stress, worry, and frustrations, but that doesn’t have to be the case. Of course, budget and marketing plans are developed to set goals, targets, and hold everyone accountable. With that being said, this is also a learning process, and a way for the management team to thoroughly communicate what is needed to get the job done in the best, most efficient way possible. This is your opportunity, and maybe even your only chance each year, to connect with the owners, show them what was done the previous year, and explain what is needed for the upcoming year. Rather than stressing, consider the budget plan as your key to success.

Fool Me Once, Shame On You, Fool Me Twice…

Learn from your mistakes. Learn from your successes. The point is, an integral part of creating a budget for next year is analyzing the data from the past year. You cannot move ahead without the guidance of the failures and accomplishments from the budget plan last year.

Take some time to collect the data, and then analyze it with your team. Note where money was wasted, where it was saved, where new team members are needed, where fewer team members are needed, etc. Review last years marketing cost-per-sales and use it to inform your future revenue goals.

Avoid The “New Year’s Resolution” Syndrome

Once you’ve gathered the data, then you can begin to prepare the budget and marketing plan for 2016. After carefully analyzing which strategies and goals worked as expected, and which didn’t previously, make informed adjustments to the new plan.

Make your goals aspirational but attainable, and hold yourselves accountable. That is the key. Unrealistic goals, and goals without target dates are like New Year’s resolutions – well intended but rarely seen through.

Be honest with yourselves, and with the owners. This is huge, don’t wallow in Fantasyland, that will only set you up for failure later. If the marketing plan requires more money, include more money in the budget. If the owners don’t approve the increased funding, then you’ll have to scale the plan back. Agreeing to a budget that is unrealistic will cause stress, and increased problems down the road.

Set your team, your hotel, and yourselves up for ultimate success through analysis, planning, and honesty. Make 2016 the most productive year yet, and reap the rewards of a job well done. Stay optimistic and realistic, and create the most efficient and revenue-driven budget and marketing plan yet. If you need more in-depth coaching, contact HMG Hospitality – experts in hotel management. The HMG Hospitality team can be reached at 858.673.1534.

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