The toolbox for the #management of the functional services of your property.
Let’s decode together the departments or functions that you use in your company to ensure quality service, effective visibility and management of your results.
Let’s share together the keys of our industry !
If everything is organized in advance, you can take off !
Human ressources
The Human Resources guide
The tool that your company must develop to communicate on its internal HR policy. The information to be provided, to be decided in the operation of your business must be in line with your internal regulations : The french regulation example //
- HIRING – Rules relating to recruitment – Formalities related to hiring
- THE DIFFERENT TYPES OF EMPLOYMENT CONTRACT – Permanent contract – Fixed-term contract – Work-study contract – Employees of external companies – Temporary employment
- EXECUTION OF THE EMPLOYMENT CONTRACT – Duration of working time – Elements linked to remuneration – Paid leave and other absences – Illnesses and accidents – Modification of the employment contract – Disciplinary power
- BREACH OF THE EMPLOYMENT CONTRACT – Termination of the trial period – Resignation – Dismissal – Documents to be submitted upon departure – Retirement
- HYGIENE AND SAFETY – Employer’s obligations – Doctor dedicated to workforce
- THE SOCIAL AND ECONOMIC COMMITTEE – Missions of the CSE – General responsibilities, new features – Implementation – Rules relating to the CSE – Operation – Trade union rights in the company –
- LABOR INSPECTION – Missions and role of the labor inspector – Mandatory posting
Guide to workplace safety // A simple example of setting up in a company to raise awareness among your teams. A good complement to your “document unique” (mandatory document on risk assessment).
The stages of an employee’s life in the company
Each step is important and the HR function must provide the tools and training to its managers to make its employees experience these moments and make them memorable :
- Employee recruitment // the stakes are high and good preparation is necessary: Build your interview (use a recruitment grid support) – Do not stop at first impressions – Check the career path – Identify the personality – Test energy and commitment – Management skills to be detected – After the interview, make a report.
- Employee integration // Fill out your own integration form with the places to visit, the people to present, the tasks to show your new recruit – Send the welcome booklet, the internal regulations as well as the administrative hiring documents – Request a job report surprise at the end of 15 days in the company – Do a pre-tenure interview before the end of the trial period.
- The life of the employee // Throughout their career, support employees through the training they will receive, feedback from their manager, an assessment interview at least annually with the setting of S.M.A.R.T objectives for managers. The management, animation and motivation of employees is an everyday act.
- The departure of the employee // Whatever the reason, an employee can leave us. The company must maintain contact and a positive image even when leaving. Do an exit interview and formalize it also allows the company to question itself.
The Internal Rules
A mandatory document that sets the operating rules of your business. Here is a summary frame to use to cover all topics.
| Preamble | |
| Section 1 – Purpose and scope | |
| Rules relating to work organization and discipline | |
| Section 2 – Hiring | |
| Medical examination // Administrative documents // | |
| Section 3 – Work timetable | |
| Support functions staff // Operational staff // Meal time and breaks // | |
| Section 4 – Access to the company | |
| Section 5 – Delays and absences | |
| Absence during working hours // Sick leave // Absence paid leave // | |
| Section 6 – Work performance and behavior | |
| Work performance and behavior // | |
| Section 7 – Use of company premises and equipment | |
| Business premises // Staff using company vehicles // Other Hardware // | |
| Rules on the quality of work life, hygiene and safety | |
| Section 8 – Quality of Work Life | |
| Section 9 – Hygiene rules | |
| Alcohol and illicit substances // Hygiene of the premises // | |
| Section 10 – Safety rules | |
| General obligations // No smoking and vaping // Obligations in the event of fire // Obligations of health regulations // | |
| Section 11 – Work accident | |
| Section 12 – Prohibition and sanction of harassment | |
| Sexual harassment and sexist acts // Moral harassment // Other provisions relating to harassment // | |
| Scale of sanctions and right of defense | |
| Section 13 – Sanctions | |
| Section 14 – Defense rights | |
| Entry into force and amendment of Regulation | |
| Section 15 – Subsequent changes |
In addition to respecting the administrative procedures that allow the proper functioning of the company, the very essence of human resources is to stimulate talents !
Learning to love change: the new leadership !
Here are some recommendations to meet the new challenges of management in these times of chaos and permanent change :
Master today’s paradoxes //
- Be on the field. It is only in the field that we feel and understand the issues and transmit the company’s vision permanently.
- Insist on testing. It is through tests and experience that we progress with our teams. Learn from your experiences.
- Listen and set up listening forums. Spending time with your teams, listening to them, sharing with them, congratulating them, laughing is essential. Plan dedicated moments.
- Learn to accept failures. If one asks to experiment, one must accept failures, learn and quickly correct actions.
- Promote rapid “horizontal” actions. Involving field teams and giving them autonomy in decision-making is a key management factor.
- Let your guest guide you. The best control is the one your customer gives you. Learn to listen to it and adapt your operations.
- Make things “fun”. Taking pleasure in what we do is essential today and it is one of the paradoxes of the company to perform.
- Promote those who best manage paradoxes. If the management of paradoxes becomes essential in the company, put forward those who master it best.
Manage by example in a visible manner //
- Keep a note with you at all times with the mention “Important:I’m here to listen“. On the organization of a meeting, follow your speaking and listening time.
- Take notes, promise feedback, comments and give them to your teams without delay. Thanking regularly is essential.
- Encourage teams to take action. Suggest actions to your teams, encourage risk taking and give them credit.
- Be patient. Accepting change also means accepting time for it to take place. The repetition of your actions allows the acceptance of the change.
- Listen and take the opportunity to send the right messages too. Use all opportunities, however small, to convey your messages, your vision.
- Send your team managers management by example. Ask field questions to encourage everyone’s curiosity.
Empower field teams //
- Be proud of the success of others. To go further, highlight those whose greatest pleasure is to promote the success of their teams.
- Value those who create enthusiasm, emulation, pleasure for their colleagues (before he becomes a manager), their team (when they have become managers) or even colleagues in other functions.
- Delegate more and control less. Delegation is the essential tool for empowering teams. Make sure you have created the environment for.
- Pursue horizontal management by simplifying the administration. Highlight all the initiatives that have made it possible to simplify procedures.
- Evaluate your teams on their ease with change. One of the key success factors of today’s manager is their aptitude for change, adaptation, flexibility.
- Convey a sense of urgency to change and quickly. Also avoid and mitigate fears the change that often paralyze businesses.
Human Resources department expenses :
The expenditure items are to be fixed either by ratio (% of turnover or% of payroll or amount per employee), or by allocated budget.
- Payroll costs (including charges, benefits, bonuses, taxes)
- Cost of training
- Subcontracting (Payroll, others)
- Miscellaneous subscriptions
- Miscellaneous purchases (HR support)
- Cost of recruitment, integration
- Cost of incentives or specific budget Company social works
- Juridical help
Other tools you would need for the HR function to customize :
Sales, Marketing & Communication
The optimum organization of your sales department
The sales, marketing and communications team is at the heart of your business. The team’s mission is to sell and therefore ensure the commercial success of the property. A heavy task on which all other departments depend but which cannot work alone. How to optimize your organization ?
- Clearly defining the tasks of each person in the sales department is essential – each market (geographic or type of customer) is affected.
- Give autonomy to each person in the exercise of their mission with versatility. The sale begins with prospecting and also goes until the confirmation of the reservation or the event (and even after the operation to the payment of the service!).
The sales team must go out to meet customers, one by one: Getting out of your establishment is a priority and doing so regularly.
- Animate its affiliate networks : Meetings, presentations, invitations to discover the hotel, participation in common events, use of network strengths (mailings, sending press releases, newsletters, etc.)
- Visit your geographic area of customers, prescribers or potential futures depending on the accessibility of the destination and the interest of the targeted market segments. 2 hour car radius recommended for the regional market. Abroad, target cities with potential to organize visits to agencies or prescribers.
- Bring in the press specialist, prescribing agencies, representatives of major companies to live the customer experience (therefore prepare a specific program to show everything during their stay and provide for the presence of the sales representative).
A business trip is organized in advance, here are some important tips to ensure its success :
// BEFORE THE TRIP //
- Prepare your annual travel calendar and confim your travel budgets, which will evolve according to the priorities of the year.
- On an external mission, prepare your appointment: Appointment setting (Ideally, a minimum of 5 appointments per day). Plan a lunch and dinner for customers on this occasion to optimize the trip and promote contact.
- Prepare a simple, elegant and visual presentation in your image to highlight your strengths and sell the destination, the establishment and its services. Also plan small attentions or gifts that will mark your passage and remind you that you made the effort to come.
// DURING THE TRIP //
- Absolutely optimize meetings and presentations because these operations have a cost. Encourage listening to needs because it is your customers who will tell you what they expect !
- External company visit: Why not come with a breakfast in the company visited with an audience of 3-4 people for the follow-up for the first meeting of the morning ?
- Customer or prescriber visit: Aim to start from the meeting with a minimum of 3 contacts sent by the customer to extend his prospecting. Always ask how the customer works with social networks or digital (Mailings, Newsletters) and suggest common actions to be carried out. Finally, before leaving, try to confirm a date for the visit to the hotel to give the customer the experience.
- Intermediary visit (OTAs type): Highlight your differentiating strengths. Propose joint marketing actions (communication via Newsletters or Mailings of specific offers to promote sales.
// AFTER THE TRIP //
- Keep track of your appointments. Enter in your schedule when you have chosen to recontact your client to make an update, follow-up on your joint actions or re-contact for a next request. This step is important, particularly during the renewal of contract signatures (Corporate type, Tour Operators, Wholesalers or specialized OTAs) where we take the opportunity to make an annual financial report and negotiate future agreements.
- Register absolutely your contacts when traveling in your customer database to send newsletters and mailings regularly. Keep informed of your news. For the best potentials, personalization of emails should be favored to receive a response and avoid overly “generic” messages.
The schedule, prices and offers
The success of a business plan lies in its preparation and anticipation. Preparing your annual calendar of events, key dates and seasons allows you to adjust your prices (day to day if necessary) and to plan the dates to set up your offers.
You have your targets, you have your tools, now it’s a story of time, continuous effort and patience!
An effective digital marketing plan in 2021
| 1. Having the right foundation |
|---|
| Review your priority customer targets // its priority needs for the business // its possible developments. |
| Evaluate past performance // the sales campaigns that have worked // the reasons for the success of these actions. |
| Audit your website // check its effectiveness in any medium // pages or sections to improve // redesign of its site visits to improve conversion – bookings. |
| Evaluate your tools and technology // search for rationalization of its digital marketing providers // elimination of unnecessary tools // study of other tools to achieve its objectives. |
| Update its content and storytelling // take into account the new expectations of your customers for an update of messages. |
| Look for new trends in the industry // Adaptation of its activity to new trends // travel – booking. |
| Set the right budget // Priority to the most efficient distribution channels // Adaptation of its budget to the objectives // Target digital marketing budget of a hotel: 40% of its sales&marketing budget (5% of turnover): ((nb of # x OR target x 365days x Avg RR) x 5%) x 40%) |
The forecasts for 2021 are an improvement in results compared to 2020, a dark year due to the Covid-19 health crisis, but a return to activity at the level of 2019 is expected by 2023 – 2024. Take this into account in its forecasts and especially adjust according to the situation.
| 2. Adapting your digital strategy to Covid-19 |
|---|
| Determine a Covid-19 working group // representative of each department // follow customer travel trends // booking trends and behavior // proposals for adapting the digital marketing plan. |
| Continue to communicate your health security plan // the establishment’s Covid-19 prevention plan visible to customers to reassure. |
| Pursue flexible booking conditions // limit the fears of your customers to book // for any cancellation, favor postponements of dates and credits on future stays. |
| Prioritize customer relations and loyalty // communicate personally with your customers // celebrate their birthdays, dates of previous stays // send exclusive preferential offers // communicate content that will bring added value (cooking recipes or cocktails of the establishment – spa treatments at home, … ) through a professional blog. |
| Renew photos and content // adapt photos, communication to the context // for business customers, communicate their new capacities and offers adapted to the current health situation // reassure customers. |
| Keep an eye on booking schedules // Adaptation of the marketing plan to booking deadlines // client budgets // booking deadlines // length of stay // last minute packages to be developed. |
| Create new sources of income // Creativity teams soliciting // rental of rooms for the work with proper distancing. |
| 3. Integrate new trends in the industry |
|---|
| Increase in local markets // regional and national markets. |
| Decrease in business trips and meetings // Prospecting must remain local as a priority. |
| Priority on unique experiences and personalization // Creation of unique packages to stand out. |
| Reduction of touching points // Use technology to avoid contact. |
| Change to more private experiences // Favor privatizations or reservations of places for the same customers. |
| Increase in small weddings // Business to be developed by guaranteeing compliance with health rules. |
| Increase in physical and mental well-being stays // Development of spa, leisure and well-being offers. |
| Appearance of subscription business model // By offering a subscription-based service model to your customers, your establishment can increase its revenue and provide flexibility for bookings. |
Marketing approach according to each phase bookings :
- “Dream” step // At this stage, the customer does not yet have a precise idea for his next trip and takes information and suggestions for a stay. He looks at the destinations. Social media advertising helps make you visible based on the keywords the customer uses.
- “Planning” step // At this stage, the customer now wishes to organize his trip and will do his active research process on his chosen destination. If you use “cookies” correctly, the customer will find your advertisement, which can encourage him to book with you or at least see your offers.
- “Booking” step // At this stage, your access to direct booking is crucial. The customer can decide to book through your reservation system, call you or go through an intermediary who markets you. The readability and simplicity of your booking system is crucial.
- “Experience” step // Finally your client has booked and is ready to travel. At this stage, you can contact him to finalize his reservation and sell your services in advance: Upselling but also complete your Kardex client which will simplify arrival.
Sales, Marketing and Communication expenses
The expenditure items are to be set either by ratio (cost per room sold or per customer or% of turnover), or by allocated budget.
Payroll costs (including charges, benefits, bonuses, taxes)
Agency fees (Representation, …)
Affiliate network fees (Cluster, Central reservations, …)
Brochures, sales materials
Customer gifts
Direct mailings
Subscriptions, partnerships, memberships
Affiliation (Cost of membership, cost of participation in programs)
Loyalty program
Media (local, regional, national, international)
Running cost
External representativeness costs
Marketing research costs, studies
Photos, reports
Various editions
Promotion operations
Trade fairs
Travelling expenses
Website & digital tools
Other tools you would need for the Sales, Marketing, Communication function to customize :
“The power of digital media”
Landline telephones took 75 years to reach 50 million users, radio 38 years, television 13 years.
It took 4 years for the Internet and only 35 days for Twitter !
Administration // Finance, IT & Maintenance, Security
Administrative matters of your company
Whether you are embarking on a new project, or taking over the management of an existing business, there are many subjects that you must be aware of and administrative procedures to be undertaken. Attached is a list to help you :
- Company Information
- General informations
- Social information
- Hotel regulations
- Administrative and accounting management
- Commercial & Marketing
- Technical, Maintenance and Safety
The expenditure items are to be fixed either by ratio (cost per room sold or per customer or% of turnover), or by allocated budget.
Finance, Administration & Security expenses
- Payroll costs (including charges, benefits, bonuses, taxes)
- Audit fees
- Bank charges
- Cost of gifts
- Subcontracting contracts (Accounting, cash management)
- Bank card commissions
- Miscellaneous subscriptions
- Exchange fee
- Postal charges
- Cost of prints, photocopies
- Operational insurance (vehicle type)
- Running cost
- Travelling expenses
IT expenses
- Payroll costs (including charges, benefits, bonuses, taxes)
- Telephone cost
- Internet cost
- TV system and access subscriptions
- Electronic payment system
- Management systems (PMS, POS, Spa, others …)
- Security systems and data storage (Firewall, …)
- Digital Marketing systems subscription
- Operating licenses
- Running cost
Safety & Maintenance expenses
- Payroll costs (including charges, benefits, bonuses, taxes)
- Service contracts (Hygiene audits, Maintenance audits)
- Electrical & mechanical equipment contracts (Gates, etc.)
- Elevator system contracts
- Garden maintenance contract
- Heating, air conditioning contract
- Kitchen equipment contract, laundry
- Fire safety contract
- Various technical purchases (including bulbs, etc.)
- Various subscriptions (including Certifications or Labels)
- Plumbing, painting equipment
- Pool & spa maintenance
- Running cost
- Laundry uniforms
- Waste management
- Cost of energy (Electricity, Gas, Water, others)
New IT challenges / protection against cybercrime
The role of the IT department today is to ensure the protection of the company’s computer data and do everything possible to avoid intrusions, data hacking or at worst an external attack with a view to ransom demand.
Study of mobile cumulatives method
In order to analyze your activity, your results, there is a method called mobile cumulative to give you the image of the evolution of your results by removing the effects of seasonality.
“Graphical study, preferably, by measuring the result of a month of activity as the cumulative of the last twelve months“. Thus, you erase the effects of seasonality and bring out current trends. Example below of the graph obtained even if your activity is seasonal with large variations according to the months of the year :
Calculate your breakeven point
Knowing your breakeven point or breakeven point is essential for any decision to be made. Here is a simple and effective method to carry out this exercise by isolating its fixed costs (% variable compared to turnover) and its variable costs (% fixed compared to turnover). The study is recommended by department since each sector behaves differently.
| 1. Account for your turnover | CA |
| 2. Isolate the variable charges (which vary depending on the activity) | CV |
| 3. Isolate fixed charges (do not vary by activity or by level) | CF |
| 4. Calculate your contribution margin : CM = CA – CV | CM |
| 5. Calculate your contribution margin rate : %CM = CV / CA | %CM |
| 6. Calculate your break-even point in terms of turnover : SR = CF / %CM | SR |
| 7. Calculate your break-even point in volume according to your activity : Hotel: Number of rooms SR Volume = SR / Average Room rate Restaurant or Spa : Number of guests SR Volume = SR / Average Spending rate | SRv |
Simplified reporting of your activities
Below are examples of presentation of your activity reporting for monitoring your results. It is advisable to have a detail per service for more precise management, but summary documents are also necessary for the overall monitoring of results.
Monthly reporting in summary
Annual reporting in summary
Statistical financial data for 5 * provincial hotels in France
Financial indicators of a 5 * hotel in France, including at least two restaurants (including one gourmet), a bar and a spa during cruising years (activity for less than 10 years) – outside Paris, Ile de France. 2019 data.
- Breakdown of activity // 45 to 50% rooms – 45% food & beverage – 5 to 10% spa and other income.
- OR // 65 to 75% in cruising year with ARR between 235 € without taxe to 320 € without taxe.
- RevPar // 145 € without taxe to 230 € HT without taxe
- Focus Rooms // Payroll cost 25% – Other expenses 11-14% – GOP 61-65% – Payroll cost : Housekeeping 30-35€ per occupied room – Front Office 30-40€ per occupied room – Other expenses : 34€ per occupied room
- Average Spending Rate Food & Beverage // 40 € without taxe to 70 € without taxe in total for all the outlets
- Focus Food & Beverage // Payroll cost 50-55% – Other expenses 10-12% – Cost of goods F&B 25% Food 28% Beverage 18% – GOP 15% – Payroll cost : Service 22-26% – Kitchen 25% – F&B Admin 1%
- Focus Spa // Payroll cost 50% – Other expenses 25% – GOP 25%
- Focus Overheads // 23% of total turnover – Administration : 11% of total turnover – Sales & Marketing : 5-8 % of total turnover – Maintenance : 4-5% of total turnover – Energy : 2% of total turnover – Human Ressources 4% of total turnover – IT 1% of total turnover – Finance 3,5 % of total turnover – Management : 5% of total turnover
- Focus Payroll cost // 45-50% of total turnover. Administration : 5% of total tunrover (HR : 61K€/FTE – Finance : 55K€/FTE) – Sales & Marketing : 3% of total turnover, 60K€/FTE. Maintenance : 2% of total turnover, 45K€/FTE. Division 80-85% of payroll cost for operations and 15-20% for administration.
- GOP // 15-20% of total turnover.
“The humanity thinks that happiness is at the top of the mountain, whereas it lies in the way to climb it”
Confucius
Let’s continue to explore the #hospitality toolbox and explore the sections // Operations & Experience.
In the “BLOG” section, find my articles to find out more
