Future challenges for general managers

20 December 2013



Hans Koch, the president of EHMA, highlights the five major challenges that he believes general managers will have to tackle in the coming years.


The biggest challenge for the industry in the years ahead will be to manage and sustain infrastructure, profit margins and human resources, in order to meet customer needs and stakeholder expectations.

In a broader perspective, we simultaneously face economic and political challenges that, depending on the country, are more difficult to influence or manage.

On the level of hotel operation, I see the following as the challenges a general manager will face over the coming years:

The increasing need for substantial investments

In today's highly competitive business environment, there will be more pressure on room rates and profit margins. Three and four-star hotels will be more and more in demand, which presents a challenge for many five-star properties. Fast-changing customer needs and expectations will put more pressure on hoteliers' efforts to keep up with hardware maintenance and facility improvements. Service requirements, as well as fast-developing communication and digital technologies, will add to the challenges and the sustainability of future success. Substantial investments will be required to meet the expectations for comfort, service and modern communication solutions.

Guest interaction and personal attention to detail

Although electronic communication is increasingly becoming the norm in today's world, personal contact with guests remains of paramount importance. A good balance of cross-culture competence, personal attention to detail and the ability to interact with guests are key attributes of a successful hotelier. Unfortunately, many general managers often become too absorbed with corporate, financial and strategic issues. We must remember that, at the end of the day, having happy guests is the best advertisement for a hotel and crucial for future growth and success.

Finding and retaining good employees

Today, it is increasingly difficult to find well-qualified employees with the right attitude for the hotel industry. Graduates of reputable hotel schools such as Lausanne (EHL) and Cornell who have become successful hoteliers often become targets of other service industries, such as luxury brands, banks and insurance companies, that offer them more attractive remuneration. To motivate young people to join the industry and keep staff turnover low, hotels should offer a competitive compensation package, continued professional development and further career opportunities. A team of motivated, trained and loyal employees is the backbone of any operation and key to future success. We need employees that pay attention to detail, and provide the exceptional service and unexpected 'wow' effects to deliver the competitive edge guests are willing to pay for.

Keeping stakeholders happy

Multifaceted expectations of the various stakeholders - guests, employees, owners, shareholders, suppliers and governmental bodies - significantly influence and impact a general manager's planning and operating approach. Apart from a clear business strategy and a smart business plan, efficient time management, as well as well-structured and professional networking across all levels, are essential to identify the factors that are most beneficial for the hotel.

The fact that 'less is more'

Today's travellers know exactly what they are looking for when choosing a hotel. They can access online review portals for first-hand information and feedback on hotel services and facilities worldwide. General managers are increasingly challenged to keep their properties up-to-date with trends and developments in the industry, and in adapting facilities and services to different expectations and needs of a multicultural clientele. It is crucial to provide guests with what they really require at the expected quality levels. Guests are not willing to pay for services they do not need; hence, we have to understand and meet the real needs and expectations of our clientele.

To succeed in the future, a general manager must have a clear strategy, lots of charisma and plenty of empathy. They should have the vision to make smart investments, plus have excellent guest contact, and the passion to lead and inspire their team to deliver the best product and maximise profits, thus keeping all stakeholders happy.

Hans Koch is president of EHMA and official delegate for EHMA’s Swiss chapter.


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