Stubborn GMs Sabotage Success: Time to Embrace Tech or Fall Behind

When I first started working in the hotel industry as a General Manager (GM), the way things operated was quite different from what we see today. At that time, it was normal to have a secretary who made sure that every report was neatly placed on my desk before I arrived at the office. As a baby boomer, I could have easily stuck to that routine, depending on those printed reports to manage the hotel. However, I have always been intrigued by how technology can streamline our work and improve business operations. Instead of just accepting what was given to me, I decided to take matters into my own hands and delve into the data. I taught myself how to gather information from all the different separate systems and create my own Excel reports—reports that provided the insights I needed to make well-informed decisions that would help increase revenue and profits.

Many GMs—especially those from my generation—are hesitant to change. They cling to their outdated systems, reluctant to embrace the new tools and technologies that could make their lives easier and their hotels more successful. They don't see the benefits and often don't understand the technology enough to recognize its potential. It's holding back hotels from reaching their full potential and preventing GMs from making the informed, real-time decisions crucial in today's competitive environment. In this blog post, I want to discuss why GMs need to embrace technology, why it's no longer optional, and how they can take the first steps toward becoming more tech-savvy. It's time for a change—and here's how to make it happen.

The Problem with Relying on Built-In PMS Reports

The primary function of a Property Management System (PMS) is to oversee guest reservations, manage housekeeping schedules, process transactions and payments, and generate financial reports for integration with the hotel’s accounting system. These systems play a crucial role in facilitating the smooth daily operations of a hotel. However, the built-in reports often lack the depth needed for effective decision-making.

A significant limitation of PMS reports is their focus on historical data and a narrow view of future reservations. While these reports provide insight into past performance and current bookings, they are predominantly retrospective, offering minimal predictive insights. Relying solely on these reports for decision-making is akin to driving a car while only looking in the rearview mirror—you can see where you’ve been, but you might overlook what lies ahead, resulting in missed opportunities and potential challenges. Furthermore, PMS reports are typically confined to a specific scope, primarily addressing operational transactions rather than broader strategic insights.

Another significant limitation of Property Management Systems (PMS) is that guest review data, which is increasingly crucial in today’s digital environment, is not integrated within the PMS. Instead, this information is stored in separate, siloed systems. This disconnect prevents General Managers (GMs) from establishing a direct link between guests' stay data and their reviews, complicating the ability to correlate guest feedback with operational performance. Without this connection, GMs may overlook critical insights, such as recurring issues mentioned in reviews that could be addressed to enhance guest satisfaction and loyalty, or opportunities to upsell services to satisfied, repeat visitors.

In summary, while PMS reports are vital for managing a hotel's operational functions, they fall short when it comes to strategic decision-making. These reports focus narrowly on operational data, missing broader trends and insights that could foster improved outcomes. To make well-informed decisions that boost revenue and enhance guest satisfaction, GMs must go beyond the built-in reports of their PMS. They should incorporate data from various systems into advanced analytics tools. This comprehensive approach is essential for gaining a complete understanding of the hotel’s performance and making decisions that drive sustained growth and profitability.

The Hidden Cost of Manual Reporting

Wasting Labor Hours on Manual Reporting: A Thing of the Past

In today’s digital landscape, the practice of manually generating, printing, and delivering reports to a General Manager’s desk every morning is not only outdated but also inefficient and costly. While this task may seem minor within the broader context of hotel operations, its cumulative impact reveals substantial hidden costs that can no longer be overlooked.

Wasted Labor Hours Better Spent on Value-Added Activities

Daily, valuable staff time is consumed by gathering data, formatting it into reports, printing these documents, and delivering them physically. When this routine is performed repeatedly—often multiple times a day—it accumulates to a significant number of labor hours over the course of a year. These hours could be redirected toward more productive endeavors, such as enhancing guest services, engaging in proactive revenue management, or improving operational efficiency.

Increased Risk of Errors in Manual Report Generation

Manual processes are inherently prone to errors. I have experienced this firsthand while compiling data in Excel. Simple typos, data entry mistakes, or outdated figures can easily slip through, resulting in flawed reports. Making decisions based on inaccurate information can have costly repercussions. In contrast, automation minimizes these errors by pulling data directly from source systems, eliminating human intervention. This not only improves report accuracy but also enhances the reliability of decisions made based on this data.

Delays in Decision-Making Due to Report Delivery Lag

Timely decision-making is crucial in the hospitality industry. However, the manual process of generating and delivering reports introduces a time lag that can hinder critical decisions. By the time a printed report reaches the GM’s desk, its data may already be outdated—especially in fast-paced scenarios like managing overbookings, responding to sudden market shifts, or addressing real-time guest service issues.

Conclusion

Manual reporting is no longer just an outdated practice; it represents a costly inefficiency that modern hotels cannot afford. By adopting automated reporting tools, hotels can save labor hours, reduce errors, and facilitate faster, more informed decision-making. The hidden costs associated with manual reporting accumulate rapidly, directly affecting the hotel’s bottom line. It’s time for hotel GMs to abandon these outdated methods and embrace the efficiencies offered by modern technology.

Why Modern GMs Must Embrace Technology

The Strategic Advantage of Being a Tech-Savvy GM

The role of a hotel GM has evolved beyond traditional leadership. Modern GMs must embrace technology as a strategic advantage to stay competitive and drive their hotels to success. By becoming more tech-savvy, GMs can unlock many benefits that streamline operations, enhance decision-making, improve guest satisfaction, and boost financial performance.

Real-Time Access to Data: Make Informed Decisions Quickly

One of the most significant advantages of being a tech-savvy GM is accessing real-time data. Unlike traditional methods that rely on periodic reports, modern technology platforms provide GMs instant access to the latest information on key metrics and trends. This real-time access allows GMs to make informed decisions quickly, whether adjusting pricing strategies in response to changing market conditions, optimizing staffing levels, or responding to guest feedback.

Better Data Analysis and Visualization Tools: Gain Deeper Insights into Hotel Performance

Modern technology provides GMs with robust data analysis and visualization tools that go beyond the basic reports generated by a PMS. These tools allow GMs to delve deeper into hotel performance, uncovering insights that would be difficult or impossible to detect using traditional methods. For instance, advanced analytics can help identify trends in guest behavior, such as preferences for certain room types or booking patterns, enabling the hotel to tailor its offerings to meet guest needs better.

Visualization tools, such as dashboards and interactive graphs, present complex data in an easily digestible format, allowing GMs to quickly grasp key trends and make data-driven decisions.

Automation: Save Time and Reduce Human Error by Automating Routine Tasks

Automation is another critical benefit of embracing technology. By automating routine tasks like report generation, data entry, and even some guest interactions, GMs can save valuable time and reduce the risk of human error. This improves operational efficiency and frees the GM and their team to focus on more strategic activities, such as enhancing the guest experience or exploring new revenue opportunities.

For instance, instead of manually compiling daily reports, a tech-savvy GM can set up automated reports generated and delivered directly to their inbox or dashboard every morning. This ensures that the GM always has the most up-to-date information at their fingertips without staff spending hours on manual tasks.

Conclusion

The strategic advantage of being a tech-savvy GM cannot be overstated. By embracing technology, GMs can access real-time data, leverage advanced analytics and visualization tools, and automate routine tasks, leading to more informed decisions and improved hotel performance.

Practical Steps for GMs to Become More Tech-Savvy

Actions GMs Can Take Today to Harness the Power of Technology

Becoming a tech-savvy GM is not just about understanding the latest tools and systems; it's about adopting a mindset of continuous learning and innovation. Here are practical steps that GMs can take today to harness the power of technology and lead their hotels to greater success.

Learn the Basics: Enroll in Online Courses or Attend Industry Seminars

The first step to becoming more tech-savvy is to build a strong foundation in critical areas such as data analytics, revenue management, and cloud-based systems. Fortunately, numerous online courses and industry seminars are designed for hospitality professionals. Industry-specific organizations like HSMAI offer courses that can help GMs understand the fundamentals of data analysis and the benefits and latest trends in hotel technology.

By dedicating time to learning these basics, GMs can gain the knowledge needed to make informed decisions about which technologies to implement and how to use them effectively. Additionally, attending industry seminars and conferences provides opportunities to network with other tech-savvy leaders and learn from their experiences.

Collaborate with Tech-Savvy Staff: Work Closely with the IT Team or a Data Analyst

No GM is expected to be an expert in every aspect of hotel technology, so collaboration with tech-savvy staff is crucial. Whether it's the IT team, a data analyst, or a revenue manager, working closely with these experts can help GMs identify and implement technology solutions that align with the hotel's goals.

For instance, a data analyst can assist in interpreting complex data sets and translating them into actionable insights. The IT team can ensure systems are integrated and functioning correctly and help automate routine tasks such as report generation. By fostering a collaborative environment, GMs can leverage the expertise of their team to maximize the benefits of technology.

Experiment with Tech-Driven Initiatives: Pilot New Technologies

Innovation often comes from experimentation. GMs should not hesitate to pilot new, tech-driven initiatives that have the potential to improve hotel performance. The first step is to implement a business intelligence tool to analyze the potential for revenue growth and profit improvements. The following steps could include implementing AI-driven pricing tools that automatically adjust room rates based on demand, introducing guest personalization platforms that tailor the guest experience based on preferences or adopting mobile check-in solutions that enhance guests' convenience.

Seek Continuous Improvement: Regularly Review and Update theHotel'ss Technology Stack

Technology is constantly evolving, and what works today might not be the best solution tomorrow. GMs should regularly review and update their technology stack to ensure their hotel remains competitive. This involves assessing current systems for performance and efficiency, staying informed about emerging technologies, and being open to change when better solutions become available. A tech-savvy GM would never be happy with a 15-year-old legacy system when there are solid cloud-based systems with features that make processes more efficient for guests and hotel team members. By proactively upgrading their technology, GMs can ensure that their hotel continues to operate at peak efficiency and deliver exceptional guest experiences.

Conclusion

Becoming a tech-savvy GM is an ongoing process that requires commitment, collaboration, and a willingness to embrace change. By taking practical steps such as learning the basics, leveraging built-in tools, collaborating with tech-savvy staff, experimenting with new technologies, and seeking continuous improvement, GMs can harness the power of technology to drive their hotel's success. These actions are beneficial and essential in an industry where technology increasingly shapes the guest experience and operational efficiency.

The Long-Term Benefits of a Tech-Savvy GM

Driving Revenue and Profit Growth Through Tech-Enabled Leadership

The long-term impact of a GM embracing technology goes far beyond immediate operational improvements. Integrating technology into every aspect of hotel management allows a tech-savvy GM to drive sustained revenue growth, enhance the guest experience, and create a more efficient, profitable operation. These benefits improve the hotel's bottom line and position it for continued success in an increasingly competitive and digital world.

Sustainable Revenue Growth Through Better Data-Driven Decision-Making

One of the most significant long-term benefits of being a tech-savvy GM is the ability to foster sustainable revenue growth through data-driven decision-making. By leveraging advanced analytics tools and real-time data, GMs can make informed decisions based on accurate, up-to-date information.

Enhanced Guest Experience Leading to Increased Loyalty and Repeat Business

Technology is also crucial in enhancing the guest experience, which is directly linked to increased loyalty and repeat business. Tech-savvy GMs can utilize guest data to personalize the experience, ensuring that each guest feels valued and understood. From offering room preferences to suggesting relevant amenities or experiences, technology enables a level of customization that was previously unimaginable.

Furthermore, GMs can make guests' stay more convenient and enjoyable by implementing mobile check-in, smart room controls, or seamless in-room entertainment options. These enhancements not only differentiate the hotel from its competitors but also build a loyal customer base that values the consistency and quality of its experience.

More Efficient Operations, Reducing Costs and Improving Profit Margins

Embracing technology also leads to more efficient hotel operations, reducing costs and improving profit margins. Automating routine tasks, such as report generation, inventory management, and even specific guest interactions, frees up staff time and reduces the potential for human error. This operational efficiency translates into cost savings, directly impacting the hotel's profitability.

Moreover, streamlined operations enhance the guest experience by reducing wait times, minimizing service disruptions, and ensuring that staff can focus on providing high-quality service rather than being bogged down by manual tasks. This contributes to guest satisfaction and allows the hotel to operate more profitably, as resources are used more effectively.

Final Thought: The Modern GM as a Leader in a Digital World

The hospitality industry is rapidly evolving, with technology playing an increasingly central role in shaping the guest experience and driving operational efficiency. The modern GM who embraces technology is better equipped to lead their hotel to success in this digital age. By leveraging data-driven insights, enhancing the guest experience, and streamlining operations, tech-savvy GMs can drive sustained revenue growth, improve profitability, and build a loyal customer base.

As the industry continues to innovate, the role of technology in hotel management will only become more critical. GMs who commit to staying ahead of the curve by continuously learning and adopting new technologies will ensure their hotel's success today and position it for long-term growth and resilience in the face of future challenges. The future of hospitality belongs to those who combine traditional leadership with a forward-thinking, tech-enabled approach.

Conclusion

The difference between a hotel that thrives and one that merely survives often comes down to the GM's ability to harness the power of technology. Moving beyond outdated practices—such as relying solely on printed reports and manual processes—is not just a matter of efficiency; it's a strategic imperative. A tech-savvy GM can access data, leverage advanced analytics, and implement automation to drive revenue growth, enhance the guest experience, and streamline operations.

Becoming savvy isn't about mastering every piece of software or technology available. It's about embracing continuous learning, collaboration, and innovation. By exploring the full potential of their PMS and other hotel management technologies, GMs can unlock new opportunities for their hotels and lead with greater confidence in a data-driven world.

Key Takeaways

1. Embrace Data: Use data to make informed, timely decisions that optimize revenue and improve guest satisfaction.

2. Utilize Advanced Analytics: Leverage data analysis and visualization tools to gain deeper insights into your hotel's performance and identify growth opportunities.

3. Automate Routine Tasks: Implement automation to save time, reduce errors, and allow staff to focus on enhancing the guest experience.

4. Collaborate with Experts: Work closely with tech-savvy staff or consultants to fully utilize technology and integrate it effectively into your hotel's operations.

5. Continuously Improve: Regularly review and update your hotel's technology stack to stay competitive and meet your guests' evolving needs.

It's time to take the first step toward becoming a tech-savvy GM. Start by exploring the full capabilities of your PMS and other hotel management technologies. Invest in learning the basics of data analytics and revenue management, and don't hesitate to experiment with new tools that can drive your hotel's success.

The future belongs to those who innovate. As the hospitality industry continues to evolve, the GMs who are in charge of adopting and leveraging technology will be the ones who drive their hotels to new heights. Now is the time to embrace change, harness the power of technology, and lead your hotel to success in an increasingly digital world.