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Why Hotel General Managers Are Reluctant to Embrace Change

  • Writer: Gavin Hughes
    Gavin Hughes
  • Sep 25, 2024
  • 5 min read

Hotel general managers (GMs) are seasoned hospitality industry veterans, often relying on decades of experience to guide their decisions. However, in an age where data-driven tools and technology can significantly enhance hotel operations, many GMs remain reluctant to adopt these modern solutions. It's like having the latest iPhone in your pocket but still operating your hotel with a system as outdated as a Nokia or BlackBerry.


In today's fast-changing world, technology and data are essential. They give insights to boost what a general manager (GM) knows from experience. These new tools are not just helpful; they are the key to unlocking unprecedented growth and success. But oddly enough, even with the clear benefits, many hotel GMs still resist changing their ways.

Why do some resist change when technology is advancing rapidly? Let's examine the reasons for this hesitation. We'll explore the factors contributing to this reluctance and try to understand them better.


Eight Reasons Why Hotel General Managers hesitate to drive change


1. Reliance on Experience and Traditional Management Approaches

Explanation: Many experienced GMs feel confident in their ability to make decisions based on intuition, past experiences, and deep industry knowledge. They have seen many trends come and go and might believe that tools such as BI systems are simply the latest trend.

Psychological Aspect: Embracing change often requires us to adjust our mindset. For seasoned professionals, it can be challenging to re-evaluate long-established habits and decisions. However, it's important to remember that adopting new technology doesn't diminish your extensive experience; it enhances it. This realization can be empowering.

Perception: Some may view modern tools as complicated or not needed, and GMs might believe that their hands-on methods work better than using data.


2. Short Tenures at Hotels

Explanation: Many GMs only stay at a particular hotel for 2–4 years before moving to a different property or organization. Implementing change, particularly when it involves overhauling decision-making processes and introducing new tools, takes time. The benefits of such changes may not be seen during their tenure, making GMs less motivated to initiate significant transformation.

Impact: If they don't expect to be around to see the fruits of long-term investments like data-driven systems, they may focus on short-term goals that are more visible and directly linked to their immediate success.


3. Delegation of Analytical and Strategic Responsibilities

Explanation: Many hotels have dedicated teams for revenue management, finance, marketing, and sales, with department heads handling much of the business analysis and strategic decisions. GMs may feel it is not their responsibility to dive deep into the data themselves.

Dynamic: GMs might prefer to rely on these experts rather than get involved in the detailed analysis, which can eliminate the need to engage personally with new tools or BI systems.

Missed Opportunity: This delegation sometimes leads to a disconnect, where the GM might not fully understand or leverage the insights that data provides. The collaborative decision-making process may also suffer, as data insights and experience don't always converge.


4. Lack of Pressure from Owners or Stakeholders

Explanation: In many cases, hotel owners may not place sufficient pressure on GMs to adopt new tools or improve processes as long as the business is doing reasonably well. If the hotel is profitable and meeting owner expectations, there is often little incentive to push for innovation or process improvements.

Strategic Consideration: This can create a status quo mentality where GMs feel comfortable maintaining the current way of operating because they're meeting KPIs and receiving little resistance from above.

Opportunity Cost: However, this creates an environment of complacency. Without external pressure, there's little motivation to move beyond "ok" performance toward maximizing profitability, guest satisfaction, or operational efficiency.


5. Perception That "The Business is Doing OK"

Explanation: If a hotel performs adequately—occupancy is stable, profitability is strong—there's often a reluctance to change what's working. Many GMs view change as unnecessary, fearing that new processes could disrupt operations or introduce unforeseen challenges.

Comfort Zone: There's a saying: "If it's not broken, don't fix it." This mentality makes GMs prioritize stability over improvement, particularly if they don't perceive immediate, critical threats.

Risk Aversion: There's also a sense that adopting new tools could complicate rather than simplify the business, adding additional workload during implementation phases or retraining staff to understand new systems.


6. Change Management is Hard

Explanation: Implementing new tools or systems requires more than a financial investment; it demands time, effort, and a willingness to face resistance from staff and other departments. GMs may see this as a significant distraction from their daily responsibilities.

Workload Perception: Between managing operations, overseeing teams, dealing with guest issues, and ensuring financial performance, GMs often feel they're already stretched thin. The idea of leading a change initiative may feel overwhelming or too time-consuming.

Resistance to Organizational Change: GMs may face internal pushback from department heads or team members who resist new ways of working, further discouraging them from pursuing changes.


7. Fear of Technology and Skill Gaps

Explanation: For GMs who have spent most of their careers relying on traditional methods, adopting technology can feel intimidating. They might feel uncomfortable with digital tools or analytics and fear they lack the skills to use them effectively.

Barrier: This leads to a fear that adopting new tools would expose knowledge gaps or require a level of tech-savviness they aren't comfortable with. Training and upskilling become necessary, but they may be reluctant to admit a need for this.

Perception of Irrelevance: Some GMs might think these tools are better suited for younger managers or data experts than for experienced leaders.


8. Lack of Proven ROI on Data Tools

Explanation: Many GMs have seen tech projects fail or heard about BI tools that didn't pay off, which makes them doubt how well these systems work.

Investment vs. Benefit: If they cannot see immediate, tangible benefits, they might not believe investing in data tools will pay off. Without clear case studies or evidence within their network, the leap of faith into da



ta-driven management may seem too risky.


Conclusion

The reluctance of GMs to embrace change often stems from a combination of psychological, operational, and cultural factors. Experience is a powerful tool, but it can sometimes create blind spots that prevent even competent leaders from realizing their full potential in a rapidly evolving industry. By addressing these challenges—through proper change management strategies, leadership training, and clear communication of the benefits—GMs can be encouraged to adapt and thrive in a data-driven future.

Which of these reasons resonate most with you as a GM? Why do you think change is complex, and how can we bridge the gap between experience and data-driven innovation?

 
 
 

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