Journal of Hotel and Business Management
Open Access

A synopsis of Hospitality Sector Strategic Management

Imamuddin Khan^{* *}Correspondence: Imamuddin Khan, Department of Business, Independent University, Dhaka, Bangladesh, Email:

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Description

Strategic management is the process of formulating, implementing, and evaluating business strategies to achieve organizational objectives. In the hospitality industry, which encompasses hotels, restaurants, resorts, and other serviceoriented businesses, strategic management is vital to success. It allows organizations to navigate a highly competitive landscape, meet customer expectations, and adapt to changing market conditions. This article provides an overview of strategic management in the hospitality industry, covering key elements, challenges, and best practices. Strategic management involves setting long-term goals, developing strategies to achieve them, and ensuring the effective allocation of resources. In the hospitality industry, this process must be customer-centric, focusing on creating exceptional guest experiences while maintaining operational efficiency

Formulation and strategic management in hospitality

The strategic management process can be broken down into three main stages: Formulation, implementation, and evaluation. Formulation is the stage where organizations define their strategic vision, mission, and objectives. In the hospitality industry, this process involves understanding market trends, analysing customer demographics, and identifying competitive advantages. Key components of this stage include market research hospitality businesses must understand market dynamics, customer preferences, and emerging trends. Objectives should be specific, measurable, achievable, relevant, and timebound. For example, a hotel might aim to increase occupancy rates by 10% within a year or launch a new loyalty program to attract repeat customers. A strategic edge could be a unique location, exceptional customer service, or innovative amenities. Identifying and leveraging these advantages is important for success in the hospitality industry.

Implementation and executing the strategy

Implementation involves putting the strategic plan into action. This stage requires coordination across various departments and effective communication to ensure everyone is aligned with the strategic objectives. In the hospitality industry, implementation often includes: Implementing strategies to optimize operations, such as using technology to streamline check-ins, improve housekeeping, or enhance food service. Technology plays a key role in enhancing efficiency and reducing costs. The hospitality industry thrives on delivering exceptional guest experiences. Strategic management focuses on improving customer touchpoints, from the initial booking process to post-stay followups. Training staff in customer service and using guest feedback to refine processes are important aspects of this stage. Effective marketing strategies are key to attracting guests. This includes digital marketing, social media campaigns, and partnerships with travel agencies. Branding is also vital; a strong brand identity helps build customer loyalty and distinguish the business from competitors.

Evaluation and assessing strategic outcomes

Evaluation is the process of assessing whether the implemented strategies have achieved the desired outcomes. In the hospitality industry, this involves monitoring Key Performance Indicators (KPIs) and making adjustments as needed. KPIs such as occupancy rates, Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and customer satisfaction scores are used to measure success. Tracking these metrics helps identify areas for improvement.

Gathering customer feedback through surveys, reviews, and social media allows hospitality businesses to understand customer satisfaction and identify areas for improvement. Continuous improvement involves using this feedback to refine strategies and enhance the guest experience. The hospitality industry is dynamic, with changing trends and customer expectations. Strategic management requires adaptability and innovation to stay ahead of the competition. This might involve adopting new technologies, exploring sustainable practices, or diversifying service offerings. The hospitality industry faces unique challenges that impact strategic management The industry often experiences fluctuations in demand due to seasonality, requiring strategic planning to manage resources and revenue. Hospitality businesses must comply with various regulations, including health and safety, labour laws, and environmental standards. Strategic management must account for these compliance requirements.

Conclusion

Strategic management is critical to success in the hospitality industry. Events like pandemics or economic downturns can significantly impact the hospitality industry. Strategic management must include contingency planning to mitigate risks. By focusing on customer-centric strategies, operational efficiency, and continuous improvement, hospitality businesses can navigate the competitive landscape and deliver exceptional guest experiences. Effective strategic management involves a comprehensive approach, from defining the strategic vision to implementing and evaluating outcomes. With the right strategies, the hospitality industry can continue to thrive and adapt to changing market conditions.