Ten Causes of Hotel Failure

After many years of hotel work, I visited many management experts and witnessed some failed hotels for detailed analysis. Sum up the following reasons:

1. Decision Making Errors

The success of the hotel depends on the correct decision-making, and the failure of the hotel is due to the wrong decision-making. Decision-making errors are caused by the lack of outside decision-making or market research. Hotel decision-making includes decision-making on market, price, talent, advertisement, finance and so on. When making major decisions, hotels should carefully weigh the advantages and disadvantages. They can also hire consultants or consult experts. The decision-making method of judgment or calculation should be adopted to fully estimate the risk and disperse the risk.

2. Disunity between top managers or unstable management

Because of the imbalance of the mentality of the higher managers or the influence of some factors, there are obvious signs of inclination in management. The conflicts of shield and interests between managers in hotels are obvious and superficial, and eventually they often make hotels fight a war of internal friction. Dispersion of staff leads to the reduction of hotel strength and even the bankruptcy of the hotel. Therefore, hotel management should have clear and effective authorization arrangements, adjust the relationship between centralization and decentralization, and have clear restriction agreements. When making decisions, top hotel managers should give other managers full opportunities for development and autonomy, and ensure their interests, so that they feel that separation and decentralization are not conducive to them.

3. Failure to establish a correct business philosophy

Hotel culture is a value orientation of hotel people and an atmosphere for hotel development. Whether the majority of hotel employees love the hotel or not is a criterion to measure the success of hotel culture. The cohesion of hotel life depends not only on the salary, but also on the respect of personality, although salary is very important. If employees are respected and have opportunities for full development, they would prefer lower wages. At the same time, the hotel staff at all levels will remain relatively stable, when the hotel is facing difficulties, we will work together.

The establishment of hotel culture needs a long process. It is difficult to change the established culture, good or bad. Especially the transformation from bad culture to good culture is more difficult.

After a period of time, some hotels deposited a number of outstanding talents, forming a virtuous circle. Some hotels have deposited a group of managers with low quality, forming a vicious circle. People with low quality can not enter or can not be reused. From prosperity to decline, hotel management will eventually lead to business failure.

4. Emphasizing Family Law over National Law

In order to operate a hotel, one of the most important things for senior managers is how to manage all levels of staff well. Many managers understand this, but they are always unable to manage hotel staff well in reality. Managers often make a variety of mistakes in management, and the common and serious one is to rely on "family law" to manage, but put the national law aside. Specific performance from the following aspects:

A. There is still a deep-rooted concept of the "local emperor" in the mind. Everything is centered on me, I has the final say, and according to my thinking, what I must do to do what you do is even to do something that is shameful or violate the law. If you refuse, demote, hang up or fire your squid.

B. Take the hotel as a whole platform to create an atmosphere of internal friction. Some senior managers like to engage in civil war because of historical and their own essential problems. Every once in a while, they form a kind of internal friction atmosphere, which causes the staff to be panicked, not to be enterprising, and the daily management work is seriously disjointed, resulting in serious losses of hotels and endless aftermath.

C. In order to make money, hotels often violate the provisions of health law and price law, or do not disinfect tableware, or cut corners, sell spoiled meals, or arbitrarily set high prices for dishes, arbitrarily slaughter customers, thus dividing the rights and interests of consumers, so that consumers suffer losses.

D. In terms of internal management, some hotels ignore the provisions of the Labor Law and force their employees to work overtime without paying the corresponding remuneration. The law stipulates that all kinds of benefits must be given to employees. Employees often can not get them at all. They are injured in their work and can not get compensation. Often at work, people are subjected to punishment and withholding in one way or another, and employees become scapegoats for arbitrary slaughter.

5. Successfully Passing the Dangerous Period of Hotel Operation

Hotels, like people, also have a life cycle. At all stages, there may be one or another of the illnesses, improper treatment, illness, or even death. During the dangerous period of hotel operation, the hotel's physique is relatively thin, so we should be very careful in making decisions. At this stage, the development should be gradual, and all effective diagnostic methods should be used for treatment to avoid the expansion of risk. Once the hotel moves towards a stable period, the strength of the shop will be rapidly enhanced. When the hotel has not passed the dangerous period, the decision-making is wrong or the treatment is ineffective. It is easy to cause business losses or bankruptcy.

6. Not getting rid of family emotions

High-level Hotel decision makers are willing to appoint their family members in different key positions, or arrange acquaintances and friends whom they believe to be trusted. With the continuous development of the cause, if we can not get rid of emotional, family ties, hotel development will be affected.

Family-run hotels are generally difficult to develop and grow, because no matter how big a family is, its members are ultimately limited, and easy to cause the situation of layman in charge. This is an unavoidable fatal defect.

7. The hotel has no successors

At the beginning of the opening of the hotel, management companies or professionals were hired to take charge of the management. After the expiration of the contract, their own people take over, resulting in management can not keep up with, do not have professional conditions. Hotels are difficult to develop or even retreat. Hotel management mode and hotel culture are closely related to senior hotel managers. If the top hotel managers solve everything by themselves, then it is not conducive to cultivating the ability of subordinates. Sometimes they stifle the enthusiasm of their subordinates. If the hotel is centered on someone, once the person leaves the hotel, the operation of the hotel can not be maintained for a while, the hotel will be paralyzed and go downhill. The establishment of management mode and hotel culture needs a long process, so it is very important to do a good job in the handover of successors.

8. Ignoring Market Development and Change

There is a sentence in Sun Tzu's Art of War: "Know your own enemy and know your own enemy, you will never die in a hundred battles; know your own enemy without knowing it, you will win or lose in one battle; know your own enemy without knowing your own enemy, you will lose in every battle."

People say that shopping malls are like battlefields. Business has something in common with leading troops in battle. This sentence is useful. In fact, it has become a common truth and can be used for anything. But in fact, although many people know this truth, they do not know how to understand and use it. So is the hotel industry. Some old stores that have been working for many years can always describe themselves as correct, but they have a black eye on the market, or at least a vague one. Lack of in-depth understanding of the market and neglect of the development and changes of the market is not only a misunderstanding that some old hotels are apt to fall into, but also a major mistake that those hotels that change their general managers from one end to the other in three days often make.

In recent years, when the buyer's market has been nurtured and grown and presented to the hotel industry, many people are still thinking about the taste of the seller's market. So, at best, it can only win or lose. In the past, when the hotel market was still dominated by sellers, it was not so important to know the development and changes of the market. Anyway, the emperor's daughter is not worried about marrying and the success or failure of the hotel is in the hands of the operator. Customers have little choice. But today, and for a long time to come, the buyer will dominate the market. Competition is becoming increasingly fierce. How to adapt to market needs, occupy market share and win a place in the market depends on the accurate understanding of market development and change. It is essential to constantly adapt to market changes and adjust their business strategies according to market changes. For example, changes in people's dietary habits, changes in dietary patterns, trends in popular dishes, etc., are one of the contents of market changes, and hotel operators must understand and carefully study. Of course, I have to study, that is, I must know the strengths and weaknesses, strengths and weaknesses of my hotel, in order to enhance strengths and avoid weaknesses, to remove weaknesses and protect advantages, but this is the latter step. Because building a car behind closed doors is not a good car recognized by the public. "Know your friends and know your enemies, never die in a hundred wars" here contains the profound truth of hotel management. Understanding the market and occupying the market will lead to the success of hotel management. Otherwise, it will only be able to make a balance, win or lose, and ultimately will not make a profit. If you don't do it well, you will lose everything and earn less than you lose.

9. Not Good at Using Marketing Strategies

The service of hotels is becoming more and more commercialized. Nowadays, it is on the agenda to attach importance to the study of marketing. Because of the directional thinking of planned economy, many operators are not good at in-depth research and mastery of the market (customer market and its subdivision, marketing environment, choice of target market, product positioning, product life cycle, new product development, advertising and promotion, price and public relations), which makes hotel management fall into a misunderstanding. Let's look at KFC, Holiday Inn, Caigenxiang, Dezhuang, Sheraton and so on. They have a lot of research in marketing, such as advertising, location, price strategy, management system, target customers, etc. Their long-term prosperity has nothing to do with marketing strategies. It is not uncommon that some small marketing links are lost if they are not handled properly. If a hotel is located in the bustling downtown area, the daily flow of people is like a tide, but because of the lack of market positioning work, so the number of consumers who go is almost countless. Therefore, if the entry point of advertising, price changes, personnel control and so on are not well grasped, wrong judgment is often the opposite.

10. Lack of overall management concept and macro-management consciousness

Nowadays, many operators are still short-sighted and short-term behavior is serious. They pursue the vulgar concept of small producers who want to make money, scratch people's heads and become rich. They only look at the immediate interests of small producers. They do not miss any chance to make profits, or even slaughter customers. This kind of management idea will only lead the enterprise to the end of the road, because it actually picked up the sesame and lost the watermelon. Getting a little insignificant