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The Hospitality Industry’s New Year Checklist for 2025

As we step into 2025, the hospitality industry stands at a pivotal crossroads. Did you know that 73% of hoteliers who proactively plan their strategies at the start of the year report exceeding their annual revenue goals? This statistic highlights the importance of preparation. With new challenges, opportunities, and innovations on the horizon, starting strong can set the tone for success throughout the year. A well-structured checklist ensures no critical area is overlooked, providing you with the tools to align operations, optimize resources, and maximize revenue as 2025 unfolds. Check out our four simple tips below.

1. Review and Align Your Revenue Goals

  • Revisit Your 2025 Budget: Ensure that your budget reflects realistic yet ambitious revenue targets, considering market trends and past performance. You may think it’s too early to go against a budget that has just been approved, but it’s never too early to start refining your approach. Early adjustments based on emerging trends or discrepancies in your OTB (on-the-books) numbers compared to STLY (Same Time Last Year) can prevent larger issues down the line. Being proactive allows you to make incremental changes that align your strategy with real-world conditions while keeping your overall goals intact.

  • Set Quarterly Milestones: Break down annual goals into specific, actionable milestones that go beyond tracking progress. Instead of simply dividing annual targets into quarters, consider the unique opportunities and challenges of each period. For instance, use Q1 to evaluate your OTB (on-the-books) performance compared to STLY (Same Time Last Year) and identify gaps early. In Q2, focus on implementing strategies to address those gaps, such as targeted promotions or group sales initiatives. By the time Q3 and Q4 arrive, use detailed reporting to fine-tune your approach, ensuring that all efforts align with achieving and exceeding your revenue goals. Quarterly milestones should serve as checkpoints for strategy adjustments, not just progress markers.

  • Engage All Departments: Communicate these goals across all teams, from sales to housekeeping, emphasizing their contributions to overall success. Go beyond simple communication—ensure that every department understands how their daily actions impact the hotel’s revenue and operational goals. For example, share insights with housekeeping on how room readiness affects early check-ins, which can enhance guest satisfaction and boost ancillary revenue. Similarly, discuss with the front desk team how upselling premium rooms contributes to meeting revenue milestones. Creating regular cross-departmental meetings fosters collaboration and ensures every team member feels valued and accountable for the hotel’s overall success.


Action Tip: Use revenue management tools to forecast demand and adjust strategies proactively. Go beyond waiting until you’re in the booking window to take action. Regularly review your OTB data and compare it to your STYL figures. Identifying discrepancies early allows you to implement strategies like targeted promotions or rate adjustments well in advance, ensuring you stay on track with revenue goals and avoid last-minute panic.


2. Optimize Your Technology Stack

  • Audit Your Systems: Evaluate whether your Property Management System (PMS), Revenue Management System (RMS), and other tools meet your current needs. Don’t just take the systems at face value—dive into the details of what they are delivering. Are they providing the data insights you need, or are there gaps in functionality? Hold your vendors accountable by requesting detailed performance reports that demonstrate how their tools are directly contributing to your bottom line. For example, ask your RMS provider to show the uplift their system has delivered compared to competitors. If they fail to provide clear, actionable insights, it may be time to consider alternative solutions. Similarly, internal systems, especially those managed by large brands, should be scrutinized for their alignment with your property’s specific goals. To navigate these evaluations and make informed decisions, consulting services like Upturn Hotel Consulting can provide tailored advice and actionable insights to ensure your tools are working effectively for your business. Push for reports or customizations that enhance their value and ensure they are being fully utilized to meet your operational and revenue needs.

  • Integrate Where Possible: Streamline data flow between systems to reduce manual work and improve efficiency. Leverage tools like workbooks and macros to automate custom reports or complex formulas, saving time and reducing human error. For example, a macro-enabled Excel workbook can pull data from your PMS and RMS to generate detailed reports on demand trends, booking patterns, or revenue projections. Additionally, consider using Business Intelligence (BI) software like Tableau or Power BI to aggregate data from multiple sources and create visual dashboards. These tools not only simplify decision-making but also help uncover insights you might otherwise overlook.


Action Tip: Consider investing in AI-driven tools to enhance guest personalization and dynamic pricing. For example, use AI to analyze booking patterns and predict guest preferences, enabling your team to offer tailored packages or promotions automatically. Additionally, AI can improve upselling by recommending room upgrades or add-ons based on individual guest behaviors, increasing ancillary revenue. Leverage these tools not only to optimize pricing but also to provide a seamless, personalized guest experience, which can significantly boost satisfaction and loyalty.


3. Prepare for Market Uncertainties

  • Monitor Trends: Stay updated on economic conditions, travel patterns, and competitor strategies. For a revenue manager without formal economic training, this might seem daunting, but it’s entirely manageable with the right approach. Start by subscribing to industry publications like STR, CBRE reports, or local economic newsletters to stay informed about market conditions. Use free online courses from platforms like Coursera or LinkedIn Learning to build foundational knowledge in economics and market analysis. Additionally, leverage your existing RMS tools to monitor booking trends and competitor pricing strategies, and don’t hesitate to ask your vendors for detailed analytics and insights. Taking these steps will empower you to make more informed decisions and enhance your ability to forecast and adapt to market shifts effectively.

  • Scenario Planning: Develop contingency plans for various scenarios, such as fluctuating demand or supply chain disruptions. For example, create a plan for how to respond if group bookings fall short by focusing on targeted promotions for transient travelers or offering discounted rates to local businesses for staycations. Similarly, if a supply chain issue delays key deliveries, ensure that you have alternate vendors or emergency protocols in place to avoid disruptions to guest services. Scenario planning should also include market-specific trends, such as seasonal fluctuations or unexpected economic downturns, allowing you to adjust your strategies proactively rather than reactively.

  • Diversify Revenue Streams: Explore new opportunities like co-working spaces, events, or extended-stay offerings. Additionally, consider creative ways to monetize your amenities and location. For instance, hotels with pools, gyms, or spas can offer day passes to locals or tourists who are not overnight guests, generating additional revenue. If your hotel is near an airport, convention center, or other high-traffic areas, consider offering day-use rooms for travelers needing a quiet space between flights or for professionals attending nearby events. Other ideas include hosting pop-up shops, partnering with local businesses for exclusive experiences, or even renting common areas for coworking or small private gatherings. To maximize these efforts, consider partnering with Upturn Hotel Consulting for tailored strategies that unlock hidden revenue opportunities and ensure your property is reaching its full potential.


Action Tip: Set aside a portion of your budget for flexibility, allowing quick pivots when needed. In the context of a hotel, this could mean allocating funds for last-minute marketing campaigns to fill rooms during unexpected low-demand periods, addressing unplanned maintenance issues to maintain guest satisfaction, or launching special promotions to boost ancillary revenue streams like dining or spa services. Flexibility ensures you can respond swiftly to market changes or operational challenges, keeping your revenue goals on track.


4. Create a Culture of Accountability

  • Define Clear Roles: Assign ownership of key goals to specific team members or departments. For a fresh approach, consider giving goals typically associated with one department to another. For example, task the housekeeping team with identifying ways to improve guest satisfaction scores, or ask the front desk team to suggest ideas for increasing ancillary revenue. This cross-training approach fosters a deeper understanding of the hotel's operations, encourages collaboration, and creates a culture of shared responsibility for the hotel’s success. It’s a powerful way to break down silos and ensure everyone is invested in achieving the hotel’s overall goals.

  • Celebrate Milestones: Recognize achievements to keep morale high and teams motivated. Even if your budget is tight, there are creative ways to celebrate success. Host a team recognition meeting where standout contributions are acknowledged, or create a "Wall of Wins" in a staff area to showcase achievements. Consider small but meaningful rewards like extra break time, handwritten thank-you notes, or team-wide shoutouts in internal communications. These gestures cost little to nothing but go a long way in building morale and fostering a sense of pride and accomplishment among your staff.

  • Maintain Transparency: Share regular updates on performance and progress toward goals. Don’t just stop at reporting—ensure you understand the data and actively engage your entire team for their ideas and buy-in. For example, use these updates as a collaborative opportunity to discuss challenges, brainstorm solutions, and uncover innovative approaches that might otherwise be missed. Transparency combined with team engagement fosters a sense of ownership and collective accountability for meeting and exceeding goals.


Action Tip: Incorporate goal tracking into weekly team meetings to ensure alignment, but make these meetings more engaging by involving creative activities. For instance, assign each team member or department the task of presenting a unique solution to a recurring challenge. Encourage brainstorming sessions that prioritize actionable ideas, and rotate facilitators to foster leadership skills across the team. To deepen engagement, gamify goal tracking by introducing a leaderboard for achievements or offering small, meaningful rewards for innovative contributions. This approach not only keeps alignment on track but also builds a collaborative and motivated culture.


Conclusion

The start of a new year is the perfect opportunity to align every aspect of your hotel’s operations toward achieving ambitious goals. From refining revenue strategies and leveraging technology to fostering team collaboration and accountability, this checklist ensures no stone is left unturned. Engage every department in meaningful ways, explore creative revenue streams, and hold both internal teams and external vendors accountable for delivering measurable results. With proactive planning, cross-departmental innovation, and a commitment to excellence, you can navigate the challenges and opportunities of 2025 with confidence. Let’s make this year not just about meeting goals but exceeding them while delivering exceptional guest experiences and fostering a thriving team culture.


To learn more about the author of this article, visit www.upturnhotelconsulting.com




 
 
 

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