The Hotels market in the United States is anticipated to experience a rise in revenue, with a projection of reaching US $110.50B by 2024.Furthermore, the market is  expected to exhibit an annual growth rate of 3.82%, which would result in a market volume projection of US $128.40B by 2028.

The Hotel Management industry:

There are three main entities involved in the hotel industry. They are Hotel management group, Hotel licensing group, and Hotel owners group

Hotel management group

A hotel management company is a business entity that specializes in the operation and management of hotels on behalf of property owners or investors. These companies are hired to handle various aspects of hotel operations, with the goal of maximizing the property’s performance, profitability, and overall guest satisfaction.

The services provided by a hotel management company can vary but often include:

  • Operational Management: Managing day-to-day hotel operations, including front desk services, housekeeping, maintenance, and other essential functions.
  • Revenue Management: Implementing strategies to optimize room rates, occupancy levels, and overall revenue. This involves monitoring market trends, analyzing data, and adjusting pricing strategies accordingly.
  • Sales and Marketing: Developing and executing marketing plans to attract guests, as well as managing sales efforts to secure group bookings, events, and partnerships.
  • Human Resources: Recruiting, training, and managing hotel staff, ensuring that they provide excellent service and maintain a positive work environment.
  • Financial Management: Handling budgeting, financial reporting, and accounting for the property. This includes cost control measures and financial analysis to improve profitability.
  • Quality Control: Ensuring that the hotel maintains high standards in terms of cleanliness, service quality, and overall guest satisfaction. This often involves implementing quality assurance programs.
  • Technology Integration: Keeping up with technological advancements in the hospitality industry and implementing systems to enhance operational efficiency and guest experiences.

Hotel management companies can work with a variety of hotel types, including luxury resorts, boutique hotels, business hotels, and budget accommodations. The property owner typically enters into a management agreement with the management company, outlining the scope of services, performance metrics, and financial arrangements. This allows the property owner to benefit from the expertise of the management company while focusing on ownership and investment aspects rather than day-to-day operations.

Hotel licensing group

A hotel licensing group, also known as a hotel franchise, is a business arrangement in the hospitality industry where an independent hotel (the franchisee) associates itself with a larger brand or group (the franchisor) by obtaining the right to use the brand name, trademarks, and operational systems of the franchisor. In exchange for these rights, the franchisee typically pays fees and adheres to certain standards and guidelines set by the franchisor.

Here are key components of a hotel licensing group:

  • Branding and Standards: The franchisee benefits from the established brand recognition and reputation of the hotel licensing group. Franchisors often set specific standards related to service quality, amenities, and overall guest experience that franchisees must adhere to.
  • Franchise Fees: In exchange for using the brand and accessing the support and resources provided by the franchisor, the franchisee pays various fees. These may include an initial franchise fee, ongoing royalty fees (a percentage of revenue), and possibly fees for marketing and other support services.
  • Operational Support: Hotel licensing groups typically offer operational support to franchisees. This support may include assistance with marketing, reservation systems, training programs, and access to a network of other franchisees for shared best practices.
  • Marketing and Reservation Systems: Franchisees benefit from the centralized marketing efforts and reservation systems of the hotel licensing group. This can lead to increased visibility and bookings for the individual property.
  • Training Programs: Franchisors often provide training programs for the staff of franchisee properties to ensure that they meet the brand standards and deliver a consistent guest experience.
  • Quality Assurance: The hotel licensing group may conduct regular inspections or audits to ensure that the franchisee property is maintaining the agreed-upon standards. This helps maintain brand consistency and quality across all properties within the group.

 

Popular hotel licensing groups include well-known brands such as Marriott, Hilton, InterContinental Hotels Group (IHG), Accor, and Best Western, among others. Each of these groups comprises various hotel brands, catering to different market segments and offering a range of services and amenities.

For independent hotel owners, joining a hotel licensing group provides the advantage of operating under a recognized brand, benefiting from marketing and operational support, and tapping into the loyalty programs and distribution networks established by the larger group.

Hotel owners group

A hotel owners group, also known as a hotel ownership or investment group, refers to a collection of individuals or entities who collectively own one or more hotels. These groups typically consist of investors, real estate developers, or companies that have pooled their resources to acquire, develop, and manage hotel properties. The members of a hotel owners group may share common financial interests and collaborate to maximize the profitability and success of their hotel investments.

Key features of a hotel owners group include:

  • Investment Collaboration: Members of a hotel owners group come together to invest in hotel properties. This collaborative approach allows individuals or entities to combine their financial resources, share risks, and potentially achieve higher returns on their investments.
  • Diverse Portfolio: A hotel owners group may own a portfolio of hotels that span different market segments, geographic locations, or hotel types. This diversification helps spread risk and may provide stability in varying economic conditions.
  • Asset Management: Hotel owners groups are often involved in the strategic decision-making and asset management of their hotel properties. This includes overseeing operations, implementing investment strategies, and ensuring that the hotels are meeting financial and operational goals.
  • Brand Relationships: Some hotel owners groups choose to associate their properties with well-known hotel brands through franchise agreements or management contracts. This can enhance the marketability of the hotels and provide access to established reservation systems and loyalty programs.
  • Operational Oversight: While hotel owners groups may work with hotel management companies to handle day-to-day operations, they often retain oversight responsibilities. This may involve regular performance reviews, financial audits, and strategic planning to optimize the performance of their hotel assets.
  • Networking and Information Sharing: Members of hotel owners groups may benefit from networking opportunities and information sharing within the group. Sharing best practices, market insights, and industry trends can be valuable for optimizing individual and collective investment strategies.

It’s important to note that the specific structure and goals of hotel owners groups can vary. Some groups may focus on a specific geographic region, hotel type (e.g., luxury, boutique, budget), or investment strategy (e.g., development, acquisition, repositioning). Hotel owners groups play a crucial role in the broader hospitality industry by contributing to the development and sustainability of hotel properties.

Hotel reporting

Hotels generate reports for various reasons, and these reports play a crucial role in managing and optimizing the performance of the hotel. The generation of reports provides valuable insights into different aspects of hotel operations, helping hotel management make informed decisions and improve overall efficiency. Here are some key reasons why hotels generate reports:

  • Performance Evaluation: Reports allow hotel management to assess the overall performance of the hotel. Metrics such as occupancy rates, revenue per available room (RevPAR), average daily rate (ADR), and other financial indicators help evaluate the hotel’s profitability and competitiveness in the market.
  • Financial Management: Financial reports, including income statements, balance sheets, and cash flow statements, provide a comprehensive overview of the hotel’s financial health. These reports assist in budgeting, forecasting, and identifying areas for cost control or revenue enhancement
  • Strategic Planning: Reports help in long-term strategic planning by providing insights into market trends, guest preferences, and competitive positioning. This information is essential for making decisions related to pricing strategies, marketing initiatives, and property enhancements.
  • Operational Efficiency: Various operational reports, such as housekeeping reports, maintenance reports, and staff productivity reports, help monitor and improve the efficiency of day-to-day operations. Identifying bottlenecks or areas of improvement can lead to enhanced guest satisfaction and cost savings.
  • Guest Satisfaction: Reports related to guest feedback, reviews, and complaints provide valuable information about the guest experience. By analyzing this data, hotels can identify patterns, address recurring issues, and implement improvements to enhance overall guest satisfaction.
  • Marketing Effectiveness: Marketing and sales reports help evaluate the effectiveness of promotional campaigns, advertising efforts, and sales strategies. Understanding which channels generate the most bookings and revenue allows hotels to allocate resources effectively.
  • Employee Performance: Reports on staff productivity, training initiatives, and turnover rates contribute to effective human resource management. Monitoring employee performance helps identify training needs, recognize high performers, and address any challenges in staffing.
  • Compliance and Quality Control: Reports related to regulatory compliance, safety, and quality control ensure that the hotel meets industry standards and legal requirements. This is essential for maintaining a safe and compliant operation.
  • Benchmarking: Comparing the hotel’s performance against industry benchmarks and competitors helps identify areas where the hotel excels and areas where improvement is needed. Benchmarking facilitates a better understanding of the hotel’s position in the market.
  • Investor Relations: For hotels owned by investment groups or publicly traded companies, reports are essential for keeping investors informed about the financial performance and strategic direction of the property.

In summary, the generation of reports in hotels serves multiple purposes, including performance assessment, financial management, strategic planning, operational efficiency, guest satisfaction, marketing effectiveness, and more. These reports provide a data-driven foundation for decision-making and contribute to the overall success and sustainability of the hotel.

Hotel documents

Hotels, like any other businesses, generate and handle a variety of documents in the course of their operations. The management and handling of documents are crucial for organizational efficiency, compliance with regulations, and maintaining a smooth workflow. Here are common practices regarding what hotels do with their documents:

  • Documentation for Guest Services:

   – Reservation Records: Hotels maintain records of guest reservations, including details such as names, dates of stay, room preferences, and special requests.

   – Check-in and Check-out Records: Documentation of guest arrivals and departures, including identification details and payment information.

  • Financial Documentation:

   – Invoices and Receipts: Hotels generate and store invoices for services provided, including room charges, food and beverage expenses, and other amenities.

   – Financial Statements: Hotels keep financial documents such as income statements, balance sheets, and cash flow statements for accounting and reporting purposes.

  • Operational Records:

   – Housekeeping Records: Documentation related to room cleaning schedules, maintenance requests, and inventory of linens and amenities.

   – Maintenance Records: Documents detailing the maintenance and repair history of hotel facilities and equipment.

  • Human Resources Documentation:

   – Employee Records: Personnel files containing information on staff members, including employment contracts, training records, and performance evaluations.

   – Payroll Records: Documents related to employee compensation, tax withholding, and other payroll-related information.

  • Legal and Compliance Documents:

   – Contracts and Agreements: Records of contracts with vendors, service providers, and agreements with employees, as well as franchise agreements if the hotel is part of a larger chain.

   – Compliance Documents: Documents related to compliance with local, state, and federal regulations, including permits, licenses, and safety certifications.

  • Guest Feedback and Reviews:

   – Guest Satisfaction Surveys: Records of guest feedback and surveys to assess the quality of services and identify areas for improvement.

   – Online Reviews: Monitoring and documenting guest reviews on online platforms for reputation management.

  • IT and Technology Documents:

   – Technology Inventory: Documentation related to the hotel’s technology infrastructure, including computer systems, network configurations, and software licenses.

   – Security Logs: Records related to cybersecurity measures and access control.

  • Emergency and Safety Documentation:

   – Emergency Response Plans: Documentation outlining procedures for handling emergencies, including fire evacuation plans and safety protocols.

   – Incident Reports: Records of any accidents, injuries, or security incidents that occur on the property.

 

Hotels often use document management systems to organize, store, and retrieve these documents efficiently. These systems help streamline operations, enhance collaboration among staff, and ensure compliance with legal and regulatory requirements. Additionally, some documents, particularly those containing sensitive information, may be subject to secure storage and data protection measures.

Real world example of how ScanSearch can be a benefit in the hotel industry:

It is common for a hotel property to operate on a three shift rotation culminating in the Night Audit Shift. Typically, at the end of every shift any documents that are collected and reports that are printed are held to the side for the Night Audit Desk Agent shift to audit, sort, put into an envelope, and store in bankers boxes prior to rolling the day. These are referred to as “Night Audit Packs” which includes all of the shift paperwork throughout the day.

Shift paperwork includes things like the completed Shift Checklist for each shift, Guest Ledger, Arrivals List, Departures List, Housekeeping Room Status Report, Current Deposit Ledger (deposits taken and held for advanced deposit reservations), Credit Card Authorizations for in-house guests, Manual Room Revenue report, other sometimes applicable paperwork like Tax Exempt Reservation backup or Rate Authorization backup (like for a company rate code), and anything else that may have come up during a shift. Typically the paperwork that is saved is the paperwork that has been notated with updates/changes, and/or signed/dated for review by the Front Desk Associate and/or Manager on Duty.

While bankers boxes are a common and convenient solution for storing documents, there are potential drawbacks or negatives associated with this storage method. Some of these include:

  • Limited Accessibility: Retrieving specific documents from bankers boxes may be time-consuming, especially if the boxes are stacked or stored in a way that makes it challenging to access a particular box. This can hinder efficiency when quick access to information is needed.
  • Lack of Organization: Without a proper labeling and indexing system, bankers boxes can become disorganized over time. This may lead to difficulties in finding specific documents, contributing to inefficiency and potentially resulting in the loss of important information.
  • Space Constraints: Bankers boxes take up physical space, and as the volume of documents grows, the need for additional storage space increases. This can become a challenge for businesses with limited storage areas, leading to cluttered or overcrowded storage spaces.
  • Environmental Concerns: Traditional bankers boxes are typically made of cardboard, which is susceptible to damage from environmental factors such as moisture, pests, or temperature fluctuations. If not stored in a climate-controlled environment, documents may degrade over time.
  • Security Risks: Cardboard bankers boxes may not provide the same level of security as more robust storage solutions. They offer limited protection against theft, damage, or environmental hazards, potentially putting sensitive documents at risk.
  • Durability Issues: Over time, cardboard bankers boxes can wear out, especially if they are frequently moved or subjected to handling. This may lead to structural integrity issues, risking damage to the stored documents.
  • Inadequate for Digital Transformation: In an era where many businesses are transitioning to digital document management systems, relying solely on bankers boxes for physical document storage may be seen as outdated. It may hinder the adoption of more advanced and efficient document management technologies.
  • Difficulty in Document Retention Compliance: For businesses that need to comply with document retention policies and regulations, keeping track of document lifecycles and ensuring timely disposal of outdated documents can be more challenging with physical storage methods.

To mitigate these negatives, hotels can implement digital document management solutions that allow for more efficient access, retrieval, and retention of information. 

ScanSearch can replace the bankers boxes by offering a simplistic method of storing the documents in a secure cloud storage space by using a current multifunction device or a desktop scanner. The method is to simply scan the shift documents and upload them. There is no other task needed as ScanSearch will use every word, phrase, and/or field on the document for retrieval. There are no steps needed to index or file the documents.