Effective Monthly Performance Reviews in Hotels

Peter Drucker once said,

“You can’t manage what you don’t measure.”

This emphasizes the importance of regularly evaluating progress using data to determine what’s improving and what needs attention. Periodic reviews based on prepared statistical data allow for an objective assessment of a program’s effectiveness.

When conducting monthly performance reviews, it’s crucial to use the hotel’s operational budget as the foundation for analysis. This requires thorough and accurate budget planning, grounded in sufficient historical data. A well-prepared budget should be both realistic and detailed, accounting for revenue streams from every market segment. A common pitfall is disorganized budgeting, which can diminish its usefulness as an analytical tool. Without sufficient detail, it becomes challenging to identify the root cause of any issues. To ensure effective monthly performance reviews, consider the following tips and strategies:

1. Data Analysis: Compare this month’s figures with those from the previous month and the same month last year. Conduct a thorough analysis, breaking down these figures into their major and minor components to uncover the root causes. Focus on analyzing income, expenditure, and profit.
2. Comparison with Targets/Budgets: How do the actual results compare with the set targets or budgets? Assess the performance of room revenue and F&B revenue. If the actual figures fall short, create a plan to bridge the gap. If they exceed expectations, develop strategies to maintain or increase this performance.
3. Year-End Strategy: What strategies are in place to achieve the year-end targets? These strategies should focus on long-term planning.
4. Addressing Current Issues: Gather input from each department regarding any current issues that require immediate attention and solutions.