Budget Hotel Operations & Processes

Most budget hotels in Malaysia run a basic operation, with its existing modus operandi developed gradually via the operators’ daily exposure of do and don’ts while running the operation.

Two budget hotels came forward and shared with us the above existence. We worked closely with these budget hotel stakeholders to re-build and refine their hotel operations and process system. We drew from our consumer based organisation experiences, a new corporate structure was designed to push decisions to the right level, improving operations effectiveness through a more practical process system and to support the entire operations using local talents.


Challenges

Both the budget hotels needed basic automated operations processes to assist the owners with the day-to-day smooth running of their hotel operations. The hotel stakeholders literally have to camp in their hotels to ensure a smooth running of their hotels. However only one or two outlets the most can be looked upon while the rest of the outlets plunged with issues such as:

  • In sufficient manpower in every department

  • Low motivation with all employees

  • Pilferages within the hotel sales

  • Disarray book keeping, accounting, and financial budgeting at central office

  • No valid proper overall organisational structure


Approach

We took a five-phased approach to complete overall transformation process within six months.

Phase 1 - Manpower (Staffs)
Phase 2 - Planning and Strategy
Phase 3 - Sales & Marketing
Phase 4 - Operations
Phase 5 - Centralised Office


Solutions

We built simplest operation and process system for these budget hotels. The operation and process system designed consists of complete processes for front office, housekeeping, hotel security and other day-to-day operation processes that one needs to run a budget hotel.

For the management team, we have included accounting, budgeting, outlet monitoring, centralised sales and marketing initiatives, and various important management tools in ensuring that the hotels were aligned to its organisational vision and objectives through the following three specific areas:

  • Translate the budget hotels vision of a local brand into clear objectives, and aligned the entire organisation operations and processes behind it

  • Defining specific and simplified roles and responsibilities that could be performed by local talents and manpower, for the right decision impacting daily customers

  • Realigned operations and processes measures towards milestone based organisation, together with the right margins from the financial results. 


Results

The newly transformed operations articulated a new strategic direction and values. Both budget hotels developed a clear vision of “providing a great value and excellent customer service towards their customers” and with Serantau Advisory advice, the leadership team successfully realigned the business.

The budget hotels positioned strategically its new operations team, which consisted of change champions and the success of the changes were reflected in a substantial improvement with the company’s revenue.

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