Is it a good suggestion to think for an alliance? Well, today’s revenue managers and hotel managers think that such a move will help you to rebuild your business. General managers for hotels think in a broad way and may take decisions to expand hotel business in a big way. It may be possible that revenue manager may not be agreed with the thoughts.
To see your hotel’s broad success, you may have to take some risks but alliance may or may not be a good choice. So, we must wisely take a decision to go for the alliance. First of all this myth has to be forgotten that big hotels don’t need any kind of alliance.
We must have a clear view on this matter that with the changing pace of hotel’s we don’t go for alliance only because of financial pressure but brand image, global business, expansion of business, multilingual business, shared resources on maximum profit and many more such situation will be the reason to think of an alliance. Let’s study some more facts before arriving at a conclusion.
When two hotels go for alliance then the total expenditure and profit get shared. Now if you have pre-decided at the time of alliance then you will have a clear picture of what you have on your plate. When the running cost reduces, you can plan for further expansion and are out of the pressure of targeted value. The focus on quality and delivering best services to maintain both brands becomes your prime responsibility.
In the hotel industry, many alliances have reached to achieve peak success and many stories are another way round, One mutual common thing in every alliance is seen that after the alliance we have to take equal responsibility of entire property. Everything has to be on the mutual basis. Good or bad. It may be possible that after the alliance one group gets more benefits as compared with another one.
The general managers, revenue managers, and other staff members have to leave the personal ego aside to adapt each other’s culture because each hotel has its own culture and values. The focus should be on the bigger picture rather than think of narrow issues.
The strategic managers might have the difference of opinion to have the effective online presence. Consider a situation where one hotel has high traffic on its website and on another hand, the second website has moderate or low traffic but high occupancy ratio due to the quality service. In such a scenario, whose policy should be continued. Will the change in URL or modification in the existing website have an impact on business? The result depends on how well you communicate to visitors and inform about an alliance. Sometimes initially such major changes can be avoided. Alliance does not mean that you should share every resource. The hotel has their own assets which can be shared and the alliance process may take a longer time if it’s affecting your business in a negative way. Your appearance on social media will have a direct impact on business so the online representation should be planned. The changes must not happen abruptly.
In recent times, we have seen that many hoteliers have opened new joint ventures to take their business to new heights and this new experiment has resulted in overall growth for both groups.
If your hotel strategies and common goals match with some other hotelier and both groups are of same market price then going for an alliance for business expansion proves to be a right move.
General managers and strategic managers must take a wise decision before going for an alliance. An alliance can be successful when your hotel is prepared for it. “Just to have profit” strategy will definitely not work for the alliance in present times.