Hospitality management is very challenging. You have to find a way to simultaneously offer fantastic service to your guests, grow and develop your team, and keep your facility looking great and functioning well. More importantly, you have to achieve all of these goals while generating profit for your ownership. Sometimes these efforts collide and difficult decisions need to be made. All seasoned managers understand this balance and get skilled at strategically utilizing their resources to get the job done. With a talented team and a lot of hard work, successful properties are able to generate profits while simultaneously meeting the needs of their guests, associates and facilities.

Imagine the shock when the hotel seems to have accomplished its goals, yet the financial performance is not where it should be. Most hoteliers' first instinct is to look at expenses and tighten the belt. Detailed reports of budget versus actual payroll are reviewed with each department accountable for any variances. Overtime is micro-managed. Large operating expenses are monitored closely if not deferred. While this effort may bring financial performance in line, it is often counterproductive to providing the service, employee development and facility upkeep mentioned above.

One area that is often overlooked is revenue ...