Budget season is quickly approaching and that means it’s time to start planning for 2020, if you haven’t already.
Budgeting for the upcoming year can be a tedious process but is a crucial opportunity to reassess goals and look to the future.
Where do I start?
First, gather honest reviews of what is currently working and not working. Initiate open conversations with the appropriate colleagues to evaluate the performance of your current budget and identify areas for improvement.
Evaluate the past year’s performance and reflect on what brought you the most success in 2019. Pay attention to the trends, markets, promotions and tactics that produced the most revenue. Whatever drove the most bookings and highest profits, continue to invest in that into 2020.
Each year, there are new tools, trends and innovative ideas that spark interest in hotel marketers. While it is important to stay up-to-date on these trends, the most important budgeting tip is to focus on what is currently driving the largest amount of conversions.
Quick tips to know when planning for your budget:
- Focus on quality, not quantity! Simple, uncluttered budgets have the most, long term impact on your hotel.
- Establish clear goals to allow yourself and your team the tools to build a rewarding hotel budget.
- Look to your guests- See what is currently driving the best guest experience. Realizing what your guests want and need will help determine how to allocate your budget.
- Forecast booking trends for 2020 – Look to your property management system to review when bookings and revenue were at their peak and lowest in 2019. Understanding these patterns will better determine how to plan for your budget.
For more information on how to best prepare your 2020 hotel budget, download Vizergy’s Budget Template.