One of the biggest mistakes, time and time again that we see hotels, resorts, villas, and other Caribbean businesses making is that they get comfortable. What do I mean by that? During the ‘good years’ when revenues, NOI, and ROI are up they stagnate and don’t make the changes that they need to stay on top.
In short: don’t be shortsighted.
Focus on the medium to long-term growth and strategic plan by continuing to invest and reinvest to ensure that your business is on par with changing demand, changing clientele needs and wants, and changing demographics.
One of the top reasons that businesses do end up falling shy of their goals is that they loose sight of the future.
It’s an easy mistake to make but it’s one that hotel owners and general managers should be more aware of it. It’s only when things start going south, due to the economy or not, that hotel owners start thinking about new management, or management starts thinking about ways to put more heads in beds by targeting different demographics or adding new experiences.
Recessions, recoveries, and peaks are cyclical. There will be boom years and there will be bust years. But – preparing for the economic cycle by making necessary changes during the peak and growth years is the best way to ensure that you float to the top during economic contractions.
You don’t want to realize that changes are needed when the cash flow isn’t there make them.