The Benefits of Outsourcing your Back Operations
Updated: Oct 9, 2019
Hoteliers are not aware of the importance of a functioning back office.
In starting a hotel, you will need more than just a back knowledge of the industry. It takes a lot of skill set to run it for the long term; it’s no piece of cake. Managing your people, running advertisements, keeping track of your finances are just some examples of the tedious tasks that you will need to deal with.
Back office includes all the administrative tasks that complement the efforts of the front office. Hiring your own team to manage this is costly and difficult. Why? Running the needed departments will require different skill sets. There’s a slim chance of immediately getting talents that will fit these roles. You will have to train your people and it takes time and money. Not to mention the additional physical space to house your back office. You will need more funding for that.
Because of this, newbie hoteliers tend to assign these tasks to the front office team causing overlapping of responsibilities resulting in confusion. What you can do is make sure that your back operations is all set up to avoid problems in the future.
Modern hoteliers know that there are 3 types of operations that work hand in hand. Front, back, and digital operations are separate entities. Poor performance from one will most likely affect the others.
Do you know how to build your back office?
Each back office should consist of different departments that work independently but at the same time collaboratively in a sense that they are not reliant on each other.
The most basic department you should have for your property. First touchpoint with the guest is handled by the reservations team. They handle all concerns, questions, and requests related to each booking. Reservations department is responsible for answering calls and emails from potential guests. This may sound easy but it’s not. Answering queries and requests is vital in securing the guest’s booking. This department helps on the allocation of bookings to the respective rooms as well. Processing of pre-payments is also one of their responsibilities. In most independent or boutique properties, reservations is done by the front operations. This shouldn’t be the case. Our front desk team’s focus should be welcoming guests and giving excellent service.
2. Sales and Ecommerce
They handle offline and online sales channels. Sales efforts are often offline while Ecommerce concerns online sales which can make up to 80% of an independent property’s revenue. This department monitors and sets-up the rates across all your online travel agency listings. They are also responsible for the maintenance of the said profiles. Coordination with the OTA market managers is one of their responsibilities. It is important that the people filling this department knows what’s happening on the online world. Smooth processes in this department will help you win phase 2 and 3 of the Traveler’s Journey.
For you to attract guests, you should make sure that you’re beautiful online. Up keeping of your online identity is the job of your Marketing department. This department requires a creative skill set. A strategic plan is needed for posting and curating content for your social media channels. An effective marketing department will turn your guests into ambassadors of the brand. First task of your marketing people is to make sure that potential guests can find you online. Setting up of your online identity is the key for that. Followed by updating your social media channels’ content to maintain credibility.
Having an Administrative department is necessary for all businesses not limited to the hospitality industry. This department handles permits and taxation necessary to proceed in operations. Part of this department is the human resources which is responsible in managing your talents. Your people should be kept happy through a well established administrative processes and protocols. Happy team will bring productivity to your back operations.
It’s not enough to work hard, you must also know where the results of your efforts are going. This department is responsible for money matters. Your finances should be monitored, your cash flows recorded, and your expenses well managed.
Hiring your own people to fill these departments is expensive and takes a lot of effort and time. What newbie hoteliers don’t know is that you can save a lot more money if you outsource your entire back office. Quayne Hospitality does that and so much more. This team of hotel experts can run your back office for you anytime, anywhere.