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UB Hotel Management Services has signed up with Daymark safety systems, to introduce their innovative products in the Thai Hotel industry.

The upcoming threat of cost control, yield management and food hygiene in kitchens is increasing. As budgets are getting smaller, margins are squeezed and food hygiene is becoming a greater risk, new innovations have to be used in the kitchens. Daymark, a producer of food labels and food safety products, has a wide range of products in display for these purposes.

UB Hotel management Services will start in the coming months, introducing these innovative products to the hotels of Thailand.  If you are interested to learn more, please contact khun Jeab (jeab@hmsthailand.com) for more information. To learn more about the products, please visit the Daymark home page for the wide range of products.

It is no secret, and currently happening in the whole Hospitality world, management take overs. As more properties getting into financial problems to create a return, they are focusing on the help of the bigger brand to help them out.

In the past 4 months, Phuket has seen changes in management in many sectors. As there is a current oversupply in the property sector, owners are sometimes desperate on the look out for the right firm, or in some occasions,  just any firm. As these hotel management firm rely on growth to cover their costs, deals are being closed in a very quick pace.

Most recently La Tour company took over another property, that of Grove Gardens, which has increased the total presence in Phuket with 3 properties. Selecting the firm is a delegate job. Most owners might choose based on popularity or brand awareness in the industry. Often forgotten is the success rate of these management firms in the Revpar contribution. Comparing your future management partners by Revpar succession rate, is an easy differntiator of success.

Second choice the owner have to make is the cost of this transition. It’s is by far more expensive then hiring the right management team. You will buy into a brand, which is the far most highest fee you will have to pay (a cut on your profit). To line up your property with this Branded firm, requires additional funding to set all your FF&E to its standards. Adding all these cost up together you might have to ask your self if a management firm is THE SOLUTION.

But as an owner you never ever have to forget that these firms have to take care more then one property. In some of these cases these are properties owned by private equity firms or investors, which are driven on result. We see the trend happening in the world of the OTA’s, the more commission you pay, the more interesting you will become to them. But how much they are really care about your investment and your profit? The incentive structure should be clearly examined as you as an owner have not created a charity fund.

The success factor is the profitability of the branded management firm, which can be checked based on Revpar. Revenue management is the very basic you have to ask yourself in such a choice, “what is my future management partner doing in the field of Revenue management?”.

In the current Thai hotel market many operators are facing difficult times. After the Bangkok protests and unrest, other factors still not adding to today’s occupancy figures. While the TAT has announced the Thai Travel trade mart will be held in September this year, it might be all in vain to restore today’s trust in the Thai Hotel industry.

PATA is heavily criticizing Thai Airways in their attempt to lure more business to Thailand. Instead of discounting their tariffs, they have increased most of their rate for most of their flights. Hotels are being pushed to lower their rate as much as 50% to take any advantage of the promotional activities of the Royal Airliner. It all is not helping the hotel industry which is hurt deeply by these third party activities.

The only way out for hotels at this moment is to focus on the core principles of Revenue Management. Most hoteliers have already put their rates in a discount modes, to attract some business, but this can’t go on for ever. Hoteliers and revenue managers have to draw the line to which minimum they want to go and what is their objective. Clear targeting your activities will help you to sustain the discounting evolution and start building up your rate, step by step.

On every level revenue management have to be practiced. All department heads have to be informed about the new strategy in order to sustain a healthy Revpar. Discount policies should be fair and clear, all your suppliers should receive the same benefits to restore trust in your rate and product.

Besides strategic planning, software solutions will help revenue managers to preform successfully. Revenue management software is the solution to maintain control of the market, your competition and the rates your are setting in the market.