How to Deal with Common Challenges in the Hotel Industry?

How to Deal with Challenges in Hotel Industry?

The Hotel Industry is an actively dynamic and competitive sector that continually evolves in order to cater to changing guest attitudes and preferences. Despite being a lucrative sector that has been on an exponential growth trajectory, the Hospitality industry finds itself to be plagued by a series of common challenges. 

In tandem with the common challenges in the Hotel Industry, customer satisfaction and operational inefficiencies have topped the list, emerging as the root cause refraining Hotels from experiencing growth. Coupled with increased competition and ever-changing needs of guests, it has become imperative for hotels to exceed expectations at every step. 

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Hotel Industry Challenges    

1. Elevated Guest Experience

One of the most common challenges faced by the Hotel industry in India is consistently delivering exceptional guest experiences. It’s an understatement to say that tolerance for poor guest experience is actively dwindling, with a steady rise in customer expectations in relation to service, personalised experience and most importantly a comfortable stay. 

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Hoteliers can address this challenge by investing in a hotel management system that enhances guest engagement at every step of the way from check-in to check-out. The first and foremost step to bringing specialised experience is via single-click check in that allows guests to ditch the long lines and exhaustive paperwork by simply scanning a QR to begin their stay.     

2. Maintaining Hotel Industry Operational Efficiency

Operational Issues in the Hospitality Industry have been the bane of existence for Hoteliers, hampering hotels from delivering eminent guest experience. From inventory management to staff augmentation, operational efficiency is paramount for reducing cost and enhancing the success of the hotel. The failure to deliver all tasks in sync has created a barrel of customer dissatisfaction. 

In tandem with which, a robust Hotel PMS can go a long way in helping ensure operational efficiency. By streamlining a series of processes, from front-office, housekeeping to inventory, PMS deliver smooth operations whilst maximising profits. Apart from automating operations and syncing departmental functions, a PMS also simplified communication to a large extent. 

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3. Hiring and Retaining Staff 

Hiring and retaining talented professionals continues to be a significant challenge for the hotel industry. Every hotel requires quality staff on all fronts; be it administration, kitchen, housekeeping, front desk or management for delivering excellent guest experience throughout the entire stay. 

Retaining quality staff is all about creating a culture of positivity and value, wherein team members feel attached to their jobs. With the advent of technology backed hotel management software, Hotels can unlock staff augmentation which allows them to evenly allocate tasks, mitigating the emergence of unwanted disputes and resignations. 

4. Revenue Management

A perpetual challenge that has made a disruption in the hospitality industry is cost control. Maintaining financial stability is pivotal for the success and long-run of the hotel, but issues such as improper property maintenance, fragmented guest reservations, poor inventory management have actively aggravated the problem of cost management. 

However, dynamic PMS such as Revivo’s Hotel X can help Hoteliers indulge in seamless revenue management. From accurate bookings, rate optimization, efficient resource allocation, Hotel X not only offers stress-free management but guaranteed revenue maximisation. Thus, focus on cost-effective solutions, can help hotels maintain financial stability without compromising on quality. 

5. Optimised Housekeeping Services

First impressions matter the most and a majority of guests get the instant sense of hotel standards from the moment they enter the room. The demand for cleanliness shouldn’t be a surprise, but the lack of optimised housekeeping services have transformed it into a major obstacle. 

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Housekeeping challenges in hotels can be managed by an effective property management system. Featuring an automated dashboard specially curated for housekeeping that allots staff, tracks progress and delivers real-time updates for housekeeping services, hotels employing Hotel PMS will crack the code to streamlined housekeeping. 

6. Increased Stock Wastage

Price Inflation has taken over daily use products, namely eatbales and other supplies due to which stock wastage has become a primary concern for many industries, but primarily hospitality. Overstocking not only results in stock wastage but also contributes greatly towards reducing profitability. 

A visible solution to this problem is smart inventory management which is rooted in maintaining constant checks on the inventory, controlling stock and reducing wastage as much as possible. Further, by meticulously analysing demand and choosing the right quantity and supplier inventory management can reduce loss of sales.               

Final Thoughts 

The hotel industry is rife with challenges, but with strategic planning and employing the right Hotel PMS, hoteliers can turn these challenges into avenues for growth. By addressing a series of challenges in the hotel industry from  guest experience, operational inefficiency, to inventory management hotels can position themselves for sustained success in an ever-evolving industry. 

Revivo’s Hotel PMS, Hotel X’s expertise in seamless hotel management (accounting software for hospitality industry) backed by cutting-edge technology offers a powerful combination to overcome these obstacles and thrive in a fiercely competitive hospitality landscape.     


1. How can we overcome challenges in the hospitality industry?

The best way to overcome a series of challenges in the hospitality industry is by employing a robust PMS system such as Revivo’s Hotel X, which can be tailored to cater to diverse hospitality needs.

2. What are the 4 major challenges of the hospitality industry?

The four major challenges faced by the hospitality industry include delivering elevated guest experience, maintaining operational efficiency, fragmented revenue management and poor housekeeping services.  

3. How do you handle stress and pressure in the hotel industry?

Being in a fast paced environment, stress and pressure will always be a pivotal part of the hospitality industry but with a dynamic hotel management system, Hoteliers stand a chance to alleviate stress.

4. How do you manage a successful hotel?

Managing a hotel and that too a successful one is no cake walk. But marked by tech revolution, Hotels can now integrate Hospitality Management and Growth platforms to boost success, while Hoteliers sit back and relax.

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