What is a Commercial Health check?
An interview with Kym Kapadia, Vice President Commercial at Michels & Taylor
We’ve worked with Michels & Taylor for a long time and have seen first-hand how they help hotels reach their maximum potential. When the news came out about an exciting new product they were launching, we instantly wanted to know more, especially as it would help hoteliers.
We sat down with Kym Kapadia, Vice President of Commercial at Michels and Taylor, to find out more…
What exactly is a Commercial Health check?
“A Commercial Health check is a top-line snapshot which provides owners, investors and managers with a clear insight into the strength of their sales, marketing, PR and revenue management disciplines”.
How have you constructed this Health check to support the hotel industry?
“Our Commercial Health check has been designed to maximise revenue for hotels of all shapes and sizes. It will work for any hotel, whether independent, branded, owner operated or otherwise. We are able to achieve this by considering every revenue stream from rooms and restaurants to the leisure activities such as spa’s, golf and retail”.
How can you guarantee the Healthcheck will benefit the hotel?
“The process is overseen by senior commercial leaders, lending support to hotels, whilst ensuring there is minimal disruption to the hotel at every stage of the review”.
What are the main procedures carried out in the Health check?
“The process involves three stages, all of which are conducted on site. Phase one focuses on research, the Commercial Health check itself. This takes place over two days. Phase two involves a debrief session with the team. Here we share with them an action plan which we suggest is adopted in order to improve the properties revenue streams. The third and final phase takes place around six months later. This assesses the progress on the action plan and reviews the next steps for the business”.
Why does having a Health check boost a hotels revenue?
“With so many focus areas within the business at any one time, it can be easy to lose sight of the bigger opportunities. Our Commercial Health check helps hotels get back into tune with what the wider industry is doing, and to realise the potential of every aspect of their business. We have already witnessed the outstanding results possible for our clients”.
What activities are used in order to develop an action plan?
“We use detailed questioning in order to address how a business’s core strategies, such as hotel identity, customer value and spa or leisure ‘fit’ within the target demographic. Following this, a detailed analysis is carried out along with a competitor assessment and a return on investment (ROI) exercise to establish the ROI of all the hotels activities. This is then placed against a number of industry benchmarks”.
What will hotels essentially get from undertaking a Commercial Healthcheck?
“We ensure that they are correctly positioned within the marketplace and identify any risks or key opportunities for growth. We also ensure that their sales teams are proactive and their measurement and control mechanisms are effectively utilised. We look into their booking channels and that they are effectively managed as well as their market intelligence and how this can be utilised to benefit the hotel. Finally, we ensure that their pricing is rationalised and reflective of demand”.
“Our Commercial Health check is sure to motivate hoteliers across the globe and ensure that hotels are reaching their maximum potential”.