systems in businessWhat the Hotel Industry Can Learn from McDonalds

There’s no doubt that systems in business are vital. Having the right systems in place can reduce overheads; increase profits and in many cases improves customer experience. For the ultimate in business systems outside of the travel industry, one has to look no further than McDonalds.

Systems in businesses allow virtually anyone to learn how to do their part in the operation. For example, if a worker in McDonalds that is in charge of cooking fries resigns from his or her position, McDonalds has systems to make it easy to train a new staff member to take over his or her role quickly and easily. Not to mention the physical equipment is a system in itself.

They teach a process, rather than relying on skill. This makes great business sense because relying on skill results in more costly labour. There is no need to have any cooking qualifications to operate McDonalds’ equipment virtually anyone can learn to cook fries, operate the till, make burgers, or clean the store – because their staff training, machines and business systems generally are automated. Meaning that from the time the order is made until the time that the customer is given their food their business operation follows a system.

So what can we learn and how can we benefit from McDonalds’ business systems?

Take for example, your reservations. This is an example of automating your business. You probably automate your bookings by distributing your room inventory through a channel manager. This allows you to distribute inventory to many channels at once, effectively saving countless hours of logging into many of the channels individually, publishing your available rooms – it allows you to publish it from a central system – your channel manager.

Just like McDonalds’ improves their systems continually, hoteliers can improve systems such as channel management systems too.

The problem with most channel management systems is that they still require a considerable amount of input says Tom Taggart of Limited (“Allotz”). Mr Taggart says “hoteliers have to continually log in and adjust rates throughout the channels, which is a very time-consuming task. This is especially time consuming for independent operators. This time constraint also makes yield management out of the question for most independent operators – but it doesn’t have to be this way with our automated channel management system, Allotz Autopilot”.

One of the most time-consuming and repetitive tasks of using a channel manager is calculating rates and adjusting those rates through your channel manager – does this sound familiar to you?

Now there’s a way to systemize this time consuming part of your channel management process!

Not only does Allotz Autopilot take care of the channel rates adjustments, it will also automatically calculate the right rates with its rate yielding functionality. This feature virtually replaces the need for a Revenue Management team and is the most exciting news in automation for the hotel industry.