One question I'm often asked is if I miss working in hotels versus working with hotels. My typical response is, “Yes! Very much, but I don’t miss budget season, that’s for sure.” It’s been more than five years since my last budget season and I still remember the time and energy investment like it was yesterday.
Planning for 2024 will likely be the most “normal” budget season since the onset of the pandemic in 2020, so it’s a prime
opportunity to adjust our processes for this critical work. Now the industry is firmly rooted in the recovery era, there are new obstacles to overcome when it comes to planning, not the least of which are staffing changes. Over the last several years, there’s been a great deal of transition in commercial roles, and many organizations are facing budget season with team members who are new to hospitality, new to their roles, newly promoted, new to market, or a combination thereof.
Another key shift will be to benchmark and plan for performance versus the prior year, instead of using 2019 as a baseline. There have been many changes to the way guests book, when and what they book, and through which channels. Comparing or judging performance against 2019 no longer is an effective way to understand if a hotel is successful or may need to adjust its strategies for the upcoming year.
One thing that hasn’t changed since the pre-pandemic budget seasons is the lack of time; in fact, it’s likely gotten worse for most people in most organizations. There’s now more to do, more to manage, and more to keep up with than ever before — and committing time to outdated, inefficient, and ineffective processes for budget planning doesn’t make sense.
The Old Way Budget season rolls around. Where do you start? Digging up last year’s marketing plan and budget files is typically the first task. Often, that’s followed by marveling at the time invested in putting it together while also accepting all that hard work didn’t mean much after January 1.