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Dino Bruža
University of Osijek
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Abstract
1. INTRODUCTION
According to these general phases of the life cycle of the hotel system, it is
easier to locate the pre-opening phase. This phase includes the first two
aforementioned phases since everything ranges from the design and the existence of
the strategy and is the successful infiltration of the hotel into the environment. It can
be concluded that the pre-opening phase of the hotel starts and overlaps with the
final part of the pre-commercialisation phase and ends at the middle of the
introduction phase. As the pre-opening phase of a hotel ends, then most things are
defined and settled. Only the completion of new hotel management with their
employees, which must be ready for the hotel's opening and the beginning of market
growth, remains.
The hotel's opening phase begins half a year to a year before the soft opening
of the hotel. The main prerequisite is the existence of a strategy, according to which
the most successful opening of the hotel's opening phase must officially start one
year before the opening. It includes the official part, not real actions. Of course, it
depends on the size of the hotel, the structure of ownership and the manner of doing
business. For small and family hotels, this time limit often overlaps with other
previous phases. However, the emphasis of this research is on large hotels and it
includes the proposition of the general model for opening a large hotel, which can be
passed on to models of medium and small hotels. It is important to emphasize that
the concept of a large hotel includes over 150 rooms. The steps in preparing the
hotel's pre-opening stage are:
i. Research a new market niche (supply and demand conditions, location,
other relevant factors)
ii. Negotiating and contracting businesses with contract business partners
(investors)
iii. Selection of the hotel general manager for the pre-opening phase
iv. Recruiting a Support Team for the General Manager
v. Selection of hotel department managers
By completing each step of the preparation of the pre-opening phase, the pre-
opening hotel phase starts, and it runs until the hotel's soft opening date. The first
step in the process involves a huge knowledge and understanding of the tourism
market, which has to be continually explored, in order to control and follow all
changes in the demands and needs of the market. Mastering all challenges in the
tourism market, it is important to constantly monitor all requests, needs and motives,
which make tourists travel to a specific tourist destination (Bruža & Rudančić, 2017,
20). Once the market is thoroughly explored, and all the relevant influential factors
are established, then the negotiating and establishing of business partners follow.
When concluding a contract between a hotel owner and an investor, it is important
to determine who will be the general manager of the hotel at the stage before the
opening. The next step is to form a general manager's assistant team, who will
maximally assist and help with their knowledge, skills and abilities. At that moment
there is an officially formed pre-opening hotel management team. Then, along with
the general manager, there is a selection of heads of departments, according to the
needs and other conditions, which are results from the cooperation and agreement
from the previous steps. Each of the included members has specific tasks, delegated
and overseen by the hotel's general manager. A first step in the pre-opening phase of
the hotel is the establishment of a checklist of tasks that must be accomplished by
the hotel manager. In order to make it easier to determine when the tasks are
preformed, the execution of each task must be closely monitored and supervised.
There are many challenges that a general manager faces at this stage, as indicated in
the following chart.
According to the chart, one of the most common challenges the general
manager faces in the pre-opening of a hotel is time constraints, the delayed
performance of delegated participants' tasks and communication problems. This
refers to the previous claim that it is important to set a realistic timeframe to avoid
the risk of delays, which usually cause unwanted financial aspects. In addition, the
general manager must precisely determine who is doing what, when and where. To
keep it under control, clear communication is needed, which is a challenge for each
director at all stages of hotel opening and business continuation. Communicating is
felt by the attitudes and relationships of the interlocutors and it causes various
consequences, which can be manifested positively or negatively (Bruža & Rudančić,
2018, 20). Therefore, the general manager must continually pay attention to the
quality of communication, delegate tasks clearly, control them, and ultimately
counteract the risk of time constraints.
By the time the hotel opens, there are several phases, some of which overlap in
terms of time constraints. According to the author Baker, there are even five stages,
among which as the fifth, the final stage for a successful opening of the hotel is the
stage that includes the pre-opening activities of the hotel. There are five critical
phases in the hotel development process comprising (Faz, Veeramalla & Dang,
2015, 5):
i. Conceptualisation
ii. Site Appraisal and Feasibility Study
iii. Design and Evaluation
iv. Construction
v. Pre-opening Activities
Each of these five phases, which are mentioned, are equally important for the
hotel to begin operating. This paper is based on that final fifth stage, i.e. the sub-
phases and the procedures that are required for the most successful opening of the
hotel. Once the baseline requirements have been met and certain conditions are met,
i.e. when the general manager is selected, then he can begin with his or her work.
When the general manager of the hotel accomplishes of the set goals according to
certain plans, then the pre-opening phase of the hotel officially begins. In order to be
as successful as possible in his work, he must be a visionary, a motivator, ready to
take over and manage all risks. However, he must also know how to manage the
introduction of a new organization, to be open to changes that are frequent and
constant at this stage. In short, a general manager needs to know entrepreneurial
management thoroughly. He should be competent in creating an enterprising
company, flexible and adaptable, environment-oriented, market-oriented,
innovative, focused on tourists, competitors and suppliers (Stipanović, 2006, 194).
The basic requirements for successful completion of the hotel pre-opening phase
are:
i. Successful positioning
ii. Staffing and training of new employees
iii. Successful implementation of standard operating procedures and standards
In order for a general manager at this stage to successfully complete all tasks, it
is important that he has a plan and execution schedule. In practice, a Gantt Diagram
is often used as a tool for the visualization and execution of tasks in certain time
periods. As a hotel is a complex system, a lot of tasks overlap each other in terms of
time determinants. The Gantt Diagram can be successful if a general manager
follows his model for the execution of this phase. In this sense, a set of steps for the
pre-opening phase of the hotel can be made, in which the author has designed during
research and personal participation in the implementation of this phase. Execution
steps in the Pre-Opening Phase are:
i. Preparation guide setup
ii. Configuring Pre-Opening Critical Path Checklist
iii. Involving task force management team and HODs
iv. Tasks delegation and resolving requirements
v. Review of Critical Path Checklist
vi. Finalizing operational tasks
vii. Soft-opening
The first step which is called ''Preparation guide setup'' indicates the beginning
of the pre-opening phase. In this step, it is important that the general manager review
the content in detail and see what can be implemented for each element. Large hotel
corporations usually have the same document, to ensure it is the same standard in all
hotels within the hotel chain. Following the standard book and this document, the
general manager can successfully negotiate all the necessary actions with the
contractors and investors. This applies in particular to the information system and
the installation of the hotel information system, which will be discussed below.
Preparation guide implies that no deviations are allowed, since it is prepared in
accordance with the standard book, and the standards must not be changed. They
must be the same for every hotel within the chain. If there is a business need to
change or supplement certain elements, (which also depends on the specifics of the
facility), then the general manager must notify the board of the hotel chain and
investors. The settings in this step are defined and are not eligible for amendments.
Successful installation of the entire program requires maximum engagement of all
involved parties. The general manager must notify all parties of the beginning of the
implementation, and when the time comes, it is imperative to inform the heads of
departments and task force team members in detail. This document details how to
execute the installation process for each department in the hotel, such as setup
configuration, reservation configuration, profile configuration, property
configuration, cashier configuration, and pre-installation and post-installation
phases. For smaller hotels, this part is usually covered by the hotel owner, who is
also the hotel manager. Also, in this step the hotel chain and the investors should
already know details about the hotel departments and heads of departments (HODs).
Also, it is a good idea to have a list for task force management. That will be
explained further in the third step. The web site and online promotion should be
already in progress, with some crucial information about the opening date, when and
how to make a reservation, what the hotel will offer and whom to contact for further
information.
The second step ''Configuring Pre-Opening Critical Path Checklist'' presents a
unique step for each opening project. A special checklist is made for each and every
hotel. There is one general template, but it does not include all necessary elements.
So, in order to fulfill all requirements, a general manager has to complete it. This
should be completed usually by the first step, during preparation guide setup, in
order to proceed it to this, second step. The checklist includes all important
elements. This document should provide the following information:
i. Hotel's name (general information)
ii. Pre-opening start date
iii. Opening date
iv. Current date (when is being completed)
v. Team section
vi. Name of responsible person
vii. Number of tasks
viii. Percentage Completed
ix. Overall progress
The pre-opening start date indicates the date when this Pre-Opening Phase has
begun. It is official and it includes the date when the general manager has finished
the setup of the preparation guide, which is named as the first step of this phase. The
opening date of the hotel means the official start of the hotel or the soft-opening
date. This is the moment the hotel opens towards the market, starting with its
standard operating procedures. In this case, a date is originally agreed upon and can't
be changed, except in exceptional circumstances. The current date means the date
when each of the involved parts makes any changes in this document. It has to be
registered, in order to have precise overall progress. Overall progress is presented at
the bottom of the first page of this document. The team section includes all members
of hotel management, such as the general manager, sales, marketing, revenue,
communication, PR, meetings and events operations, front office and switchboard,
housekeeping, food and beverage department, as well as information technology and
all other hotel specifics. Next to this part should be the name of the responsible
person and the total number of tasks which have to be done. At the end of this
document, the percentage of completed tasks should be clearly shown, so that each
head of department and task force team member can know how much they did and
how much they still need to accomplish. Also, the overall progress should be
presented, so that the whole hotel management can be sure where they are currently,
regarding the opening date. There are some more details that this document can
have, such as the duration in days for each task, start and finish date, including
proposed and actual finish date, remarks, etc.
The third step, named ''Involving task force management team and HODs''
presents a moment in which the general manager includes the task force
management team and HODs. A general manager can continue with specific
requirements and tasks. The task force management team includes members from
the same hotel chain, which are experts in their departments. Usually, they are
chosen from the main Human Resources Department of a hotel chain. A successful
hotel can send their best employees on request from the hotel chain HR general
department. They are like assistants to the pre-opening general manager. With the
knowledge and experience they have, they can help to set up each department,
respecting all standards and procedures. They also help the heads of departments in
resolving all issues. Task force members easily detect all potential risks,
communicate with a general manager, offer all possible options to avoid any gap
during the pre-opening phase. They also participate in the recruitment of new
employees, organize all the training and prepare new employees for a smooth start in
the new hotel. They present hotel brand and standards. Besides that, task force
members are involved in further activities, such as controlling purchases,
implementation of the preparation guide and detecting critical points in the critical
path checklist. Heads of departments (HODs) are new hotel managers, responsible
for setting up their own department, following the general manager's instructions.
They have the support of the task force members at all times.
After introducing all task force members and heads of departments, the general
manager presents and delegates tasks. That is the next step in the pre-opening phase.
They follow the Critical Path Checklist and during this phase, they need fulfill all
requirements. For example, the general manager needs to communicate the status
and the expectations and pre-opening business plan with all the heads of
departments, schedule training for all employees, provide guidelines for all the head
of departments on policies and procedures, refer to the brand and internal audit
questionnaire, meet with task force members to brief them on all objectives, prepare
a business plan for the first year operation and a budget, verify with owners and
investors all parts of the agreement, etc. For the heads of departments the tasks are
specific, so for example, the head of front office should obtain drawings and get
familiar with Front Office areas, review room rates and room types, develop job
descriptions, prepare standard operating procedures, help the human resource
department with the recruitment of the front office department, establish a training
plan, make a checklist of purchases, communicate with the general manager, prepare
uniforms for this department, etc. During this step, all potential clients who will be
working with a hotel should be doing site-inspection with heads of sales and
marketing departments.
The next step is the review of Critical Path Checklist. This step indicates what
is done, what should still be done and where a hotel currently is. Each department
has its own specifics and tasks, which are mentioned in the Checklist document.
After completion, it should be marked in that document, so the progress of the phase
can be visible. The general manager does reviews every day and supports other
members in achieving requirements. Task force members are very important in this
step since they can detect some potential issues faster than others. During this step,
the Pre-Opening Phase should be at least 75% in progress. Equipment should be
delivered, employees should be attending training, heads of departments should be
available to complete almost everything and the general manager should present
achievement to the stakeholders. The IT hotel system should be set up by this
moment.
Finalizing operational tasks means that the Pre-Opening Phase is almost
finished. There should be some technical details left, like managing the new hotel IT
system, detecting some elements which should be done when the hotel opens. At the
same time, the reservation system should be in function. A general manager has to
do permanent control and inform stakeholders of the soft-opening date, in a way that
is possible in order to proceed with that final step as it was planned or if there is still
some time needed to fulfil some tasks. The last step, soft-opening, means the Pre-
Opening Phase is complete. It finishes with the opening date of a hotel to the public
and the receipt of its first guests. Now, after detecting the main steps which have to
be followed, a new model of the Pre-Opening Phase can be presented from a new
perspective.
By defining the time determinant of the Pre-Opening Phase and explaining the
flow and all the important steps of execution, a model can be formed. By following
this model, one can easily fulfil all actions required for the pre-opening phase, and
easily transition to the next scope of work. The focus of this paper is to formulate
and propose a new model that would ensure that a certain protocol meets the goals
set out in the strategic plan and that the agreement signed between the stakeholders
and that this phase is successfully completed, with minor deviations. The following
is a suggested model, based on the research done by the author, comparing scientific
knowledge and practical insights during personal participation in such a demanding
project.
Merging CP Checklist with standards Task Force Management and HODs introduction
4. Soft-Opening
4. CONCLUSION
By defining what management really means, and then pointing out the meaning
of hotel management, the role and importance of the pre-opening phase of the hotel
can be recognized, which is extremely important in order to make the hotel and
business more successful. This is the phase that is the hardest part of the business
cycle of the hotel system since the most critical moments appear at this stage. In the
past few decades, in all strategic plans, special attention is paid to the
implementation, control and improvement of the overall quality of performing the
basic phases of the business and the implementation of standards in all hotel phases,
agreed and established just before the soft opening of the hotel. In this paper, the
research is based on the formation of the underlying structure of the hotel system, in
terms of making strategic plans, budgeting, selection and staffing of the best
employees for starting work, while fulfilling other tasks that the hotel management
in the hotel pre-opening deals with all stakeholders of the project. The key part is
related to identifying and monitoring success in this phase, in order to enhance and
maintain the quality of the business plan, as well as to ensure the opening of the
hotel on the market.
In order to start the hotel's pre-opening phase, it is essential to hire a
responsible person who will be the hotel's general manager throughout the entire
phase. The hotel's opening phase begins half a year to a year before the soft opening
of the hotel. The main prerequisite is the existence of a strategy, according to which
the most successful opening of the hotel's opening phase must officially start one
year before the opening. When the general manager of the hotel enters into the
realization of the set goals according to certain plans, then the pre-opening phase of
the hotel officialy begins. In order to be as successful as possible in his work, he
must be a visionary, a motivator, and be ready to take over and manage all risks.
However he must also know that with the introduction of a new organization, he
must be open to changes that are frequent and constant at this stage. In order for a
general manager at this stage to successfully complete all the tasks, it is important
that he has a plan and execution schedule. By defining the time determinant, by
observing certain knowledge, with respect to certain scientific knowledge, it would
be easier to know which are the critical points of the implementation of this phase
and to which the most attention should be paid.
Following the research, several facts have come to light. This highlights the
definition of the Critical Path Checklist, the creation of the task force management,
the execution of a whole set of tasks, the permanent control and the provision of
feedback. As a result of the research, a proposal for a new model for the
implementation of this phase, which could serve as a guide to opening a hotel, is
also mentioned, as well as providing new information that might have been omitted
in future business and strategic plans. This also gives new insights to increase
performance, while reducing the risk of completing the hotel opening plan.
5. REFERENCES