Improving the economic efficiency of Moscow hotel market enterprises

Abstract

The work is about the Moscow hospitality industry survival, development and adaptation to the new reality through hotels’ economic efficiency increase. Most successful hotels are constantly in search of new ways to optimize expenses and increase incoming cash flow. It considers key performance indicators for economic efficiency of accommodation enterprises. Current situation in the hotel market is studied, the main factors affecting the economic efficiency of Moscow hotel facilities are analyzed and proposals and recommendations to increase the capitalization of hospitality enterprises are elaborated.

Under current circumstances it is reasonable for hotels to obtain China friendly, Halal friendly, India friendly and other certificates. Satisfying results are shown by stimulating the clients to book hotels directly as modern technologies allow tourists to avoid using agency services travelling in Russia and in Moscow in particular.

The development of special packages for various MICE services will stimulate particular hotels choice for hosting events. Combined with the sector-specific conference package development,  the optimization system allows to form complex approach to business issues in Moscow hotels. Competently calibrated system would be able to optimize the big hotels’ staff up to 40% (due to Sales, Finance and Revenue departments headcount decrease) by optimizing most of the events and group bookings.