Talk to us about your Accommodation Business
Accommodation
The accommodation sector is an industry exposed to a diverse range of strategic and operational risks. The risks vary considerably depending on the style of accommodation, location, target customer demographic and, ownership structure. And with the growing prevalence of online accommodation market places, we’re seeing increasing competitive pressure on accommodation owners and operators.
In our experience, owners and managers focus on the business objectives of:
- Optimising occupancy and income
- Enhancing brand reputation and encouraging loyalty
- Maintaining their property assets within budget
- Patron safety.
Risks, even occurring in isolation, can impede the ability of owners and managers to meet these objectives.
How we can help
While accommodation businesses may have common business objectives and experience the same risk issues, there are unique aspects to every situation. These unique aspects demand a tailored approach to risk management and insurance.
Whether your business is a national chain of budget hotels, inner city student accommodation provider, or holiday resort, we will apply the Barrack Broking Principles to ensure you meet your specific business objectives.
- Asking what business success looks like? What are the impediments to reaching your targets?
- Adding value by thoroughly investigating your existing risk management activities and making recommendations on refining or enhancing activities so that we can present the business in the best possible light to the insurance market.
- Talking your language and benchmarking your progress using metrics that are meaningful in your business, for example, the cost of risk per room or bed.
Specialisation
Optimising Risk Spend in the Accommodation Industry
This large hotel group has interests in luxury hotels, pub venues, gaming and holds an unwavering objective to promote the tourism sector in their 30 locations across urban and rural areas. The diversity of interests brings about challenges in:
- Managing the various risks in a uniform way and
- Gathering the necessary information required to properly consider and insure their risks. Management time and company money spent on risk management and insurance was escalating over time.
- Business objectives and values
- Type and frequency of information being produced, and
- Risk and Insurance alignment.
- The same risk surveys were being completed every year on assets that had not materially changed.
- Emerging areas of risk, such as technology, had not been rigorously assessed.
- There was no coordination in the collection of risk information around the business.
- Reduced, by 30% per year, the time spent by management on information gathering. This was achieved by: prioritising activities over a three to four year cycle; leveraging external risk specialists and insurers; and creating a road map for these activities.
- Reduced its costs in engaging consultants.
- Reduced its insurance costs, as the insurers were presented with the client's logical and coordinated approach to managing their risks.
