1. Operational Inefficiencies
- Manual reservation and check-in/check-out processes increase workload and error rates.
- Coordination among departments (front desk, housekeeping, F&B) is difficult without standardized systems.
- Lack of real-time visibility into room status, occupancy, and availability.
2. High Operational Costs
- Inefficient resource allocation (staff, inventory) drives up operational costs.
- Overstaffing during low occupancy and understaffing during peak periods.
- Paper-based and siloed data increase administrative overhead.
3. Revenue Management Challenges
- Difficulty setting dynamic pricing based on demand, seasonality, and competitor rates.
- Limited tools for forecasting and yield management.
- Revenue leakage due to manual billing errors and weak tracking of services.
4. Customer Experience Gaps
- Slow check-in/check-out processes lead to guest dissatisfaction.
- Inconsistent service quality due to poor coordination.
- Inability to tailor guest experiences without guest history or preferences data.
5. Marketing and Distribution Limitations
- Dependence on OTAs (Online Travel Agencies) like Booking.com and Agoda increases commission costs.
- Weak direct booking channels (website, social media) reduce margin potential.
- Difficulty managing multiple distribution channels simultaneously.
6. Financial Reporting and Compliance Issues
- Fragmented systems complicate accurate financial reporting.
- Tax compliance and audit preparation become time-intensive.
- Currency fluctuations in Sri Lanka add reporting complexity.
7. Staff Training and Capacity Constraints
- High staff turnover leads to repeated training cycles.
- Lack of technical skills to use digital tools effectively.
- Resistance to adopting new technology among some staff.
8. External Market Risks
- Fluctuating tourism inflows due to global economic conditions, pandemics, or political instability.
- Fuel and foreign exchange volatility affecting travel demand and operating costs.
- Seasonality leads to unstable cash flows.
- Climate Change
