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10 smart ways your hotel can cut costs and maximise profits

  Posted in Revenue Management

It’s a truism that a lot of small improvements can smooth the edges of a greater strategy and provide major results. At your hotel, you don’t always need to be thinking of the next big plan to drive revenue and deliver increased profits for the business.

Making sure current operations are as streamlined as possible, and every space is being utilised to its full capacity, is the first step you should take when considering how to make your business more successful.

Here are 10 things you can focus on to cut costs at your property and make profits easier to achieve.

  1. Ensure your property management system is the best in the industry

If your PMS isn’t cloud-based, you’re missing out on serious benefits. With an automated cloud-based system there’s no need for an IT expert to maintain or operate it and it will save you a lot of time, especially when integrated with your other technology systems. Upfront costs will also be reduced without the need for any physical hardware.

  1. Make mobile operating a priority for your PMS

This will let all your staff operate more efficiently. For example, housekeeping can communicate directly with the front desk system from a mobile device and check which rooms need cleaning or servicing, and which ones are occupied.

  1. Be flexible about the hours your staff work

Maintaining consistent set hours for staff may not be the best thing for your business. It could mean at certain times your hotel is overstaffed, and at others understaffed. Instead, try a more flexible shift-based approach that allows you to be agile and use staff when you most need them and for specific purposes.

  1. Optimise role requirements

This comes back to efficiency again. It should be made clear to housekeeping what is expected of them. If a room has simply been used as a stopover it won’t require as much cleaning time or preparation as a room that has been occupied for a week. The same principle applies to how many people are in a room. By setting standards here, staff can get more done, more quickly.

  1. Reduce your hotel’s marketing costs

Paid promotion isn’t always guaranteed to garner more results. Try auditing your approach to marketing and putting more effort into free channels and organic traffic. Create quality content and build social media followings as much as you can without investing a large budget. A lot of progress can be made on Facebook, Instagram, and Google without spending money.

  1. Be detail oriented about running the hotel

Taking a greater interest in energy efficiency could have significant long-term benefits for your hotel. Think about introducing occupancy sensitive cooling and heating systems that adapt to when people are present in the room. Power-saving lights such as LEDs are another great option, as well as lights that are motion-sensitive. Saving on power is an easy fix and can make a positive difference to your bottom line.

  1. Capitalise on the food and beverage department

This provides one of the main opportunities to save money and gain extra revenue. Firstly, take note of how much food you actually need. If plates are consistently coming back with food left on them it’s likely – unless you’ve had complaints about quality – that your portion sizes could be reduced, and less stock be ordered over time. A smaller menu will also help with this. Quality over quantity is always preferable.

  1. Save on fixtures and furniture

Many suppliers of interior features have packages and bulk deals you can take advantage of. While it may tempting to get unique and custom designs done, the costs could outweigh the benefits. It’s something to carefully consider and may come down to who your target market is. For instance, business travellers may be less inclined to worry about discovering quirky or special hotel design.

  1. Find a use for underutilised spaces

If there is space in your hotel that is serving no purpose other than to create breathing room, consider using it for revenue purposes. It doesn’t even have to be anything permanent. For example, every now and then you might get a pop-up masseuse in, or an exercise class, or a cooking class. This will encourage guests already at your hotel to spend a little more than either they or you expected them to.

  1. Host events and functions

Similar to the last point, if you have the space to host special events you should do so. Get in contact with potential partners to put on seminars, workshops, weddings, or whatever else may seem relevant or appropriate for your property. This way, you’ll have a revenue source that is coming from outside the guests staying at your hotel.



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