If you're a hotelier looking to reduce your outgoings it can feel like an impossible task. If you choose the wrong areas to cut back on, the level of service you're offering customers is likely to be affected too, meaning your reputation will take a hit.
Balancing the books can be quite a challenge, especially for smaller boutique hotels. Carefully weighing up where you should be investing your money and where you should be making cost savings has a huge impact on your success. The customers that you attract and the segment you're hoping to tap into will play a role. But there are some areas where hoteliers across the board can save money.
- Labour – For most hotels, labour will be one of their biggest outgoings. The people that keep everything running smoothly are vital. We don't mean you have to start making redundancies here but simply using your employees better can help. With the right training, you can get each member of staff to cover multiple different aspects, reducing your reliance on short term or part time staff when you're at your busiest.
- Marketing – Marketing shouldn't be something that you cut out altogether but you should assess what's working for you. If you're spending a lot of money and getting little in return, it might be time to look at marketing alternatives that cost less, you might even find that they're more successful for your business.
- Routine tasks – This one might require a bit of investment upfront but it's well worth it. Routine tasks that can be automated, such as reminding customers about reservations or taking payments, free up the time of your staff. With one less task to do, they can focus their efforts on other areas that can improve your business and grow revenue.
- Create partnerships – Creating effective partnerships with other local businesses can bring down your frequent monthly outgoings. Many firms will be willing to offer a discounted price for regular orders they can rely on. It'll help you build effective working relationships too.