Reduce Your Hotel's Operating Costs

5 Key Strategies to Implement if You Want to Reduce Your Hotel’s Operating Costs

How to Reduce Your Hotel’s Operating Costs…

Succeeding in the hospitality industry is a serious undertaking focused on revenue growth and good customer service. A practical way to increase returns is by reducing hotel expenses.

However, you must make sure that the steps involved boost your brand value rather than chase away clients. Let’s delve into some cost-saving ideas and expense maintenance tips that will improve your hotel business.

Automated Processes

Technology simplifies processes in just any busy environment, and a hotel is not left out either. You need to get more information on thoughtful tech utilization to increase efficiency, reduce labor costs, and save time. Besides improving efficiency, automation technology makes customers fall in love with your fast service. Consider automating the steps involved in food and beverage bookings and coordination. You can also implement a sales and catering CRM system to set automatic reminders to alert the sales team to send contracts, schedule onsite visitation, and follow up the leads. Such streamlined services maintain organized details, keep the hotel manager’s life simple, and save a lot of time.

Staff Training

Having well-versed staff members performing daily tasks eliminates the possibility of a disaster if some workers go on vacation, quit unexpectedly, or get sick. To make your hotel ready for such situations, cross-train all employees so they can step in when a team member is missing. Customers also love hotel staff that can lend a hand in different tasks when needed. Cross-training saves money in the sense that you get to hire internally without outsourcing for the labor force. So, there is no need for a new onboarding process when the roles start to shift. Skill-based training allows employees to transition into new roles with ease, reducing the cost and time for interviewing.


In a rapidly evolving sector, clients don’t have to wait in line to check-in or seek hotel room availability. Hotels have now shifted from self-booking to self-check-in kiosks. The result is having guests served faster and better.  Though it doesn’t completely replace receptionists, a self-check-in kiosk helps control labor costs, especially during the night shift. It is also a great strategy for lowering dependency on manual labor, plus most visitors prefer to check in on their own via smartphones.

Regular Maintenance

Keeping abreast of maintenance issues is a good way to prolong equipment lifespans and reduce energy consumption. The last thing you want during peak times is a catastrophic breakdown because clients are quick to notice. They may perceive your facility as unreliable and perhaps opt to check in elsewhere next time. System breakdowns are costly phenomena, causing inconveniences and a hassle-filled environment for the employees. The best way to avoid such occurrences is to schedule regular maintenance for HVAC, fans, filters, belts, bearings, pools, and other amenities.

Going Green

Some of the world’s best hotels are green. Want to reduce your hotel energy bills? Adopt eco-friendly measures that are not only economical but also a great boost to your brand’s name. Think of simple but cost-friendly measures. Air source heat pump installers can advise on the most eco friendly strategy when it comes to replacing a traditional boiler with an air source pump. Other steps you can take include:

  • The use of appliances with the ENERGY STAR label
  • LED lighting
  • Using optimal temperature for water and room heating
  • Educating the staff on energy-saving tips

Customer service is the nucleus of the game in the hospitality industry. But, there is the challenge of maximizing profits by minimizing expenditure for your hotel. The above cost-cutting strategies will allow you to keep expenses in check. Some of them will eliminate unwanted processes so your staff can focus on revenue growth and increasing the profit margin. Above all, have a clear picture of the overall expenses to get an idea of what needs to be rolled back.