9 Easy Ways to Reduce Costs in the Hotel Industry and Save Money
In this guide you’re going to get simple tips for massively cutting the costs of your hotel.
Even if you run a tight budget, there are plenty of ways to save money to maximise profits.
From the amenities you provide to the suppliers you use, here are easy tips for cutting costs without comprising on quality…
1. Cross-Train Staff
Many workers enjoy the hotel industry as each day presents a different challenge. As you’re working with the general public, it’s often unpredictable and hard to know when departments will be rushed off their feet.
One day a large proportion of guests might need concierge services, the next there might be a long queue throughout the foyer of people wanting to check in.
This unpredictability requires a flexible team. Having multiple team members from each department in every day doesn’t make sense as often their services won’t be required.
Having a flexible team that can seamlessly switch from one department to another when their services are required is going to save you a lot of money. Paying for the extra training is certainly worth it.
2. Buy Bulk Bedding
It’s no secret that buying all your bedding at once is going to save you a lot of money. Bulk buying is a hotel’s best friend for getting those incredible savings.
But, where is the best place to buy from?
With 55% of online users stating that they look for hotel reviews that specifically recommend the comfort of the bed, you can’t afford to compromise on quality.
Premium quality and excellent value for money can be hard to come by when browsing wholesale bedding suppliers.
At Hafco, it’s what we strive for and we’re committed to supplying high quality bed linen at affordable prices. Our 100% cotton sheets are ultra-soft, highly durable and cost effective. We also offer fire retardant bedding so that you can offer ultimate safety to your guests.
3. Hire Inexperienced Staff
This might sound counter-productive, but trust me, hiring inexperienced staff will cut costs without comprising the quality of your services.
Hotel industry expert Ravi Patel tells us that “personality is the No. 1 attribute to look for in good employees, because everything else can be taught.”
When you think about standout customer service examples, did they have a dull personality with zero charisma?
Or, did they have a shining personality and were able to relate to you on a personal level?
Confidence, charisma and flexibility are key personality traits for the hospitality industry.
Save money by hiring inexperienced staff that have a brilliant personality which you can train up quickly.
Another benefit of this is that they won’t pick up bad habits or be stuck in their ways, you can train them to the high level that you expect of your staff.
4. Perform an Expense Analysis
You may think you have full control of your ingoing’s and outgoings, but you may be surprised at some undetected costs.
If you’re trying to control your budget, the first thing you need to do is find out exactly how much you’re spending.
Take a day to crunch the numbers and get a clear idea of where your budget is being spent. Watch out for trends or spikes where you can easily cut back.
5. Allow Guests to do the Talking
Cut back on your marketing costs by letting your guests do all the talking for you.
If you’re not asking guests for reviews and recommendations, you’re missing out on a lot of potential bookings.
Upon checkout ask guests how their stay was. When they tell you about their amazing experience at your hotel, kindly ask them to leave a review and express how much it means to your business.
When you’re raking in the 5 star reviews and having your customers spread the word of your hotel to their friends and family, you can cut back on your advertising or marketing spend which will save you a lot of your budget.
6. Swap your bulbs
Although incandescent and filament bulbs are being phased out and even banned in some countries, many establishments still have them in their facilities from previous purchases.
If you want to cash in on some long term savings, LED lights could save you up to 20% on your electric bill each month.
Not only do they cut costs, but they’re also 80% more efficient than traditional lighting such as fluorescent and incandescent lights.
Take the time to check your light fittings to see whether you’re still using old filament bulbs. When replacing your lights, make sure to invest in high quality LED bulbs. Low quality bulbs can be a waste of money as they run out very quickly. High quality LED bulbs can last up to 20 years.
7. Negotiate with Vendors
Even if you’ve been using the same supplier for years, there’s no harm in asking for a better deal. In most cases, you can come to some sort of arrangement where you receive better value for money.
After all, it’s much easier for them to offer a loyal customer a better deal rather than searching for a new one that will give them the same consistent payments.
If they are unwilling to budge, shop around for other suppliers. You could even use this to leverage a better deal with your current suppliers.
8. Monitor Food Waste
If you offer food at your establishment, you more than likely have a kitchen. This can be a hotspot for high wastage, which eats away at your budget.
Food wastage can be difficult to monitor, but can save you a lot of money when you crack down on it.
One simple way to get to grips with food wastage is by using clear food bins. Chucking food away into a black bin liner, tying it up and throwing it away to be never seen again makes it easy to forget about food wastage.
Replacing bins with clear boxes allows you to easily see what you’re throwing away. It also encourages workers to be more meticulous with what they throw away.
9. Go Green
Making your hotel more green is one of the biggest ways to save money.
Not only is it kinder for the environment, it also makes your hotel more efficient which saves a big chunk of your budget.
It includes great tips like low-flow toilets, energy saving electrics and implementing key-card energy management systems.