Cutting costs in any industry is necessary to save on expenses and limit unnecessary costs.
The hospitality industry uses alot of energy and can see the effects of too many expenses and insufficient income. To minimise the costs of keeping the lights on, you can pay less for energy by switching providers. You can find a utility company within your budget using an online comparison tool while still getting the same amount of energy.
Let’s look at how we can cut costs and still thrive in the hospitality business.
Ways the Hospitality Industry Can Cut Costs
Here are 10 ways in which expenses can be minimised.
Analyse Your Marketing Strategy
To attract more customers to your hotel, you need to analyse your marketing strategy to ensure it is updated and working in the business’s favour.
Here are a few ways to adjust your current marketing strategy.
- Update email marketing campaigns
With new packages and different seasons, it is important to update your email campaigns so that customers or potential customers are not getting the same old, outdated emails.
You can also offer promotional codes for discounts.
- Have loyalty programmes
Loyalty programmes are great for return customers; rewarding them is a good place to start if you want to get people to return to your business.
Upgrading their rooms or adding a complimentary breakfast are some perks your loyal customers can enjoy.
- Get feedback from previous customers
Sending out surveys after people had their stay can help you improve the experience that is your business.
Using this feedback can help you improve the way things are done and make it better for the customer.
- Make packages suited to customers’ history
Frequent customers can have packages tailored to their needs and attract them to stay longer.
- Manage content on the hotel website
Keep content and price lists updated on the hotel website.
Switch to Green Practices
Switching to greener practices is the best way to cut costs. Installing solar panelling, using low-pressured taps and finding ways to recycle will make the bill far less than it used to be.
Switching to utility companies that use green practices is another way to save and will reduce the business’s carbon footprint.
Hire the Proper Staff
Hiring hospitality workers is important for cutting costs and a thriving business.
You can also train more than one person to do a specific job so that if staff members are out sick or on leave, the current staff can fill in for them without hiring temporary staff.
To encourage staff to work hard and put their best foot forward, you can reward them with small bonuses or a paid day off to keep them working hard and creating a great customer experience.
If you plan to hire new staff, here are some tips on improving the onboarding process.
- Provide your expectations to new staff clearly
Tell new staff what you require from them and what your expectations are in the role. By providing them with the job description, their roles, and responsibilities, employees will know exactly what is needed from them.
- Assign each new member with a mentor
Older staff can serve as mentors for newer ones to help new employees get the hang of things quickly and without struggle.
- Set up a plan before starting the onboarding process
Having an orientation schedule and working out the onboarding process ahead of time will save time in getting the new employees settled.
Outsource Management
Instead of hiring a permanent manager, you can outsource this expertise from industry experts who are available to check over the process of the hotel and alert the staff to any necessary changes on a consulting basis.
You can also outsource revenue management and use an automated service to help track incomes and expenditures.
Use All the Available Floor Space
Wherever there are open floor spaces, converting them into a usable service or room for your customers is another way to generate income.
Add extra spa facilities, a workspace for people working remotely and an entertainment area for those hanging out while not in their rooms.
By catering to different needs and interests, you increase the clientele.
Invest In the Right Technology
Using the proper technology designed for hotel management is an investment, as it will save you money later on.
Managing all guest data and ensuring that the check-in and check-out process is smooth, efficient, and user-friendly to cut out the middleman is another way to cut operating costs.
Here are some ways the right technology can help set up your hotel efficiently.
- Front desk- Requires tech that allows for automatic room assignment, easy check-ins and check-outs and reduces the wait time of having to be seen by the receptionist.
- Marketing – The right technology will store all the important information of each guest or party and help you use this as a marketing tool to cater to specific needs and tailor packages based on the data.
- Housekeeping- having this set up as a schedule makes it easier for customers and cleaning staff to not interfere with guests’ private time and do their jobs without disruptions.
Analyse Your Profit and Loss Statement
Knowing which areas of the business are making money and which areas are losing money will help you focus on the areas that need it the most.
This can also help you determine which times the business is running at a loss so that you can find ways to increase income during those periods.
Use Word-Of-Mouth As A Marketing Tool
Guests that have an amazing experience will do the advertising for you. This way, other customers will use your services without you having to increase your marketing budget.
Creating positive experiences will help returning customers bring their friends and family, and those people will tell the people closest to them.
Negotiate Lease Deals
Negotiating lease deals is another way to cut costs, such as rental expenses and other charges that require payment every month.
The hotel asset manager should analyse and make the necessary negotiations to ensure the hotel saves on expenses.
Discuss Possible Discounts with Suppliers
Finding ways to cut costs for your suppliers will help you save more money. Here are some tips you can use when discussing contracts.
- Research the current market- Comparing rates to other suppliers is a must if you want to save money on costs. You can use this negotiation tactic to get cheaper rates or find a cheaper supplier.
- Discuss payment terms- Find out the lowest possible payment schedule and if getting your suppliers in bulk would be cheaper.
- Build relationships with suppliers- Instead of getting your suppliers to give you a discount, you can also build a long-term relationship with them to help your business’s sustainability.
Conclusion
To thrive in the hospitality industry, you can use the above-mentioned methods to save money.
Analysing your marketing strategy, hiring the proper staff, outsourcing services, using all the available space for you, investing in the right technology, analysing your profit and loss analysis, using the power of word-of-mouth, negotiating lease deals and switching to green practices will ensure that your business is sustainable.
For more information, you can visit https://www.feast-magazine.co.uk.
