We all know that running a business can be really challenging. No matter how stunning your hotel is or how impeccable your services are, hoteliers are overworked and time-poor. Your hotel should be more profitable due to the amazing experience it provides. It’s a tried and tested method that a lot of small improvements can smooth the edges of a greater strategy and provide major results. The solution is simple: Raise revenue while cutting costs. Of course, that’s easier said than done, but you can achieve your targeted goal by using some smart tactics.
Here in this article, we have listed 8 tips you can focus on to cut costs at your property and hotel supplies and make profits easier to attain.
1. Review your expenses
You have a good understanding of your expenses now that you have run your hotel for a while, but you shouldn’t assume that just because an expense has always been at a given level that has to stay that way. For example, the housekeeping staff often cleans 15 to 16 rooms per day. It will save money if they can each clean an additional five rooms each day. Another option is to not replace shampoo and soaps until a guest has used them all. Save more by turning down the air conditioner when the room is unoccupied.
2. Upsell your guests
By delighting your guests, you can improve your hotel’s revenues. Like ask the newlyweds on their honeymoon if they would like the room with a view of the bay; it might have been reserved at the time of booking but left empty by the guests who later canceled their stay. Offer discounted rates for extended stays to visitors who are already considering an extension. The point is that an upsell isn’t an upsell if you personalize it, consider the interests of your guests, and work solely to enhance their stay at your hotel.
3. Maximize your booking channels
Increase your booking options as much as you can. Using well-known travel websites will be really helpful, but you must watch out for commission fees that could harm your bottom line. You can’t afford to ignore these major booking websites because they will advertise your small hotel to a huge worldwide audience. Use a channel manager to ensure you don’t receive duplicate reservations through these different channels and maintain consistent pricing everywhere. Additionally, you should promote your hotel on cost-free websites too.
4. Direct bookings via their website
These direct bookings through your own website will be a game-changer. As these direct bookings are commission-free, that’s why it is the best choice. Most hotel reservations are now made online via mobile devices, so a website that isn’t appealing, readable, and mobile responsive will drive away many potential consumers. Make an investment in developing a user-friendly website for your hotel that is also mobile-responsive.
5. Optimize duty conditions
It should be made clear to housekeeping what is expected of them. Compared to a room occupied for a week, a room that has only been used as a stopover won’t need as much cleaning or preparation. The same principle applies to how many people are in a room. The staff can work more efficiently by setting standards here.
6. Focus well on the food & beverage department
This idea can easily be applied to save money and gain extra revenue. Firstly, make a note of how much food you actually require. Unless you’ve received complaints about the quality, it’s possible that your portion sizes could be adjusted, and less stock is ordered over time. This can also be achieved with a smaller menu. Always choose quality over quantity.
7. Put on seminars, workshops and functions
Get in contact with potential partners to organize conferences, workshops, weddings, or any other event that might seem pertinent or appropriate for your hotel business. This way, you will have a revenue source that is coming from outside the guests staying at your hotel.
8. Make your Guest Happy
Undoubtedly, your guests will want to be good representatives for your hotel if you make them happy by paying them fairly and perfectly clean, fresh hotel towels. When your employees go above and beyond their official duties to help out a guest, that makes tremendous friendliness and can lead to repeat stays and recommendations.
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