Hotel Management Logistics – Cutting Down Overhead

As a hotel manager, it’s your responsibility to juggle employees, guests and overhead costs. Such a task is daunting even for the most astute businessperson. However, with the following recommendations, you can maintain a clean facility with happy customers—all while keeping operating and overhead costs down.

Operating costs are defined as expenses that relate to activities that produce income such as food and vending expenses. Overhead costs are not directly linked to revenue production but are still necessary for your hotel to stay in business.

Overhead necessities of running a hotel

·         Cleaning: Building maintenance is considered an overhead cost. It includes repairs, cost of cleaning, replacement cleaning parts and general upkeep. If your hotel isn’t spotless, guests will turn away without another thought. Your hotel is their temporary home away from home. While they know other guests have stayed there before them, you want the rooms, hallways, lobby and dining area to be as spotless as if you opened the business yesterday.

·         Customer service: The costs required for you to keep hotel guests happy and entertained are necessary to stay in business. Hiring a staff trained in great customer service is a perfect place to start. Guest transportation, cocktail hours, in-room entertainment and discount access to area events and attractions are other components you should be delivering.

With these two primary areas accounted for, it’s up to you to decide where to trim other costs.

Maximize your return

The areas you deem worthy for trimming down depend on:

·         What services you offer: How important is it for your hotel to offer a spa, recreation and customer transportation? Cutting these areas reduces overhead costs, but it may also turn customers away. Find a balance between the services you offer and what you charge to maximize your return.

·         Where you’re located: If your hotel is in a highly popular tourist area, you have to compete with other hotels. Offering the best services at the lowest prices can be difficult to accomplish. However, with top-notch staff members and all the gear on hand you need—such as quality kitchen equipment and replacement cleaning parts—you can beat your competition.

·         The size of your hotel: You can’t cut back on staff until you know how much time it takes a clean a room. Do it yourself a few times and know what tasks and corresponding replacement cleaning parts are essential. For large hotels, you need a bigger staff to stay on top of everything. You also have a greater opportunity for income, so it tends to even out. Don’t be afraid to delegate tasks and always know what department heads are up to. If they’re not properly carrying out their responsibilities, consider making some cuts.

As a hotel manager, it’s up to you to keep your customers happy and the business running smoothly. To accomplish both, make maintaining a clean hotel a priority by having the proper equipment on hand.

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