How to Control Hotel Operational Costs Without Compromising Guest Satisfaction

January 30, 2024
How to Control Hotel Operational Costs Without Compromising Guest Satisfaction

As a hotelier, you know how important it is to keep your operational costs under control. Inflated expenses and inefficiencies can erode profitability and jeopardize your property’s bottom line. But by just cutting corners on quality you can impact the guest experience and can hurt your reputation and future revenues. So, how do you find the sweet spot between efficiency and quality?

The answer is not to reduce your costs but to optimize them. By implementing smart sustainable strategies, you can lower expenses while enhancing your offerings and increase guest satisfaction. In this blog, we will show you how to do that by looking at the eight different strategies for 2024.

Read Also: 5 Key Rate Management Strategies To Reduce Hotel Operational Costs!

1. Energy-Efficient Hot Water Systems

Hot water is a major energy consumer in hotels. Water heating is one of the major sources of energy consumption in hotels, along with HVAC systems, and lighting. That’s why our hotel development company has explored various energy-efficient hot water systems, from on demand water heating and other items such as heat recovery, solar panels, and geothermal solutions. These systems use renewable energy sources or waste heat to generate hot water, lowering fossil fuel and electricity reliance.

2. New and Improved Housekeeping Strategies

Housekeeping is important for room sanitation and comfort. However, it takes up a lot of labor, water, detergent, gas and textiles. To optimize housekeeping operations, we have implemented efficient cleaning schedules, efficient laundry practices, and invested in more durable linens. Additionally we offer full housekeeping services on request only for stayover guests, allowing them to decide when they require these services. If a guest opts not to request housekeeping, we provide full cleaning services on the third day of their stay. Putting the choice in the guest’s hands, we can reduce the need for unwarranted cleaning and excessive laundry, saving water, detergent, energy, and labor costs. Hotels should consider switching to high-quality linens that last longer and require less washing, saving landfills and replacement costs.

3. Sustainable Transport Solutions

To lower our carbon footprint and attract eco-conscious guests, we have invested in sustainable transport solutions, such as hybrid vehicles for hotel shuttles. Companies can also install electric vehicle charging stations in the parking lot so guests can charge their cars for free. Partnering with a local bike-sharing company can give guests access to bikes for a low fee, lowering emissions and enhancing the guest experience.

4. Drop size Incentives for Suppliers

By negotiating drop size incentives with suppliers, companies can get discounts or perks for ordering larger quantities less frequently. This reduces the transportation and packaging costs for both parties. For example, a hotel can negotiate a 10% discount with their food supplier for ordering once a week instead of twice a week. Thus saving money and reducing food waste.

5. Optimized Laundry Operations

At Narsi Hotels, we do laundry at night to benefit from off-peak utility rates and carefully regulate our load size to minimize water and energy use. We also use only as much detergent as necessary, apply the proper heat to our linens to extend their lifespan by 15-30%, and match the weight of linens to machine capacity to prevent waste caused by underloading. Our innovative 3-part inventory system – puts clean linens in the room, one turn of linen curing on the shelf, and one in process for cleaning – thus improving work efficiency and extending linen life considerably. These strategies have led to 10-15% savings in laundry operation costs.

6. Data-driven Staffing Strategies

Staffing is one of the most important and challenging aspects of hotel operations, as it affects the quality of service and guest satisfaction. To manage staffing correctly, hotels should use data analytics to identify peak times and staff their hotel accordingly to prevent overstaffing or understaffing.

7. Employee Engagement Initiatives

At Narsi, we prioritize employee engagement to encourage long-term retention. This is done by providing good benefits and competitive pay to reduce employee turnover. We also develop personalized career paths to help our employees grow within the hospitality industry.

8. The Preventive Maintenance Initiative

Part of the Narsi Way is emphasizing preventive maintenance. The strategy extends the life of our assets by 15%-20%, preventing costly repairs and replacements and ensuring our guests always have the best experience while staying with us.

In conclusion, adapting to changing operational costs means blending innovative strategies, smart investments, and attention to details.Entering into 2024, Narsi’s approach builds a solid roadmap for other hotels seeking sustainable and effective ways to keep up with operational expenses. Contact us for more valuable insights and hotel development services.

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