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5 Intelligent Ways To Reduce Hotel Operating Costs



A Hospitality Business such as growing your hotel doesn't limit to increasing Hotel Revenue or Hotel Marketing. Although these help drive more bookings for your hotel, saving hotel operating and maintenance costs too plays an important role here. Cost Cutting in Hotels is just like any other business, that helps reduce spending on unnecessary factors and directs expenditure to a slightly productive path.

Bigfoot Hospitality is here with another great blog for hoteliers on ‘5 Intelligent Ways To Reduce Hotel Operating Costs’, that are surely effective and very practical.


Let’s get into the 5 smart tips that guarantee higher ROI, increased savings and better use of a Hotel’s Revenue.


1. Analyse Your Expenses In Detail.



The first step is to sit down and take the time to analyse where your hotel’s costs are going majorly. Which is the area that you're spending the most? Sometimes, handling of the guests and managing bookings may leave you awestruck at the costs incurred to you.


Take prompt actions and optimise inventory regularly. Make sure to audit your expenses on things like toiletries and linen. Smaller costs make a huge difference when it comes to running a hotel. So, the first step would be to make a report of the hotel’s smaller expenses.


2. Cross Train Staff For Optimum Resource Utilization.

Every Hotelier is aware of the amount of time, effort and monetary investment it takes to hire labour for a hotel. And so, training your staff for multi tasking or teaching him to handle multiple duties is a good way of saving costs on extra labour. This way, you are also making optimum use of your existing resources.


Learning new skills is an added benefit for both, the staff as well as the hotelier. They gain extra skills, and you save on your costs that are incurred due to extra labour.


Fact- “ More Than 50% Of Your Hotel’s Cost Is Spent On Labour.”

3. Hire Yourself A Hotel Revenue Management Company.


Revenue Management Companies like Bigfoot Hospitality and many others, help the hotelier save on hotel costs smartly. Hiring these companies is a great idea to save costs and build a hotel brand at the same time. Because they look after all your needs at a much lower cost, that would otherwise be a hefty amount of effort, time and money for the hotelier.


Bigfoot Hospitality is a company that upscales a hotel’s brand value and offers services like Hotel Revenue Management, Hotel Marketing, OTA Management, Reservation Calls, Virtual Hotel Front Office, Hotel Digital Marketing, Hotel Photography, Content Management, and much more. These are some services to be named from the many services they offer, at a very reasonable price.


Bigfoot Hospitality uses advanced technology to cut down the hoteliers costs. It is a misconception that Technology is a burden and an additional expense. This is not true. Using a Hotel Channel Manager or a Hotel Software helps cut on costs like Hotel Operations, Billing, Reputation Management and everything else. This drastically lowers a hotel’s operation costs and efforts.


Hoteliers save a lot of time that they can now dedicate and invest towards improving the quality of service and hospitality they provide to the guests during their stay.


4. Reduce Electricity Costs By Going Green


Adopting Eco-Friendly measures help save on electricity and other costs and also boost Hotel Reputation. Save electricity as a cost saving hack for your hotel. Go Green, and cut down electricity consumption at your property by following these simple tricks.


  • Use LED Lights

  • Implement Smart & Huge Windows In Hotel Rooms

  • Use Energy-Star Appliances

  • Make Use Of Solar Energy. Invest In Solar Panels


Training the staff towards minimising electricity usage and avoiding unnecessary energy consumption is a step towards going towards an Eco-Friendly Hotel, and of course towards saving costs.


Suggested Read- Top 5 Expert Hotel Search Engine Marketing Tips


5. Make The Most Of Your Hotel Space


Take a closer look at your hotel to find out the areas that are not used often. Making use of these spaces at your property is a way of boosting your hotel’s revenue or can be a source of side income. For instance, you could make use of your garden or lawn area for Weddings, Events, and Parties. Offer them with exceptional service and turn them into future guests or moving marketing tools of your hotel. Word of mouth or reviews help improve a hotel’s reputation.


If you have a hall, transform it to a dance class, or a space for workshops, or even into a gym. Guests would love to spend on these factors during their stay, and will also keep them entertained. Afterall, everyones loves being productive even during the holidays!


These were the ‘5 Intelligent Ways To Reduce Hotel Operating Costs’, and to save on extra costs often incurred to a hotelier. They are implementable for all types of hotels. The hospitality industry is very competitive, and the costs to run a business is always rising. Follow these measures to make sure you are always on a budget. Look for the tips that best suit your property.


Cut down on costs and boost Hotel Revenue at the same time!