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Finance

Five Tips to Tackle Hotel Costs

Between the rising cost of labor, decreased demand and ever-changing COVID-19 protocols, hotels have taken numerous hits to profitability. Conditions likely are going to remain challenging for some time to come, but Chris Cylke, COO of asset manager RevPAR International, has a quintet of tips for hoteliers to manage costs more effectively.

Where a Lot of Hotels Get it Wrong

I am often surprised by the initial reaction of many hoteliers. In general, we are willing to outsource specialist fields like legal, accounting and payroll, but are averse to getting professional help when it comes to improving our strategies to generate more income.

Why, I wonder? It seems it is more an emotional response, than one based on business requirements. Unfortunately, too many hotel managers seem to be of the opinion they can perfectly well qualify a revenue manager for his skills and strategic vision.

I am often surprised by the initial reaction of many hoteliers. In general, we are willing to outsource specialist fields like legal, accounting and payroll, but are averse to getting professional help when it comes to improving our strategies to generate more income.

I beg to differ with that. Based on my experiences I must actually strongly disagree. Objectively how can someone qualify as a specialist, if he or she does not actually do not have the technical qualifications themselves? On the basis of what would you qualify as a revenue manager, if you do not know what the job really entails?

And no, it’s not just simply about changing some rates here and there, which seems to be a common misunderstanding amongst many hoteliers. Mind you, even with that there are complexities involved on which you need to be certain of a potential revenue manager candidate that has the right skills and experience.

Delivering What Consumers Really Value

A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a refrigerator and other kitchen facilities, upholstered chairs, a flat screen television, and en-suite bathrooms.

The precursor to the modern hotel was the inn of medieval Europe. For about 200 years from the mid-17th century, coaching inns served as a place for lodging for coach travelers. Inns began to cater to richer clients in the mid-18th century. One of the first hotels in a modern sense was opened in Exeter in 1768.

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Hotels proliferated throughout Western Europe and North America in the early 19th century, and luxury hotels began to spring up in the latter part of the 19th century.

A cleansing hot shower or bath

Hotel operations vary in size, function, complexity, and cost. Most hotels and major hospitality companies have set industry standards to classify hotel types. An upscale full-service hotel facility offers luxury amenities, full-service accommodations, an on-site restaurant, and the highest level of personalized service, such as a concierge, room service, and clothes pressing staff.

The precursor to the modern hotel was the inn of medieval Europe. For about 200 years from the mid-17th century, coaching inns served as a place for lodging for coach travelers. Inns began to cater to richer clients in the mid-18th century. One of the first hotels in a modern sense was opened in Exeter in 1768.

The precursor to the modern hotel was the inn of medieval Europe. For about 200 years from the mid-17th century, coaching inns served as a place for lodging for coach travelers. Inns began to cater to richer clients in the mid-18th century. One of the first hotels in a modern sense was opened in Exeter in 1768.

Hotel operations vary in size, function, complexity, and cost. Most hotels and major hospitality companies have set industry standards to classify hotel types. An upscale full-service hotel facility offers luxury amenities, full-service accommodations, an on-site restaurant, and the highest level of personalized service, such as a concierge, room service, and clothes pressing staff.

The precursor to the modern hotel was the inn of medieval Europe. For about 200 years from the mid-17th century, coaching inns served as a place for lodging for coach travelers. Inns began to cater to richer clients in the mid-18th century. One of the first hotels in a modern sense was opened in Exeter in 1768.