Running a hotel business is not easy. That’s why as a hotel owner or manager, you need to know how to cut costs to increase profits. Operational costs can make or break a business. However, there are ways that you can monitor them.
Here are three practical you can do to reduce costs:
Choose the right suppliers
Never settle for less. Look for the supplier who will be able to meet the demand of your hotel’s consumption. They should also have the best prices, especially for fast moving commodities. Ask for discounts for bulk tissue paper, for example. A good supplier will also be willing to give you a favourable credit period after some time.
Conserve your energy
Energy costs represent roughly about 6% of the total operating expenses of hotels. That is why you should aim to conserve it. Also, consider using the LED light bulbs for the rooms and for the lights that are always on. Invest in modern gadgets and equipment that are more energy efficient like cookers and laundry machines that use cold water. Alternatively, you can use other energy sources such as solar.
Have a good human resource department
Wages and salaries take up a significant percentage of the operational costs. Having an efficient human resource management can eliminate paying off enormous salaries. The management can consider laying off the unproductive staff in place of better ones. It is also up to them to hire the right number of people.
It’s every hotel manager’s goal to make good profits out of their business. Less operational costs could equate to an even more profit. With these tips, you would be able to not only track your operational costs, but you would be able to reduce them.