Cost-Effective Methods For Hospitality Business

Cost-Effective Methods For Hospitality Business

reduce cost

The hospitality industry has served people with leisure, tourism, recreation, relaxation and experience. If you are an owner or manager from this line of business then your main objective is to provide quality service for your guests. Luxury and high-class quality is the name of the game but sometimes providing excellent service comes with a price.

Whether you are operating a hostel, a hotel, resort or a five-star hotel, you always do your best to make your guest feel like a royalty. Occasionally, going that extra mile means extra cost. Your guest checks out happy while you examine your ledger with a frown. It does not have to be like this. To have a win-win situation between your business and your clients here are some cost-effective methods for your business.

Invest in Your People

Employees are the backbone of any company. They are the individuals who interact with your guest and make your business work. If they can work efficiently and trained across all positions then you are saving money.

Make sure that your staff are cross-trained and trained with up-to-date industry practices. A well-trained employee will perform better in any task encountered around your business. A cross-trained staff will learn to be flexible and capable of handling any situation. In addition, cross-trained staff will be able to effectively assist any under-manned department in your business.

Make them committed to their work and your business. When your employees are committed to their work, they will perform better and if they are loyal to your business they will become voluntary ambassador for your business.

When you are in the midst of hiring, look for inexperienced but determined and motivated individuals. These employees are relatively inexpensive when it comes to payroll. With their good attitude towards work, aspirations to succeed and your dedication for training they will do well if not better with experienced workers, who can sometimes be demanding.

Reduce Marketing Cost by Digitizing

A good marketing program can entice guests to flow to your business and experience your offered service. But it does not have to be expensive. Traditional marketing like printing and billboards are relatively expensive and limiting. Invest in improving your marketing by going for the digitized version. Digital marketing will expose you on the broader market and even targeted or specified clients. Posting in social media is easy and can be free. Utilize these platforms to create a good customer experience by providing personalized real-time response to clients.

In addition, make sure you are active in the online reviews your business is receiving. They are the first thing any potential client or customer will check before making a final decision on whether to avail your product or not.

Negotiate with Suppliers and Vendors

Re-negotiating with suppliers is an ongoing trend as a cost-cutting business move. Around 15% of 1000 SMEs, regularly renegotiate with their vendor. Simplify and organize your suppliers and vendors. Identify which of them are capable of providing majority of your needs and are likely to offer lower price that is comparable to wholesale. If no one is fit and qualifies to your standard then do not be afraid to look around and entertain other players. There are many suppliers and vendors that can cater to your hospitality business needs from service passenger vans, produce, and even event’s needs.

Reduce Waste

According to a study conducted by the National Restaurant Association in the US, around 10 percent of food served in restaurants go to waste and that means a portion of your money goes to waste too. In order to prevent this, you need to begin assessing and improving your kitchen practices. Review the preparation procedures, inspect food quality and food delivery.

In addition, make sure your business is joining in the go green movement. Create plans and implement rules that encourages environment-friendly attitude. Invest in technologies that will help you become eco-friendly like solar panels and rain water catcher. In the long run, these components will make you save money.