In every industry, it’s important to know where your money is going and where it can be saved. The hospitality industry is no different. It can be difficult to know where you can cut back without compromising the quality of stay for your guests, so we have rounded up some of the best tips on how to save money in the hospitality industry.
1. Know your expenses
Before you start making any changes around your business, you need to know where you are starting from. Conduct a full expense analysis of every sector, from staff wages to your energy bills. Without this, you won’t know which areas need to be cut back the most, or which are already within a good range.
2. Have a flexible team
A large expense within any industry is usually wages, but one way you can cut back on this is by having a team that are able to perform multiple roles. If you have staff that are trained to help sign in new guests or take bookings as well as other roles, then you are able to cut back on the number of staff you need. However, you must ensure that the number of staff available to guests is kept appropriate- you don’t want unhappy guests who are unable to get help!
3. Bulk buy what you can
More often than not, if you are able to buy items in bulk then it will lead to a discount. Take a look around your business and see what you buy regularly (only items that don’t have short expiry dates like food and beverage). Consider items like bedding, towels and even complimentary toiletries, all of which add to the hotel experience but do not bring in money. Try to ensure that the items you buy are still of the same quality, but reduce your outgoings.
4. Be more energy efficient
This tip has multiple benefits attached to it. Reducing the costs of running your building from an energy standpoint will see a knock on effect on your energy bills. Small changes such as using more energy efficient bulbs in every fitting, putting in signs to guests rooms asking them to reuse their towels to reduce the amount that need washing every day, etc. The other obvious benefit is that you will also be helping to reduce your carbon footprint and therefore saving the planet! What you may not think however, is that making such changes put your business in a good light due to being eco-friendly. This could then draw more people to your hotel and generate more revenue while saving you money.
5. Reduce marketing costs
A simple fact of marketing is that people trust other people more than formal marketing efforts. By changing up your marketing efforts to include more user generated content and focusing on the reviews that your hotel has, you are able to reduce your costs. You will have to create less organic content to engage with prospective guests, and it will likely be more effective due to the response from social proof being used.
6. Invest and buy equipment
When looking at how to save money in the hospitality industry, you’ll find that your ongoing expenses to hire equipment can quickly build up. Consider everything you hire and how much money you have spent in doing so- during that time you could have probably bought all of that equipment and paid it off, leaving you without the yearly or monthly expenses!
For example, you could hire a portable bar for every event, but you would be better off financially by buying one and an added benefit is that you could customise it to suit your business.
Our portable bars are able to be customised to your branding, designed to suit your function room and can be stored away very easily in our storage units.
7. Preventative maintenance
There is nothing worse than when everything breaks at once, which tends to be the case. This can end up expensive to have everything fixed at one time, as well as cost you valuable income if it affects the stay of your guests. By having all your equipment, tools and fixtures maintained on a regular basis you will be able to reduce the need for expensive repairs that catch you by surprise.
8. Use all your space
Unused space within your building or grounds is wasted space. Chances are, you are spending money on lighting and heating those areas, while they are not earning their keep. Give each space a function that could help in either earning you good reviews (and therefore more guests) or generating more revenue. Consider things like pop-up events, information desks where local businesses can pay to advertise or even something as simple as more social space for guests.
Hopefully, now you know how to save money in the hospitality industry and keep your costs down in your very own business. If you are looking to save money through buying a portable bar to decrease your hiring costs, contact our Barlok team today or check out our portable bars for inspiration.