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3 Ways to Control Hotel Operating Costs

Hotel Laundry, Cost Savings | October 9, 2018

There are many different factors that contribute to high operating costs in a hotel, so it can be difficult to identify areas where savings are possible. 

In most instances, the first step toward controlling hotel operating costs is better monitoring, which helps you identify and understand where those high costs are coming from. 

Once you understand what's causing your hotel's high operating costs, you can implement the proper plans, procedures, and equipment to limit them. Here are a few examples:

For High Labor Costs

Make sure your staffing requirements reflect your property's needs, vs. using industry standard numbers that can leave you overstaffed at some times and understaffed at others. Tracking and using your own data to determine occupancy forecasts and schedule labor hours can help you avoid unnecessarily high labor costs.

You should also have standards for how long certain tasks take to complete, like how long housekeeping should spend in each room type. Setting clear standards helps everyone stay on track and can give you at least an estimate of the amount of labor needed. 

For High Maintenance Costs

It's incredibly important to stay on top of preventative maintenance at your property. Keep accurate records of servicers and warranty information for all equipment, and set a standard for when it's time to consider upgrading over repairing. 

It's also helpful to look for service plans that offer long-term value during the initial purchase process for appliances. That initial investment can help you save on operating costs in the long run.

For High Utility Costs

Almost half of the hotels in the US (48%) have implemented in-room energy management sensors. Ninety percent are using high efficiency lighting. Some hotels are saving thousands per year by limiting water usage in their laundry operations, which can offer up to 80% savings. The moral of this story is: there is abundant technology that will help you reduce utility costs at your property.

Laundry is a particularly good area to look for utility savings with new technology, because it has traditionally been so water- and energy-intensive. It's also an area regularly overlooked because the operating costs are buried beneath the utility costs incurred by other areas of the hotel. 

Click here to learn more about how to save money in your hotel laundry operation.

Topics: Hotel Laundry Cost Savings

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