The impact of COVID-19 on all industries has been almost entirely destructive—the hospitality industry included. In an era where travelling is prohibited, not recommended, or even frowned upon, how do hotels cope? While larger establishments with more recognizable brands can likely survive the pandemic, what happens to independent hotel owners?
Now more than ever, it is more important for hotels and businesses, large and small alike, to cut every cost they can. However, in an industry where premiums are placed on luxury and better service, cutting costs could spell disaster. Luckily, there are a few ways hoteliers can cut costs without compromising their service.
Energy efficiency is not a difficult task and often just needs clear and updated guidelines for a hotel’s employees. A lot of it just boils down to turning off unnecessarily draining electrical devices, like lights and appliances. Air conditioning, for example, is one of the highest-costing expenses of any hotel. A hotel could save money by keeping the AC in a room off until an hour before a guest checks in.
One long-term plan every hotel should have is to invest in energy-efficient appliances. Air conditioners and refrigerators should be updated to have the latest energy-efficient technologies, such as those found in inverters. Traditional light bulbs should be replaced with LED bulbs, which are actually brighter and cooler while needing less energy.
Adjust staffing and stocking
Fewer people are staying at hotels during this trying time, and as such, it might be beneficial to spread out a smaller number of employees all over the hotel. After all, there is less cleaning, less organization, and less work to do overall.
It is also important to note the changes in the demand for hotel materials like soap and shampoo. With fewer guests, you might need fewer supplies for now. Make sure to have a discussion with your vendors on your supply so that you can stock just the perfect amount.
Manage the costs of your financing
There are credit card plans available for small businesses that often bear lower interest rates than other financing plans. There are also credit union credit cards that come with rebates and other financial benefits.
It can’t hurt to have a discussion with your bank about your loans and how difficult it is to pay for them, given the current state of affairs. As the saying goes, the squeaky wheel gets the grease. Who knows? Maybe you can even chance upon an easier and more flexible payment plan that takes the pandemic into account.
There is no telling what the hospitality industry will look like within the next few weeks, months, or years. As such, cutting costs is imperative for the survival of many of these businesses, whatever the scale might be.
Using these methods, a hotel could totally save money without compromising their excellence. Even then, these steps should be part of a hotel’s long-term goals anyway, both for a better bottom line and greater efficiency.
For news on the hospitality industry and other ways to cut costs without compromising your service, we at Hotel Owner have the resources you need to help you survive this trying time. Browse through our archives for more resources and information.