It’s a fact that every dollar needlessly spent negatively affects a company’s bottom line. Take the hotel industry for instance, there are multiple factors that contribute to high operating costs, such as utilities, maintenance, and labor. San Antonio business loans suggest that the first step to cutting costs is to closely monitor your operation. This helps you identify where the costs are coming from, which in turn will enable you to make any necessary adjustments.
Here are five ways to effectively lower your hotel operating costs.
1. Go Green
By going green, you accomplish two goals. Not only are you cutting down on your operating costs, but you are also easing the burden on Mother Earth. You can replace incandescent bulbs with Energy Star LED’s fluorescents since they use 75% less energy. You can also replace old thermostats with the latest programmable units. These kinds of thermostats automatically adjust the temperature which can help you to reduce your overhead by spending less money warming or cooling hotel rooms when there are no guests to occupy them.
2. Save Costs on Laundry
Did you know that an average hotel in the U.S. uses 25 gallons of water for every room, per day? Multiply that by the number of rooms in your facility and the total becomes astonishing. You can save water and cut costs by placing small placards that encourages your guests to reuse towels and linens. According to the American Hotel and Lodging Association, doing this can reduce the number of laundry loads washed by 17%, thereby saving related sewer, energy, labor, and water costs.
This strategy also increases the lifespan of your towels and linens, saving you additional revenue and expenditures on replacement costs. By implementing these strategies, you can save up to $6.50 per day, per room.
3. Take Proactive Steps to Increase Revenue
There are plenty of revenue-generating opportunities for hoteliers. You can partner with other local businesses which will enable you to offer additional services to your hotel guests. Concert venues, car rental companies, restaurants, and amusement parks are just some of the businesses you can reach out to. If finances allow, you can also establish a gift shop and sell souvenirs and other hotel branded products, such as t-shirts, shampoos, linens, soap, and other specialty products.
4. Use Free Software
Evaluate your business if you really need a comprehensive hotel management software. If you operate a small hotel with only a few staff members, paying for premium management software may not be necessary. Check the software you currently use and see how often you all of its features are actually being utilized. If you discover many features in your existing program is not being used, you may want to choose free and open source software instead.
5. Do Preventive Maintenance
Dirty air filters which haven’t been replaced for more than four months can affect your HVAC’s efficiency by 10%. Keeping up with regular preventive maintenance can save you thousands of dollars in the long term. Additionally, HVAC maintenance can also help you reduce energy bills and extend the life of your system.
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Reducing your operating costs will benefit your bottom line and increase profitability. If you have any questions about hotel management or financing, the experts at SMB Compass can help you.