Protecting Hotel Profits in Extraordinary Times and Preparing for Future Success

The hotel industry was faced with disruption and increased costs before the COVID-19 global pandemic. Since, restrictions on leisure and travel and new health & safety operating protocols have resulted in increased costs, fluctuating demand and reduced occupancy, covers and revenues, making it extremely challenging to operate profitably. According to recent insights from PwC, hotel occupancy rates across the UK are forecast to be at 55% in 2021, with predictions it could take four years to return to pre COVID-19 levels. Whilst 2021 forecasts show signs of relief when compared to 2020, it’s fair to say there is a way to go until we return to ‘business as usual’. With increased costs, and decreased revenues likely for an extended period, it is a good time to think about how you can protect your profitability now and prepare for future success.

Protect profits now. Plan for future success.

If there has ever been a time to look at internal processes and technology for time efficiencies, this is it.

Review the tools readily available to you and your current processes. When executed and leveraged effectively, internal processes and technology enable time and financial savings. It starts with the desire to examine and optimise every aspect of operating your hotel and serving guests, including the technology you are using (or not using) to make it all happen.

You need to ask and answer questions like:

  • How can you streamline processes?
  • How can you reduce costs?
  • How can you eliminate time-consuming and error-prone manual processes?
  • How can you optimise purchasing and maximise buying power?
  • What is the optimal labour required to sufficiently staff to meet our financial goals?
  • How should you rethink your food & beverage offering to meet changing demands?
  • What are your most popular and profitable menu items?
  • How can you track waste and identify where savings can be made?
  • How can you build more accurate forecasts?
  • How can you leverage your data and apply analytics?

With the demands of running your hotel, you’ve got a lot to manage – but answering these questions  will help you make the necessary moves to stabilise your business today and succeed in the future. Explore the questions and many more in our latest guide, Protecting Hotel Profitability in Disruptive Times – Five Ways to Position your Hotel for Success

Once you’re set up to leverage your data and apply analytics – there is even more opportunity for you to generate savings by increasing efficiencies and reducing costs. Focus on getting all of your data in one place. A complete view of your purchasing and inventory data, and financial performance allows you to understand your highest performing sites or revenue centres, your best days, and much more. Full visibility translates into informed decision making, so you can confidently adapt to the changing climate and guest behavior, identifying areas for improvement along the way.

Explore how you can simplify your back-office operations, boost your efficiency and profitability, and streamline your procurement and inventory processes in our Protecting Hotel Profitability Guide now.

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