For hoteliers who want to maximize their revenues and return on investment, controlling costs are top of mind. And, fortunately, every nook and cranny of the hotel and its departments offers opportunities to do so.
In this Hotel Management article, Gerry Chase discusses simple cost controlling strategies and tactics that can be implemented at the property level.
“On the revenue side, you can increase your [revenue per available room] and [average daily rate] to have the best chance of producing flow-through to the bottom line,” said Gerry Chase, president, and COO of New Castle Hotels & Resorts. “We spend time maximizing how to spend our money.”
Chase said there are three major areas that hoteliers can execute better in an effort to control costs: labor, direct expenses, and overhead expenses.
Forecasting plays a huge role in controlling labor costs, Chase said. Associates can be scheduled based on an accurate forecast to better manage service expectations with the right amount of staff.