Increased costs in labour, food and energy together with a downturn in consumer spending are forcing hoteliers to become more vigilant about controlling expenses. At a recent cost conference, Declan Monahan, managing director, Marketboomer International, http://marketboomer.co.uk/ said that 'hoteliers need to start managing their costs in the same way as they manage their revenue'. In an interview with Caterer & Hotelkeeper, Alan Parker, chief executive of Whitbread, http://whitbread.co.uk/ said that 'we were expecting an inflation of around 3% this year, but we're seeing about 8% food cost increases. We're absorbing a lot of it and have also re-priced, while talking to suppliers about how we can buy better, but I'm loathe to pass big increases onto customers'. In the same magazine, William Baxter, deputy chief executive of BaxterStorey, http://www.baxterstorey.com/ said that 'training staff in areas like cost control and procurement will have direct benefits, particularly in a tough climate'. Therefore, I hope the following comments might be of interest!
6 comments:
Most of your purchasing is probably done manually. This involves lots of phonecalls, written quotes, endless paperwork and too much of your valuable time. At the end of it all, you're still not sure if you could have bought better! How do you know if your supplier dosen't supply the same product cheaper to someone else? You should perhaps take the time to learn a little about Marketboomer. Marketboomer is a company which uses web based technology to assist you in managing your costs in the same way as you use technology to assist you in managing your revenue. Given your experience of technology in revenue management, would you now want to go back to using a manually based system? You might just find the same thing with your purchasing if you tried it! Marketboomer can be used by any company big or small. Its client list includes not only leading hospitality companies such as Jumeriah, Four Seasons, InterContinental & Starwood but also small independent hotels such as The Merrion, Dublin and Lea Marsden in the UK. With offices in Australia, Singapore, China, Dubai, the UK & Ireland, Marketboomer is a global organisation dedicated to helping you buy better.
Staying with the technology for now, City Inn in the UK has moved all of its recruitment online in a bid to improve efficiency and cut costs. The hotel group has signed up online recruitment firm Changework Now to take on the recruitment process, as hiring staff was taking too long. The new process will include an online questionnaire and screening.
Source: Caterer & Hotelkeeper 3-9 July 2008
Want to encourage more reservations online and reduce your labour costs? Alt Hotels in Canada has a $1 Stay Contest. Everyone who makes a reservation online is automatically entered into a draw and each night, one lucky guest gets a room for $1 on check-out! Now, wouldn't that be a nice surprise and an incentive to book online?
Consider offering an automatic check-in and check-out service and reduce the number of reception staff required. This is what Yotel does! Omena Hotels in Finland take online bookings only, it has no reception desk but rather a 24/7 central remote reception and offers a free text messaging service giving you your room number and door code!
Taking the lead from the low-cost airline sector, Tune Hotels in Malayasia have gone significantly further than anyone else in lowering hotel costs. Bedrooms have no towels, no wardrobes, no telephone, no TV, no radio, no safe and no mini-bar. There is only one power outlet available and just two IKEA hooks on which to hang your clothes. Rates start from US$3 per night. Go to my post on 'Trends & Developments in the International Hotel Sector' for more information.
In your restaurant......cut down the choice on the menu and focus on the dishes that sell well!
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