Cost Reducing Ideas

1. Conduct courtesy calls to guests in an effort to be proactive in resolving potential guest relation issues.  Solving the issue before it escalates can save a tremendous amount in customer refunds and discounts at check-out.

    

2. Trade out food for manager’s reception or request restaurants to donate food in exchange for the free marketing of the restaurant.  Be sure to offer this first to any and all restaurants that may be currently advertising in the guest service directories at your hotel.

    

3. Ensure that the hotel’s sprinkler system has the ability to be programmed for rain days.  If not, ensure that the hotel’s maintenance engineer is turning the sprinkler system off when it rains.

    

4. Ban all employees from eating the hotel’s breakfast.  In order to encourage this provide all employees with coffee in the hotel’s break room.  Ensure that the break room is away from the breakfast area.

    

5. Ensure all credit cards are swiped when possible.  If not possible to swipe cards, ensure that the security codes are received as these steps will reduce the fees charged by credit card processors.  

    

Other Ideas generated to help reduce costs:

• Switch all incandescent light bulbs to compact fluorescent bulbs.
• Participate in a water conservation program like Project Planet.  This program appeals to the environmental conservation movement by encouraging stay over guests to reuse their linen and terry products.
• Provide all hotel employees with ongoing training to improve their efficiency and also to reduce errors that may cost the hotel money or affect guest service.
• If the hotel’s business will be slow reduce the hotel’s inventory of available rooms by shutting down a floor. 
• Ensure all vacant rooms have their thermostats set to a comfortable temperature.  This will preserve the life of the HVAC unit and will dissuade guests from constantly adjusting the thermostat up and down wasting energy, not to mention angering the guest due to having to constantly adjust the temperature in the guestroom.
• Encourage repeat guests to book directly through the hotel or through the hotel’s eBrochure as these distribution channels don’t cost the hotel.
• Complete small renovations at the hotel with the hotel’s own staff.
• Consolidate jobs at the hotel and ensure all staff is cross trained.
• Adjust schedule times when slow.
• Ensure all staff is trained to standards and that the standards are constantly reinforced as to avoid having to duplicate work at the hotel.
• During periods of very slow business, hotel management should provide coverage of some line level tasks or positions.
• Accurately forecast future demand so that the hotel is able to order all guestroom supplies and food without too much waste.
• Consistently shop vendors of supplies, including food, for potentially lower prices. 
• Ensure outside lights are operated off timers and that when the time changes and daylight hours increase that timers are adjusted to come on later in the day.
• Conduct a consistent and detailed preventive maintenance program at the hotel to reduce the amount of maintenance expenses.
• Ensure that hotel is conducting linen and terry inventories monthly and monitoring shrinkage.  Seek ways to reduce shrinkage including ordering the correct PAR of linen and terry, providing pool towels, and possibly providing make-up remover and shoe shine kits in guestrooms.
• If guests damage or steal linen or terry charge for replacement.  Ensure charge is high enough to compensate for several items of linen and terry.  Post the charges in the guestroom with a tent card.
• Maximize laundry time by conducting laundry in the evening.  For smaller properties have night audit conduct laundry.
• Shop around for property’s insurance needs.
• Ensure room attendants are closing drapes in summer months and opening them during the winter months. 
• Maintain all utility systems at the property.
• Perform carpet and HVAC unit cleaning services in house.
• Regulate breakfast hours to continue to meet brand standards, yet that it allows the hotel to reduce the labor costs of keeping the breakfast open for longer time periods.  For example, on weekends consider opening breakfast at 7 AM and closing at 10 AM.  This still meets brand standards and should accommodate almost all guest needs for breakfast.
• Schedule transportation hours (if property provides a shuttle) and ensure that on-demand trips are avoided if possible.
• For sales and marketing, ensure appointments are close to one another to reduce mileage expenses.
• Add one more front desk representative during busy hours to increase customer service potential and to ensure that all potential reservations are captured. 

Top Sales Ideas:

1. Talk to people, network.  Don’t be confined to your office.  The more time you spend in the office the less time you have to meet with potential or current accounts.

    

2. Check company names listed on reservations on the morning arrival.  Look for potential contacts for these companies.

    

3. Google your competitors and your competitor’s phone numbers to see what websites that they are listed on, especially company websites.
4. Use incentives/bonuses for hotel employees to participate in the sales process.  Some potential incentives/bonuses could be for walk-ins, lead referrals, shop calls, etc…  

    

 

More sales ideas generated:

• Target sales efforts in select feeder cities.  Consider performing sales blitzes in these feeder cities if possible.
• Create a marketing and sales plan complete with action plans that detail the hotel’s sales efforts in each potential market segment.
• Use a fish bowl for collecting business cards.  Provide an incentive for the guests to provide business cards such as a drawing for a free gift card.
• Use out – of – the – box ideas such as relationship building and researching companies.
• Get everyone involved in the sales process including your room attendant staff.  Everyone at the property has the potential to be a sales person for the property.
• Invite potential clients to the property for site tours.  Let the property sale itself to the potential client.
• Use revenue and yield management to maximize the potential revenue for the hotel. 
• Seek and earn referrals from current guests and business accounts
• Create handwritten thank you notes to top 10 travel agents.
• Provide gifts/comp rooms to welcome center staff as appreciation for referrals to property.
• Participate in a local leads group like through a Chamber of Commerce or organize your own leads group.
• Participate in bridal/trade shows.
• Don’t be afraid to be “silly” with your sales plans/programs.
• Perform sales blitzes in your backyard.
• Constantly show your face in offices of your accounts and potential accounts.
• Set sales activity goals each week including number of sales calls.
• Bribe competitor hotel’s 3-11 staff personnel to send your hotel overflow when they are full.
  

The following was sent in by Vikram Bhartia:

This information should be given to any guest booking through 3rd Pary Websites:
It allows them to become more knowledgeable to the booking process and can savemoney for both the hotel and the guest in the process.

Six reasons why it is advantageous to book your room directly with the Hotel, rather than go through the 3^rd Party internet booking sites.

a) You pay more, even if the room rate is the same all 3^rd party internet web sites have a booking fee/surcharge which varies from $3 to $5 per room, and sometimes the rate is even higher. It is hardly ever lower as proclaimed by these internet web sites on their TV ads.

b) The reservation is not flexible. In case you ever need to cancel or make any changes the 3^rd party internet web sites will charge you a $25 fee, whilst in all cases if you cancel or make changes before 24 hours of arrival, almost all hotels will do it free of charge, and also with 3^rd party internet web sites if you need to cancel same day of arrival, you will not be able to do so, and they will forfeit the full 1^st days room rent & tax, whilst a lot of times if you call the Hotel directly they may decide to cancel the same day arrival reservation at no charge, but with the 3^rd party internet web sites you have no chance of a refund for the 1^st night.

c) Your room type is not guaranteed. The 3^rd party internet web sites will not guarantee you a non or a smoking allowed room. They will allow you to request a particular room type, but if the hotel is busy you will get what is available, but if you book directly with the hotel you are informed exactly what you are getting.

d) If you need to call for any information or changes you have to go through the motions of press 1, then press 2, then press 6, and then on hold for who knows how long, but if you call the hotel direct, in most cases a live person will answer the phone within a few rings and get your request taken care of in seconds, if possible.

e) With 3^rd party internet web sites your credit card is charged for the full amount immediately, but if you book directly with the hotel your credit card is authorized or charged only upon check in.

f) Most hotel chains now have a rewards program, if you book through 3^rd party internet web sites, you are not eligible for these reward points, but booking directly with the Hotel makes you eligible for these reward points.

The best way is to use the internet 3^rd party websites to locate the hotel that you think fits and best suits your needs, then go directly to the Hotel web site, (all major brands have their own web site) and either book directly with the hotel website or call the hotel from the telephone number listed on the hotels web site.

Please try the above and you will be glad you did, because there are a lot of advantages with booking your reservation directly with the hotel, a few of which are mentioned above.

Thanks.