PERSPECTIVE
CUTTING THE FAT
HOW TO DECREASE HOTEL COSTS THROUGH GREATER OPERATIONAL EFFICIENCY .
Contributed by JEFF BRAINARD , VP OF HOSPITALITY AND SALES , SOUTHERN MANAGEMENT COMPANIES
H otels and resorts in the postpandemic operating environment have been challenged by higher costs in everything from labor and energy to food and supplies . Additionally , it has become nearly impossible for properties to maintain previous levels of service with a continued shortage of qualified and motivated workers . The pressure on hospitality management companies and ownership to show returns , combined with increasing guest expectations , has led to a deeper focus on the middle of profit and loss ( P & L ) expenses that go beyond basic labor controls and service offerings .
Prior to 2020 , hotels and resorts could look to shift expenses , modify services or schedules to impact flow when needed . The relatively consistent demand and steady growth experienced since the economic recovery in 2011 created stability , allowing properties to plan strategically for steady Gross Operating Profit ( GOP ) growth .
Following the pandemic , its impact on the market , dramatic shifts in operations due to staffing shortages , pandemic restrictions and other challenges have forced dramatic changes in operations . Changes were severe and often resulted in the elimination of services from daily room cleaning to valet
40 hotelsmag . com Jan / Feb 2025