The hospitality industry will have to shed extra flab to reduce spare inventory and wastage
Every hotel, every business, every company has some “fat” in the cost structure—expenses that can be optimised. There must be a relentless search to identify and remove these
The ratio of staff to the room will see a downward trend, even as reservations and back-office teams performing clerical tasks can be minimised by introducing automated reservation systems and chatbots, linked to integrated PMS and marketing platforms.
Technologies such as centralised cloud-based PMS & CRS systems that offer two-way integration with marketing and distribution systems will help reduce the need for periodic backup and maintenance. Hotels will look at centralising core functions such as pricing, revenue management and online distribution, using modern sophisticated systems, which will eventually lead to an increase in productivity and yields.
Technology will increasingly come into play for guest enhancement functions such as room service, concierge services and travel desk. Smartphones, tablets and AI-based technology will help smoothen the check-in/checkout process. IoT devices and energy-saving instruments will help minimise energy costs such as electricity and water, which can be run on ‘need to use basis.’
In a far wide-reaching move, Roseate Hotels became the first in the world to offer live camera access to guests on their mobile via a link, so that they could see their food being prepared in the kitchen, while they are seated in the restaurant, within their room or their homes.
Howarth HTL warns in its industry report, ‘Staying Ahead through Change’, “Operators must recognise that there will be greater review by hotel owners—now and in the future—of their cash management practices. Equally, hotels that have separate income and expense bank accounts with owner sweeping the revenue and funding the expense account, will see a change in all cases where owners have failed to provide the necessary funding.”
It recommends cutting the fat out. “Every hotel, every business, every company has some “fat” in the cost structure—expenses that can be optimised. There must be a relentless search to identify and remove these. Often, this may mean restructuring some processes for greater efficiency by using technology. Procurement is possibly an area; loss of electronic key cards by not politely pursuing the return of these cards on check-out is another. Service lacunae that are ‘recovered’ through discounting are the third. The billing process and time delays are a fourth. And there are many others,” it states.