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Updated: Feb 10, 2022

Tips to reduce your hotel's operation cost

The game of revenues and expenses of the hotels decides their overall profitability. We talked to hoteliers about the biggest challenge that they face while running their hotel operations, keeping day-to-day expenses and matching the trend, which has got the most votes on their parts. This blog discusses the first part of the most peculiar challenge hotels commonly face. Balancing the demands and the pricing strategies to deliver a worthful guest experience can only pave the way for a successful business.

Hence, in this article, we will discuss How to Reduce Your Hotel Operating Costs. let's get started!

Read More : The hospitality industry should make a way to digitalization.

Types of Costs in Hotels

There are two types of costs associated with hotels precisely -

  • FIXED COSTS (property expenses, monthly bills of internet cables, staff salaries, and other payroll costs.)

  • RUNNING OR VARIABLE COSTS (hourly labor, utility expenses, marketing and vendor costs, food and beverage inventory, marketing and technology costs.

Fixed costs are more likely to be one-time investments but these variable costs depend on the daily demand of the guests and services hoteliers provide. So let's discuss the ways by which you can reduce hotel operational costs to get a hike in revenues.

Have A Look On Tips To Reduce Your Hotel’s Operation Costs


For example, a housekeeper can help work on laundry and a bellman can deliver room service labor costs account for the highest of all costs i.e 35% to 50% which needs to be brought down effectively to reap good harvests that can be done by following ways.

  • Pre-analyzing the number requirement of the labor on the basis of your average daily business in your hotel is a must-done thing. Make sure you are not overstaffed.

  • Employing hour-based labor saves you more money than permanent one because hotel services are generally temporary in nature.

  • Optimizing the role requirements. Not every role requires the same amount of pay. Housekeeping is a tougher task than serving the essentials. Kitchen staff and welcoming staff, laundrymen, bellmen, front desk staff need to be differentiated in the amount of pay for the work they do.

  • Effective scheduling brings in efficiency and saves you good pennies. Many hotels prefer ‘on-call staff’ on a weekly basis so that they never get short-staffed.

  • The most important of all is cross-training your staff in multiple segments to get their maximum output in busy times. For example, a housekeeper working in a laundry, other employees could help at front desks during peak hours of visits.


Utilities are another large segment that sucks your money out of your pocket in no time accounting for 10% for an average hotel. Here are some smart ways by which you can save running money over utilities.

  • Electricity is not cheaper at all. Save electricity, save money has to be the rule. You need to push the guests to turn off appliances when not in use and get them credits if they've utilized the least of standards

  • Switch to more energy-efficient light bulbs and train staff around smart energy usage.

Smart electrical appliances may seem costly while investing but believe it or not they can save you triple the times you invest in. These solutions include-

  • Thermostats that can be automated

  • Solar energy can be exploited the most for day-to-day power needs.

  • LED lighting or compact fluorescent lamps with occupancy sensors that dim or turn off the lights.

  • Water heaters that recycle the heat from HVAC systems.

  • Implementing smart windows. These windows control how much light is passing through them in order to heat or cool the room saving the electricity cost of an AC.

  • Running a “reuse your towels” campaign using cute little placards over the hangers can have a dramatic impact on your electricity and water usage.


Hotels do require day-to-day amenities to give their guests the best of all times. Be it comfortable bed amenities or disposable amenities, housekeeping material, room appliances, kitchen equipment, staff uniforms, variety of crockeries, and cutleries, managing different vendors is so costly and time-consuming with degraded quality standards.

  • Why not turn to smart solutions at are the largest one-stop solution for the hospitality industry supplies and procurements. Being the largest inventory management site, you can procure more than 1,00,000+ products from a single place.

  • Sometimes inadequate market knowledge and unmatching quantity and quality and price of the product increase the cost associated with procurements. Managing multiple vendors is also tiresome. So in order to reduce your hotel operational costs to multiply revenues, you need to automate the process of procurement with us at HORECASTOP.

  • All essential room amenities, as well as housekeeping material, can be picked up from Horeca Stop Amenities at affordable prices.

  • Horeca Stop helps you pick staff’s uniforms,

  • you can choose crockeries at Horeca Stop


There’s seen a shift from human-mediated service to technology-oriented services and matching end to end is necessary that saves time, reduce labor costs, brings efficiency, and increases overall guests experiences.

  • Make check-ins and check-outs one touch using smartphones or even sensory-based no-touch things. Automize this process and save the manual labor effort for the same.

  • Front desk management can be automated using the best CRM software available. In-room technologies such as audio command chatbox, In-room iPods, or tablets that directly connect guests with the staff and can get an instant requirement fulfilled like booking a spa session. This will save labor time, going and knocking off the doors repeatedly asking guests whether they require anything.

  • Cloud-based software provides a low-cost alternative. Cloud-based PMS can lower 60% of the cost associated with the software needed in hospitality.

  • Choosing systems for your CRM, PMS, customer service, online booking, accounting, labor scheduling, housekeeping, EAM/CMMS, or other needs, prioritize ease of use and integration with other systems.

  • So if you’re using such time-effective solutions, you also need to train the staff to work with them so together they can save up to at least 10% of your pennies.


In today's time, marketing strategies are quite diversified and to reap good returns out of that our ways of marketing need to be shifted. Gone are the days where pamphlets bring you, guests, the time is calling and connecting business and people online. So investing in those technologies can multiply your revenues exponentially.

  • Maintain a website or an application of your own with chatbots feature to reach your guest instantly, listing out all the features you offer. Supplementing your websites with artificial intelligence and voice recognition features, helping the visitor with 24/7 availability.

  • Hotels need to distribute their inventory in various OTAs and online marketplaces like my, goibibo, trivago, etc.

  • A healthy mix of OTA listings, metasearch advertising, social media promotions, email campaigns, partnerships with local businesses, etc. makes for a good approach.

  • Updating your profile with quality video displaying every nook and corner of your hotel’s ambiance and all personalized facilities on your website. Featuring your brand on other applications to increase the public aperture.

  • Try auditing your approach to marketing and putting more effort into free channels and organic traffic using google analytics or Facebook pixels that will provide you the overall performance of your combined marketing efforts so that you can retarget your audience accordingly.

  • If you’re relying on a digital marketing agency, be sure to take regular updates on what’s going and how things are going.

Here’s not the end. Dynamicity always brings the possibility of advancing into something better, something more efficient and more effective. Engaging with e-management brands like Horeca Stop not only helps you procure essentials but also provides the consultancy to manage the day-to-day operations of your hotels and maximize the revenues by cutting short your wasteful expenses. Check-in with us to get your guest’s check-in at your hotels worthy of money.

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