How Hotels Can Increase Profits And Decrease

Expenses Without Adding Any Revenue Centers

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Institution

Course Name
1

Instructor's Name

Date 04/19/2021
2 How Hotels Can Increase Profits And Decrease Expenses Without Adding

Any Revenue Centers

 In every business set up, increasing profits requires control and balance of

expenses.

 Increasing profits without adding expenses requires a lot of effort and

organization from both the hotel management and the employees.

 The following are some ways hotels can increase profits and reduce expenses
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 3 How Hotels Can Increase Profits And Decrease Expenses

Without Adding Any Revenue Centers

Ensuring employees are happy and encouraging them to be good ambassadors of the hotel;

- Employees are the most important assets in a hotel.

- A happy employee will serve the customers right.

-Rewarding them for their efforts and ideas.

- A happy employee will engage positively with the customers.

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 4 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Providing excellent services;

- Happy customers will pay handsomely.

- Satisfied guests will share their experiences with friends and

- Modern technology allows for instant customer feedback to be shared online,

negative customer reviews can hurt the business while positive feedbacks will encourage
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more guests to visit the hotel.
5 How Hotels Can Increase Profits And Decrease Expenses Without Adding

Any Revenue Centers

Make the Guests feel at home;

- A warm reception before and after arrival will do miracles.

- Informing the guests about the pre-stay services e.g., things to experience and parking will

help create a guest-hotel bond.

- The guests will truly feel at home if they get to know which means of transport to use before

arriving at the airport.

- A client will feel happy if they arrive earlier than the stated and still get booked in . 04/19/2021
6 How Hotels Can Increase Profits And Decrease Expenses Without Adding

Any Revenue Centers

Working to increase revenues at point-of-sale;

- Working together with other business vendors e.g., car hire companies allows

offering of additional services to hotel customers.

- Selling other merchandise at the front desk, renting cars, and offering special

discounts to the guests (Aznar et al., 2017)

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7 How Hotels Can Increase Profits And Decrease Expenses Without Adding

Any Revenue Centers

Marketing the hotel directly to the guests;

- Gathering the guests’ contact details, including their email addresses.

- Marketing on social media can help keep contact with guests and engaging with

future clients.

-Developing connections, giving offers to returning guests, and creating a newsletter

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to have your customers informed about new and existing services.
8 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Making the hotel stand out from competitors;

- Making changes that increase profits is possible even in competitive

environments. Employing creativity and dynamic solutions, can increase the

profits and reduce expenses without disrupting the daily hotel operations.

- Differentiating the hotel from other competitors through better pricing, and

better customer service. 04/19/2021

 How Hotels Can Increase Profits And Decrease Expenses Without Adding Any Revenue Centers
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 Encouraging guest referrals;

- Encouraging happy customers to share their experience.

Rewarding the guests with offers for their next visit, gift

cards.
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10 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Creating a high-perceived value;

- Guests will pay more if they feel they are getting value for

money paid. The real value is not as important as the felt value.

-If the guests feel they are receiving a service worth $30 and

its actual costs is $10 then that is a win for the hotel. 04/19/2021
11 How Hotels Can Increase Profits And Decrease Expenses Without Adding

Any Revenue Centers

Hosting special functions and private events;

- A hotel can increase bookings by hosting conferences , special

meetings, birthday parties, weddings, and family gatherings.

- Special events like Hot Tub Getaways during the winter months

or Lover’s Weekends can fill rooms during normally low seasons.

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 How Hotels Can Increase Profits And Decrease Expenses Without Adding Any
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Revenue Centers

Auditing Everything;

- Auditing everything to increase savings on energy, phone, and technology

costs..

- Hotels can spend large amounts of their operational budget on unnecessary

budgets but with proper auditing cutting of these expenses is possible. 04/19/2021
13 How Hotels Can Increase Profits And Decrease Expenses Without Adding Any

Revenue Centers

Ensuring the hotel’s property management system is the best in the industry;

- With an automated information management system there’s no need for an

IT personnel to operate or maintain it, this helps save a lot of time and money.

- Upfront costs will be reduced without the need for any physical hardware

if the system is cloud based. 04/19/2021

14 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Enforcing flexible working hours for the employees;

- Maintaining consistent working hours for hotel staff is not the best thing.

- It means that at certain times of the day the hotel is overstaffed, and at other times

understaffed.

- Trying a more flexible shift-based approach that allows agility and use of staff
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when needed for specific purposes saves time, resources while maximizing the profits.
 How Hotels Can Increase Profits And Decrease Expenses Without Adding Any Revenue Centers
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Reducing marketing costs;

- Paid marketing is not always a guarantee of garner more results.

- Marketing can be made on free channels.

- Creating quality content and building strong social media following without investing a

large budget.

- A lot of progress can be made on various social media platforms without spending money.
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16 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Finding use for underutilized spaces;

-Those free spaces in the hotel can be used for revenue purposes.

- It does not have to be anything permanent, e.g., creating a temporary

massage area, a cooking class or an exercise class,.

- This will encourage guests at the hotel to spend a little more than they had
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planned to.
17 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Capitalizing on the food and beverage department;

- Taking note of how much food is actually needed.

- For example if plates consistently come back with food left on them

with a complaint about the quality then it’s likely portion sizes on the plate

should be reduced and less stock ordered.

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- Emphasis should be on quality rather than quantity.

18 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Developing the staff to deliver quality service;

- Empowering employees, encouraging teamwork and

training them for technical and customer care skills are some

ways of developing people to offer quality services.

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- Quality services are incentives for increased profits.

19 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Save on furniture and fixtures;

- Many furniture suppliers have bulk deals and packages that are cheap.

- The cost of buying custom and unique furniture design could outweigh the

benefits.

- when buying these furniture the hotel should who their target market is to

avoid buying unnecessary expensive fixtures. 04/19/2021

20 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Optimizing role requirements;

- More attention should be given on efficiency.

- for example a room has been used for half a day won’t require as much

cleaning or preparation time as a room that has been occupied for a week.

- through this, the staff can get more done, quickly.

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21 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Constant maintenance of hotel equipment;

- Maintaining equipment will minimize energy consumption,

extend systems life, and reduce the likelihood of breakdowns.

- System breakdowns and equipment replacement can be costly

to the hotel, inconvenient to guests who might not return.

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22 How Hotels Can Increase Profits And Decrease Expenses

Without Adding Any Revenue Centers

Focusing on the guest experience;

 

-Hotels need to know their guests and use this knowledge to deliver

personalized experiences, achieving this will make them come back.

- collecting and analyzing guest feedback, and making it easy for them to

leave a review will help the hotel improve on the quality of services. (Net, 2020)
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23 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Being flexible and ready to adjust;

- In the hospitality industry cancellations happen frequently, the hotel

should be prepared for such scenarios.

- to achieve this, the hotel should find out what makes it special to its
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guests, and what differentiates it from others. (He et al., 2019)

24 How Hotels Can Increase Profits And Decrease Expenses

Without Adding Any Revenue Centers

Utilizing Demand Forecasting;

- Demand forecasting enables the hotel to plan ahead and reflect on

pricing decisions in the future, learning from the past mistakes and

optimizing for the future.

-Demand forecasting enables the hotel to minimize unexpected

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surprises, thereby optimizing the hotel’s revenue potential.

25 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

Enforcing strict Cancellation Policies;

- High cancellation rates lead to losses, translating into lower profits.

- to prevent late cancellations is by getting more rigid with

cancellation policies, charging a fee for every cancellation will

discourage cancellations. 04/19/2021

26 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

 In the hospitality industry customer satisfaction is the most important thing that will

ensure consistent profits.

 The main challenge is maintaining the service while minimizing operational costs and

maximizing profits.

 Hotel industry keeps growing at a fast pace.

 Following the above tips and implementing new technologies can increase the profits and
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reduce the expenses.

27 How Hotels Can Increase Profits And Decrease Expenses Without

Adding Any Revenue Centers

References

Aznar, J. P., Sayeras, J. M., Rocafort, A., & Galiana, J. (2017). The irruption of Airbnb and its effects on hotel

profitability: An analysis of Barcelona’s hotel sector. Intangible Capital, 13(1), 147-159.

He, P., Qiu, Y., Wang, Y. D., Cobanoglu, C., Ciftci, O., & Liu, Z. (2019). Loss of profit in the hotel industry

of the United States due to climate change. Environmental Research Letters, 14(8), 084022.

Net, H. (2020). How To Increase Hotel Revenue? | By Bogdan Romashko – Hospitality Net. Hospitality Net.

Retrieved 27 November 2020, from https://www.hospitalitynet.org/opinion/4097601.html.

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