7 Effective Hotel Cost-Cutting Tips to Survive a Pandemic

7 Effective Hotel Cost-Cutting Tips to Survive a Pandemic
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The number of people affected by COVID-19 is increasing everyday. More people are scared to leave their homes, thus, the hospitality industry is suffering greatly. But the industry has been through this before, during the SARS outbreak in 2003, and hotels that made strategic decisions survived the crisis.

During this pandemic, all we can do to rise above it is to stand together. With that, ZEN Rooms is sharing tips on how you can cut costs in your hotel so your business won’t be as affected at this time. However, if you need an immediate and long-term solution, click here to talk to a ZEN Rooms Business Development Manager today.

Here’s what you can do immediately in your hotel to cut costs in the midst of COVID-19:

Cost-saving initiatives you can do today

hotel staff fixing the bed

1. Plan room assignments

If you have multiple floors in your hotel, choose the floor which has the most booked room types. Accommodating all guests in nearby rooms makes it possible to close down floors temporarily and reduce manpower assignment, electricity consumption etc.

2. Reduce consumption

In the morning, open your windows and make use of natural light instead of bulbs. Switch off the air conditioner and other equipment at night, or in areas with low foot traffic. You can also go paperless, and only print forms and reports that are strictly necessary. Aside from saving costs, you’re also helping save the environment. 

3. Review expenses and contracts with suppliers

Look for suppliers who can provide more convenient prices, or sit down with them to renegotiate clauses for more convenient terms. Many suppliers can be understanding and extend a discount for the time of crises. 

4. Reduce the complimentary items you provide

Only provide the linen items that are strictly necessary for your guest’s comfort. For example, you can remove all the hand towels you provide in each room, and give them only to guests who ask. This way,you limit your costs on laundry. 

5. Adjust your staff’s working schedule

Reduce the number of staff on duty during night shift to avoid the additional expense of night differential, and keep overtime to a minimum. For example, your managers and supervisors can assist at the front desk or take up other tasks instead of having someone else stay after the end of their standard working hours. Maximize your employees’ time while occupancy is low by asking them to clear any unused leaves. 

6. Look for extra sources of revenue

For example, vending machines can be installed in the property on a profit sharing model. The expense to operate them is close to zero, and they even provide a better experience to guests.

7. Prepare for the future

Emergencies don’t last forever, so it’s the perfect time to focus on repairs and maintenance projects while occupancy is low. Preventive maintenance of equipment is also essential to avoid unexpected big expenses because something suddenly breaks down and needs to be replaced, or higher energy consumption caused by defective items.

If you need professional advice on how you can sustain your hotel business amidst this pandemic, you may reach out to us at any time. Click here to talk to a Senior Business Development Manager today. 

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