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8 Ways to Reduce Expenses and Streamline Your Hotel’s Housekeeping and Laundry Departments
publication date: Feb 17, 2016
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author/source: Amy Bair, Business Process Excellence
An article came out yesterday that warns business travelers to watch out for an impending hotel crisis. The author mentions several large hotels that have in the recent past run into challenges. “Radisson guests were turned out into the New Hampshire winter one February morning when the then-owner abruptly shuttered the property as a negotiating ploy.” 1 He feels the situation will get worse next year. It is “estimated that $21.7 billion in mortgage-backed securities on 232 hotels come due in the next 12 months. Robert Sonnenblick, a hotel developer, suggested that only about a third of that amount will be successfully refinanced. “You’re going to see a huge increase of hotel foreclosures,” he predicted. It is “going to be a close-to-catastrophic problem.” 1 Switching gears a little now. I am currently working with a hotel that wants to streamline their housekeeping and laundry processes. There is no real system in place. No method being followed. The linen is not dropped as early as needed. There is no continuity to how carts are stocked. No specific order for how rooms are cleaned so some housekeepers finish later than others. Etc. I see an opportunity here. Foreclosure is not an option! Instead, we’re going to increase efficiency, cut out unnecessary expenses and find creative ways to draw in customers. Phew! Off my soapbox now. 8 Ways to Reduce Expenses and Streamline Your Hotel’s Housekeeping and Laundry Departments Below are a few of my housekeeping/laundry department recommendations for those of you who are determined to keep your doors open. Housekeeping department tips
In regards to the laundry department, consider the following ideas:
Have you considered outsourcing your housekeeping? A major advantage is the monetary savings. In the article I reference, a hotel realized a 25% savings in labor costs after switching that department to a staffing company. Additionally, since housekeeping has such a high turnover rate the dollars spent in recruiting and training have been saved. 4 What are the disadvantages? There may not be any continuity in who shows up to clean your rooms. This means a new person could miss a task you consider absolutely essential. Additionally, you don’t know the people coming in. How stringently does the staffing company check the background of those they hire? Look at it from this perspective. Consider the core competencies of your hotel. What do you want your hotel to be known for? If perfection in cleanliness is top on your list then consider keeping housekeeping in-house. Instead, what else can you outsource? Payroll or accounts receivables? Maintenance? Banquet staff? As you can see, with some creative thinking, process efficiency and improvement can be effectively implemented in many areas of your hotel. A few simple changes can reduce your expenses which will keep your doors open longer. Good luck and let me know how you do. How has your hotel used process improvement to reduce expenses?
♦♦♦♦♦♦♦♦♦♦♦♦ Amy Bair is an expert in hotel process improvement. Her specialty is helping hotels improve their scores, increase their revenue and reduce their expenses. Learn more about the services she offers and download her free report “5 Top Ways Hotels Can Increase Revenue and Improve Customer Satisfaction” at www.bpenow.com. |
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