Operations Management in the Hospitality Industry: Managing Costs and Maintaining Quality

How to Manage Costs & Maintaining Costs with Effective Operations Management

Managing the operations of a hotel is a complex area that can have a significant impact on the success and profitability of the property. Successful operations management in the hospitality industry requires successfully balancing growth and profitability with delivering on promises and maintaining quality standards across the board. Clearly, the latter area is something that has a significant impact on the long-term success of the hotel.

Managing Costs

Managing costs is always a great area of concern to a hotel, but it can often be a mistake to simply take the approach of trying to reduce operational costs at every opportunity. While reducing costs may improve profitability over the short-term, the long-term negative repercussions can often far outweigh the initial savings.

For instance, a recent article by TFG Asset Management gave the example of salary reduction. While reducing staff pay may improve the bottom-line yield, the action is likely to significantly demotivate staff and mean that service levels are reduced, thereby resulting in a poorer guest experience. This may significantly harm long-term profits because guests will not want to keep coming back to a hotel that provides a low level of service, while recruitment costs may rise as staff become less loyal to the hotel and begin to leave the organisation. Managing costs effectively is a key challenge in operations management in the hospitality industry.

In addition, it is important to recognise that reducing costs often requires a short-term investment for longer-term benefits. As an example, taking the decision to refurbish a hotel and bring it up-to-date will require significant initial expenditure but may be repaid massively over future years as the hotel is made significantly more attractive in the marketplace.

In short, cutting costs may actually have a negative impact on the bottom line. It is extremely important to measure the impact of any action and look at the consequences it will have over the long-term.

Maintaining Quality Standards

As we have already discussed, balancing costs while also maintaining quality standards is a constant challenge for any hotel. It is important to operate efficiently – but that shouldn’t be to the detriment of guest experience. In order to be successful over the long-term, a hotel needs to work hard to maintain consistent quality standards.

When it comes to delivering high standards of service and ensuring guest satisfaction, one of the most important factors is the quality of staff that are recruited into the hotel. Successful operations management in the hospitality industry requires a strong management team, with clear leadership, a carefully planned organisation structure and well-defined roles. There should also be an effective and thorough recruitment strategy in place to ensure that the right people are recruited into each role, with enough time allocated to finding and choosing suitable candidates.

In addition, it is important to invest in the training and development of staff. This can help greatly towards ensuring that high quality service levels are consistently delivered, while also helping to increase staff loyalty and meaning that team members are less likely to leave the hotel and seek employment elsewhere. It is also important to ensure that staff are looked after and rewarded in the best possible way, with each team member being made to feel valued and appropriately rewarded. This is vital in ensuring loyalty and commitment over the long-term.

Managing Operational Changes

Successful operations management in the hospitality industry requires the hotel to constantly monitor and improve operations over time. Where operational changes are required, these should be carefully managed and implemented with a clear goal in mind, with enough time being allocated to the program. Relevant staff members should be involved in the development and implementation of practices as much as possible in order to ensure that they are rolled out effectively.


Five Innovative Ways Hospitality Businesses Are Using Video Content

When you work in the busy world of hospitality, it can be difficult to find the time to update your social media accounts with much more than pretty pictures of food.

However, if you’re not already using video content, you probably should be! Check out this infographic from Hubspot which points out that video in email can lead to a 200-300% increase in click-through rate, as well as increasing conversion by 80% on a landing page!

The stats really add up, and if you get it right, the results from video content can be extraordinary!

Here are five examples of great ways in which businesses in the hospitality sector can utilise video content to their advantage,

Testimonial Interviews

Testimonial interviews are a great way to tap into the power of influencers and get some great brand advocacy.

While it’s great to get some big names to feature in your testimonials, it’s not crucial.

Local food bloggers can be a great way to get your business out in front of a new audience, or you could even just use some satisfied customers/clients!

Make sure to pick people who genuinely love your business so that their comments are real, and actually hold some weight, and be sure to keep things short and snappy too!

‘Making Of’ Videos

One of the best ways to show off your products and services is with a behind the scenes ‘making of’ video.

Especially in the world of online, it’s important to give your potential customers as much insight as possible and help to familiarise them with your brand.

Show off how you craft one of your signature dishes and show off what you do to give it that extra touch!

Promote an Event

If you’re planning to hold an event, try to extend your reach beyond just the people who can attend in person by taking things online.

For example, you could livestream the event, or maybe even just create a highlights video, such as this example by Sound & Colour for Northern Restaurant & Bar.

This is a great way to get the event in front of as many people as possible, create a buzz of social engagement, and hopefully get more people involved with your next one!

Create a GIF

Sometimes, the hassle of filming and editing video can be a bit much, so why not try creating a GIF instead?

For an idea of how simple and easy recipe GIFs and can be, check out this post!

There are plenty of websites which allow you to make GIFs for free such as Giphy and GIFMaker.me.

GIF are extremely popular at the moment and get great engagement, without having to put as much time and money in as proper videos.

‘Thank You’ Videos

Video can also be a great way to show your clients and customers that you appreciate their custom and give a glimpse behind the scenes at your business.

Customers always like to have a ‘peek behind the curtain’, as it makes your business seem a lot more authentic and open, creating a nice bond between them and the business.

They can also help to convey the personality and passion of your staff, reinforcing to your customers that they’re going to get great service.

Snapchat and Instagram stories are a great way to create these short behind the scenes ‘thank you’s.