Smart hotels cost control ideas to save money

Inflation, labor issues, and rising costs to meet the demands of a tech-savvy, sophisticated guest experience. What is more important to hoteliers than the cost of their hotels and keeping their business afloat or reducing it? This topic is timely, as our industry faces an increasing number of challenges related to price.

As a management company, we can see that hoteliers face both challenges and opportunities. Prioritizing the right initiatives and taking appropriate action quickly is key. It is possible to reduce costs, but what impact does this have on your daily operations and your guests’ experience?

Do you want to know how cost issues can be turned into a competitive edge? Continue reading to learn how you can approach this complex issue.

What is cost control in a hotel?

In the hotel industry, we usually refer to cost control when we speak of the management of expenses and resource optimization. Hotels can achieve financial sustainability and profitability by managing costs diligently. The cost control challenges faced by hotels can differ depending on their location, market segment, and star rating, but they are generally the same. According to a study conducted by Statista recently, the hotel industry cites the economic climate as their next greatest challenge (48%), followed by the cost of hiring and retaining staff (43%) and staff acquisition and retention (43%).

You must follow a well-structured approach to help make informed decisions.

Identifying expenses: All hotel expenses are identified and classified.

Benchmarking: allows you to compare your results with other hotels of similar quality.

Analyzing expenses: Identifying anomalies that need further review.

Cost-savings Measures: Cost-savings measures are implemented based on the analysis in areas where the costs can be reduced while maintaining the quality of the service.

Monitoring Hotel Expenses: The hotel expenses are constantly monitored to ensure cost-saving measures work.

Why is cost control so important for hotels?

The best control of costs is essential to a hotel’s profitability and sustainability. There are many factors to consider in order to achieve the best results.

ProfitabilityHotels, like all businesses, are in business to make money. Hotels can increase their bottom line by controlling their costs.

Competitive advantage: Controlling costs can give hotels a competitive edge. Hotels can lower their costs and offer more affordable rates, which will allow them to attract budget-conscious guests. It can help attract more guests to the hotel and make it more competitive with other hotels.

Sustainability By reducing waste and conserving resources, hotels can operate more sustainably and reduce their impact on the environment. It can attract guests who are eco-conscious and choose to stay in hotels that emphasize sustainability.

Operational Efficient: By eliminating unneeded expenses and streamlining procedures, hotels can improve operational efficiency and offer better service to their guests.

Cost control is a key aspect of hotel management that allows hotels to be competitive.

Discover the hidden revenue potential in your hotel or resort.

Investing in the Right Tech Stack

Hotels should consider investing in a technology stack that is focused on streamlining processes and reducing costs while managing guest data.

Many hotels are falling behind in technology investment despite the rapid digital growth that has been seen across other industries. ( McKinsey). This reliance on outdated systems and software can lead to errors, inefficiency, and a poor guest experience. This puts hotels at a competitive disadvantage when compared with other businesses that have adopted technology. It also does not cater to today’s digitally savvy travelers.

Hotels can improve their performance by investing in technology. They should focus on the right priorities and reduce operational inefficiencies while enhancing guest experiences. Here are some examples of how hotels can improve their performance.

Front Office

A good technology stack will reduce inefficiencies at the hotel front desk and accelerate operational processes. Automating tasks like check-in, checkout, room assignment, and payment processing can help streamline front desk operations and reduce wait times.

With a Property Management System (PMS), for example, hotels can manage front desk operations through a single interface. This reduces the need to enter data manually and reduces the risk of error. A good PMS will automate tasks such as inventory management and room assignment to reduce the workload of front desk staff.


Hotels can collect and store data on guests from any distribution channel by using the right marketing tools. These data include booking histories, guest feedback, and preferences. They can be used for personalizing the guest experience and offering targeted promotions. Hotels will be unable to make informed decisions without this data. This will result in lost revenue.


Investing in technology to streamline housekeeping will allow hotels to automate tasks like room assignments, cleaning schedules, and inventory management. These technologies can help hotels reduce costs by improving cleaning efficiency and ensuring that rooms are ready on time.

Rethink your marketing strategy

By adopting a data-first approach, hotels can reinvent their marketing strategies and build sophisticated tools that will help them make better decisions. The right system can help hotels get their fair share of revenue from direct bookings and gain valuable data about their guests that will allow them to improve their strategy.

Hotels can learn more about their guests’ behavior and preferences by gathering and analyzing data from different sources. The data can then be used to create marketing campaigns that are tailored to their audience and encourage high-value bookings. Here are some examples:

Better Loyalty Programmes: By tracking guests’ preferences and activity, hotels can offer rewards like discounts, free upgrades to rooms, or exclusive access to events.

Improve Email Marketing Campaigns: By segmenting guests according to factors like booking history, preferences, and interests, hotels are able to create offers and promotions that are more likely to drive bookings.

Turn More Feedback into Actionable Insights: Hotels can send automated feedback forms and surveys to guests following their stay. This helps to collect valuable feedback and insight on guest satisfaction.

Cross-Selling and Upselling: track guest preferences and booking histories, allowing hotels the opportunity to make personalized cross-sell and upsell offers. A guest who has previously visited the spa can be targeted to receive a discount or a special offer. This type of personalization is what can make or ruin an email campaign.

Content management: maintaining the momentum in marketing is important. Hotels can maintain momentum by using tools that help them create high-quality and relevant content faster. These tools include suggesting topics and keywords and helping with copywriting.

Reengagement Campaigns Last but not least, a CRM is a great tool to identify past guests who haven’t booked for a long time and create reengagement campaigns that will bring them back. Hotels can encourage past guests to book again by offering them personalized incentives and promotions. Offer something unique or extra to drive interest and engagement to enable them to return.

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