Hotel operations outsourcing advantages and disadvantages

Hotels have extensive business operations: in addition to general business operations (taking bookings, checking in guests, cleaning rooms and preparing rentals), everything that needs to be done to make guests comfortable. But just like companies operating in other industries, hotels do not have to focus on all facets of business operations, and certain work and responsibilities can be outsourced to professional partners (hotel business operations outsourcing).

Outsource parts of hotel operations

There are many parts of hotel operations that can be outsourced :

• Manage hotel bookings including pricing and occupancy management: Bookings can come from multiple channels such as direct bookings (by phone or email), through online booking channels such as Booking.com, an in-house hotel website and even last minute booking websites and apps. For this, it is necessary to define a strategy: especially with regard to the prices of hotel rooms at the time of booking and at the time of booking. A strategy then also takes into account issues such as occupancy at the time of booking and how to handle special dates such as vacation periods, local events and national holidays. Also, bookings should be tracked in a central booking system and you should monitor occupancy on a daily or weekly basis and adjust prices as needed.
• Online hotel marketing: To receive online bookings, your hotel must be findable online. This requires online hotel marketing: providing your own hotel website, managing online booking channels, and general online marketing so that more potential guests want to book (attracting more online visitors so there is a higher chance the potential guests will make a booking).
• Hotel (online) reception service (online check-in and check-out operations, providing general information and speaking to guests in case of questions and problems): The reception service is the first real impression guests get of the hotel and its service level (although you can also say that the digital booking is the very first impression). A presentable front desk (receptionist(s)) is extremely important for the image and experience of the hotel. In addition, the reception should ensure that basic hotel processes are carried out such as hotel online check-in, check-out and mutations to bookings and reservations.
• Hotel cleaning: a clean hotel is the basis of good hotel service to hotel guests. Therefore, general areas and facilities must be cleaned and kept clean as well as guest rooms must be made clean and ready for use. Making rooms "ready for use" consists of details such as making sure the beds are nicely made and providing a basic supply (e.g. towels, tea, toilet paper). This includes directing the cleaning team so that a cleaner can be assigned every day (or when needed) and monitoring work and timekeeping.
• Hotel IT for computer and network management: nowadays, IT is a must in modern society. Guests therefore expect a reliable WiFi signal and perhaps even computers for general use. This also includes the need for computers for hotel operations.
• General hotel operations such as HR, payroll and accounting: these are general administrative issues that not only hotels have to deal with but all types of businesses. It is likely that a hotel does not know all the details of payroll (tracking and paying employees) because it requires a lot of knowledge.

Hotel operations outsourcing: advantages and disadvantages

The above facets of hotel operations can all be outsourced. In general, the following applies to hotel outsourcing:

• (Benefit) By outsourcing, the hotel outsourcing party can fully focus on the outsourced work and therefore do the job better. A hotel outsourcing party also usually has more knowledge of and experience with the service in question than the hotel.
• (Benefit) By outsourcing, a hotel can better focus on its core services so that these facets are also carried out: keeping customers happy by providing hospitality to guests.
• (Benefit) Because an outsourcing party is completely focused on a particular type of work, it can be relatively cheaper than a hotel doing the work itself.
• (Benefit) By outsourcing work, fixed labor costs can be reduced and operational costs are only increased a little at the time of real need. This avoids paying for permanent employees when you don't need them and perhaps paying more at peak times (if turnover justifies it).
• (Disadvantage) By outsourcing hotel work, a hotel loses some control over that work. As a result, negative consequences may be experienced: for example, if a hotel outsourcing party does poor work then hotel guests may suffer.
• (Disadvantage) By outsourcing hotel work, you hand over the work but retain final responsibility. Thus, a hotel must continue to monitor the work done and adjust the hotel outsourcing party if necessary.

BetterStays can take care of hotel operations such as hotel reception services and or manage hotel bookings and rates. Please feel free to contact us if you have any questions regarding our services.