Profit Boost blog
Tactics, numbers, and quick wins for hotel operators.
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Cutting 29% of marketing spend without losing results
A regional hotel chain was spending well above benchmark on marketing with no review of what it returned. Pulling back the spend that was not working saved $82,500 a year, a 29% reduction.
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$29,000 off the insurance bill in three months
A hotel chain’s insurance premiums were rising every year with no real review. A thorough tender process cut the premium 11%, saving $29,000 a year, and it took just three months.
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A reservations fix worth $205,000 a year
Revenue growth was slipping across a regional hotel chain. Rebuilding the reservations process secured an extra $205,000 a year, after the cost of the changes.
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The pricing gap costing a caravan park $56,500 a year
A large regional caravan park was undercharging on several products. Correcting the pricing lifted revenue in those areas 9%, an extra $56,500 a year.
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Winning back $11,500 in OTA commissions with direct bookings
Too much of the business at a regional hotel with more than 50 rooms ran through online travel agents. Targeted changes to drive direct bookings cut commission spend 13%, worth $11,500 a year.
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The over-staffed maintenance team, and the $41,500 fix
A city hotel with more than 70 rooms was carrying far too much maintenance labour for its size. Reworking the structure and task allocation lifted efficiency 18.4% and saved $41,500 a year.
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A linen rethink worth $23,200 a year
Linen costs at a regional leisure property with more than 60 rooms had climbed two years running. A tighter linen structure and a target cost brought them back 16%, saving $23,200 a year.
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How we saved $72,000 on housekeeping without dropping standards
Housekeeping wages at a regional hotel with more than 80 rooms were sitting above benchmark. A new cleaning schedule and clear target times made the team 8.6% more efficient and saved $72,000 in a year.
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From a $362,000 loss to $223,000 profit: a city hotel F&B turnaround
A capital city hotel with more than 100 rooms was losing over $362,000 a year in food and beverage. Within two years we had the department running at $223,000 profit, a $585,000 turnaround. Here is how it happened, line by line.