One major trend is impacting revenue in 2023 – the rising cost of operations. Inflationary pressures have caused operational costs to increase, putting pressure on hotel asset managers to find ways to increase profitability. However, raising rates can only go so far in the face of increased competition and a price-sensitive consumer. As a result, operational efficiencies will lead the way in revenue trends for 2023. Asset managers must focus on implementing technologies that streamline operations and reduce costs, while still maintaining a high level of guest satisfaction.
One area where operational efficiencies can have a significant impact is in workforce management. By utilizing technology to automate and optimize staff workflows, hotels can reduce labor costs and improve productivity. This can include everything from automated staff scheduling to dynamic task assignments, which can save time and money and help to increase the asset value of the hotel.
Another area where hotels can implement operational efficiencies is in their F&B operations. Food and beverage can be a significant contributor to a hotel's revenue, but it can also be a drain on resources if not managed properly. By utilizing new strategies and tools, such as inventory management systems and menu engineering, hotels can streamline their F&B operations and increase profitability. For example, a hotel in New York City implemented a new menu engineering system that analyzed the profitability of each item on the menu and adjusted pricing and portions accordingly. This resulted in a 10% increase in revenue and a 5% decrease in food costs.
In addition to workforce management and F&B operations, technology can also play a role in optimizing other areas of hotel operations, such as housekeeping and maintenance. By implementing a housekeeping and maintenance system that automates staff workflows, hotels can improve productivity and reduce costs. For example, a hotel in Las Vegas implemented a new housekeeping and maintenance system that optimized the cleaning and maintenance schedule for each room based on occupancy and guest preferences. This resulted in a 20% reduction in labor costs and a 15% improvement in guest satisfaction scores.
Operational efficiencies will lead the way in revenue trends for 2023. Hotel asset managers must focus on implementing technologies that streamline operations and reduce costs while still maintaining a high level of guest satisfaction. Workforce management, F&B operations, housekeeping and maintenance, and guest services are all areas where technology can play a role in optimizing operations and increasing profitability. By embracing these trends and implementing innovative strategies, hotels can thrive in the face of rising operational costs and price-sensitive consumers.