One recommendation for Hotel Effectiveness to make use of technological innovations to deliver better performance is to implement an automated scheduling and workforce management system. This system would allow the hotel to optimize staffing levels based on occupancy and demand forecasts, reducing the need for overtime hours and labor costs.
The possible benefits of implementing this recommendation include:
1. Increased efficiency: The automated scheduling system would ensure that the right number of staff members are scheduled at the right times, minimizing overstaffing or understaffing situations.
2. Cost savings: By reducing overtime hours and optimizing labor costs, the hotel can improve gross operating profit (GOP) margins.
3. Improved employee satisfaction: By having a fair and efficient scheduling system in place, employees will have more predictable and balanced work schedules, leading to better job satisfaction and potentially reducing turnover rates.
4. Enhanced guest experience: With the right number of staff members available, the hotel can provide better service to guests, resulting in higher guest satisfaction and potentially increased revenue through repeat business and positive word-of-mouth referrals.
Hotel Effectiveness, a 120-room select service hotel with a strong ambience, was having issues with its gross operating profit (GOP) margins including overtime, labour costs and distribution expenses. Two years ago, the hotel began experiencing a steady escalation in overtime hours due to increased occupancy combined with tight labour market issues. The significant increase in hourly wages created a challenge—some roles were up by 25%+. And, guest collection and dropping costs at various locations have been on the rise due to rising fuel prices. All these cost increases posed a problem for the hotel’s management company. The staff comprises of 40 people, blending longtime employees with newer hires. The hotel has ten different job positions, including supervisory roles. Since opening 15 years ago, the hotel has welcomed a balanced mix of leisure and business travellers—with particularly healthy weekend bookings, which include room-only guests, and small groups for social events and sports teams.
Provide one (1) recommendation to Hotel Effectiveness on how they can make use of technological innovations to deliver better performance by the hotel.
Indicate the possible benefit that could be derived from your recommendation.
1 answer