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.
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.
One recommendation for Hotel Effectiveness to improve performance through technological innovations is to implement a workforce management software. This software can help optimize labor costs by accurately forecasting staffing needs based on occupancy data and historical trends. It can also automate scheduling processes and monitor real-time labor metrics such as overtime, ensuring that staffing levels are optimized and overtime is minimized.
The possible benefits of implementing a workforce management software include:
1. Reducing overtime costs: By accurately predicting staffing needs and streamlining scheduling processes, the hotel can minimize the need for overtime and its associated costs.
2. Improving labor productivity: The software can help identify areas where staffing levels are either excessive or inadequate, allowing the hotel to optimize labor allocation and improve overall productivity.
3. Enhancing guest satisfaction: With optimal staffing levels, the hotel can ensure that guests' needs are met promptly and efficiently, leading to higher guest satisfaction scores.
4. Streamlining administrative tasks: The software can automate time tracking, attendance management, and leave requests, reducing administrative burden and allowing the management team to focus on other critical areas.
5. Generating cost savings: By optimizing labor costs and improving productivity, the hotel can achieve cost savings, ultimately leading to improved gross operating profit margins.
One recommendation for Hotel Effectiveness to make use of technological innovations to deliver better performance is to implement an automated time and attendance system. This system can help address the issue of escalating overtime hours and tight labor market issues.
Automated time and attendance systems utilize biometric or RFID technology to accurately track employee working hours. With this system in place, employees can clock in and out using their fingerprints or ID cards, eliminating the need for manual timekeeping and reducing the likelihood of errors or fraud.
By implementing such a system, Hotel Effectiveness can benefit in several ways:
1. Improved labor cost control: The automated time and attendance system can provide real-time data on employee work hours, allowing managers to monitor and control overtime more effectively. This can help reduce labor costs by ensuring that overtime is only preapproved and necessary.
2. Enhanced employee scheduling: The system can provide valuable insights into employee availability and scheduling preferences, making it easier for managers to create efficient and fair schedules. This can contribute to better labor allocation and increased productivity.
3. Streamlined payroll process: A digital time and attendance system can integrate seamlessly with payroll software, automating the calculation of accurate wages based on actual hours worked. This can save time and reduce the likelihood of errors in payroll processing.
4. Compliance with labor regulations: By implementing a digital timekeeping system, Hotel Effectiveness can ensure compliance with labor laws and regulations regarding accurate record-keeping and overtime payment.
Overall, the implementation of an automated time and attendance system can help Hotel Effectiveness address labor cost challenges, improve scheduling efficiency, streamline payroll processes, and ensure compliance with labor regulations. This can lead to better financial performance by reducing overtime costs and improving workforce management.