If the pandemic taught us anything, especially prior to JobKeeper and its subsequent variations, it was finding ways to stretch our budgets further to make ends meet more efficiently.
Some found it more difficult than others, evidenced by the glut of mothballed properties opting to simply go dark during the worst days of the crisis and its imposing lockdowns, and to emerge at the other end bright and eager to welcome guests back.
Saving money where possible is never a bad way to go but for a hotel operator, it must be done carefully to ensure supply of essential goods and services is maintained and the overall guest experience is not adversely affected. Careless cuts can have consequences, whether that’s the lights going out, food deliveries not turning up as they once did, cleaning schedules not maintained and various other facets nobody dares to dream about, for nothing less than the reputational damage it would do, let alone the financial impost of restoration and recovery.
Major hotel brands are highly cognizant of the financial worries of its owners, members and franchisees, responding with a variety of cost-saving measures and advice on efficiencies that could be gained to improve performance while keeping the budget under control.
In recent years, rising inflations and the rising cost of living and operating has seen the industry ramp up these efforts with new bulk-purchase arrangements with suppliers and wholesalers to be passed on within the group.
One hotel operator, BWH Hotel Group, working with their Facilities Management Partner QSEC Group, has introduced bulk-purchase deals on electricity, gas and insurance, available for franchise members to subscribe and enjoy associated savings of as much as 15-20% per year compared to an individual business account. Further benefits include an opportunity for hotels to reduce their carbon footprint, as alignment with these wholesale deals contribute to the attainment of four-star Green Star Ratings and five-star NABERS ratings in energy efficiency.
BWH Managing Director Australasia, Graham Perry, said the initial focus on electricity has been welcomed and endorsed by franchisees across the board, with encouragement to explore further group savings on other services and utilities.
“These new services are optional – not mandated, so not all our hotels participate although more than 50% do depending on the initiative,” Perry said.
“These cost saving measures, that are being provided at no additional cost to hotels, provide significant added value and are being welcomed by existing and prospect hotels alike. They are available to all hoteliers and provide literally hundreds of thousands of dollars in savings depending on the initiative.”
BWH isn’t stopping there. In 2022, the hotel group will introduce initiatives for hoteliers to subscribe to including group discounts on laundry services, cleaning, waste management, merchant fees, uniforms, repairs and maintenance and staffing costs. The initiatives are expected to help hoteliers loosen their proverbial belts just a little bit and improve the overall bottom line, which in turn will lead to better experiences for their guests.