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Common Inefficiencies in the Hotel Industry & How to Fix Them

Posted by Lauren Christin on Apr 1, 2015 7:00:00 AM

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Increase Profits by Investigating These Common Hospitality Operating Inefficiencies

Hotel operators are constantly monitoring a variety of metrics to ensure that guests are satisfied, and their hotels remain profitable. There’s a huge variety of useful data that can help an operator run their properties more efficiently but it can be difficult to sort through all of the information. To begin, operators can focus on eliminating operational efficiencies in loss prevention, their food and beverage departments, and liability claims.

Loss prevention in the hospitality industry

It’s easy for guests to bring home a piece of their hotel stay with them, but all of those stolen linens add up over time. The American Hotel & Lodging Association estimated that theft adds an additional $100 million per year to the operating budgets of hotels across the country.

According to Forbes, the most commonly stolen items from luxury hotel rooms include towels, umbrellas, slippers, and other linens. But, occasionally, the thefts become a bit more unique. Yahoo Travel also detailed a list of unique items that guests have stolen from hotels around the world, including a prized Andy Warhol painting from a room in Hong Kong, and a minibar fridge at a 5-star hotel in Dubai. Yes, the entire fridge.

Some hotels have even started installing tiny tracking devices in their linens to monitor theft.

Use video surveillance to monitor common areas and prevent theft

Common areas, like dining rooms, are another prime area where a hotel’s inventory can be taken. Video surveillance in these areas can help operators track and reduce thefts of linens and cutlery, and can also monitor how food and alcohol are consumed.

Optimize food and beverage operations

In many hotels, food and beverage sales account for anywhere from 10% to 20% of total profits (rooms usually fall into the 60% to 80% range.) It’s a large enough chunk to make maximizing efforts here worth consideration. While maintenance of rooms in a building will be fairly consistent over time, the food and beverage department is constantly changing and evolving.

Use analytics gleaned from video and audio surveillance of a property’s kitchen, bar, and dining room to identify places for improvement and innovation. Are tables turned over quickly? Are guests satisfied? Do certain diners return regularly? Use this helpful information to get the most from food and beverage sales.

Prevent and investigate liability claims

Hospitality operators are always looking to prevent liability claims on their premises. This isn’t just about preventing slips or falls- if a guest experiences a theft or loss, the hotel could be held accountable. Legally, the litmus is generally whether or not the hotel provided “reasonable care” to prevent theft. It’s often difficult to establish negligence in cases like these, but why take the risk? Cloud-based video surveillance not only proves that you provided “reasonable care” to protect guests and their belongings, but it can also be a useful tool to investigate claims of theft and improve operations standards and property performance.

Deliver customer-focused, exceptional hospitality to drive profits

Beyond data, one of the most effective ways to increase hotel profits is to ensure that all guests are treated to an excellent experience. Using strategic data and niche security systems will help you eradicate operational inefficiencies, but guest satisfaction is one data point that, when done right, will continuously lead to better brand awareness and higher profitability.

Topics: Hospitality

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Envysion is a leading provider of cloud-based video driven business intelligence that helps companies deliver on their brand promise. At Envysion, we marry operational, financial and employee metrics together with video and sophisticated analytics and make it easy-to-use and accessible, offering visibility into every store…every location…every day…from anywhere.

Lauren Christin

Lauren Christin

Manager, National Accounts, Envysion

Lauren is responsible for assisting Envysion retail customers recognize greater operational efficiency and reduce loss through the use of video intelligence. She has assisted many clients in streamlining processes by using all components of the Envysion solution. Lauren has held senior sales roles at BroadVision, Oracle and MCI. She earned her Bachelor of Science in Finance from St. Joseph’s University and her MBA from University of Connecticut.

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