Recession 2023?

6 Ways to Reduce Costs for Hotels

By Jeff Aguiar| 12-6-22: The US economy is entering a period of heightened uncertainty as it faces the prospect of a recession. With inflation already at high levels, a recession could have serious consequences for businesses and individuals alike. Businesses will likely feel the pinch of a recession before other sectors, with reduced access to credit and falling consumer demand causing economic contraction. Many sectors, such as hospitality and travel, will be particularly hard hit. Hotels may find themselves in a difficult position as they face increased costs while simultaneously facing reduced occupancy rates.

Fortunately, there are ways for hotels to reduce costs during this tumultuous period. Here are six tips for reducing costs:

1. Reduce cost and leverage technology: Software solutions like Aavgo help hotels reduce expenses. Aavgo Kiosk services help hotels streamline operations by reducing staff or automating mundane tasks. By leveraging technology, hotels can reduce costs without sacrificing the quality of service. Did you know that labor is the highest operating cost for hotels? The Aavgo360 platform is manned by a Certified Front Desk agent that handles all of the tasks that your onsite agents do today at a fraction of the cost. With Aavgo360, your guests will enjoy reduced time at check-in, pay with a credit card or cash, be offered to sign up for rewards, and allows guests to retrieve their room key if they use Aavgo mobile app, which is included for check-in. They can quickly retrieve their room key via QR Code, plus the added bonus of providing are contactless interactions.
2. Stay on top of Preventative Maintenance: If you are looking for ways to save costs, increase the efficiency and productivity of your hotel employees, and get valuable insights into day-to-day operations, the Aavgo360 (included with the kiosk) is what your hotel needs. Our comprehensive reporting and analytics platform is the answer. Through detailed data analysis, you can leverage existing resources more effectively and better understand how to optimize operations. Get actionable insights so you can make smarter decisions and reduce operational costs. Our platform allows your hotel to maximize its performance and profits without compromising quality.
3. Take advantage of technology to streamline Housekeeping: The Aavgo360 Ops software also allows housekeepers to use their devices to work on their room assignments, report maintenance issues, register lost and found items, and chat with other staff.
4. Cross-train your staff: You should always equip staff with the necessary skills to perform tasks outside their day-to-day job functions. With Aavgo360 you now have the tools that will allow staff to lend a hand to other departments during any downtime they may have.
5. Invest in energy-efficient initiatives: Hotels should consider ways to reduce their energy consumption, such as using LED lighting or installing solar panels. These investments will pay off by reducing energy costs over time. Switch to LED lighting: LED lighting is one of today’s most energy-efficient and rapidly developing lighting technologies. Energy.gov states LED bulbs use at least 75% less energy and last 25 times longer than incandescent bulbs.
6. Make strategic marketing decisions: Hotels should carefully consider their marketing and advertising spending to target the right customers and get the best return on investment.

Hotels can reduce costs and stay afloat during economic uncertainty by taking steps such as these. Additionally, these tips can help hotels become more efficient and profitable in the long run. With Aavgo360, hotels can save costs, increase efficiency and productivity, and get valuable insights into day-to-day operations. Unlock the potential of your hotels and start saving money today!

Aavgo’s Virtual Front Desk: Brings technology & automation to hospitality
Aavgo is a cloud-based SaaS technology company that offers solutions that directly impact hotels’ overall efficiency of operations, customer experience, and profitability. For more information about Aavgo’s Virtual Front Desk, please contact our experts by phone: 1-888-932-2486 or via email: info@aavgo.com.

(Note: Jeff Aguiar is the Vice President of Partnerships and Business Development at Aavgo.)