Productivity ‘bonus’ to fuel hotel sector fight-back

Jan 22, 09 | 1:55 am

A once-in-a-lifetime opportunity to increase productivity in hotels in Britain and across Europe by at least 15%, and up to 30%, is the unintended outcome of recession and will be the basis of a fight-back in the sector.

This view is expressed by Niels Pedersen, managing director for the 1150-member Supranational Hotels consortium, who identifies as a bonus the ability that many hotels now have to cut their costs of staff, energy, food, and maintenance and cleaning operations.

Pedersen argues that given severe competition, and therefore pressure on tariffs, hotels can plan and negotiate for lower costs and learn to work harder with fewer resources and people.  British hotels in particular are singled out for criticism for the bad habit of over-staffing for most jobs, in some cases with 60% more people compared to equivalent situations in other parts of the world.

Pedersen offers examples of best practice from which hotels generally can learn:

• Scandinavian hotels often aim to clean 17 bedrooms using one member of staff, twice the total in many UK hotels

• restaurants in French hotels operate with far fewer staff than elsewhere

• staff in American hotels display the most enterprising attitudes in selling to, and satisfying customers

• staff in the Far East instinctively deliver the most polite service

He comments, ‘there is a need for fewer, more experienced staff, employment based on actual workload not past practice, and the replacement of so-called marketing jobs by engaging all front-line staff in intelligent selling'.

Adds Pedersen, ‘it is time to turn the clock back to the innovative 70s and 80s with themed packages, special interest programmes, and initiatives targeting groups.  There is a need to re-learn how to graft to attract customers instead of relying on the policy typical of the last decade of simply waiting for guests to walk in through the front door'.

Hands-on role for hotel owners

A new hands-on role for the owners of hotels is also recommended in order that every client is micro-managed during their stay, and treated as if they were best friends.

Comments Pedersen, ‘as 20 years of overspending come to an end, demand will fall permanently as families return to one annual holiday plus a winter break, and companies seek to cut travel budgets by up to 20%.  The profligate old days are not coming back as financial crises involving pensions, and then medical costs, will follow the credit crunch, and consequently indulgent behaviour in hotels will become a rarity, except for special occasions.  It is therefore fortunate that productivity savings will enable hotels to keep afloat,' he says.

‘A new leaner marketing model for hotels will focus on electronic (GDS and dot.com) sources of bookings, and again value travel agents as allies.  It is unacceptable that fewer than half of hoteliers honour and pay their commission obligations, or even want to work with the trade,' adds Pedersen.

‘Reduced prices and fewer staff cannot result in a lowering of standards, and only efficiency measures can keep hotels profitable.  No management job title can any longer be seen as too important for the person to be asked to tackle any appropriate work that needs doing,' Pedersen argues.


About Supernational Hotels

• Supranational Hotels was launched 35 years ago and represents hotels in over 70 countries.  The brand is based in London

• Niels Pedersen can be contacted on 0207 357 0770, or via his mobile at any time, evenings included  (0776 890 8782)