Hotel Profit Leaks: Effectively Manage CAC and Employee Turnover
Many hoteliers only focus on what is in the hotel Profit & Loss statement. If an item has a cost attached to it, it could undoubtedly be scrutinized and cut. Managing costs in a hotel is the easiest job in the whole world. Once the costs are reasonably under control, the marginal impact of continuing to work on reducing costs is not making much sense. Additional cost-cutting will upset guests and employees, leading to bad guest reviews, fewer returning guests, lower productivity, and higher employee turnover. Once hoteliers have managed to balance costs in their hotels, the entire focus should be on the top line, where the hotel can potentially increase profits.