Pros and Cons of Outsourcing Hotel Operations!

Jun 06,2019 by Prachi Priya

Companies of all streams look forward to outsourcing their services to reduce business costs and enhance efficiency. Law firms outsource bookkeeping, while other businesses outsource their customer support service for efficient results and same ways hotel operations need to be outsourced too.

Hotels generally avoid outsourcing their housekeeping and the front desk services, as these require direct contact to the customers where no risk is acceptable. Any impact on business reputation and revenue is very big and thus, outsourcing services with a strategy is essential.

Getting an outsourced partner for hotel services, businesses’ need to understand how an external partner can bring benefits to the hotel. Agreeing on it, outsource to a reputable partner so that trust issues are not a concern later. Hotel services can make or break your business, thus making sure that upgraded service reaches the customer is essential. 

Every company wants outsourced services for process enhancement and for your hotel, you can outsource laundry, pool maintenance, equipment maintenance, food service, PR and marketing of the hotel, revenue management service, IT, reservations, project management, operating supplies purchasing, help desk management, accounts, finance, etc. 

All these services can be outsourced keeping some guidelines in mind for effective outsourcing. Most likely, functions like concierge, housekeeping, front desk, switchboard operations, porters, etc. are not outsourced, as these require direct interactions with the customers and thus in-house staffs perform them.

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There are pros and cons to everything and the same is for outsourcing hotel operations. Check out as we collect the advantages and disadvantages of outsourcing hotel operations gets you:

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·       A check on business costs

The main advantage of outsourcing services is that it saves operational expenses, which the business can use later for development. The most often outsourced function in hotels is cleaning services, and outsourcing it, your business cuts cost by minimum 25% as the cost on hiring and training the staff for cleaning operations is no more the headache of in-house agents.

·       Enhanced quality

Hotel management responsibility is all about quality service and outsourcing helps hoteliers’ employ experienced partners to work for advanced quality service to the customers. Experts have the idea of the type of service and products a customer would expect, and thus making it available to boost experience is their motive. 

·       Technology

Hotels today are advance and high-tech technology helps customers get enhanced experiences. While booking a hotel room, what does a person imagine? Well, I think of a hotel with remote check-in, keyless entry, a room with automated functions for temperature/light settings, etc. Not all hotels have these upgraded tech-supported rooms as is unaffordable for most businesses.

However, after outsourcing, even start-ups get the opportunity to make their hotels advanced without maximizing the budget. Outsourcing services lower the cost of upgrading and developing functions, as there is no in-house need for hiring and training.

·       Be competitive

The business industry faces a huge challenge and to combat competitors, the help of outsourcing is necessary. Getting an external partner, a business saves time, effort, operational expenses and gets skilled workforce at business service.

When a service provider for hotel operations serves your business, enriched outputs is undisputable! Reduced costs with high-tech facility is accessible, helping the business earn brand image, as a skilled workforce looks after the business service. Moreover, the competitive edge escalates with an experienced partner at work!

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·       Data Security

Several companies provide a system for industrial grade security measures and hoteliers need to have this. Why so? Well, because businesses need to be cautious with the security of their essential data as data threat can be very dangerous for the business brand image. Especially, hoteliers need to pay special emphasis when it comes to customer data, as it is valuable.

Hoteliers generally select to outsource their guest data, as it is vital and needs high-security measures to be safe.

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·       Lack of control

It is hard to trust an external partner and not all hoteliers find it cool to outsource their operations. To avoid lack of business control on one’s own business, it is significant to outsource to a known partner or develop services in-house.

·       You outsourcer has many customers

The fact that you are not the only customer of your service provider; it is not surprising that you may not be their top priority always. The possibility of biases and late deliveries as the partner may be busy in some other tasks highlights the risk of conveying a negative impression to the customers. Therefore, outsource by checking that your partner does not have pending deliveries of other companies.

Bottom Line

When a hotel business takes outsourcing services, it enjoys numerous perquisites. Moreover, when the right functions are outsourced, it adds profits to the hotels’ portfolio. This is why outsourcing correct functions is essential to avoid hassles later. Additionally, it is important to remember that the good or bad experience of customers, affect the hotels’ brand image, so hiring a trusted partner is necessary.

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Randy Chorvack
Randy Chorvack

It’s awesome that you can cut costs by 25% when you outsource services. I want to save as much money as possible while still making my business successful. This will be a good way to do that.