How to prevent revenue leakage effectively with Hotel Management Software?
Enhancing business is the surest way to generate revenue, but it will be of no use if you don't oversee your hotel's operational cost spent on a daily basis.
Revenue leakage is not a new issue; it is the perennial problem, hoteliers, in general, are experiencing over decades!
Revenue Leakage and its impact on your hotel business
Revenue leakage occurs when your hotel loses revenue unintentionally because of improper management, staff errors, or lack of awareness towards the resulting disadvantage.
Majority of this happens due to lack of communication between your hotel staff, improper maintenance of stocks, and increased competition.
Overseeing these can cause a serious problem for your hotel, and it negatively affects your hotel’s revenue performance.
However, with stringent and efficient Hotel Management Software, you can track your operational performance and reduce revenue losses in a few operational areas.
Prevent Revenue Leakage using Hotel Management Software!
Here, we’ve covered places where hotels can reduce revenue leakages using hotel management software.
- Stringent Stock maintenance
- Less investment in Staff
- Fixing the right prices
1. Stringent stock maintenance
This is where most of the pilferage happens, and this is where the scrutiny should be high. Think for a second, a low reduced level in the stock can go unnoticed for a long time. At first, these can be viewed as less harmful for your hotel business. However, in the long run, these little amounts can cause a major financial loss to your hotel.
Hotel Management Software helps you in keeping track of your hotel stock operations and stock values on a daily basis. Thus, giving no room for pilferage!
Not only in preventing staff pilferage, but it can also help you with many other things. A right hotel management software can give you a detailed report of item-wise analysis, Last GRN (Goods Received Note) rates, and supplier-wise analysis. This helps you to reduce the cost spent on unwanted stocks/items and help you buy items at the best prices, which help you increase your hotel revenue.
2. Less investment in staff
Hotel management software can help you in two ways,
- Managing your staff better
- Reducing your dependency on staff
It is vital to track the performance of your staff which helps you analyze how effective they are and their performance. Not only confined to this but with the right hotel management software, you can also identify the individual staff’s work productivity and know who is doing the job. It helps you assess whether your hotel employees are underutilized and overutilized.
Moreover, it also assists you in providing role-based access. With such options, it becomes quite easier for you to keep sensitive information safe, and if things go wrong, it would be easier to identify the staff based on their access patterns.
Apart from this, the right hotel management software automates most of your hotel operations, which ultimately reduces the cost spent on human resources. As most of the operational works are carried out by the software, you can save a lot of amount in human resources.
3. Fixing the right prices based on the market
Fixing the right prices for your hotel rooms is imperative to stay competitive in the market. Even distributing your hotel rooms in other booking channels require you to measure the impacts.
Hotel Management Software, in-sync with Channel Manager, helps you in identifying the best booking channels that work for you and similarly channels that are not pouring the system with enough bookings. This helps you stop promoting your hotel on the wrong channel and in the wrong market. Plus, it also helps you in finding the best market prices.
Another strategy that makes you competitive in the crowded marketplace is competitor room pricing analysis. Using distribution channels, you can view your competitor’s pricing, which helps you in devising an affordable pricing model. Offering rooms below your competitor rate can increase your bookings and also help you in driving direct bookings.
4. Food Waste
Food Waste is very common in the hospitality industry. Controlling food waste can boost your hotel’s bottom line. You can control these food wastages with the help of Hotel Management Software and staff. Few Hotel Management Software provides you with a wastage entry option, which lets you update the daily food wastage. It brings awareness among your staff that how much food gets wasted per day and helps you to devise actionable plans to control it.
Is your electricity invoice soaring high? It is one of the other such places where revenue leakage occurs. Electrical devices left operating even after the guest leaves the room/other looby spaces can end up in revenue leakage.
Integrating a sensible power administration system or leveraging IoT technology can help hotels in saving power consumption bills. With the help of these systems, the electrical devices turn-off when guests leave the place. One step ahead, IoT devices will opt-in based on the outside climate and guests’ body temperatures. For example, the light will go dim on the day time automatically and gets brighter during nights.
Moreover, these systems with instructions applied will turn on particular electrical devices by identifying the access. Just think, the housekeeping staff enters the room. Automatically, all the lights in the room and other devices like AC and Refrigerator turn on. In such cases, turning-off the unwanted devices can help you save a significant amount in energy bills. With these devices, you can apply instructions to operate specific devices while the staff enters.
Therefore, integrated with Hotel HMS, these systems can save you in energy bills and help you control energy consumption.