Part III · Diagnose And Protect Performance
Chapter 11Analyse Costs Without Simply Cutting Them
Judge costs against workload, unit economics, productivity and service requirements so that cost action does not become blind cost cutting.
Questions this chapter helps answer
- How can a hotel cost rise while efficiency actually improves?
- Why should total cost be tested against workload, cost per unit, productivity, and service requirements before cutting it?
- How should occupied rooms, covers, staff hours, utility consumption, and other drivers be used to judge whether a cost movement is reasonable?
Key concepts
- cost efficiency
- cost per unit
- cost per occupied room
- payroll productivity
- workload
- service standards
- utilities
- F&B cost
- cost action
Judge costs against workload, unit economics, productivity and service requirements so that cost action does not become blind cost cutting.
Chapter-end learning
Apply, check, and remember
Apply it to your situation
Connect the chapter to a real hotel decision
As you answer, think about where this issue appears in your own property, team, report, meeting, or control process. Work through one item at a time, check the result, and then continue.
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Memory practice
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Continue the discussion
Share how this applies in practice
Total cost and efficiency can move in different directions.
Laundry expense is higher than last year, but occupied rooms are much higher and cost per occupied room is lower. What should the owner conclude?
Check unit cost, volume, supplier price, usage, service quality and any one-off effect before deciding whether corrective action is needed.
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