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Outsourcing Hotel Operations: Advantages and Disadvantages

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Feb 22, 2018 8:30:00 AM

Companies of all types and sizes use outsourcing to reduce costs, increase efficiency and, often, improve their overall offering. Computer companies often outsource component production to reduce costs. Law firms often outsource bookkeeping duties to save on staffing.

Outsourcing is also a common practice in the hotel industry, especially in areas like payroll and landscaping. Functions that involve direct guest contact however; such as concierge, housekeeping and the front desk are rarely outsourced due to the direct impact these positions can have on the hotel reputation and revenue. Clearly staff training in these areas is critical – a recent study found 57% of people who had a bad experience at a hotel cited unfriendly employees as the catalyst.

Outsourcing certain hotel operations can be very advantageous to your bottom line, but there are disadvantages. We did some research and compiled the pros and cons, so you wouldn’t have to.

Advantages of Outsourcing

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Disadvantages of Outsourcing
Conclusion: Find Your Balance

Of course, finding the perfect balance between overhead investment and outsourcing expense is the key. Outsourcing the right functions can be a major contributor to your hotel portfolio’s profitability but proceed with caution.

Remember - whether you decide to outsource one hotel function or all of them (including the front desk), your hotel operations will invariably filter down to your guests and their hotel experience. How good or bad that experience is will invariably impact the hotels’ online reputation and long-term success.

Reduction of Hard Costs.
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