Outsourcing could save hotels 30-50% of costs
Outsourcing back-office roles could save hotels between 30-50% of costs. Yet, 49% of respondents in Hotelier's Hospitality Procurement Report 2016 expressed concern over "a lack of qualified third party service providers" in the region.
With the current decrease in occupancy and average room rate in the GCC, set across a back drop of global economic instability, reduction of costs is one of the primary concerns facing hoteliers in 2016, according to the report.
As hotels look to reduce costs, the question of whether and how to outsource to third party service providers continues to be a hot topic among hoteliers.
The topic continues to be hotly debated by housekeeping heads of department. During the recent Hotelier Middle East Executive Housekeeper Forum, housekeepers were acutely aware of internal pressure to stick to department budgets, whilst also concerned by the standard of service offered by casual staff.
During the forum, Lakmal Mawella, executive housekeeper of the upcoming Address Boulevard Hotel told the assembled room of housekeeping staff: “Ensuring a level of consistent performance from outsourced employees is a big challenge. Ultimately, they are not our employees, and we cannot control all aspects of the job.”
One other issue raised at the Executive Housekeeper Forum was the quality of guest interaction that can be expected from outsourced staff, with Atlantis The Palm Dubai’s director of housekeeping operations Khadija Ait-Raiss suggesting that outsourced housekeeping staff be used only during night shifts to minimise this issue.
It is not, however, a solution available to all outsourced services, as the Hospitality Procurement Report 2016 addresses. The report highlights commonly outsourced services where it is impossible to minimise guest interaction with casual staff, such as transportation to and from the airport.
The report also addresses outsourcing of procurement. To find out more, read the Hospitality Procurement Report 2016 in full.