Improve the Guest Experience and Reduce Waste
April 18, 2016
It’s no secret the hospitality business model is largely characterized by high fixed costs and variable income. Because of the constant fluctuations in occupancy and room rate demand, tight cost control measures are required to run a profitable hotel. However, the latest generation of guests won’t tolerate anything less than excellent service and guest amenities, making an already tight balancing act between profit and guest satisfaction that much more difficult to achieve.
As costs continue to rise between labor, marketing, and operational costs in general – each individual organization within the hospitality industry must look for effective ways to cut costs without sacrificing quality. This requires managers to do “more with less” and to examine possibilities for cost savings that will not affect your guest’s perception of value.
Pilferage and Guest Satisfaction: Top Issues in Hospitality
One of the top three issues a recent survey by AHRM discovered among the hospitality industry is that of pilferage. This type of cost comes in many forms, most notably through the loss or theft of products provided by a hotel. The most common items taken or wasted in hospitality is food. Guests open up a pre-packaged yogurt cup and decide they don’t actually want it and it goes to waste. Or, your organization has more of a buffet style offering among some food items and guests take far more than they will actually eat. There is just no easy way to control the portions actually taken per guest.
It would be great if there were a way to cater directly to the sensibilities of those born since 1980. You know, the ones who have greater expectations and a greater ability to choose exactly where they stay and why. These are the demanding customers who have enjoyed near instant communications with their cell phones and text messaging, in addition to the Internet, their entire lives. They have learned to expect to get what they want when they want it and if you won’t give them that experience, well…they’ll simply find another company that will.
When it comes to the hospitality industry, studies have found that nearly 75% of Gen Y guests leave after what they perceive to be one poor experience, and more than 80% tell others about their poor experience both in person and online. Guests who are happy, however, spend twice as much in ancillary revenue than those who are dissatisfied or are otherwise unimpressed with their guest experience.
A New Quality Food Option for Guests
Hotels now have to explore new ways to deliver the service that is expected and wanted. One area that has begun receiving extra attention is the complimentary breakfast and food options available throughout the day. Yogurt and fresh fruit have seemingly stuck around since their creation, and with this new generation of guests demanding healthier food options when they are traveling it makes sense hotels continue to expand their offering and selection of these items.
Offering yogurt to guests has long been a staple of the hospitality industry, but there is a difference between offering fresh yogurt and pre-packaged yogurt cups in the eyes of today’s guests. Believe it or not, hotels that offer fresh yogurt from a dispenser with portion control settings and a branded display earn higher marks on guest reviews than those still offering the “cupped” yogurt. That’s in addition to the cost and time savings associated with this type of set up.
Every year hotels lose thousands of dollars on their cupped yogurt with guests walking out the door with extras. Once you take into consideration spoilage, damaged product, and the potential for storage issues those sunk costs then begin to climb much, much higher.
Finding a solution to cut costs on the free breakfast, but still maintain the quality of food and number of options guests expect is no longer some big mystery. Perfect Parfait has figured out a way to inject new value into the complimentary free breakfast by providing farm fresh yogurt through an easy-to-clean, simple to maintain dispensing unit.
To learn more about adding value back into your complimentary free breakfast offered to guests, visit www.PerfectParfait.com.