Housekeeping plays a key role in protecting hotel revenues

Hotel, Sport & Leisure Tue, Mar 22, 2016 5:21 PM

Housekeeping plays a key role in protecting hotel revenues

Cleanliness is the number one concern for customers as well as a leading global driver of value for the hotel sector according to research; and housekeeping can play a strategic role in increasing revenues and improving guest retention.

In an industry worth around £40bn a year in the UK1 but with occupancy and room rates expected to fall this year2, hotels need to find ways to focus on enhancing the guest experience and boost online reviews, given that one poor review can lose a hotel around 30 customers, which equates to £2,500 per bad review for the average hotelier – a very real impact on the bottom line.

In reality, with cleanliness being such a deal breaker for hotel guests, there is a strong argument for hotel GMs and FMs to use housekeeping as an effective means of adding value, particularly in light of increased competition and customers becoming more cautious as to how and where they spend their money.

Figures from one study3 show that room cleanliness is the leading global driver of value in both Europe and the Americas for hoteliers ahead of other areas such as bed and furniture comfort, room lighting, internet access and a customer service focused attitude.

Research also shows4 97 per cent of guests agreed that cleanliness is the most important factor when choosing a hotel, café, bar or restaurant and when guests are unhappy with the standard of cleanliness the vast majority of respondents said they were more likely to stop going there than to register a complaint.

The findings are part of a new white paper published by Emprise, leading support services provider, which offers insights into the importance of a clean environment for hotels and demonstrates the cost of poor reviews on the bottom line.

With almost two-thirds of people using social media to make travel plans5, 35 per cent changing their choice of hotel after browsing social media6 and 90 per cent of travellers avoiding booking hotels labelled as ‘dirty’ in online reviews7, housekeeping is a very real strategic concern for hotels.

Add to this, a negative review or comment on Twitter, Facebook or YouTube losing companies as many as 30 customers8, in real terms this could mean a significant loss of revenue as a result of every bad review regarding hotel cleanliness.

The paper suggests that if a hotel was to increase its occupancy rate by just one per cent on the back of positive reviews, based on a 70 per cent occupancy rate, a 100 room hotel and £100 per night room rate, it could generate an additional £25,550 revenue per annum – far in excess of what could be saved by economising on cleaning or lost with poor reviews.

One strategy is for hotels to work in partnership with an outsourced supplier, who can bring additional expertise as well as delivering value on the cost of housekeeping services.

Although there can appear to hoteliers to be a conflict with the need to save money, working in partnership with an outsourced supplier can actually reduce overheads and increase revenues as well as bring many benefits, including improved methods and cleaning techniques, a flexible approach and reduced management burden with regards to recruitment and training of staff.

There is strong support for working with a specialist cleaning provider as it delivers additional value on the cost of housekeeping services because sickness cover, HR and other personnel costs are absorbed by the supplier.  Moreover, standards and continuity of service can be guaranteed.

The paper proposes that hotels should actively monitor complaints, compliments and comments regarding cleanliness and put processes in place to ensure all activities are carried out to the required standard.

Hoteliers should also ensure service providers have a strong network of cleaners, are flexible in their approach and that their housekeeping team is aligned with their brand values, as high cleanliness standards can potentially increase brand loyalty and customer retention due to increased satisfaction and trust.

An effective cleaning strategy can provide organisations with added value in terms of repeat business, referrals and positive reviews; and it’s the hotels with strong brands and positive online engagement who will be the ones most likely to succeed.

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