Inflation has been a hot topic for quite some time now, and with it comes a big concern for hoteliers: labor costs are on the rise. Wages were up 5.4% for leisure and hospitality workers in the summer of 2023. Hoteliers continue to struggle to fill their staff shortages even at higher wages.
Simply continuing to absorb higher labor costs is not a sustainable option for these hotels and generating profit is mission critical. So, where should you turn to counter rising labor costs?
Some hoteliers are trying to control costs by cutting back on amenities. But turning a full-service hotel into a limited-service hotel is a risky strategy – one that might frustrate many guests and put future profits at risk.
Since profit is king right now, the question savvy hotel executives are asking is: how much lost profit can we make up with pricing?
The answer is nuanced. In certain circumstances, you may be able to push price without a dramatic impact on demand, driving bottom-line revenue. In other scenarios, driving price could cost you precious bookings. That would further drain profit, which is the last thing anyone wants.
N2Pricing™ RMS is uniquely positioned to fight back against rising labor costs and inflation. Three core capabilities help hotels respond effectively, maximizing profit:
If you’re fighting inflation, it’s time to expect more from your RMS. Connect with an expert on our team to see how it can keep rising costs from crushing your bottom line.