Hospitality Daily Podcast The #1 Expense You Can Control in Hospitality - Robert Mandelbaum
May 7, 2025
Discover how to take charge of labor costs in hospitality, with strategies for optimizing staffing and leveraging technology to enhance guest experience. Uncover the shift towards technology over human interaction among travelers, and the importance of fostering teamwork to adapt to these changing preferences. Gain valuable insights into effectively managing what you can control for better results in the hotel business.
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Labor Remains Top Expense
- Labor is the largest controllable expense in hotels, about 30 to 40% of revenue.
- Reduced hours worked have offset wage increases, keeping labor costs in a steady band over years.
Balancing Labor and Experience
- Labor costs combine wages and hours worked; occupancy dictates staffing needs.
- Technology can help control labor but might reduce the personalized guest experience.
High-Tech vs High-Touch Hotels
- Future hotels may differentiate by offering high-tech or high-touch experiences.
- Some travelers prefer bypassing human contact via mobile concierge services.