cost control strategy for budget hotels

1. Necessity of implementing cost control strategy for budget hotels

Budget hotels usually refer to hotels with relatively low prices. According to European and American standards, the standards of formed economy hotels mainly include: only providing accommodation and basically not providing catering, such as B (bed)&; B(Breakfast) hotel, that is, a hotel that only provides beds and breakfast. In China, strictly speaking, budget hotels only provide some basic supporting facilities, such as small restaurants. The rooms are not worse than the standard configuration of star-rated hotels, but the prices are far lower than those of star-rated hotels (usually around 151 yuan), and the service management is not discounted.

It can be seen that budget hotels are positioned in the word "economy", which mainly aims at specific target customers and provides the needed budget products. As a result, the unit profit space of budget hotels becomes relatively small; At the same time, because its customer base is highly sensitive to price, budget hotels must work hard on cost if they want to obtain higher income. Implementing cost control strategy is the foundation of the survival of budget hotels. In order to find a feasible way to control the cost of budget hotels, the author visited two budget hotels, namely "Jinjiang Star" Yangzhou Store and "New East Asia Hotel" in Bengbu, Anhui. The following will take these two hotels as examples to analyze the cost control strategy of budget hotels.

second, how to implement the cost control strategy for budget hotels

(a) cost control when the hotel is first built. Because hotels are fixed assets after construction, it is difficult to think about any changes, so it is very necessary to control the cost in the early stage of construction.

1. site selection. For budget hotels, their target customers are specific customer groups, so they should be located around their specific customers.

(1) the choice of cities. The development of budget hotels in China has shown that the focus of its development should be in large and medium-sized cities. On the one hand, large and medium-sized cities are intertwined with business and tourism, with huge and stable passenger flow, which makes budget hotels have room for development; On the other hand, in large and medium-sized cities, budget hotels can transfer some facilities and services of budget hotels to the society with the help of urban functions, so as to reduce their own construction and operation costs. For example, the hotel chains of "Jinjiang Star" are basically selected in large and medium-sized cities such as Beijing, Shanghai, Guangzhou, Hangzhou, Suzhou and Chengdu.

(2) It is also very important to choose the specific location in the middle of the city. Pay attention to convenient transportation when selecting the site, and it should be near airports, railway stations and main traffic roads, and there should be more social dining, entertainment and leisure places around. For example, the hotel chains in every city of Jinjiang Inn are basically around the main road. The "New East Asia" Hotel visited by the author was chosen next to Bengbu coach station, which made full use of the location advantage of the bus station.

2. Control the construction cost. The construction cost of budget hotels accounts for the largest part of the total production cost. If budget hotels want to control costs, controlling construction costs has become the focus of cost control.

(1) Economical hotels can use old factories, hotels, warehouses, etc. for renovation to reduce land costs. For example, youth hostels in the west were mainly converted from medieval castles in the countryside, and later school buildings, classrooms, churches, farm warehouses, lighthouses, cruise ships, etc. all became the source of hostels. Doing so, on the one hand, reduces the cost, on the other hand, provides a unique experience for tourists.

(2) The floor construction is not easy to be too high. For example, "Jinjiang Star" generally only has three or four floors, which is not only convenient for management, but also requires only a small elevator and reduces the cost.

(3) In the internal design, we should avoid luxurious materials, luxurious halls, luxurious places, banquets, meetings and entertainment facilities. The guest room area should account for 81% of the total area, which is the most favorable for investors and has a high rate of return. In order to save space, the distribution of rooms should be as dense as possible.

3. Equipment of hotel facilities. The facilities of budget hotels seem to be small things, but if we don't pay attention to control them, it will inevitably increase the cost of the hotel. Therefore, the facilities of the hotel should be as simple and economical as possible to reduce the cost.

(1) The facilities in the room should be practical, not high-grade and luxurious. Try to avoid luxury sofas and other luxury facilities in general star-rated hotels. You can equip yourself with an open wardrobe, instead of a special TV cabinet, use a desk and equip yourself with a small TV. For example, there is generally only one big bed and one small bed in the room of "Jinjiang Star", both of which are the simplest plate beds, which not only meet the functions of a common double room, but also meet the needs of a family of three.

(2) The bathroom should be simple, economical and environmentally friendly. The bathroom should omit a large bathtub, use a shower and remove the carpet, which is convenient for cleaning and saves money. Take "Jinjiang Star" as an example, in order to reduce the cost, its soap is reduced from 41 grams to 25 grams, the comb is shortened by 2 cents, and a shower, sink and bath are used to reduce the investment. "New East Asia" Hotel also pays attention to economy and environmental protection in the use of small items. In the past, disposable items in the bathroom were beautifully packaged independently, which invisibly increased the cost and was not environmentally friendly. Now hotels use simple combined packaging to put toothbrushes, toothpaste, soap, shampoo and so on in one package, saving costs.

(3) In the choice of indoor air conditioners, split air conditioners can be used to replace central air conditioners. In this way, it is not only cheap, but also can save other costs such as electricity bill in actual operation, and it is easier to clean and maintain a good environment.

(2) save labor costs. Labor costs account for a large proportion in budget hotels. If a hotel has a jumble of staff and overstaffed staff, the cost of the hotel will be greatly increased invisibly.

1. Control of the number of service personnel. In order to control the cost, budget hotels must strictly control the staffing of the hotel, and generally control the ratio of each room to staff at about 1:1.6. For example, "Jinjiang Star" is controlled at 1.67 people/room.

2. Selection of personnel. Economy hotels should choose talents with high comprehensive qualities. This can make full use of human resources, thus reducing the number of personnel. For example, the managers selected by "New East Asia" Hotel are proficient in the maintenance and application of software and hardware, thus reducing the staffing of the computer room, and one person is concurrently employed.

(3) reduce energy consumption. Energy saving and consumption reduction can greatly reduce the cost and internal friction of economic hotels, reduce the development burden of economic hotels and bring direct economic benefits to economic hotels.

1. On the sanitary bathing facilities and equipment, the use of water-saving appliances with advanced design technology can reduce the flushing volume each time and put an end to the old problem of "long running water" in the toilet, which not only saves a lot of water time, but also saves money for hotel operation.

2. In terms of heat energy, hotels can make full use of solar energy and geothermal energy to reduce the consumption of coal and electricity, which can greatly save energy. For example, Jinjiang Inn used to use coal-fired boilers to supply water, but after the price of coal increased, it adopted diesel boilers to save costs. "New East Asia" Hotel uses solar energy to provide hot water in summer and solar heating rod technology in winter.

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