In Tough Question Requires Equally Tough Answers, hospitality expert witness Steven Belmonte, President and C.E.O., Hospitality Solutions LLC, asks the questions: “Are product upgrades and renovations really needed during hard economic times?”
I mentioned earlier that there are two answers to the question, “Is renovation viable in a tough economy, and is it a smart thing to do.” Here’s the second answer, and it differs from the first in that it relates to hotels that do not need to be upgraded.
In my humble opinion, owners and operators whose properties are in order and competitive in their marketplace should defer major improvements until the economic recovery is well under way. In these tough economic times, I advocate taking a hard look at every line item on your profit-and-loss statement. Put everything out for competitive bid, whether it is to technology vendors, linen companies, insurance firms, f&b suppliers, you name it. All too often, managers get comfortable dealing with one company-but you’d be amazed at the money you can save by inviting competitive bidding for services and products on a regular basis. It’s a great way to increase cash flow without affecting customer service.