Welcome to the first in our new series: 5 Reasons to Outsource Your Property Operations. We will continue this series every week so watch our LinkedIn page for future episodes.
Reason One: Reduce your overheads
Hospitality companies who manage operations in-house have multiple cost centres including staff, warehouses, vehicles, stock and software. Also indirect costs can include HR, training and insurance.
Combined, these internal resources have a considerable impact on your P&L. Further to this they are fixed monthly costs. That means if business slows down, the company is still carrying the same overheads with little room to manoeuvre at short notice.
Many hospitality business leaders have historically preferred to keep their operations in-house. It certainly used to be the case that this provides greater control and better customer service whilst building expertise. Also there is an emotional investment in the Operations team as this is the team that works the longest hours and carries out the hardest tasks on a daily basis – the unsung heroes of the company.
However hospitality companies do not have the luxury to think in this way anymore and getting costs under control has become a critical requirement. By outsourcing your operations you can switch your direct costs to variable costs and ensure that your specialist provider takes on the risk of seasonal demand fluctuations. You can get rid of the warehouse, the vehicles and other associated overheads. Also the risk of losing your Operations Manager, and with it all of your expertise, disappears.
An outsourced supplier provides a sustainable solution that specialises in a specific set of tasks and the more it works with a client, the more it learns and improves its, and therefore your, service. The management consultancy Booz Allen Hamilton estimates on average a 15% cost reduction through outsourcing, and up to 30% in some cases.
At City Relay Solutions we take the long term view and invest in each of our clients to ensure we become an extension of their business. We learn and understand the culture of our clients and we run training in collaboration with them.
Technology is increasingly powerful in the hospitality sector and we have developed a platform that our clients can plug into and start accessing our services automatically via their PMS. This powerful platform ensures automated and efficient services at every touch point and the numbers speak for themselves as we remain the most trusted property operations company in London.
So if you still have your operations in-house get in touch and we’ll be happy to talk through how we can help you to deliver the service you’re proud of whilst making significant savings.