Managing Costs

In good times many costs go under the radar as ROI may be within operating parameters. However, with the industry going through trying times now, it is important to revert to zero based budgeting.

A relook at all operating costs (not just manpower) can make businesses viable enough to sustain and grow out of the current crisis. As many in the business are saying, it is important to first survive, so that we can then work to revive.

The current strategy can be broken up into 3-stages:

• React: Take immediate steps to ensure cash flows are protected and hotel operations are at minimum costs, even if hotel is closed.

• Respond:Short term actions, both on costs as well as sources of revenue, if available. Plan for the future in the new environment.

• Recover:Actively work towards long term recovery. Utilise all available resources to ensure that no opportunity is left uncovered.

The experience gained in turning around hotels as well as providing healthy GOP’s to investors can be put to your use for delivering results, even in the current situation.