Every Dollar Counts

Embrace Technology to Find Operational and Workforce Efficiencies

By Nick Fortuna

The protracted labor shortage affecting the hospitality industry shows no signs of abating, so hoteliers should embrace new technologies to boost workers’ job satisfaction and productivity.

That’s a message from Dr. Suzanne Bagnera, a former hotel general manager who now leads the executive education program at Florida International University’s hospitality school. Bagnera, who will moderate a panel discussion on workforce efficiency at AAHOACON25 in New Orleans from April 15 to 17, said eliminating repetitive tasks and cross-training employees locks in efficiencies, leading to meaningful financial gains.

Vijay Patel, president of Kennewick, WA-based A-1 Hospitality Group and another AAHOACON25 panelist, shares the same sentiment. “With fewer hands on deck, hoteliers must focus on strategic workforce management,” he said. “It’s crucial to explore strategies that help hotels do more with less, without compromising the guest experience.”

While technology is one such strategy – a powerful tool for hoteliers to both improve productivity and reduce costs – it isn’t meant to automate operations, thus eliminating the humanity of hospitality. “It’s important to look at these tools as companions for employees and not replacements,” Bagnera said. “Whatever technology you incorporate into your operations supports the employees and allows them to focus on delivering extraordinary guest experiences.”

Bagnera and Patel suggested eight strategies for hoteliers to leverage technology and maximize efficiency.

1. Automate FAQs. Chatbots powered by artificial intelligence reduce the number of calls fielded by front-desk associates by up to 40 percent in many cases, freeing up workers to attend to guests’ needs. AI chatbots can answer frequently asked questions on the phone or online and can be programmed to know property-specific information – such as hours of operation for hotel restaurants and amenities. They can also speak in different languages and direct callers to the appropriate department if they can’t adequately answer questions.
2. Go digital. Mobile or kiosk check-in and digital concierge services enhance guest interactions without adding headcount. Enabling guests to order and pay with their smartphones streamlines services while holding down labor costs.
3. Cut down on repetitive tasks. Advances in robotics help employees prepare food, wash dishes, vacuum floors, deliver fresh towels to rooms, and perform other repetitive tasks, enhancing productivity and the consistency of service. Robot vacuums may be particularly useful in hotels because they cut down on the number of back injuries sustained by housekeepers using manual vacuums.
4. Track staffing needs. By integrating AI-powered software with property-management and point-of-sale systems, hotels gain a clearer picture of labor needs. With data-driven insights, hoteliers can reduce the incidence of overstaffing – a key consideration amid rising labor costs – and understaffing, which eats away at guest satisfaction. AI tools may reveal peak periods for check-ins, restaurants, spas, and other amenities, enabling hoteliers to make better use of part-time employees. Bringing in part-timers for the busiest periods alleviates the stress on full-time employees, which should reduce turnover and increase guest-satisfaction scores. It also allows hoteliers to cast a wider net when recruiting workers by offering flexible, shorter shifts that may appeal to caregivers, students, and workers seeking a second gig.
5. Find opportunities for skill development. Hotels can use AI to identify frequent periods of downtime that would allow cross-trained workers to perform other tasks. In a labor crisis, it’s essential for some employees to be generalists who can complete other tasks to support the hotel’s operations. “When you start to expand your employees’ skill sets, you can cover any gaps that exist, and there’s less of an interruption to guests if you don’t have a full labor force,” Bagnera said.
6. Keep up with the market. AI-powered revenue-management systems adjust prices dynamically to maximize profitability. The software harnesses data from more sources and more quickly than humans ever could, making hotels more responsive to fast-moving market dynamics. And since AI systems improve as they collect more data, hotels can have greater confidence that they’re hitting the sweet spot when it comes to room rates – charging as much as the market will support while still promoting high room occupancy levels.
7. Reduce extra work and costs. Automated housekeeping scheduling ensures rooms are cleaned based on occupancy and check-in times, minimizing unnecessary labor. In addition, energy-management systems that curb HVAC and lighting usage in unoccupied rooms reduce utility costs without sacrificing guest comfort.
8. Enhance the guest experience. Customer relationship management software allows hotels to tailor experiences to guest preferences without adding labor. Meanwhile, automated guest feedback and issue-resolution platforms address concerns in real-time, reducing the need for avoidable front-desk interaction.

A Culture of Efficiency

While technology is making giant strides, efficiency can’t come from machines alone. Patel said his properties are working to “build a culture of efficiency” by incentivizing staff with performance-based rewards and encouraging them to offer ideas for improvement.

Since high turnover kills efficiency, A-1 Hospitality emphasizes career growth for high-performing workers and “continuous training to keep teams agile and adaptable in an evolving hospitality landscape,” Patel said. Building a culture of efficiency likely will take on added importance as hoteliers deal with market uncertainties surrounding trade tariffs. Many hotels import food, beverages, furniture, fixtures, and equipment from overseas vendors, so tariffs have the potential to “increase operational costs and put pressure on hotel margins,” he said.

To manage costs, hotels must take advantage of group purchasing plans, diversify their supply chains, buy items in bulk, and bundle products and services together to give guests a better value.

When necessary, they also must pass on higher costs to customers.

“Operational efficiency is not just a response to labor shortages; it’s a sustainable path to higher profitability,” Patel said. “By embracing smart staffing strategies, technology, streamlined procurement, and a culture of efficiency, hoteliers can achieve more with less while enhancing guest satisfaction.”

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