The Refinishing Touch Blog

A lack of access to investment capital continues to hold back a lodging industry desperate for a foothold towards economic recovery. More than ever before, operational cost savings can have a significant positive effect on hoteliers abilities to maintain adequate staffing levels and positive guest experiences.

This week, Barbara De Lollis of USA Today has been writing about two days spent at the 31st annual New York University International Hospitality Industry Investment Conference, 'arguably the most important gathering of the year for the industry, where top execs of the USA's major hotel-brand companies, hotel owners, investment bankers and other industry movers and shakers go to rub elbows and (in better times) do deals.'

One overriding theme reported at this year's conference was the concern that hotel guests would begin to notice an impact on service and hospitality as lodging groups cut staff in an effort to weather the downturn.

Lollis quoted Charles Henry of Hotel Capital Advisers as saying: 'We're all slashing costs like mad. Hopefully we’re not slashing so much that they affect the customer.'

Maintaining customer experience levels during tough economic conditions isn’t a challenge unique to the lodging industry, but the hospitality business is arguably one of the more transparent working environments. It's vital then, that when cost savings need to be made out of financial necessity, that these cuts are entirely invisible to guests wherever possible.

Hospitable people are by far the greatest asset of the lodging industry. Yet cuts are being made to staff while many organizations continue to dispose of and replace high quality furniture assets simply because they appear to be in poor condition. This is clearly a false economy when advanced refurbishment techniques are readily available that could make such an immediate impact on any business's bottom line.

At The Refinishing Touch, we strongly believe that the cost implications of refurbishment over replacement can play a significant role in reducing the human cost of the recession, as well as helping lodging groups come out of the economic gloom in the strongest possible financial position.

Labels: cost savings, cutbacks, Hospitality