How can you make good cost control in a big hotel?

first you have to put a plan how you will manage this project , the level of details you will control and for sure the more the details the better the level of control this plan and desired level will be projected to your estimation phase as you are going to control the actual data with your estimated data

Effective cost control in a big hotel involves strategic planning, monitoring, and optimization. Here are key strategies to achieve good cost control:

*Pre-Opening*

1. Develop a comprehensive budget.
2. Conduct market research and competitor analysis.
3. Establish financial goals and key performance indicators (KPIs).

*Operational Cost Control*

1. Implement efficient accounting and inventory systems.
2. Conduct regular financial statement analysis.
3. Monitor and control labor costs:
- Optimize staff scheduling.
- Cross-train employees.
- Implement performance-based incentives.
4. Manage energy and utility costs:
- Install energy-efficient systems.
- Implement sustainability initiatives.
5. Control food and beverage costs:
- Implement inventory management.
- Optimize menu engineering.
- Monitor waste reduction.
6. Minimize operational expenses:
- Renegotiate contracts with suppliers.
- Implement cost-saving technologies.

*Procurement and Supply Chain*

1. Develop strategic partnerships with suppliers.
2. Implement a centralized procurement system.
3. Conduct regular price audits.
4. Negotiate discounts and rebates.
5. Consider outsourcing non-core functions.

*Revenue Management*

1. Implement yield management strategies.
2. Optimize room pricing and inventory.
3. Develop and execute sales strategies.
4. Monitor and adjust revenue forecasts.

*Performance Monitoring*

1. Track key performance indicators (KPIs):
- Occupancy rate.
- Average daily rate (ADR).
- Revenue per available room (RevPAR).
- Gross operating profit per available room (GOPPAR).
2. Conduct regular financial audits.
3. Analyze variance reports.

*Technology Integration*

1. Implement hotel management software (HMS).
2. Utilize data analytics tools.
3. Leverage mobile apps for efficient operations.
4. Invest in energy-efficient technologies.

*Staff Training and Awareness*

1. Provide ongoing training on cost control measures.
2. Encourage employee participation in cost-saving initiatives.
3. Foster a culture of cost consciousness.

*Budgeting and Forecasting*

1. Develop annual budgets and forecasts.
2. Conduct quarterly reviews and revisions.
3. Monitor and adjust budgets regularly.

*Owner/Operator Collaboration*

1. Align owner and operator goals.
2. Establish clear communication channels.
3. Regularly review financial performance.

Some popular cost control software for hotels includes:

1. Hoteliga
2. M3
3. Aptech
4. Hotel Accounting Software (HAS)
5. Oracle Hospitality

Industry benchmarks for cost control:

1. Labor costs: 30-40% of total revenue.
2. Food and beverage costs: 25-35% of F&B revenue.
3. Energy costs: 4-6% of total revenue.

By implementing these strategies, big hotels can achieve effective cost control, increase profitability, and maintain competitiveness.

Dear Ola 

Hotels cost control function , is different that other business environments , for many reaons would consider an effective influences in the business . However the best cost control can be achieved by following these tactic steps:

1- Use of Control Logs( Financial , inventory , Maintenance records ) to be filled on daily , weekly , monthly bases within the periodical Reporting to be presented to top Management.

2- to adopt reasonable insurance policy. 

3- to use responsibility assignment policy with departments Managers

4- to establish self budget & cost control & contracts particulars in main Dash Board

5- Periodical Meeting presentation for departments manager each from his side.

6- to review all facilities manintenace , Logistics & transport contracts against each year closing balances.

7- to collect the marginal profits from each transaction and trace the point of failure.

8- to apply inventory recovery control system for all stock in house and to the used consumable materials by the supervisors

Nonetheless , all above requires someone stronge that can can say to sub-ordinates at any time when risk would risen up the following statement: " Thank you for your service and Good luck in your work journey".

Best regards , and hope this satisfies your request , please feel free to communicate via email:

Through the work of daily reports

You can reduce the cost in hotel by:Making prdictive budgets for all sectors , Hiring profissional workers & chefs , choosing the best method for each vendor for requisting goods ( mass order- offers- negotiations ), Using seasonal workers in the rush days. Negotiate laundry contract prices. Use the power saving technology in the guest rooms. Put strict rules to the workers in using the cleaners and review it annually. That's what I can tell you now &I have more to tell later

investigative procedures to detect variance of actual costs from budgeted costs, (2) diagnostic procedures to ascertain the cause(s) of variance, and (3) corrective procedures to effect realignment between actual and budgeted costs.