The hospitality industry - like other consumer and travel oriented sectors - is feeling the pain of the recession.
Many hotels have seen occupancy rates drop as families cancel annual vacations or take day trips instead of overnight getaways.
new deals and lower airfares may be enticing some to travel and stay in
hotels again, companies in this sector are taking steps to better
manage their costs.
In the hotel industry, tracking and
controlling labor costs is said to be one of the most important ways a
company can better manage its budget. Some hotels are now using business intelligence tools to automate the labor data collection and analysis process.
Hotels in Minnesota is one hospitality company using business
intelligence tools to track and correct labor expense variance on a
more real-time basis instead of at month end. The company is already
The business intelligence tools are also being used to track overtime expenses at all of the company's properties.
reports rank our hotels by the percentage of payroll expenses to
revenue per property," said Raija Macheledt, chief financial officer
for ZMC. "It is a very powerful measurement because we are constantly
striving to schedule work so staff does not have to use overtime."