Organizations of all sizes and in all sectors have realized the advantages of outsourcing particular tasks of their operations. Among the most obvious examples are law firms that outsource their accounting in order to decrease staff expenses and consulting businesses that outsource their recruiting in order to lower the cost per hiring of their employees.
Overall, outsourcing, regardless of the function, lowers costs, boosts efficiency, and enhances the quality of your product or service offering. Outsourcing is typical practice in the hospitality and travel industries, particularly in sectors like food and beverage, marketing, bookings, and
information technology. Learn more about the benefits and drawbacks of outsourcing particular activities within your firm by reading the sections that follow.
We have all seen that hotels and other lodging establishments are becoming more adaptable,
allowing them to respond to the increasingly diverse business realities that have invaded our
nation. That means they must base their main operations on what is important and a crucial
success component in order to respond to the market in the best possible way.
The most common forms of outsourced services in the hospitality and local lodging industries:
In this form of company, renting transportation or entering into agreements with certain
providers is standard practice. Several sorts of businesses currently have official or informal
partnerships with taxi companies, transfers firms, uber, and other similar businesses in order to
refer clients to such businesses. These behaviors are frequent in places like restaurants, motels,
and other forms of temporary lodging.
It is usual to see services like cleaning, room service, food, security, laundry, and maintenance
is contracted out to other parties. A number of properties in these operational regions opt to subcontract because of the high fixed costs associated with acquiring specialized staff
(maintenance) and the high value of space per m2 in metropolitan centers, which may make it
impractical to have non-productive portions in these locations (laundries, etc.)
Sales and marketing efforts
As a result of a scarcity of technical skills in the face of rising corporate digitalization, hotels are
finding it more difficult to keep up with the latest technology developments and are increasingly
turning to software and marketing businesses for assistance.
Outsourcing Revenue Management services are relatively new in Portugal, but in other countries, it is normal to enter into these types of contracts in return for a percentage of sales. Because of the nature of these contracts, they are a promising growth sector in the telework industry. When they work in tandem with the IT, marketing, and sales departments, they may achieve very remarkable outcomes.
Several Benefits of Outsourcing
Enhanced Service Quality: The first focus of every hospitality organization is the quality of
service and the pleasure of its customers. A well-established outsourcing company is aware of
industry service standards and has the knowledge and expertise required to produce services that surpass clients’ expectations.
Core Business: By delegating specific operations within your operation to an outsourcing
partner, you free up your team’s time to concentrate on developing the company and providing an amazing guest experience for customers.
Risk Sharing: Because outsourced employees are hired by the partner business rather than your company, the legal risk connected with labor is effectively transferred away from your
organization. Additionally, since the service charge includes the cost of the back office, your
overhead is lowered as a result.
Reduced Expenses: Outsourcing may assist a company in reducing its operating costs by as
much as 50%, giving it a competitive edge over other hospitality companies in terms of total
Flexibility: Outsourcing enables your organization to respond to changes in demand and growth in real-time and with the least amount of disruption.