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What is Hotel Outsourcing?

What is Hotel Outsourcing?

The so-called hotel outsourcing services favor cost control based on occupancy, while professionalizing its departments. The outsourcing of all types of services in the hotel market is a clearly widespread option among hotel establishments of different status. Whether they are large chains or small independent, holiday or urban establishments, the main trend is to contract […]

The so-called hotel outsourcing services favor cost control based on occupancy, while professionalizing its departments. The outsourcing of all types of services in the hotel market is a clearly widespread option among hotel establishments of different status. Whether they are large chains or small independent, holiday or urban establishments, the main trend is to contract these services to specialist companies that are also expanding their catalog of services.

The cultural change of customers, growing competition and other aspects that make up the environment of continuous change that the sector suffers, makes hotel companies focus more intently on their core competencies, those that provide them with greater added value. Many hoteliers have shown a marked interest in the outsourcing strategy, motivated by the belief that in it they can find a quick way and without high risks to improve their competitiveness. The concentration of efforts in areas that are considered business competencies is an increasingly visible trend in the sector.

What services are usually outsourced?

This tendency towards outsourcing is most commonly observed in processes such as cleaning, catering or information systems, although the causes that give rise to these decisions are very different. For example, while the decision to outsource or have one’s own capabilities in the area of catering can be understood as a strategic relationship (some hotels see catering as one of the basic elements of their value proposition to the customer and others do not) , the outsourcing of the cleaning process is fundamentally due to reasons of operational efficiency and cost reduction.

In this sense, it is worth highlighting the current commitment of various hotels to hire the services of chefs of recognized prestige to reinforce their notoriety, or the execution of franchise contracts through which hotels host prestigious restaurants in their establishments, thus avoiding the burden of management and investments associated with this service. In parallel to these trends, there are cases of hotels that, far from subcontracting catering services, are committed to offering a service in this extremely varied and complete field with external resources.

What are the advantages of hotel outsourcing services?

One of the greatest advantages of hotel outsourcing services lies in the possibility of having people specialized in certain management areas that allow us to offer a service according to the needs of our clients, allowing us, in turn, to dedicate ourselves specifically to the development of our unit’s strategic business, accommodation. In this case, it is very likely that outsourcing will be more beneficial for a small establishment, if we take into account the lower capacity that these types of hotels have to create internal departments that cover all management areas of the hotel.

The hotel outsourcing of services also has as a direct consequence a loss of control over their provision, which requires constant communication between the hotel and the outsourced company.

Likewise, a deterioration in the provision of the service may occur due to lack of knowledge or identification with our business objectives. Once again, communication will play a very important role, being essential that the outsourced company knows our mission, vision and values and its performance is directed towards achieving our goals.

Conclusions on hotel outsourcing services

The decision to outsource services will always depend on the hotel’s own resources and its ability to manage certain areas. It is clear that certain strategic services must be provided from the hotel, however there are others that are worth considering to the point where it is necessary to create specific departments. Such is the case of new technologies and digitalization, one of the services that are most frequently outsourced in hotel establishments. The media plan or positioning are relatively simple tasks but they require effort, knowledge and time and the fact of having a service provider does not exempt us from the responsibility of knowing what is being done and what the results are. are being obtained.

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