~50%of opex
Where the cost sits.
Labour averages roughly half of a hotel's operating expenses, and drove 90% of the rise in operating costs in CBRE's 2016 data2.
V3Qtor AG/Industries/Hospitality
RevPAR is a data problem.
A hotel group’s margin sits in the rate, the roster and the kitchen. We price every night against demand and staff every shift against occupancy.
Four quarters
Where a hotel group’s margin moves.
The rate, the roster, the kitchen and the returning guest, stacking up on an indexed baseline over four quarters.
EBITDA bridge, hotel group engagement
Index points on a baseline of 100. Illustrative.
Illustrative bridge1. Hover a bar for the lever behind it.
$7per $1
What food-waste work returns.
Hotels saved $7 in operating costs for every $1 invested in reducing food waste; 21% less waste in the first year3.
70% of sites paid back within a year, 95% within two3.
Dailyrates from the demand forecast
What dynamic pricing targets.
The rate lever in a typical engagement: demand forecasting, event impact, channel mix and group strategy on one engine1.
40+languages
What consistency across properties takes.
A concierge that answers in the guest's language, from the property's own procedures, at any hour1.
The numbers behind the sector
Labour is half of a hotel’s operating cost. Food waste pays back $7 for $1.
CBRE and Champions 12.3, cited in full below.
90%of cost growth
Labour's share of rising hotel costs
Labour drove 90% of the increase in total operating expenses in 2016; payroll alone 67%2.
CBRE Trends in the Hotel Industry, 2017 edition
21%less waste
First-year food-waste reduction
Across 42 hotel sites in 15 countries, with $7 saved for every $1 invested3.
Champions 12.3, 2018
70%paid back
Within one year
Seven in ten sites recouped their food-waste investment within twelve months3.
Champions 12.3, 2018
Use cases
What we run across guest experience, operations and F&B.
Guest experience
Answered in any language, remembered across properties.
Workforce & Field EnablementGuest Services HubVoice-activated multilingual concierge24/7answers in the guest's languageOperations IntelligenceRoom Automation SystemSmart room control with predictive comfort94%guest room satisfactionDecision & Risk SciencesGuest Profile ManagerPersonalisation from pre-arrival to post-stayOneguest profile across every stay
Operational excellence
The rate, the roster and the rooms, from one forecast.
Workforce & Field EnablementHousekeeping OptimizerPredictive housekeeping from occupancy and room statusLivecleaning plan from room statusDecision & Risk SciencesDynamic Pricing EngineRevenue management from demand, events, weather and competitorsDailyrates from the demand forecastOperations IntelligenceWorkforce OptimizerPredictive staffing across departmentsWeeklyrosters from the occupancy forecast
Food and beverage
Ordered on consumption, engineered on margin, sequenced in the kitchen.
Operations IntelligenceF&B Inventory AIPredictive ordering with waste analyticsDailyorders from forecast and stockDecision & Risk SciencesMenu Analytics SuiteMenu engineering on profitability and demandPer dishmargin and demand side by sideOperations IntelligenceKitchen Command CenterOrder orchestration and station balancingLivestation balancing per order
What we start from
The data a property already has.
Every lever on this page is priced from the PMS, the POS and payroll. We connect to them as they are, agree the baseline with the GM and the revenue manager, and start with the lever that moves the most.
- Property management systemReservations, rates, occupancy and guest profiles, per property and channel.RevPAR
- Point of saleCovers, items, service times and voids from the restaurants and bars.F&B
- Payroll and rosteringHours, overtime and agency staff per department, against occupancy.Labour
- Procurement and inventoryPurchase orders, deliveries, stock counts and waste logs from the kitchen.Food cost
- Guest requests and reviewsFront-desk tickets, in-room requests, review scores and their text.Experience
- Channel and demand dataOTA bookings, events calendar, weather and competitor rates for the forecast.Pricing
$7saved in operating cost for every $1 a hotel invested in cutting food waste3
The kitchen is the most measurable room in the hotel.
Covers, consumption and waste are all counted already. The gap is between the count and the order. Hotels that closed it cut waste by a fifth in the first year, and most paid the work back within twelve months.
Champions 12.3, The Business Case for Reducing Food Loss and Waste: Hotels, 2018
How it starts
What the first quarter looks like in a property.
Thirteen weeks, from pricing the three lines to a run-rate on the property’s board.
Weeks 1–3
Price the rate, the roster and the kitchen
We take the property's own PMS, payroll and POS data and price the three lines against the CBRE and Champions 12.3 benchmarks23: what the rate leaves on the table, what overtime costs, what the kitchen throws away.
You get: one page per property with the three numbers
Weeks 4–8
Pick the property and the lever
We start at one property, usually with the roster. Demand forecast connected, shifts planned from it, overtime flagged before it happens. Our engineers sit with the GM and the department heads.
You get: the first month rostered from the forecast
Weeks 9–13
Run the property from it
The weekly revenue meeting starts from the pricing engine, the kitchen orders from consumption, housekeeping runs from room status. The number goes on the property's own board.
You get: a run-rate the owner can read
Practices and systems in this sector
The practices and systems behind the work.
Decision & Risk Sciences
Rates, menus and loyalty decided on demand forecasts with the reasoning visible.
Workforce & Field EnablementProcedures in the staff member's language, housekeeping on live room status, a concierge that answers.
AI GovernanceGuest-facing answers from the property's own procedures, deployed on-premise, replayable.
Master Data Management LayerOne guest, one item, one roster record across PMS, POS, CRM and payroll.
Talk to us about one property.
Pick a property you know well. We will go through its rate, its roster and its kitchen with your GM and your revenue manager and tell you what we think the three of them are worth together.
Notes and sources
- 1Illustrative. Anonymised engagement scenarios; figures indicate modeled or targeted impact and are not audited outcomes.
- 2CBRE Hotels' Americas Research, Trends in the Hotel Industry, 2017 edition, as reported by Lodging Magazine: labour averages roughly half of hotel operating expenses; labour drove 90% of the 2016 rise in operating costs. Source
- 3Champions 12.3, The Business Case for Reducing Food Loss and Waste: Hotels, 2018. 42 sites in 15 countries: $7 saved for every $1 invested, 21% less food waste in the first year, 70% of sites paid back within a year. Source