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How to Reduce Small Hotel Expenses without Sacrificing Guest Expectations

Updated: Jul 22, 2023


Small Hotel With Swimming Pool
Small Hotel With Swimming Pool

The key to a successful small hotel or B&B is controlling costs while keeping customer service high. In this article, we offer tips and proven ways to maximize your vacation rental property and bottom line by reducing expenses. Taking some of these techniques and implementing them in an efficient way will guarantee that your property is running as smoothly as possible.


Labor Scheduling and Staff Training in Small Hotels


A significant portion of the expenditures associated with operating a hotel is spent on labor scheduling and staff training. To identify potential cost savings, and innovative approaches to tackle the labor budget. Designating shared job roles and preparing a budget are the main elements for enhancing workforce scheduling. A further cost reduction tactic can be achieved by recruiting beginners, who can then be trained for multiple tasks.

Small hotels face challenges when it comes to labor scheduling and staff training. With limited staff and resources, it is important that hotels are able to make the most of their labor and ensure that employees are properly cross-trained. Develop a training program for new employees that cover all of the hotel's department’s policies and procedures. By properly scheduling labor and investing in staff training, small hotels can maximize their resources and ensure that their staff is up to the task of providing excellent service to their guests.


Reduce Housekeeping Costs in small Hotels


Small Hotel Housekeeper
Small Hotel Housekeeper

Establishing reasonable time limits for housekeepers to fully clean each room typically takes approximately 20 to 30 minutes. In order to keep both your staff content and also reduce housekeeping costs, it is essential to supply the right cleaning supplies and tools necessary to accomplish the job, thus alleviating the pressure on the workload. To make sure that time and expenses are saved, analyze ways to maximize your housekeeping to-do lists and responsibilities.


For small hotels, reducing housekeeping costs can be a great way to increase profits. Here are a few ideas to help get you started:


· Train staff on proper cleaning techniques to save time and resources.

· Implement a linen reuse program to reduce the need to buy new linens.

· Streamline the cleaning process by using more efficient tools and equipment.

· Invest in quality cleaning products that will reduce the need for multiple applications.

· Encourage guests to help with the housekeeping process, such as stripping the beds or taking out their own trash with a small placard. Think Green.

· Use digital solutions to reduce paper waste, such as digital check-ins or online invoicing.

By taking some time to implement a few of these ideas, small hotels can save money and increase profits.


Cut Costs in the Laundry Department


Hotel Laundry Staff
Hotel Laundry Staff


For best results, towels should be washed separately from other bedding. Vinegar is an excellent choice to help fluff and refresh towels. Hot water is a detriment to the fibers of towels and can be an expensive issue for a hotel's utility bill. Low heat is recommended when drying towels as high heat can be damaging to the fabric and can lead to the need to frequently restock towels. To ensure longevity and easier cleaning, it is recommended to buy towels made of 100% cotton. To help manage laundry costs, buying linens in bulk is one of the most cost-effective measures.


Running a successful small hotel requires a well-run laundry department, but it also needs to be cost-effective. Here are a few tips for cutting costs in the laundry department:


• Invest in high-efficiency washing machines and dryers that use less water and energy.

• Buy in bulk whenever possible to take advantage of discounts.

• Consider using laundry services outside of the guesthouse to save on labor costs.

• Encourage guests to reuse their towels and linens whenever possible.

• Implement a policy of charging guests for items that are lost or damaged.

• If you are certain of your training skills, instead of experienced staff, you may be able to hire motivated individuals with no prior experience.

  • Invest in high-efficiency washing machines and dryers that use less water and energy.

  • Buy in bulk whenever possible to take advantage of discounts.

  • Consider using laundry services outside of the guesthouse to save on labor costs.

  • Encourage guests to reuse their towels and linens whenever possible.

  • Implement a policy of charging guests for items that are lost or damaged.


By using these strategies, you can save money and make your guesthouse run more efficiently.


Reduce Your Vacation Rental Utility Expenses










By having staff schedule walk-a-rounds at least twice a day, you can improve the property's energy efficiency.


  • Lighting, insulation, refrigeration systems, and TVs, should be turned off by staff or remotely using occupancy sensors.

  • Heating and cooling systems should not be turned off while the rooms are occupied,

  • A placard reminding the guest to please conserve energy and promote sustainable living.

  • A marketing campaign to Be Green, Go Green is a successful way to coax your guests into saving energy.

  • Placards requesting towel reuse are placed near the linens in the room to help the environment and promote lower energy use.

By implementing these strategies, you can save money and make your guesthouse run more efficiently.


Consider Automating Guest Services in Small Hotels to Reduce Staff Costs


Automating processes with technology is something that many small hotels have already come to appreciate.


· Through text messaging the front desk, guests can make requests without needing to make a telephone call.

· Contactless checkout also helps to automate numerous tasks and frees up staff to provide better more efficient services.

· Housekeeping duties can be expedited.


Automating guest services in a small hotel can be a great way to reduce staff costs and boost efficiency. With automated services, guests can check in and out of the hotel on their own, access their rooms quickly and easily, and even order room service with the touch of a button. Furthermore, automated services can reduce the need for staff to be onsite 24/7, saving hotels money in labor costs. However, there are some drawbacks as well. Automated services can come off as impersonal and may not be able to provide the same level of customer service that a dedicated staff member can. Additionally, automating certain processes may require a significant upfront investment, which some small hotels may not be able to afford. Ultimately, it is up to each hotel to decide if automating guest services is the right choice for their business.



Small hotels can reduce expenses without sacrificing guest expectations by using innovative labor scheduling, staff training, and housekeeping practices, as well as investing in quality cleaning products and digital solutions. Additionally, encouraging guests to help with the housekeeping process and streamlining the laundry process can help reduce costs.


LAAYR Web The Little Hotel Advisor: offers free tips and articles several times a week. We are a group of hospitality professionals that enjoy helping property owners succeed.




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