Rising costs seem to be a fact of life when doing business today. From power to food, mortgages to salaries, costs are going up and up – often making that bottom line thinner than ever.
And it’s not just outgoings that are causing challenges for hotel owners.
Good staff who’ll go the distance are increasingly difficult to find, and the expectations of guests seem to rise by the month.
Research shows that almost two thirds of hospitality businesses have increased their operational expenditure during 2025.
Meanwhile, PwC’s UK Hotels Forecast 2025 outlined that, despite a cautiously optimistic outlook in terms of demand, cost pressures will outpace average daily rate (ADR) growth.
Put simply, the guests are there – but many may be trimming their budgets or in need of a little extra convincing to spend. And by doing things in the same way as you always have done, it’s going to be increasingly difficult to run a profitable business.
Every hour, every error costs money – so the challenge for hotel owners is simple: how do you do even more with less?
Uncovering the hidden inefficiencies
In many hotels, margins aren’t being eroded by empty rooms or bad reviews – they’re being impacted by small everyday inefficiencies that may seem small in the moment, but add up over time.
Within every business, there are a number of tasks that have traditionally been done manually. Until recently, that manual input has been a necessity – it was often the only way of getting those tasks done.
From manually reconciling accounts, updating two systems with the same information, not getting reports in time or losing money due to pricing inconsistencies, these small tasks become big drains on cashflow and financial health.
And numerous surveys showing manual admin is constantly one of the most expensive, time-consuming burdens on UK SMEs.
Tech that pays for itself – automation as a cost-control strategy
Increasingly, hotel owners are understanding the true value a strong and purpose-built property management system (PMS) can bring to a business, by reducing the reliance on human labour, cutting wasted hours, and enabling teams to do more without adding to the payroll.
For forward thinking hotels that want to protect and grow their businesses, there are a range of everyday savings to unlock with the right PMS, including automated rate optimistation, online check in and check outs, and email automations to handle pre and post stay correspondence.
That’s time and insight you can reinvest straight back into the business — not another afternoon spent buried in spreadsheets.
And while we appreciate it’s easy for us to say what’s potentially achievable, we do so because we’ve seen it happen for clients over many years.
Take St Mary’s Hall Hotel, on the Isles of Scilly, which switched to Rezcontrol in 2021. General Manager Peter Jackson said: “We particularly like Rezcontrol’s own rate management system – its derived rates save us a great deal of time. We can control all our rates from the base rate, setting options for adding on meals, or offering discounts, without having to do it manually.”
It’s not all about cost savings, though
While as a business owner it’s important to keep tight rein on outgoings, you also want to see revenue increase – because true financial stability relies on both incomings and outgoings.
Freeing up your staff’s time to ensure the guest experience is as good as it possibly can be will naturally help satisfaction, which improves reviews and the possibility of a return stay and recommendation.
Laura Penman, Director and Owner of Rezcontrol client Fishmore Hall in Ludlow, says, “The guest engagement function is brilliant. We made 14 upsells in the first few weeks of using it – it’s so easy and saves staff time too!”
A quality PMS will help spot opportunities to add value and experiences to a guest’s stay, while increasing bookings and maximising room price, too.
One of Rezcontrol’s customers, Mark Bevan, Managing Director of The Elms Hotel & Spa in Worcester, says: “The new functionalities and integrations have been life-changing – we have seen a 60% uplift in revenue from upsells and 100% in extras as a result of the integration.”
In addition to the here and now, great financial stability has one eye firmly on the future. Consolidated insights from across F&B, events, and extras and experiences help you understand exactly where your revenue is coming from, and enable you to make informed decisions for the future, while accurate forecasting enables you to plan staffing and pricing with confidence.
Financial stability – the platform for growth
Today’s environment for independent hotel operators is challenging – but the good news is demand is there.
By building a tech foundation into your business, you can save time and resources, and ensure you’re delivering the very best experience to your guests; maximising the financial potential of their visit while ensuring they depart with expectations firmly met.
Financial efficiency is essential to long-term business strength, and with that solid foundation in place, you can look ahead with confidence, and plan investment in upgrades, marketing, and expansion to keep the business moving forward.
In a market where every penny counts, a smart PMS doesn’t just save money – it makes the future possible.
Discover how Rezcontrol helps independent hotels stay strong through every cost challenge.