“There’s Nothing More Expensive than Cheap Managers:” How to Optimize Your Hotel Workforce

Alex Shashou, President and Co-Founder of ALICE | May 16, 2016

By Alex Shashou A well-trained staff will mean a well-run hotel. Labor is the principal operational expense in the hotel business, according to a survey of our GMs. This doesn't come as a surprise, as hospitality is first and foremost a service industry, with research pegging labor costs at roughly 32% of revenue. As one hotelier put it, "Everything comes down to people, your biggest variable cost is payroll." When we asked this same GM for his advice for succeeding in the hotel business, he told us simply, "Hiring the best people that you can find. There's nothing more expensive than cheap managers." Though employees are often the grea...