What functions can be outsourced (BPO) in the hotel/hospitality industry?
Here’s my take on it . . . Just as hotels are not all the same, or within the same tier group, or geographic area, there is no formula of “one size fits all” when it comes to what can or can not be outsourced; this could vary from hotel to hotel, or at least from chain to chain. A hotel company should initiate any outsourcing considerations by first conducting an assessment establishing what its true core and none core functions are. For core functions, there may be opportunities to leverage and/or share resources and costs, versus retaining them solely in-house. Also, it may be possible for some core functions to be conducted in a sub-contracted, joint venture or member utility-based partnership type of environment. When it comes to its none core functions, a savvy hotel company will look to achieve not only cost reductions, but also address other important variables such as safety, security, capacity and service levels, along with operational flexibility and improved asset utilizatio
