Thought Leadership

How hotel automation is reducing the costs of endless training

By Paul Peddrick
training costs

There is nothing about employee turnover that is good for any business. The hospitality industry is one of the largest employers in the world. It is also an industry well-known for its extraordinarily high employee turnover rate. In 2020, the industry had a pandemic-induced high turnover rate of 130%, but in 2017, the hospitality sector had an average turnover rate of 72.4% (Bureau of Labour Statistics Job Openings and Labour Turnover report). More recent figures show that the industry’s current turnover rate is sitting around 73.8% – significantly above than the national average employee turnover rate across all industries of 12-15%.

Labor shortages throughout the hotel industry are severely affecting revenue generation and overall efficiency.  But,  there is another drag on performance that deserves attention as well – staff onboarding and training. On average, across all industries, an organization with 100 – 10,000 can spend anywhere from $581 to $1,678 per employee on training. A figure that is even more weighty in an industry with a high turnover rate.

Enter ROOMDEX. Every task that can be automated is a task that requires no training. That’s why the return on investment of Automated Upselling is even greater than the pure sales numbers. It’s a real benefit that almost all of our customers mentionHotel software automation supports short-staffed teams, streamlines processes, and reduces the amount of time needed on employee training– saving you money in the process.

We’ve always kind of worked with some kind of tool for upselling– from human resources-based upselling where you have training and upsell on property, to half-automated systems where you either upsell at the end of the booking engine journey, or as an email.  And, of course, they all required some human input…But ROOMDEX Upsell Automation is a set-it-and-forget-it solution that delivers the lowest cost revenue a hotel can generate.” Jens Egemalm, Distribution Director, Pandox Operations

Hotels are working with fewer resources; turnover remains at an all-time high and training budgets are tight. A training-intensive task such as upselling is no longer practical. Upsell automation removes the need for training, and gives hoteliers back much needed time to provide guest services and capitalize on other revenue opportunities.

Read about training cost reduction in our latest article in Hospitality Net:

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