Labor management rollout
Multi-service Level Portfolio
An ownership group in Miami required a uniform system to manage and report on labor performance across its varied portfolio. Carpedia was engaged to identify solutions and strategies for their luxury, mid-tier, and select service offerings that would increase profitability while maintaining the desired level of service for their business and leisure guests.
The Challenges
The ownership group’s properties in Miami each offered unique amenities, adhered to varied brand standards, and served different clientele, but still experienced similar challenges in optimally managing their workforce. The hotels did not have a platform for forecasting and planning, making it difficult to build optimal schedules or request an appropriate level of contracted labor. The leaders and owners also lacked direct visibility to labor performance outside of monthly financial statements, which restricted insight to the significant impact that suboptimal operational processes were having on overall financial results.
Carpedia initial analysis also uncovered room to increase the profitability of the hotels’ heavily utilized valet services. The department was operated by a third-party company for a fixed management fee which provided little incentive to manage costs or drive revenue, resulting in suboptimal scheduling and inconsistent pricing.
The Solutions
Carpedia began with a comprehensive analysis of the owners’ luxury property over a 15-week period. Observations were conducted across all operational departments to understand the steps required to serve the resort’s guests in each major hourly role. Opportunities were identified in each position’s processes to streamline workflow, improve communication between departments, maximize the utilization of existing systems, and minimize errors. Labor standards were then created to inform schedules and measure performance.
Historical data was analyzed to identify trends. Key performance indicators were determined for each area and statistical modeling around these figures were incorporated into a forecasting tool that accurately predicted future volumes to further improve planning. Daily reporting was created to compare actual performance to the newly established standards, and a daily meeting was established for property leaders to discuss results and continuous improvement strategies.
Once the methodology was successfully implemented at the luxury level, the standards were used to inform analyses at the mid-tier and select service properties over five weeks at each. Observations were conducted to understand how the service model differed and what additional considerations should be made, unique process opportunities were identified, and customized standards were developed to best fit each property. Uniform reporting was implemented across each property and leaders were trained to maintain a consistent cadence of meetings to review results.
Valet operations were reviewed to determine best practices and recommend labor standards for the third-party management team to apply to schedules to minimize cost. A comparative market assessment was also conducted to understand opportunities within the existing pricing structure. This analysis indicated potential for increasing valet revenue at multiple properties without compromising guest satisfaction. The outside company representatives were trained in the same review processes as property leadership, further aligning overall management strategies across the portfolio.
The Results
The hotels’ new focus on effectively managing labor led each individual property to exceed its annual improvement goals. The owners appreciated the ease with which they were now able to monitor performance and maintain results.
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