Undistributed Expense Deployment

Profit margins are increasingly under pressure in the hospitality industry. Cost inflation is growing at an unprecedented rate and when combined with slower comparable revenue growth, businesses need to examine all costs on a microscopic level. Consequently, tight control in overheads is becoming more critical than ever.

Carpedia Hospitality has experience making all departments more productive within hospitality-focused businesses. The opportunities are not always apparent, but our experienced consultants have worked with major brands and independents to analyze and ascertain opportunities. We do this by conducting a thorough and technical deep-dive analysis of your undistributed expenses followed by implementing changes that will boost profits.

Some projects we have conducted include:

  • Organizational redesign of central services operations
  • Optimization of property accounting and human resource operations
  • Improved utilization of sales and conference and catering labor
  • Cost improvement in contract and vendor managed services

During our unique 2-week opportunity analysis phase, our consulting team uncovers and quantifies processes, management systems, and organizational behavior issues that might be eroding your service levels and profitability. From there, a more tailored and extensive project engagement serves to validate opportunities, jointly develop solutions, and implement best practices.

Rather than just deliver our findings and recommendations to you in a report, our consultants actively assist with implementation while coaching, training, and supporting leaders. This ensures the benefits and underlying changes will continue long after we are gone. The performance improvement is carefully tracked, to ensure results are realized in financial performance and satisfaction metrics. Results from our engagements meet or exceed initial expectations over 90% of the time and the average return on investment is between 200 – 300% within the first year.

 

Return to Hospitality Services

Large Urban Residential Complex

A new CEO had recently started and did not feel that there was enough visibility into the business and was unable to monitor operational performance at a granular level. He knew that the business was experiencing margin pressure and it was evident that there were inefficiencies in the systems, procedures and behaviors throughout the organization.

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