Skip to main content

Highly effective cost management for the hotel and leisure industry

By 3rd April 2013May 17th, 2022No Comments

Auditel, the UK’s leading independent cost management consultancy, have found savings of many thousands of pounds on business costs for the hotel and leisure industry.

Over the last four years this industry, which is of substantial importance to the UK economy, has faced increasing headwinds. Household disposable income has declined and the Government imposed additional costs of £3.5bn per year since 2010. Thus trade remains far below the pre-2007 growth trend in revenues and jobs. Operating costs are also rising as energy inflation has averaged 4.7% per year since 2008.

The influential Hotel Business Review suggested that there are a number of low-cost measures that should be taken when it comes to optimising energy management. However, Chris Allison, Auditel’s Managing Director, advises: “This is only one of over 100 typical business expenses. Few in the industry have the time or market experience to manage them all properly. Many acknowledge that cost management today is a vital function. There are numerous benefits in outsourcing this mission-critical task to specialist consultants, instead of diverting in-house resources from strategic roles.”

The National Motorcycle Museum Group has the world’s largest motorcycle museum, award-winning conference and banqueting facilities and two 100-bedroom hotels. It offers accommodation and a range of leisure facilities. Their Group General Manager appointed Auditel to carry out an audit on their essential business costs. Savings achieved were £39,386 on electricity, £7,760 on gas, £2,000 on fixed line call charges, £1,750 on fixed line service charges and £3,600 on PBX maintenance – a total of £54,496.

Besides these lower overheads, a major benefit to NMM with Auditel is the ability to call on their experience and expertise as they require. With Auditel as an outsourced, additional member of the team, staff can focus on their core business objectives. They will be confident in not having to pay more than necessary for their essential overheads.

As their Group General Manager confirms, “Auditel’s professional and thorough approach steered us through this period of sky-rocketing energy prices and helped to ensure that our costs are controlled and managed. We operate a lean head office team. Without their help, we wouldn’t have time to focus on this aspect of our finances on a regular basis. Engaging Auditel means that the cost of our energy, water and communications are constantly monitored and reviewed without having to divert resources away from our principal business or increase staff.”

Moor Park Golf Club opened in 1923 and today has 1450 members. It features two championship golf courses. Savings for them, achieved by Auditel were 45.3% on mobile phone costs, 34.9% on fixed line telecoms, 17.3% on gas and 9.9% on catering costs. Over four sites, the savings on electricity varied from 5% to over 30%.

The Talacre Beach Leisure Group owns and operates six caravan, holiday home and leisure parks along the north Wales coast. In addition, two parks offer rental holidays, while the exclusive 5-star Plas Coch site also includes a number of luxury holiday lodges. Savings achieved by Auditel include £36,000 on energy, over £100,000 on electricity, with ongoing areas in water, merchant card fees and telecommunications.

When was your last check-up?

Chris Allison adds: “Since 1994, Auditel has built a reputation for going the extra mile to deliver ethical and sustainable cost management solutions. Solutions that, with our buying power and knowledge of the supplier market, pay for themselves many times over. The organisations mentioned gained access to a whole network of specialist consultants, who ensured that they received expert and effective cost management advice across all areas of expenditure – now and for the foreseeable future. So even if you think you’ve got all your essential business costs under control, it wouldn’t hurt to make sure. Contact us to book your Auditel Business Health Check.”