Where Does It Really Hurt?
5 Smart Steps to Cut Costs and Boost Efficiency Across Your Hotel Operations
High season fills rooms - and exposes every crack in your operations. High occupancy brings increased revenue, but it also pushes operational teams to their limits. Once the peak fades, it’s the perfect moment for reflection and recalibration. The question is simple: Where does it hurt the most? And what can you do - right now - to improve efficiency, reduce costs, and prepare for a more resilient future?
In this blog, we outline five critical areas where inefficiencies often hide, and offer practical, data-driven strategies to address them. Whether you run a boutique property or a multinational chain, these insights will help you make smarter decisions for your operations.
Articles
Aug 21, 2025
1. Staff-to-Room Ratio: Benchmarking Your Reality
Labor remains the single largest cost in hotel operations. Understanding how your staff-to-room ratio compares to industry benchmarks is a crucial first step.
Typical Staff-to-Room Ratios by Segment*
Luxury Hotels: ~2.0 staff/room
Upscale Hotels: 0.6 – 1.0 staff/room
Midscale: 0.4 – 0.6 staff/room
Economy: 0.2 – 0.4 staff/room
Extended Stay: 0.1 – 0.2 staff/room
*Market benchmarks from industry leaders including Marriott, Hilton, Accor, and IHG
Real-World Efficiency in Action**
This isn't a theory - it’s happening now.
McDreams (Economy Segment): Running lean with a staff-to-room ratio of just 0.02, crushing the industry norm of 0.2.
Zipper (Upscale Segment): Delivers high-end guest experiences at 0.03 staff per room, compared to the standard 0.6.
That’s 90% lower staffing levels than standard benchmarks, made possible through smart automation, streamlined processes, and strong tech infrastructure. These operators aren’t just saving costs - they’re redefining what operational excellence looks like.
**Internal analysis and customer data from Like Magic; Case studies provided by McDreams Hotels GmbH and The Zipper Hotel & Apartments. Housekeeping is outsourced.
What This Tells Us
Hyper-efficient operations are realistic when supported by self-service tools, automation, and optimized workflows.
Labor costs can be dramatically reduced, improving GOP margins.
Scalability increases because less human dependency means easier multi-property management.
Quick Wins
Benchmark your staff-to-room ratio against your segment's standard.
Identify where tech can reduce manual workload (e.g. check-in, housekeeping).
Consolidate roles and responsibilities where possible.
2. Where Are You Still Running Analog?
Manual processes are slow, error-prone, and expensive. Yet many hotels still rely on them in key areas:
Manual check-in/check-out
Handwritten housekeeping schedules
Guest requests managed via phone or paper
Manual reporting and KPI tracking
Quick Wins
Run a 30-minute audit with your ops team: “What are the 3 tasks you find most frustrating every day?” More often than not, that’s exactly where automation should begin.
Implement contactless check-in/check-out systems
Use digital housekeeping boards with auto-assignment
Automate guest communication via centralized inboxes
If a task can be automated, it should be not to replace the human touch, but to reserve it for where it matters most.
3. Are Your Systems Actually Integrated?
It's easy to fall into the trap of “digital islands.” Your PMS, booking engine, CRM, POS, and guest messaging tools all work independently, but not together.
Signs of Poor Integration
Double entries across systems
Guests repeating the same information at different touchpoints
Inability to get real-time operational data
Smart Integration Drives Efficiency
True integration means seamless data flow across platforms, reducing admin work and enabling real-time decision-making. Look for open API-based solutions that support modular, plug-and-play architecture.
Quick Wins
Review all systems: PMS, POS, CRM, booking, guest messaging.
Map where double entries or data gaps exist.
Push vendors for true API-based integration or switch to modular platforms. True integration means seamless data flow across platforms, reducing admin work and enabling real-time decision-making. Look for open API-based solutions that support modular, plug-and-play architecture.
4. Guest Expectations vs. Reality
Every friction point in the guest journey is a potential efficiency killer.
Ask yourself:
Are guests waiting too long to check in?
Is housekeeping aligned with real-time occupancy?
Are service requests handled instantly or delayed?
Solve the Gaps
Real-time messaging tools for guest communication
Dynamic housekeeping schedules based on actual room use
Automated upsell opportunities based on guest behavior
Quick Wins
Conduct a short internal audit: “Which 3 tasks frustrate your ops team most?”
Track guest complaints and delays to find patterns.
Prioritize tech that reduces response time and improves transparency.
Real-time messaging tools for guest communication
Dynamic housekeeping schedules based on actual room use
Automated upsell opportunities based on guest behavior
When tech supports service delivery, the result is smoother operations and happier guests.
5. Are You Making the Most of Self-Service?
Why it fits: Like Magic directly supports digital guest journeys, kiosks, digital keys, etc.
Summary
Guests want control and convenience — not queues. Hotels that invest in seamless self-service reduce workload, wait times, and errors.
Quick Wins
Enable mobile or kiosk-based check-in/out
Provide digital access to booking, upgrades, and payments
Support digital keys for easy access
Conclusion: From Summer Peak to Efficiency Season
The summer rush may be over, but now is the perfect time to tighten operations, boost profitability, and invest in smarter systems. Efficiency is not about cutting corners – it’s about getting more done with less friction.
Like Magic supports hoteliers with the tools, integrations, and insights to optimize operations across properties — while delivering a seamless, personalized experience for every guest. Our platform is designed to give teams clearer visibility, faster execution, and smarter decisions in an industry that never stands still.
👉 Ready to see how your property compares? Book a free 15-minute Efficiency Audit – no strings attached. [📩 Contact us]
Sources/Key References:
HVS Hotel Operating Statement Insights Report (HOS-I Report in German): Rigorous staff-to-room benchmarks by service category.
European Hotel Valuation Index: Uses operational data, including staffing, to support property valuations.
Performance Analysis: Shows how HVS analyzes staffing and operational metrics to suggest improvements.