Doing More With Less: The New Reality For Hotel Profitability

With ongoing labour shortages and a tense international climate, hotel margins are under intense pressure. Property operators are being forced to do more with less – streamlining operations, boosting efficiency, and making every tool in their tech stack work harder.

Here’s a practical look at the do’s and dont’s of using technology to relieve some pressures, elevate operations and save valuable time along the way.

Do invest in your booking engine

Today’s travellers are deeply connected, relying on technology at every stage of their booking journey.

If your business traditionally relies on OTAs that eat up your margins, 2025 might be the year to turn that around. A powerful, robust booking engine can help you drive more direct bookings and reclaim control of your margins.

A well-designed booking engine allows guests to:

• Browse real-time availability via calendar view
• View property photos
• Purchase add-ons and upgrades
• Access flexible rates and promotional offers
• Complete secure, seamless payments

Look for a solution that integrates directly with your PMS to ensure live availability, accurate pricing and a streamlined user experience. And make sure it is mobile optimised, as most of your guests will be booking from their phones.

Do adopt a Property Management System

Adopting a Property Management System (PMS) that you trust is essential for delivering a frictionless guest and staff experience. From reservations and mobile check-in and -out to real-time pricing updates, a good PMS brings everything into one place.

With automated bookings, instant communication, and efficient workflows, a Property Management System (PMS) enables you to consistently exceed guest expectations. When your guests feel appreciated, supported, and in control throughout their visit, they’re more likely to return and to spread the word.

Your staff will benefit, too. With mobile access from a phone or tablet, they can respond to customer queries on the move without being tied to the reception desk.

Don’t underestimate guest loyalty

You don’t need to be part of a global hotel chain to reward guests for their loyalty. Most PMS platforms include built-in loyalty features letting you credit points or offer discounts based on nights stayed or total spend. These loyalty programs are easy to configure and set up.

Combined with special offers and promotions, loyalty programs are a powerful way to drive repeat bookings and shift more traffic to your direct channels. That means fewer OTA commissions and stronger guest relationships. For best results, consider exclusive rates, early access to bookings, and thoughtful extras that show guests you value their return.

Don’t use disconnected tech solutions

Technology should make your life easier, not more complicated. But when you’re juggling too many systems without the resources to manage them properly, it will be at best underutilized, and at worst will slow you down.

Disconnected systems mean duplicating work – entering reservations in multiple systems, maintaining separate guest records, and wasting valuable time on admin.

Without a dedicated resource such as a tech manager, think about how you can consolidate your technology into one robust system that can handle key tasks within a single platform. The more streamlined your stack, the more efficient your operation.

Do use a chatbot to supplement your reservation team

AI-powered chatbots are gaining traction across industries and we are now starting to see the first few chatbots specifically designed for hospitality. A well-built chatbot can:

• Handle guest questions and create a booking directly in your PMS
• Answer your most frequently asked questions such as When can I check in? or Do you offer breakfast? thus freeing up staff for higher-value tasks
• Be a resource when your reception is closed

Do automate repetitive tasks

Adding a manual charge on hundreds of invoices, anyone?

So much of your precious staff’s time is being wasted on repetitive tasks and away from the core of your business: looking after your guests.

Look closely at what your current tech stack can already automate. Push your vendors’ customer success managers to demonstrate how their platform can save you tasks, clicks, or minutes of your time. Also, stay on top of product releases to make sure you are always making the most of the tech stack you already have.

Don’t ignore embedded payments

Embedded payments aren’t a luxury anymore – they are a core part of modern property management.

Night audits and manual reconciliations eat up hours each week. Fraudulent bookings and payment disputes drain revenue and staff morale, but it doesn’t have to be this way.

By embedding payments into your PMS, you can streamline operations, cut down on fraud and drastically reduce disputes. Plus, offering guests flexible payment options improves conversion rates and adds a layer of convenience that travellers expect.

It’s not just about processing transactions, it’s about protecting your margins and delivering a smoother, more trustworthy experience.

With the right tech stack in place, delivering on the automation promises, you will be able to do more with less, and still deliver on your customer experience.