Warner Consulting Reduces 20 percent to 50 percent from Property Expenditures

  • Warner Consulting Group
  • 04.22.09
Telecommunications and technology can be the bane of existence for many hotels, resorts and conference centers.

Most guests are no longer using land lines and the costly telephone infrastructure hotels once needed. Guests have high expectations for the guest Internet network to function flawlessly with high speeds so they can use their Slingbox or Skype, download movies or iTunes, play online games or watch streaming videos on YouTube. The guest network has become so important, that many travelers make their room buying decisions based on a quality connecting experience.

Properties are now caught in this cost crunch where revenue is near non-existent in telecom operations and yet costs in this area continue to rise, through increased bandwidth demands, upgrades in Wi-Fi infrastructure and structured wiring and needed improvements in guest networks. And the industry is confronting a recession – with forecasted RevPAR in U.S. hotels down 9.8 percent in 2009, according to PKF – that requires each hotel to scrutinize all cost structure to improve their P&Ls.

Many properties enlist the technology and telecom consulting services of companies like Warner Consulting Group. “We are an independent consulting firm with no carrier preference or affiliation. By being vendor neutral, we can deliver strategies that dramatically reduce costs and improve operational performance. Decisions that are firmly in the best interest of the hotel asset,” said Trevor Warner, president of Warner Consulting Group. In so doing, companies like Warner Consulting are able to enhance the bottom line by squeezing out unnecessary costs or reallocating money to improve how this area functions.

“Our typical deliverable is cost being reduced from 20 percent to 50 percent from current expenditures in this area of operation,” said Warner. “A Marriott Courtyard client reaped the benefit of our counsel where we impacted their costs by over $60,000 annually. We are currently working on a dual property convention center project that will see nearly $100,000 in cost reductions – costs that will now go straight to the bottom line.” Hotel clients see a typical return on investment (ROI) of 500 percent to 1,000 percent, so the upside gained in year-over-year cost reductions is significant.

As hotels wrestle with the realities of today’s staggering economy and a reduction in business and leisure travel, one clear way to attack costs is in the telecom operations. By collaborating with companies like Warner Consulting Group, hotel owners or management companies can reduce costs and improve the guest experience – two things that will lead to successful management of their hotels during these challenging times.

Warner Consulting Group, based in Columbus, Ohio and founded in 2002, is an independent technology and telecommunications consulting firm focused on the hospitality industry. It currently serves over 1,000 hotels, resorts and conference centers nationwide.

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