Hotels struggled to stay on their feet in 2020: just breaking even was seen as a monumental feat. To do so, many hotels have been forced into the unenviable – albeit necessary – task of cutting services where they can.

One of the most notable has been and continues to be the suspension of daily housekeeping at many hotels. The service, once taken for granted by customers, has become an on-demand deliverable and is usually only offered several days after registration.

Hilton was one of the first to come out with a formal stance on housekeeping, but most brands have followed suit, either declaring it in the public domain or telling customers when they register. The measure was apparently a strategy to limit customers and staff from exposure to COVID-19, but it, too, was seen as a money saver, limiting housekeeper hours.

Some say the shift to on-demand housekeeping is part of what could be a cascade of services and unbundling, similar to how airlines operate, where there’s a cost attached to various things that used to be complementary.

Does the change have a real impact on the bottom line – saving money and increasing profits? Will this continue with the increase in the occupancy rate? What do the guests think?

Like most aspects of the hospitality industry, the issue is more complex than one might think at first glance.

Beyond the Numbers

“There has definitely been a benefit” in the reduced stay compared to cleanings, said Michael Doyle, managing director and executive vice president at asset manager CHMWarnick. “When we look at housekeeping hours and equate it to a measure of productivity, the overall savings is 14%. However, while there is a short-term productivity benefit, the impact at Long term isn’t there, because we had to raise salaries to bring in staff for housekeeping and other functions.These higher salaries will offset the savings.

“Industry analytics we’ve seen indicate that internal management changes could result in a savings of 100 to 200 basis points and that this would impact hotel performance. However, the shortage of manpower and the additional training that housekeepers need now after not cleaning the rooms all this time prevents the productivity rate from being higher.

There is also the issue of customer tolerance because customers other than those in the leisure sector come back, like business travelers, Doyle noted. “While many vacationers are shrewd, they have a different level of tolerance than business travelers, who want everything back to where it was before the pandemic.”

Jordan Bell, vice president of hotel operations and management consulting at consulting firm hotelAVE, also sees improved productivity due to the change, but said other factors could be at play.

According to Bell, a sample of seven properties achieved a productivity improvement of 10.1% across all positions in the rooms division, in the first quarter of 2021 compared to the first quarter of 2019.

However, he noted, “We are hearing of significant cross-utilization due to labor shortages over the past year, where salaried managers and employees from other areas of the hotel are mobilizing to clean the rooms on peak days. This has the effect of artificially increasing chamber productivity while reported executive work remains relatively stable and productivity in other areas is potentially negatively affected.

Data

Housekeeping labor per available room remains down globally, but is showing signs of resurgence as demand for inches declines.

As the data shows, labor creep is real. And while many hotels are eliminating daily cleanings, some brands, such as Omni Hotels & Resorts, still offer full cleanings upon request. Omni, like most other hotels, also offers the option of partial cleanings, which involve refreshing towels and removing trash.

In 2020, Omni began urging customers to forego cleaning services altogether, a spokesperson said. “Last year, Omni launched ‘Opt Out to Help Out’, a program that gives customers the opportunity to give back to their local communities. In exchange for disabling housekeeping services, Omni donates a meal to Feeding America.

Consistency

Whether or not end-of-stay cleanings stay in place, brands need to stay consistent in what they do, Bell said.

“From a brand perspective, there needs to be consistency, and while some markets may agree to have housekeeping only on request, or not at all, other markets will not. There has been a gradual shift from changing linens every night to green programs with occasional changes, and I honestly wonder, is the service going to stay – is the service going to go that route?

“It will probably take one brand to take the plunge and then others will figure out how to get around it. It is unclear whether this is a keep or cut decision; there are a number of permutations involving reach, frequency, overhead, etc. that could take shape and give each brand a little leeway to execute the best solution for their customers.

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