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Introduction of Labour cost and cost control –

Implications to HotelsI learned number of issues related to the labour cost and cost control. I understood that budget is known as the statement of the anticipated revenue and expenditure of a business department. Further I understood that departmental profit can be impacted because of cost of labour, star rating, control system of all controllable expenses etc. it is important for the hotel to keep control on its loss and manage all its unnecessary expenses (Ahmad, Zainol & Omar, 2015).

Topic sentence

There I learned that it is benefited to spend in good month with high occupancy with high rate and save profit in month when there is not higher demand of available rooms. I also developed my understanding that all the employment law which are made can impact the management of labour and it also lead to impact the cost that is anti discriminatory regulation, work health and safety etc. I learned about different factors which impact the profit of company  that is occupancy, location, market segments and type of guest etc.

Idea Development

I learned from the different issues and I identified different techniques which can be used in order to control cost. There are different tools and techniques which can be used by front manager in order to control cost related to labour. Through reducing staff turnover  it become easy to reduce the labour cost (Park,  Yaduma  & Williams, 2016)). It can be stated that a new staff member is very expensive. Further exsisitng employees can be provided training and development facilities so that then can enhance their skill. I learned that to retain employees incentive scheme need to be introduce so that employees work hard. For reducing the labour cost it is needed to make schedule which reflect the day to day variations in business volume.  It is not needed to create fixed schedules for hourly employees. I developed my understanding related to reducing the labour cost (Ewart-James & Wilkins, 2015). I learned that through using new technology it become easy for the hotel to minimise the labour cost.

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Along with this, I understood that training and development facility provided to employees help in increasing efficiency  of employees. It is important to be realistic related to loyalty and commitment so that labour can increase their productivity which lead to enhance profitability. The rate of pay for a worker under an project agreement should not be less than the provided rate of pay under the modern award that would apply to the employee or under a national minimum wage order (Guilding,  Lamminmaki, & McManus, 2014). This all strategy are very effective in order to reduce labour cost and so that firm can easily manage its profit.


  • Ahmad, R., & Scott, N. (2014). Managing the front office department: Staffing issues in Malaysian hotels. Anatolia. 25(1). 24-38.
  • Ahmad, R., Zainol, N., & Omar, H. (2015). The outcomes of minimum wage implementation in Langkawi hotels. Hospitality and Tourism 2015: Proceedings of HTC 2015 (Malacca, Malaysia. 2-3 November 2015), 41.
  • Ewart-James, J., & Wilkins, N. (2015). The Staff Wanted Initiative: Preventing Exploitation, Forced Labour and Trafficking in the UK Hospitality Industry. In Vulnerability, Exploitation and Migrants (pp. 256-268). Palgrave Macmillan UK.
  • Guilding, C., Lamminmaki, D., & McManus, L. (2014). Staff turnover costs: In search of accountability. International Journal of Hospitality Management. 36. 231-243.
  • Knutsen, H. M. (2014). Restructuring and socially managed flexibility in the Norwegian hotel industry. Norsk Geografisk Tidsskrift-Norwegian Journal of Geography. 68(5). 271-281.
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