A 40-room hotel in Santorini operates around 200 days a year. The in-house crew, however, gets paid for 12 months — or is laid off and rehired every season, with everything that implies for training costs and quality.
The hidden costs
- Employer contributions and end-of-season severance
- Equipment, supplies and storage space
- Management time for shifts, leave and replacements
- The cost of unavailability when someone falls ill at peak
With a variable cost model you pay per room actually used. In our data, hotels of 30–60 rooms save an average of 33%.