Chinhoyi university of technology [pic] Tourism and hospitality Names of group 7 members SIMBARASHE TUNHA C123132Y TSITSI MUDEDE C1213053M BOLIVIA MABWE C1212837C YANANAYI DAVU C1213070F CHIRANGANO MBAVARIRA C1213662Z VALENTINE BANGIRA C1213801A NICHOLAS RUNESU C1213816R KUDZAISHE MUPFUMBA C1213618B NYARADZAI MANGARA C1212841G TAFADZWA MUTANDA C1213130W GETRUDE N TAKAPERA C1111059V Discuss the pros and cons of in house and outsourcing laundry
No matter how large a hotel is there are times when it is faced by a decision of whether to outsource or do in house laundry. Historically conventional wisdom among same administrators was that operating an on premise laundry was more economical but however this notion has been challenged in the recent years with same hotels opting for outsourced laundering as it is more economic In-house laundry helps to increase the capital investment of the hotel through the purchase of capital equipment such as presser’s washing machines and dries which will make the hotel have a stables capital base because of more assets that it will be possessing.
It should be noted that however even though the hotel will have a higher capital base the initial cost of investment is very high in term of purchase and a huge amount of money is used. Also the capital equipment require maintenance which can be very expensive in the long run as the assets ages Laundry is also readily available on time since the laundry is done on the premises. In the cases of emergence say a guest spoil his sheets they are cleaned on time and also n the event of spoilage of guest laundry it will be very effective to have and on premise laundry.
In such cases it can be emphasized that the presents of an in house laundry come in handy. Some of the guests do not buy the idea of their laundry being done by an outlet somewhere else because of insecurity reasons, so in house laundry act as an ambient that may lure more customers to the hotel and ensure repeated business with the customers. It might also be expensive for the hotel to outsource the laundry of their customers that will be in small quantities from time to time. t is however critical for the managers to consider the cost benefit analysis of the in house laundry that they will be providing to guest because the stakes of doing it might be too high in trying to satisfy guests Quality analysis and standard conformity is very effectively done by managers in hotels since they will be in direct contact with the staff that will be laundering. Managers ensure that the correct methods and chemicals are used during the washing process of linen for example the process should not destroy the fabrication and layout of threads and also the colour of linen.
It of great importance to note that managers will be overworked to supervise a job that could have been easily outsourced It is also important to note that one of the drawbacks of in house laundry is the opportunity cost of the space that it occupies. In general space management in city centre hotels such as Crown plaza ,Holiday inn and Mikels hotel is very crucial. Laundry rooms are usually large because of the equipment that occupies more space that is used. Hence if the space was used to make a guest room and the laundry outsourced the hotel would generate more revenue.
However it is important to note that the laundry service offered in hotel could attract visitors as they would not worry about their dirty laundry and also linen is cleaned on time In addition to the drawbacks, in house laundry will mean that there is an increase in the staff needed to work in the laundry section and the hotel will have to provide all the security requirement such as milk, clothing and also the laundry maids wage and salaries will increase the hotels operational cost.
It is of paramount importance to note that the hotel might incur all those expenses by employing more stuff but it will also be empowering the social community and providing job opportunities to the community will mean that it will operate in harmony with the locals outsourcing Outsourcing the laundry allows properties to focus on their core business and at the same time, reduce costs, replace a fixed-cost operating structure with a variable cost model incurring in laundry cost only for occupied rooms and therefore, matching expenses to revenue and eliminate need to spend capital in tooling the laundry room.
Outsourcing the laundry would help eliminate many of the necessary costs to run and OPL. In some cases, these costs are difficult to identify, as they are part of the hotel’s cost structure and are not easily associated with the laundry process itself. These costs would include: Outsourcing laundry replaced an internal laundry fixed price cost with a variable cost where there is only a cost per occupied room and thus cost per occupied room is fixed, reducing expenditures and controlling budgets.
With this system, you can match the laundry expense to the revenue of selling the room. This is particularly important during low occupancy periods It has actually been of great concern to many hotels on whether to outsource or do in-house laundry. It can be safely said that outsourcing laundry is the best way for the hotel to save funds and also to have smooth business operation. It is also wiser for the hotel to have a set aside space for the laundry service in case of emergencies so that the flow of laundry will not stop because the outsourced laundry is not available.