Managing Rising Operational Costs

Hospitality operators are facing unprecedented cost pressures in 2026. Utilities, staffing, procurement, and maintenance expenses continue to rise, squeezing margins and challenging the profitability of hotels, resorts, and estates worldwide. Insights from organisations like the International Hotel & Restaurant Association highlight that controlling these costs is no longer optional – it’s essential for operational resilience.

Why Operational Costs Are Increasing

1. Utilities & Energy
Rising electricity and fuel prices, combined with growing sustainability requirements, have increased the cost of running properties. Heating, cooling, lighting, and energy-intensive facilities like pools, spas, and golf courses now require careful monitoring and optimisation.

BACKoffice allows operators to track utility and operational costs by department and cost centre, providing clear visibility into energy consumption and helping identify efficiency opportunities.

2. Staffing & Labour
Hospitality continues to face global staff shortages, higher wage expectations, and increased training costs. Ensuring service quality while keeping labour costs manageable is a delicate balance.

CLUBmanager supports task scheduling, activity tracking, and progress monitoring, enabling management to optimise staff allocation while maintaining service standards.

3. Procurement & Supplies
Supply chain disruptions and inflation affect food, beverage, cleaning, and operational supplies. Without centralised oversight, procurement inefficiencies can rapidly escalate costs.

Asset Register provides structured procurement workflows, asset tracking, and audit controls, helping prevent overspending and streamline supply management.

4. Maintenance & Infrastructure
Buildings, equipment, and leisure facilities demand constant upkeep. Reactive maintenance can be expensive, while unplanned downtime affects both guest experience and revenue.

General Ledger enables accurate budgeting and cost tracking for maintenance and infrastructure projects, supporting proactive planning and reducing unplanned expenditures.

Turning Pressure Into Opportunity

The key to managing rising costs is operational visibility. By tracking performance across departments and integrating data, hospitality operators can:

• Optimise energy and water usage to reduce utility bills
• Streamline procurement and inventory to avoid overstocking or wastage
• Schedule predictive maintenance to extend asset lifespans and prevent downtime
• Make staffing decisions informed by real-time occupancy and service demand

In other words, operational efficiency and cost control go hand-in-hand.

How Integrated Systems Help

Integrated management platforms, like those provided by CiMSO Business Solutions, allow operators to connect finance, operations, and reporting across the property. Key benefits include:

• Centralised operational and financial reporting
• Automated procurement and approval workflows
• Visibility of departmental performance in real time
• Analytics that highlight cost-saving opportunities before they become problems

With this level of insight, rising costs become manageable challenges rather than unpredictable threats, allowing hospitality businesses to protect margins while maintaining guest satisfaction.

The Takeaway

Rising operational costs are an undeniable reality for modern hospitality. Properties that invest in integrated operational visibility gain control over resources, optimise spending, and improve overall efficiency. By combining data-driven insights with practical management tools, operators can ensure profitability and resilience — even in a challenging financial environment.

Contact Us

CiMSO helps organisations transition from fragmented legacy systems to fully integrated ERP solutions, improving operational control, efficiency, and guest satisfaction.

Contact your local CiMSO office or Value Added Reseller for more information about our Integrated ERP Software Suites for Wildlife Sanctuaries, Lodges, Resorts, Hotels, Clubs, and Tourism Operations.