The hospitality industry is a budget-driven industry. While everyone understands the need for any business to make a profit, managing specifically to make the budget can and will result in a lack of service for the guests. One can easily turn a show dog into a mutt by managing to meet the budget rather than managing to meet service expectations.
Staffing
Full-service properties have an expectation of service. When staffing compromises that level of service, profitability will suffer. This is something that must be monitored constantly but that can never be sacrificed. It is far easier to cut staff early than it is to play catch-up all day. Be aware of the budget numbers and where you stand, but do not sacrifice service in the process.
For banquet operations, there is also the need for an extensive server list. Having to call in temp labor for a function, especially SMERF functions, can result in an entire function operating in the red. Expect refusals and have a list of at least double the size needed for maximum capacity.
Equipment
One of the easiest ways to throw a wrench into the monthly or yearly budget is to have to replace or buy unexpected equipment. This is why a PM and regular equipment inspection program is a necessary component for every department in the hotel.
This is also something that can be taken care of within the department, at least to some extent, during down times. For example, housemen can polish and touch up podiums during slow times or while they are waiting for functions to break that need to be refreshed. All of that extra TLC will extend the life of the equipment as well as keeping it presentable.
Quality
For hotels, this is probably more of an issue in food and beverage than it would be for the front desk and housekeeping. Point being, it might be very tempting to use a cheaper product to meet food costs, especially for discounted functions or during slower periods of operation.
Every guest that comes through that door, be it for a $150/head wedding dinner or a $25/head sports banquet, is a potential client. Point being, when you sacrifice quality for one function, you have potentially risked hundreds of bad reviews by guests as well as losing their interest for a future function.
The bottom line here is that while managers obviously need to meet their numbers, service and quality cannot be sacrificed in the process. This takes constant monitoring by managers on every shift, especially the two extremes, meaning the very slow periods when you are playing catch up and the busiest days where you think you have excessive staff and are never in danger of blowing labor.
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