Category: Hospitality Consulting
By: Dan Hammer
When I look at property numbers that barely work (or don’t work), I think about the times my suitcase barely made it through baggage check. The time that sticks with me most, I was standing at the airline counter, watching the numbers on the scale bobble and resolve over the limit, and doing quick math on how badly I wanted to keep my dignity.
My suitcase was over by four pounds. That’s an enormous amount. But I already paid my luggage fee, and I was not about to double that amount by paying the overweight fee. So I did what a lot of people have done in that exact spot, whether they’ll admit it or not. I dropped my suitcase back to the floor, unzipped it right there at the counter. With the line forming behind me, I started pulling things out. I smashed as much as I could into my carry-on, making it the heaviest carry-on possible. It wasn’t enough. So a second shirt went on over the one I was already wearing. A jacket that had no business coming with me in July got worn instead of packed, both pockets stuffed with whatever was small and dense enough to fit. Granola bars in one pocket, a paperback in the other. I zipped the suitcase back up, hoisted it back onto the scale, and watched the number drop just enough.
I made it through. Barely. And I stood there for a second afterward, sweating in my two layers and jacket, feeling like I’d narrowly escaped a heist.
Once I sat down at the gate and had a minute to think about it instead of panic about it, I hadn’t actually made my luggage lighter. Not one item was gone. I’d just redistributed the weight so that one scale looked good, but my carry-on and extra layers were seriously stretching the bounds of tolerable traveler fortitude. And the worst part is that this was the outbound leg of my trip. How was I going to make it back home after adding a few souvenirs to the mix?
That’s a funny story at a dinner party. But sweating and pushing measures to the breaking point is a genuinely bad way to run a hotel.
Why Hotel and Casino Resort Budgets Stay This Tight
I think about that suitcase a lot when I look at the effort that some smaller, harder-working properties have to put in just to make their scales come out right.
Looking at a struggling property’s monthly numbers, we can see why. Every month, the P&L has to land somewhere close to fine. And a lot of the time, it does land close to fine. But it lands there the way that suitcase did. Not because the weight is gone, but because it got shuffled into a spot nobody’s weighing that month.
Maybe it’s the overtime we keep trying to bring under control, except someone has to cover the shifts, and call-outs keep happening. Maybe it’s a maintenance backlog that’s been pushed three months running, so the number never shows up as a real cost, but you know it will show up later as a bigger one. Maybe it’s a line item that’s technically accurate and also technically hiding something, the same way a jacket pocket is technically not part of your suitcase.
None of that weight really disappears, and it won’t take much to tip the scale again next month. The exhausting part is that a lot of GMs and department heads at these properties have gotten used to barely balancing every single time. Worse, some properties aren’t balancing at all, they’re actually losing money every month, and they don’t know how to stop it. It starts to feel normal, even routine. But barely making the number every month isn’t the same as running lean. You’re still hauling the same weight through the airport, whether the scale shows it or not. There’s a real difference between a property stretched right to the edge every time and one that has genuine room to spare.
Building a Hotel Margin With Room to Breathe
Here’s what I actually believe: it should not be this close every single month. Making payroll shouldn’t feel like a scale you’re praying doesn’t blink red. Getting to minimum profitability shouldn’t require you to quietly stuff a few things into pockets nobody’s checking. If your numbers only work because something got shoved out of sight, your numbers aren’t actually working, they’re passing a checkpoint. And if your numbers work this month only to add more weight to next month, that’s not planning for the future. Those are not the same thing.
This is the part of the work we find most satisfying. It’s not glamorous. Nobody’s writing a headline about it. It’s sitting down and actually unpacking the suitcase, in the open, on the counter, and going through it piece by piece. What’s really costing you money. What’s really costing you time. What’s actually necessary to carry and what’s just been riding along out of habit. Most properties don’t need a bigger suitcase. They need less weight on the scale in the first place. They need someone willing to help them decide, honestly, what’s worth carrying at all.
That’s not a dramatic fix. But it’s the kind of change that turns a property from just making it through the month into one that actually knows why the numbers work, and can trust that they’ll keep working the month after that, without anyone having to stand at the counter sweating in two jackets, hoping the scale doesn’t notice. This is the kind of work we do at B to C Solutions, sitting down with a property, opening the suitcase up in the open, and helping figure out what’s actually worth carrying.