Labour utilisation and cost control in local four-star hotels : a critical review

Abstract

Labour cost control, including labour utilisation, is the single most important factor affecting the profitability of a business. It is an area which, therefore, should be strictly controlled by the financial manager in order to place cost minimisation at the core of hotel labour utilisation strategy. The objective of this dissertation is to find out and appraise through research and observations how hotels in Malta, or a number of hotels, control labour to ensure proper manning levels at minimum costs and maximum productivity. In order to achieve a general picture of the four-star category hotels, and a better understanding of the differences and similarities that might exist, different tourist areas round Malta were selected. After evaluating the current situation from the hotels interviewed, I gave my recommendations and suggestions, which were felt necessary to improve the situation.