Outsourcing in the Hotel Industry

The hotel industry is characterized by significant sales volatility, which makes outsourcing a relevant strategy for hotels.

Outsourcing can help hotels to lower fixed costs, gain tighter control of budgets, improve quality and flexibility, and focus on core assets.

However, it is important to consider the strategic value of resources before outsourcing them, as outsourcing resources that have strategic value can give competitors a competitive advantage.

Here are some questions to consider when deciding whether to outsource a resource:

• What are the four hotel sales volatility dimensions?
• What is outsourcing strategy?
• What are the four specific issues that make outsourcing worth considering?
• How does transaction cost economics (TCE) affect the decision of whether to outsource?
• What are the factors that should be considered when deciding whether to outsource a resource?

For more information on outsourcing in the hotel industry, please visit the following resources:

• Outsourcing in the Hotel Industry
• The Pros and Cons of Outsourcing in the Hotel Industry
• Outsourcing in the Hotel Industry: A Guide for Hoteliers