Business process outsourcing, or BPO, has proved to be the game changer for many industries globally. By managing the administrative and non-core functions, the BPO allows businesses to focus on customer satisfaction and business growth. The hospitality industry is packed with fierce competition, and to remain ahead of the pack, there is a need to focus on constant improvisation of customer service so the business can grow.

This is where the role of BPO in the hospitality industry sets in. When businesses outsource administrative tasks, they can channel all their energy into providing top-notch customer experiences, leading to business growth and expansion.

The advantages of BPO stand out loud and clear. Read on till the end to find out the advantages of BPO in the hospitality industry.

Cost Efficiency

Cost efficiency is one of the primary outsourcing benefits that the hospitality industry can receive. BPO companies have a pool of efficient resources available at lower rates to handle the administrative tasks of the hospitality sector more efficiently. They have access to talents that can get the tasks done faster as they are specialised in their fields. Hiring employees, building an infrastructure for them, and integrating technologies to carry out tasks can be a costly affair for the organisation. Thus, outsourcing the task clearly results in cost efficiency.

As per a report, hospitality companies can save as much as 30% of their operational cost by hiring BPO services.

Enhanced Customer Service

In a digitally advanced world, customers can access information at all times, which means they may require assistance at any time of the day or night. BPO employees work round the clock to respond to the increasing customer inquiries and issues. This results in enhanced customer service as customers have access to resources at all times. Through enhanced customer service, your hospitality business can display its commitment towards customers, resulting in increased business opportunities.

Focus on Core Operations

Outsourcing the administrative task allows you to stay focused on the core business. Thus, a BPO benefit is that it takes away the excess burden so you can work on improving your services and giving the customer an enhanced experience. It gives you ample opportunity to come up with ways to improve your services and make it an enriching experience for the customers. Besides, it also allows you to stay ahead of the competition and have a distinct advantage over others.

Access to Expertise and Technology

Accessing the latest technologies and software can turn out to be costly for hospitality companies. Acquiring these technologies can create a significant imbalance in the company budget. This is where the advantage of BPO comes into the picture. 

BPO companies already have access to the latest technologies, such as cloud computing, process automation, and supply chain management, to name a few. Besides, they also have skilled professionals who bring proficiency and expertise in communicating with customers and carrying out administrative tasks efficiently. Thus, by hiring a BPO, you can leverage their access to expertise and technology to achieve better customer satisfaction.

Scalability and Flexibility

The hospitality sector experiences peak seasons at particular times of the year when there is more influx of clients. For instance, in 2019, OYO rooms faced a surge in booking inquiries and customer service. To cope with the surge, they hired BPO services, which enabled them to quickly scale up the operations and provide efficient customer service.

At such times, there is a need to scale up operations and allocate more resources and employees to interact with potential clients and assist them. Such a scale-up can disrupt the organisation’s structure and budget. BPOs already have access to a huge pool of talent, which they can allocate to cope with the increased demands. Thus, they can scale up and down quickly and hire more or fewer employees without creating structural havoc.

Benefits of Partnering with a BPO

BPO solutions undoubtedly brings many advantages to the hospitality industry. Some of the benefits of partnering with a BPO include the following:

• Reduced hiring costs: The BPO saves you from incurring additional expenses in connection with hiring new employees to handle administrative tasks. It also saves the cost that may be incurred for the additional infrastructure. The same finances can be allocated towards the core business operation to enhance the customer experience.
• Access to Trained Professionals: Another major advantage of hiring a BPO is that you have immediate access to trained professionals with expertise in managing administrative tasks. You do not have to invest time, money, and infrastructure in training new staff. You can stay focused on the main business as the BPO manages the back end for you.

Every coin has two sides, and so does the BPO sector. While it provides various benefits to the hospitality industry, helping it to expand and flourish, there are some challenges and drawbacks that must be addressed.

Every business has a unique culture, which defines how it functions, what days of the week it works, etc. Understanding the client’s culture and working around it to provide the best service can be a challenge for the BPO industry. Another crucial challenge in the BPO industry is that of data security. Since it handles enormous volumes of sensitive client data, even a minor breach can cause huge financial and reputational damage.

Conclusion

Thus, the BPO plays a very significant role in the hospitality industry. It is not a mere tool for reducing cost but a thoughtful and strategic tool for business growth and customer satisfaction. BPO empowers hospitality companies in a globally competitive environment to thrive and emerge ahead of the competition.

It gives you access to a pool of talented and experienced professionals who are experts in handling administrative tasks, so you can stay focused on building the core business. They also save you from many types of risks by utilising their expert services in every field so every task is carried out efficiently.

To sum it up, the top-tier advantages of hiring a BPO include reduced costs, access to talented professionals, scalability and flexibility, improved customer service, a focus on core business activity, and much more.

At Ocube, we take pride in offering specialized BPO solutions tailored to the unique needs of the hospitality industry. Our inbound and outbound services ensure seamless management of customer interactions, administrative tasks, and more. With our large pool of skilled professionals, we efficiently handle high volumes of tasks, ensuring quality, security, and timely execution. Partner with Ocube to enhance your operational efficiency and provide exceptional service in a competitive market.

Frequently Asked Questions

1. What is BPO in the hospitality industry?

Business process outsourcing, or BPO, in the hospitality industry, means allocating a part of the business operation to a third party. In most cases, it involves outsourcing administrative tasks such as marketing, accounting, customer service, etc.

2. Can BPO help reduce costs for hospitality businesses?

Yes, among the many BPO advantages is that it enables the hospitality business to reduce costs in the following ways:

• Reduce the overhead cost of staffing.
• Reduce the cost of purchasing new software and technology.
• It also saves the cost of infrastructure for the added employees.

3. What tasks can be outsourced in hospitality?’

You can outsource a number of tasks in the hospitality industry as per the business needs. Some of the tasks that a BPO can handle for the hospitality business include the following:

• Customer Service: BPO can handle customer interaction, answer their queries, help them with bookings or other issues, and so on.
• Accounting: It includes maintaining accounts, invoices, financial reports, etc.
• Marketing: BPOs can also handle marketing tasks, such as telemarketing, providing customer assistance, handling social media presence, etc.

4. What should I look for when choosing a BPO provider for hospitality?

Here are a few crucial factors that you must consider while choosing a BPO for hospitality:

• Customer support
• Cost-effectiveness
• Data security
• Technology and infrastructure
• Company reputation
• Scalability and flexibility
• Transparency