In today’s rapidly evolving hospitality landscape, financial leaders are navigating increasing uncertainty. Volatile markets, supply chain disruptions, rising labour costs, and changing guest expectations are challenging traditional budgeting and forecasting. In this environment, cost controlling is no longer a side function; it has become a core component of effective hotel management.

Although revenues are continuously growing in the industry, costs are also increasing. A successful strategy must include both increasing revenue and decreasing costs. In recent years, hotels have maintained a focus on a top-line approach for increasing revenue. However, a key factor for a more successful financial strategy is to also have better bottom-line results through cost controlling.

The Growing Need for a Holistic Approach in Financial Planning and Analysis (FP&A) in Hospitality

As we move through 2025, the hospitality industry continues to adapt to shifting economic conditions, growing globalisation, and accelerated digital transformation. As the hospitality industry evolves, financial planning and analysis strategies also need to evolve side by side. Finance teams are faced with new challenges and rising expectations. This means being prepared for unforeseen circumstances has become even more imperative than before.

A holistic approach is the only way forward. In today’s world, finance teams are expected to control spend while maintaining service standards, respond quickly to market shifts and align financial plans with long-term goals.

This means decisions can no longer be based on a static budget. Hotels need a more agile, data-informed, financial approach to garner better results. Therefore, cost controlling plays a crucial role by enabling flexible planning, tighter expense monitoring, and more resilient business strategies.

Why Cost Controlling Matters More Than Ever in 2025

Finance teams are struggling because inflation, high energy prices, and growing personnel costs are pushing hotel operating expenses to new highs, which means maximizing profit is becoming even more difficult than ever before. As costs continue to increase, supply chain volatility and evolving guest demands are also creating ongoing financial pressure.

To continue to stay afloat, competitive and increase profit margins, hotels need to have a clear picture of where money is being spent and how costs can be optimised. Cost control is not simply about cutting expenses; it is about ensuring smart, efficient resource allocation. Resources need to be allocated in a way that continues to support stability, profitability and guest satisfaction, while keeping cost and budget planning in check.

Example: A resort chain identifies rising F&B costs as a key pressure point. To cater to that rising cost, the team reviews supplier contracts, tracks inventory turnover, and centralizes purchasing across properties. This proactive decision-making and cost controlling strategy reduces procurement costs significantly, improves menu consistency, and lowers food waste through smarter demand forecasting — strengthening margins without compromising guest satisfaction. Now multiply this into different departments, and the potential savings grow even more.

The Role of Cost Controlling in Holistic FP&A

Cost controlling connects budget planning, forecasting, and actual performance to provide a complete picture of financial health. Within FP&A, it plays a central role by offering meticulous drill-down details and strategic planning opportunities.

A holistic FP&A approach includes detailed tracking of costs across each department — personnel, operational, marketing, and more. It allows insightful comparisons of planned versus actual figures to clearly identify gaps early and adjust strategies accordingly. Financial planning and analysis software also supports scenario planning to test strategies and anticipate outcomes, enabling smarter decisions.

Equally important is coordinated decision-making. A holistic FP&A software enables finance and operational teams to align at different financial planning touchpoints. This ensures financial planning is not done in isolation but informed by real-time performance and business needs, encouraging ownership of financial decisions across teams.

From Central Control to Shared Accountability in Financial Planning

A strong cost control strategy means managing the P&L collaboratively, not just within the finance team. Instead of relying on one manager, every line item — revenue, payroll, operating expenses — should be assigned to the right department leader. This builds ownership and turns cost control into a collective effort.

Example: A P&L line such as “guest amenities” may involve housekeeping, front office, and guest relations. Assigning one accountable owner within each department ensures coordination, accuracy, and more engaged financial culture.

FairPlanner, Fairmas’ forecast and budget P&L planning software, enables this collaborative approach by allowing hotels to assign, monitor, and manage each P&L line with precision. With flexible workflows and user-specific access, department heads can forecast more accurately and respond quickly to changes.

How Fairmas Enables Smarter Cost Controlling

Fairmas supports hotel finance teams with software built specifically for hospitality. With FairPlanner, hotels can:

• Integrate budgets, forecasts, and actuals for more holistic decision-making
• Gain insights to guide day-to-day decisions
• Encourage cross-department collaboration, avoiding data silos
• Use data-driven planning and reporting to reduce manual effort and errors

This transparency and connectivity allow financial leaders to make more robust decisions with confidence. A proactive approach replaces reactive firefighting.

From Silo to Strategy: Cost Control as a Driver of Success

In 2025, cost controlling is no longer a stand-alone task. It has become an essential part of broader financial strategy, linked directly to budgeting, forecasting, and long-term planning.

The ability to manage costs effectively will be one of the most important drivers of financial success. A holistic approach, supported by robust FP&A software like FairPlanner, is no longer “nice to have” — it’s a necessity for hotels striving for stability, profitability, and long-term success.