As automation gains ground, these hotels are grappling with how to modernise without losing what makes them special, which includes their reputation for high-touch service. This often requires independent and boutique hotels to walk a much finer line than their branded counterparts.
Jenifer Neptune, co-founder of Boutique Hotel Professionals, creates distinctive and individualised hospitality experiences that are curated to the needs of each property and its clientele. The growing need to balance automation with attention has added a new layer to her playbook, inspiring her team to rethink labor strategy, concept design and tech adoption to preserve personalisation while staying lean.
Hospitality Investor: How have wage increases and ongoing staffing shortages shaped your labor strategy across the assets you manage?
Neptune: They have significantly reshaped labor strategies across boutique and independent hotel properties. We have had to offer more competitive wages, including enhanced benefits like additional holidays, such as Martin Luther King Day, Juneteenth and employee birthdays. Offering perks like annual bonuses for hourly associates, wellness programs and even daily pay options has also become more common.
In response to labor shortages, many properties are offering more flexible and part-time roles to attract students, retirees and parents. Increased attention is also given to employee engagement initiatives – recognising top performers, encouraging feedback and acting on it.
HI: How do you balance personalised service with operational efficiency in a labor-tight market?
Neptune: This requires a strategic blend of high-touch hospitality, smart resource allocation and targeted tech adoption. We have accomplished this by focusing on meaningful personalisation and allocating personalised services to VIPs, long-term stays and repeat customers. It’s always critical not to lose the personal touch! This is our business and we are paid to make sure everyone is treated like gold, so we have to go above and beyond by creating experiences.
HI: How are you using concept design or tech-forward programming to reduce staffing needs without compromising the boutique experience?
Neptune: Concept design and tech-forward programming have become a strategy with today’s labor challenges. Hotels are turning to lobby cafés, grab-and-go pantries and even self-pour wine bars reduce the need for full-service F&B staff. Mobile check-in and keyless entry also reduce front-desk staffing while offering guests flexibility and convenience. You have to be careful with this, however, because you don’t want to now feel like a limited-service hotel.
The boutique hotel model focuses on creating experiences, and this can still be done while offering options that will reduce the number of associates. In-room QR codes have also gained a lot of speed post-pandemic by linking to digital guides, menus and concierge recommendations, allowing guests to self-navigate their stay.
HI: What technologies or process innovations have delivered meaningful ROI in terms of labor savings or service consistency?
Neptune: Dynamic Labor Scheduling Tools is the buzz of the industry lately. It allows lower labor cost per available room by optimising shift lengths based on real-time occupancy data. This ensures the right staffing levels for every daypart and helps avoid costly overtime.
HI: What service elements have proven to be non-negotiable from a guest satisfaction perspective in terms of outsourcing or automation?
Neptune: That’s a great question – and one we regularly challenge our teams to consider, especially as we navigate the balance between automation, outsourcing and maintaining a truly exceptional guest experience. First impressions are everything, and they begin the moment a guest arrives – whether it’s through an interaction with a valet, bell staff, front desk associate or concierge. Guests expect a warm, genuine welcome that reflects the spirit of the property.
In the spirit of that, we’ve made a clear commitment: the guest experience is our top priority. We’re intentional about keeping key service areas, such as food and beverage, spa and retail, in-house, even as many properties turn to third-party operators due to staffing challenges. Our belief is simple: if you create the right environment and treat your associates with the same care and respect you show your guests, word spreads. Before long, you build a culture that attracts talent – and staffing gaps become a non-issue.
HI: What challenges have you encountered with outsourcing guest-facing roles?
Neptune: This remains a persistent challenge for many hotels globally. For full-service properties, one of the most pressing issues is staffing banquet servers during high-volume weekends or large-scale corporate events. Unfortunately, it’s difficult to consistently secure the same outsourced associates, and many are unfamiliar with the service standards or core values that define the property. As more individuals view these roles as short-term opportunities rather than long-term career paths in hospitality, this issue is likely to continue.
HI: Is there a risk that efforts to preserve net operating income (NOI) through automation could further entrench a two-tier service model – one for luxury guests and another for everyone else?
Neptune: Yes, we feel there is a major risk that relying on automation to protect NOI can unintentionally create a two-tier service model. This is especially relevant in boutique and independent properties where personalised hospitality is a brand pillar. Boutique hotels are known for being special places where lifetime memories are made – and you don’t want technology to take away from that. We strive to ensure every guest walks out saying, “Wow, that was incredible.”
HI: How do you advise hotel owners who are concerned about labor margins eating into NOI?
Neptune: We emphasise shifting the focus from simple cost-cutting to maximising overall value. We take the time to present ownership with the advantages and drawbacks of various options, allowing them to make informed decisions about which services they are willing to reduce or maintain.
For example, we might identify savings by eliminating a bell person during weekday periods, while recommending retaining that role on weekends when weddings or large events are taking place and guests expect that level of service. Similarly, this approach can apply to concierge or restaurant host positions during slower times, balancing cost efficiency with guest expectations.
HI: What is your pitch for investing in boutique experiences right now?
Neptune: Investing in boutique experiences today goes beyond traditional hospitality. It’s about creating local experiences and building deep emotional connections that foster guest loyalty. It’s about setting your property apart from branded hotels and opening the door to higher revenue potential.
In a marketplace saturated with generic options – boxes, really – and heavily influenced by price-driven online reviews, boutique hotels stand out by offering authentic, personalised stays guests won’t find anywhere else. We cater to the rising demand for meaningful, locally inspired and thoughtfully curated experiences, offering much more than just a place to rest.
By Nellie Day
