The classic 80/20 rule.

80% of beer is drunk by 20% of the population. 80% of complaints come from 20% of your customers. 80% of sick leave is taken by 20% of staff.

How can your hotel use the Pareto Principle to your advantage?

Not all complaints are created equal:

Next time you do a yearly review of your complaints, make sure you tally them up and see which ones lead the pack. While doing this, make sure you measure the severity of the complaint. For example, someone mentioning a lack of TV channels has less impact on your review score than someone complaining about a cold breakfast. Once you have these numbers, put your dollars and focus on the top 20% of issues. 

Look at your top 20% of expenses:

Looking to increase your bottom line through cost-cutting is a multifaceted approach. Start by looking at the top 20% of spend in different categories to see where to start. For example, you should look at your top 20% of food sale items to reduce food costs. Not sure what expense category to start in? You guessed it, start with the expenses that comprise the top 20% of your income statement.

Get the wrong people off the bus:

If 20% of your employees cause 80% of your problems, there is a logical solution. Weed out those 20%. A strong hotel culture starts with getting the right people on the bus, but when hiring, mistakes are made, and you have to get the wrong ones off just as quickly.

The Pareto Principle can be applied to any area of your life. It gives you a clue where to start before any initiative.

Once you see it, you cannot unsee it.