7 Ways Bed Bugs Could Financially Affect the Hotel Industry


Every hotel owner knows that a simple rumor about bed bugs could ruin their image in the market. A single incident holds power to malign your reputation. Moreover, there are a lot of legal matters associated with bed bugs. The guests sue the hotels for millions of dollars, which could even make you bankrupt. Therefore, it is best to call bed bug control experts surrey to get rid of these pests. Taking in time measures would save your reputation and protect any loss of income. You might think that I am exaggerating things, so let’s discuss some ways bed bugs could affect your business.

Decreases Accommodation Value:

Whenever an incident related to bed bugs happen, your hotel’s accommodation loses its original value. If the event gets reported on social media, then your reputation is also at stake. Guests would not trust you like they use to do, and you would see a loss in revenue. Moreover, the money you would have to spend to treat infestation would lower the hotel’s operational cost. According to a report, a single incident of bed bugs would reduce the value of a hotel room by $21.

Cost of Litigation:

You could never take bed bugs infestation lightly; it would push your business in loss, and you would gain negative publicity. Generally, bed bug infestation requires you to replace the soft products and get infestation treatment, which only causes a loss for the business. According to surveys, more than fifty percent of the hotels undergo litigation due to bed bugs. These litigations are not cheap; a single incident could cost you more than $17,000, and it can go further higher.

Brand Degradation:

It takes a lot of years to build a name for yourself in the market. All that hard-earned reputation would be lost with a single negative review online. Today’s world is more connected than ever with the help of the internet. Most of the travelers who visit a hotel post their reviews about it and share their experiences. Some even record videos of their stay in a hotel and posts it on their YouTube channel. The majority of the new travelers read these online reviews before booking any hotel. So, if someone has posted a negative review of your hotel, believe me, you are going to lose more customers in the future. The biggest problem with the internet is once something is on it, you cannot delete it easily.

Decreases Stakeholder Value:

Once the news of your bed bug infestation makes the headlines or get viral on social media, your business is going to lose its value. That means the hit your business took due to the negative publicity would reduce the stakeholder value. Your business is bound to see a decrease in potential customers in the future, and that would lead to lower operational efficiency.

Increased Expenses:

Due to negative reviews of your hotel, the overall operational expenditure of the hotel has increased. You are getting fewer visitors, and managing a large-scale operation is not easy with the lower revenue. Moreover, you have to bear the additional expense of an infestation treatment. To put the cherry on top, your older customers might send you a lawsuit. Therefore, dealing with all these things it not easy you have to spend a lot of money to tackle these issues. With the reduced number of guests and the increased expenses, you are quickly heading towards bankruptcy.

Inventory Replacement Cost:

Bedbugs are nasty creatures, and they could ruin your furniture, mattresses, sheets, and even towels. Therefore, when the infestation gets out of control, it is advised to replace furniture and soft goods. Replacing most of your inventory is not easy, especially if you’re running a large enterprise. All these things in a hotel are very costly, and they are somewhat an asset of the business.

The Medical Cost of Allergic Reactions:

Where bed bugs are dangerous for your business at the same time, they are hazardous for your health. bed bugs bites are not that dangerous, but bigger bites could cause redness of the skin. Sometimes you could experience extreme itches and allergic reactions due to bed bug bites. Therefore, in these scenarios, you need medical attention as the excessive scratching on the bite marks would lead to further inflammation.