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Two of the biggest concerns the Lodging Industry faces are construction and rising operating costs. Construction includes the cost of new facilities or the modernization/retrofitting of existing structures as well as the aspect of obtaining financing. Operating costs for this discussion refers to energy, labor, maintenance, repair, and operations. Woven into industry concerns is the question of how to lower costs and still have a positive impact on the customer’s experience.

State of the Lodging Industry

The good news is that there is always an opportunity to do more with less as well as responding to changing consumer demands for greater green responsibility by making use of Computerized Maintenance Management Software (CMMS).

“The linkage between competitive pricing to create value for the customer and cost reductions to sustain profitability is the fundamental challenge identified here.”

Source: Cathy A. Enz, Ph.D., The Center for Hospitality Research

A lodging CMMS solution can help bridge the gap between the need to lower cost and the need to remain competitive with market offerings.

Financial Competitiveness

The reality of the modern economy is that without adequate cost containment measures already depressed margins will not improve and can put you out of business. As with any business, Cash is King and without cash flow, financing for construction carries greater inherent risks making the cost to borrow money skyrocket. You do not need to be a financial genius to realize that demonstration of a well run, cost effective operation goes a long way to securing financing.

A lodging CMMS system is a tool that will help you streamline your lodging’s maintenance operations, decrease labor, unplanned repairs and energy expenses. Just as importantly, CMMS maintenance software when properly used to schedule inspections and preventive maintenance will lengthen the useful lifecycle of assets. This will push out the normal asset replacement dates lowering the need for capital expenditures.

The Customer Experience Effect

Implementing a lodging CMMS solution will have a positive impact on the customer experience. Nothing is more frustrating to a weary traveler than to enter a room and find that the A/C doesn’t work, the hot water is out or door doesn’t lock correctly. A quick resolution to reported problems will alleviate much frustration leaving the customer with peaceful thoughts. The trick is to make sure maintenance staff is available and not have to pay overtime for the unexpected repairs. This may be achieved with a CMMS because scheduling regular preventive maintenance or inspections will identify problems early on and allow their repair to be scheduled long before a breakdown occurs or a complaint is lodged. Lodging managers will find that the amount of reactive maintenance is decreased and replaced by pro active maintenance practices. Overtime costs can be reduced dramatically.

How Does a Lodging CMMS Work

CMMS software program can run from either the vendors IT site (hosted online CMMS) or installed on the lodging’s site using its computers. Hosted web-based CMMS programs normally have lower upfront costs than on-site installation. Other advantages of a hosted CMMS include 24/7/365 up times, automatic software updates and faster implementation.

The system works best when great care is given to the set up stage. This is the stage where you get organized defining what your assets are, where they are at, their costs, vendor information and so on. CMMS training is also important for set up in order to learn how use the maintenance modules as well as the mobile handheld devices that enable paperless workflow. When implementation and training are done well, managers will find a wealth of management reports that are available to enhance decision making.

The local facility is not the only group that will benefit from a web-based CMMS. One of the best features of an enterprise CMMS is that when they are implemented across multiple locations, lodging operations executives can compare facilities, determine best practices and set up standard operating procedures. In addition,the CMMS maintenance system will enhance the ability of corporate planners to more accurately project capital expenditures by reviewing work order frequencies as well as maintenance costs.

The Value of a Lodging CMMS

The true value of a lodging CMMS maintenance program is the result it provides the users. Each business is unique having different needs and objectives that must be met. For the lodging industry some common needs include streamlining costs, lowering capital expenditures and enhancing the customer experience. Positive results in these three categories will enhance the capability of organizations to survive tough times as well as build the foundation for future success. Implementing a good CMMS program is a must for the lodging industry.

Tell us how you manage costs without sacrificing customer experience.

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