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The hotel industry hasn’t kept up with the state of the art to the degree other industries have, says Shah, particularly with regard to pricing and customer convenience.

significant. It could be several hundred thousand dollars in additional costs over the next three, four or five years.“

The need for a new generation of computers, data centers and security equipment for the nation’s hotels is driving up the expense of technology in the hospitality industry, says Mitesh Shah, chief executive officer at

 The average [technology] cost for a 400-room hotel has been about $50,000 a year. That  cost is going to go up as the brands start implementing new technology to take the place of systems that have been in place for quite some time,” says Shah.   “That cost could be  significant. It could be several hundred thousand dollars in additional costs over the next three, four or five years.“

The upgrades involve both communications that make life more convenient for travelers, and the unseen hardware that makes hotels function more smoothly.

Hackers are more aggressive than ever, and the cost of protecting hotel systems has risen accordingly

cost is going to go up as the brands start implementing new technology to take the place of systems that have been in place for quite some time,” says Shah. 

Traditionally, too many hotel managers focus on the condition of the carpets and walls  — whether they need painting or new pictures, or fresh plants in the lobby, rather than scrutinizing their technological infrastructure.

Examining how people buy and use media shows that bandwidths are growing more sophisticated, and the trend in a hotel experience is to become more connected,

And too many hotels are unable to provide that level of technical response.

Costly upgrades don’t always translate into higher rates, however. “The question really is, can you charge more for it? Or is it part of the experience?”

high-speed Internet, for instance, it’s an amenity that customers demand, but they’re not necessarily willing to pay extra for it.

Another expense involves business intelligence technology — the detailed analysis and tracking of a hotel’s daily, weekly, monthly, and quarterly performance.

Operating teams then analyze the results and plan their financial strategy on a day-to-day basis, says Shah.

When it comes to creature comforts, travelers don’t want to compromise, says Shah. They want the same comforts on the road that are available at home

By making use of cloud computing, as a hotelier, you pay only for what you demand. It specifies that your upfront costs are kept low as you are only paying for the computing power and cloud storage which your hotel actually needs.

The need for hardware overload in your hotel is brought down, because of which your electricity bills are also reduced by a huge margin.

also shortens the project time resulting in costs cutting and higher productivity.

An added advantage of cloud computing is that it frees your staff from their otherwise fixed terminals and lets them work independently and even more efficiently.

increased in the speed at which the guests access the products and services, thus only creating seamless hotel experiences for them.

Also, one of the major benefits is the real-time update — it makes the process much smoother and cheaper, and saves a lot of time.

However, when you put your hotel process and management on the cloud, it provides you with the flexibility to access it and work on it from any part of the world — all you need is a steady internet connection and a smart device (a laptop, or a computer, or mobile phone or tablet.)

When it comes to the benefits of cloud computing in the hospitality industry, the list includes enhanced guest experiences, massive reduction in costs, faster services and their seamless access, software and service security, and more flexibility.

cloud computing has transformed businesses

hospitality industry, cloud computing has done wonders

reshaped the structure of the industry

from increasing operational efficiency to lowering the management costs.

better guest experience and increase the revenue of the property.

ringing down costs like energy, hardware and operations

increasing inclination towards the use of cloud computing in the hospitality industry, they don’t need to always rely on travel agents all the time

hotel check-ins can be done from smartphones or tablets

cloud computing has transformed businesses

cloud-based services are now replacing the old and traditional systems at all levels. Infrastructure as a service (IaaS), Software as a service (SaaS), and platform as a service (PaaS) have all become the first choice of cloud computing services for many hospitality businesses. And they are all charged up with the amazing benefits of cloud computing.

Over the past few years, cloud computing has transformed businesses from across the world, irrespective of their industry. Today, the demand anytime, anywhere access has skyrocketed, and cloud computing is delivering just that — all you need is an internet connection with good bandwidth.

businesses don’t have to burden themselves by storing data in traditional in-house servers; rather, they can opt for a cloud service that would store their data in secured data centres.

There are several benefits of using the cloud and they have helped several hotels across the world to strengthen up their business — from increasing operational efficiency to lowering the management costs.

Advantages Of Cloud Computing For Hotel Industry

In the hospitality industry, Cloud Computing is a mixture of PaaS, SaaS and IaaS. It operates on the model of Use, Builds, and Migrate.

By making use of cloud computing, as a hotelier, you pay only for what you demand. It specifies that your upfront costs are kept low as you are only paying for the computing power and cloud storage which your hotel actually needs.

Hoteliers Can Cut Huge Business Costs With Cloud Computing

cloud computing can benefit hoteliers by bringing down costs like energy, hardware and operations. The need for hardware overload in your hotel is brought down, because of which your electricity bills are also reduced by a huge margin. Cloud computing in the hospitality industry also shortens the project time resulting in costs cutting and higher productivity. Hence, if you shift your software services to the cloud, your hotel business would witness a significant number of opportunities.

Cloud Computing Leads To Improved & Enhanced Guest Experiences

The two main purposes of an efficient and effective hotel PMS are: offer the hotel staff the best set of management tools assist you to ensure the top-notch guest experience

An added advantage of cloud computing is that it frees your staff from their otherwise fixed terminals and lets them work independently and even more efficiently.

Being on the cloud also means that hotel check-ins can be done from smartphones or tablets and not only through the hotel front desk.

Direct Bookings Are Made Easy With Cloud Computing

There was a time when hotels used to payout huge commissions for bookings to the online as well as offline travel agencies. However, with the increasing inclination towards the use of cloud computing in the hospitality industry, they don’t need to always rely on travel agents all the time. Hotels can upgrade their hotel website with cloud-powered services such as web booking engine that can be integrated to the hotel PMS. Also, one of the major benefits is the real-time update — it makes the process much smoother and cheaper, and saves a lot of time.

Cloud Computing In Hospitality Industry Makes Working Remotely Possible When you as a hotelier is not present in the property, managing the operations gets a little tougher. However, when you put your hotel process and management on the cloud, it provides you with the flexibility to access it and work on it from any part of the world — all you need is a steady internet connection and a smart device (a laptop, or a computer, or mobile phone or tablet.)

A data centre is a facility used to house computer systems and their components, and it can be far and away the biggest contributor to an organisation’s carbon footprint. A data centre’s life expectancy is relatively long so it is imperative it is built to the highest standards in terms of efficiency as any excess energy use will lead to significant cost implications over the years.

1. Build the most energy-efficient data centre possible. This will save energy and costs over its lifespan. 2. Only get the data storage capacity that is currently required and forecast for the lifespan. Many data centres have excess capacity that burns energy (and therefore costs) unnecessarily. Don’t have servers or equipment that will not be used. 3. Cooling data centres. Traditionally cooling has been done by air circulation, which is very inefficient. Larger data centres already use other technologies to cool more efficiently, such as water cooling. 4. Virtualisation technology. Improve your system’s resource utilisation through virtualisation technology. Virtualisation is the creation of a virtual (rather than actual) version of something, such as an operating system, server, network, etc. and allows a single user to access several physical devices on one terminal. A computing device dedicated to an individual member of staff or allocated for one software application is highly inefficient and expensive. Virtualisation consolidates resources, requiring less power and cooling. 5. Consider cloud computing. This is a location-independent IT service, typically available over the internet, where shared servers provide resources, software and data to computers and other devices on demand, increasing IT capacity and capabilities without an organisation having to invest in new infrastructure. Keeping data virtually, or “in the clouds”, means less information stored on IT systems and therefore less energy being used to run the systems. Systems such as BT’s Virtual Data Centre, a hosted data centre that enables businesses to create, deploy, monitor and manage their own service through a self-service portal, claim to offer savings of up to 40% of the total cost of running one’s own data centre as well as reducing the space required, the level of emissions produced and the power consumed.

1. Upgrade. Before buying new, investigate options to upgrade with the latest energy-efficient components to extend appliances’ working life and efficiency. 2. Green labels. Look out for the certification labels denoting more energy-efficient equipment, from Blue Angel in Germany to TCO in Sweden and Energy Star in the US (see below). 3. Screens. Opt for flat screen monitors, which reduce energy use by over two-thirds. 4. Get the right equipment. Consider your information technology needs against the tasks required. For example, laptops may be a better option in some circumstances because they have been developed to be energy-efficient and generally match the computer to the task required. Remember: not all staff have the same needs. 5. Consider running costs. Look at the life cycle costs, not just the purchase cost. Take note of running and standby costs of equipment. These can vary enormously.

6. Measure and monitor power usage. Once you know what’s using the power, focus on why and whether it’s possible to reduce consumption.

Top 10 Tips to reduce running costs of office equipment (source: Carbon Trust) 1. Computers. Activate energy-saving features. In fact, most office equipment will have these features, so make sure they’re activated. 2. Standby features. Introduce a policy to activate standby features, don’t assume employees will do it. 3. Turn it off. Buy seven-day timers. These can save up to 70% on energy costs. 4. Monitor and manage the equipment that is peripheral to computers, such as speakers, printers, etc. and consider installing intelligent switch-off solutions. Printers can consume 30%-40% of their peak power demand when idling between printing and standby modes, so minimising this can produce cost savings, reduce heat output and increase its operating life. 5. Educate your staff. Consider a screen saver with an energy-saving message. 6. Rationalise your equipment via networking to reduce the number of printers (for example) in any office area. 7. Printers Use only black and white for internal documents and colour only when absolutely necessary. Consider the benefits of inkjet printers v laser printers. Inkjet energy use is much lower than that of a laser printer. Encourage staff to use print preview functions. Set default printing mode to double-sided. Use lower-specification printers, such as inkjets, for internal documents and encourage staff to use these for day-to-day use.

8. Photocopiers High volume copiers use more energy so should be used sparingly. Use low melting point inks (available from stationery suppliers). Encourage staff to copy in batches to increase standby time. Stick to black and white copiers and only use colour when absolutely necessary. Set default copying to double-sided. 9. Invest to save and purchase only what you need. 10. Don’t forget to motivate staff. Keep repeating the message of the importance of energy saving in ways that they can understand (for example, a computer monitor switched off overnight saves enough energy to microwave six dinners).

WEEE (Waste Electrical and Electronic Equipment), or e-waste, is the term used for old or disposed electronic equipment. It covers both the toxic and valuable materials found in appliances. The most important lesson is to reuse, not recycle. With so much e-waste, and electrical devices such as computers and flat screens often being replaced well before the end of their shelf life and ending up in landfill, it’s imperative that the most is made of these materials by reusing them productively.

Options to investigate when trying to reduce e-waste are: 1. Can you upgrade your equipment with new energy efficient components? 2. Can it be used by someone else in the company? 3. Can it be given to a charity? (Note: charities must be registered to take WEEE.) 4. Will the manufacturer take back the old equipment and reuse parts in new products?

Developments on the horizon include: 1. Smaller, more efficient processors. The continuing development of microprocessors means a mobile phone can have around the same computational power as the average desktop computer back in 2000. 2. Memristors. Electronics giant HP is in the process of developing “memristors” (see photo above), which have greater memory storage capacity while requiring less energy and space. They are due to be on the shelf in about three years. 3. Specialist data centre design. Siemens recently launched its transformational Data Centre Solution, a groundbreaking strategy in data centre energy-efficient design and operation. It claims the system, which uses virtualization and efficient power and cooling, offers many benefits for businesses, including up to 50% energy savings through ground water cooling and IT costs reduced by 30%. 4. Outsourcing. Hotels of all sizes are starting to view IT outsourcing as a viable option to gain flexibility and reduce short-term costs and increase transparency of cost structures and processes. 5. Optimisation of resources. This will become a necessity either through virtualisation, networking or cloud computing. 6. Water cooling. IBM is currently working on a supercomputer that is cooled by water (a given volume of water can hold 4,000 times more waste than air), which claims to be 50% more energy efficient than the world’s leading systems. The Aquasar stacks many computer processors on top of each other with cooling water flowing between each one. IBM’s Dr Bruno Michel told the BBC in November 2010: “We plan that 10 to 15 years from now, we can collapse such a system into one sugar cube — we’re going to have a supercomputer in a sugar cube.”

The growing concern over sustainability in the business sector led to developments in innovative environment friendly processes and tools collectively called green technology

Green technology enables the eco-friendly practices of business firms.

The concept of sustainability emerged in the field of natural sciences in recognition of the scarcity of natural resources and the need to rationalize usage to secure sufficient resources for future generations (Kirk, 1995).

The concern of sustainability is ensuring the continuation of the well-being of people and protection of the environment from wasteful use or destructive activities.

The implementation of sustainability plans involves innovative methods and tools accessible to hotels and responsive to the multi-dimensional issues including impact of operations on the environment experienced by hotels. Green technology understood as eco-friendly tools and processes or environment friendly products support the successful implementation of sustainability plans in the hospitality industry.

1.      Minimized pollution and rational energy and water consumption. 2.      Respect for culture and tradition. 3.      Community involvement in the hospitality economy. 4.     Consideration of quality instead of quantity in terms of the visitors to tourist destinations. 5.      Economic benefits redound to the community. (Robertson, 2007)

In relation to environmental sustainability, there are also considerations for inclusion into the sustainability plan of hotels to ensure that they meet environmental compliance (Butler, 2008)

However, even if sustainability planning is a tedious task, the expected outcomes are long-term and compelling because this determines the continuity or viability of hotels, firms whose future survival depends on sustainability (Butler, 2008).

1.      Scale and distribution of operations in a given area. 2.      Hotel demand and means of alleviating the negative effects. 3.      Protection of key assets historic buildings, townscape or coastline. 4.     Contribution to other related areas such as economic development and cultural preservation. (Sharma, 2004)

Since the sustainability of hotels spans multidimensional aspects, the contribution of hotels to other areas such as employment or job creation also supports its sustainability.

Green technology received recognition as an aspect of human society and therefore part of sustainability. In a sustainability panel of representatives from the hospitality industry, sustainability as a strategy meant addressing today’s needs without adversely affecting tomorrow’s needs (Knowles, 2008).

Examples of product enhancement are energy saving appliances and fixtures such as fluorescent instead of incandescent lights or intelligent air conditioning systems that regulate room temperature depending on the presence of its occupant

The extent of reduction of waste varies since this could range from minimal to significant decrease in the volume of waste generated, capacity of landfills, and transportation needs. By benefiting the environment, economic benefits also accrue. (Billatos & Basaly, 1997)

dopting waste management processes and tools accrues financial, economic, and environmental benefits for hotels.

Key to these activities is the ability to harness the full functional value of materials and product components at the least possible additional processing cost for recovery and reuse. (Billatos & Basaly, 1997)

First is design of recycling or the cost-effective manner of recovering and reusing materials. The design provides support during the disposal stage to ensure low added cost for recovery. Second is design for disassembly encompassing the methods enabling the minimization of cost in segregating reusable materials. This leads to savings that accumulate when design interventions are made during the stages of material selection and assembly that already separates reusable materials

Third is toxics management comprised of the activities of controlling and eliminating toxic materials that are innate components of products such as cadmium or lead. Excessive levels of these toxic materials are hazards to health and the environment. (Billatos & Basaly, 1997)

Environmental benefits include reduced accumulation of waste and lesser risk of soil, water and air contamination of toxic production. (Billatos & Basaly, 1997)

Pollution prevention involves the elimination of processes in manufacturing that cause pollution. This requires change by redesigning the production process in a manner that prevents the accumulation of harmful by-products or the redesign of the finished products so there would be no use for processes that result in hazardous by-products. The prevention of pollution in production design exacts capital investments but the cost of redesign is deemed less when compared to the cumulative cost of controlling pollution, which would likely increase with new regulations imposing more active methods of pollution control. (Billatos & Basaly, 1997)

Green technology as a process and a collection of tools addresses four objectives, which are a) waste reduction, b) materials management, c) pollution prevention, and d) product enhancement (Billatos & Basaly, 1997). There are processes and tools specifically targeting any one, some or all of these objectives so that the appropriate choice depends on the priority of hotels.

The technological development of product enhancement innovations is escalating and promise greater functions for business establishments. (Billatos & Basaly, 1997)

Utilizing product enhancement technologies influence the sustainability of hotels in terms of savings on operating cost, lesser pollution and waste in the built environment, and value creation for environmental conscious customers (Yaw, 2005).

Overall, green technology supports the sustainability of hotels by decreasing a wide range of economic and non-economic costs to support the financial viability of hotels in the long-term and conserving the natural environment on which the hospitality industry depends for the continuity of business. By adopting green technology, hotels gain processes and tools it can use to secure its sustainability.

A range of energy saving technologies is available to the hotel industry. These technologies could make hotels green buildings by targeting various areas for energy saving.

One is electric heating pumps as alternatives to conventional electric boilers or condensing/non-condensing boilers requiring gas to run. The use of this green technology by a hotel in Hong Kong with a rooftop swimming pool showed a reduction in energy consumption by 26.5-32.5 MWh and a reduction in greenhouse gas emissions by 12,000 kg. When computed over a ten-year period, using this technology would save the hotel HK$226,400 in energy cost savings. The hotel can earn back the cost of adopting this technology in two years. (Chan & Lam, 2003)

Building designs able to harness alternative sources of energy comprise green technologies that support the sustainability of hotels. Solar panels continue to gain function in energy saving for hotels (“Building in a green edge,” 2008) although the payback period is longer than expected, the energy saving potential extends to the long-term. The use of building designs that harness natural light such as skylight atriums that do not use artificial lighting during the day are also green alternatives for hotels (Kirby, 2009).

Another direction of green technology for the kitchen is the reuse of exhaust heat from the kitchen by harnessing the heat from the exhaust or condensing hot air to produce steam for use in cooking. This is a means of recycling energy. However, this involves the integration of the design in the structure of the kitchen or the building itself, which means greater investment. (Higgins, 2008) Nevertheless, further innovations in this technology could enhance practical value for hotels.

In other areas of hotels such as rooms and bathrooms, e-sensor systems and LED lights comprise green technology options. E-sensor systems apply to different systems such as lighting and air conditioning. The e-sensors have the capability to change automatically the lighting or air conditioning settings depending on the area of the room where there are people or temperature changes in the room. LED lights offer greater energy savings than fluorescent lights so this represents the third generation in lighting technology. (Kirby, 2008) Systems thinking in energy management comprise a promising green technology in saving on energy costs (Sobieski, 2008).These technologies are widely available and accessible to different hotels. The energy saving is experienced in the short term and the payback period is shorted. The problem with this is hotel guests tampering with the system leading to added cost for repairs. This means that awareness and information dissemination are important for the effectiveness of these technologies.

Another green technology for rooms is the biodegradable key cards. These have the same life span as the conventional key cards except that these are biodegradable or recyclable. (Gale, 2009) These require little cost with high environmental impact.

This involves the placement of water treatment plants that recycle water used in baths for flushing in toilets. (Edwards, 2004) These comprise viable and accessible water conservation practices that would contribute savings on the cost of water to rationalize the consumption of water as a scarce resource.

One is the conscious involvement of hotels in the protection of the environment since the nature of the business of the hospitality industry and the closely connected industries such as tourism heavily rely on the soundness of the natural and socio-cultural environment for business

The other is the investment in environment protection in a manner that secures economic and financial as well as a range of non-monetary benefits for hotels in the long-term (Vermillion, 2008).

Energy consumption is also a benchmark of the eco-friendliness of hotels

The water conserving technologies provide the process and tools for hotels to achieve this benchmark.

Waste and pollution management are also benchmarks of the ecological involvement of hotels.

Green technology takes the role as an enabling process and tool for hotels to become sustainable.

With hotels competing to maintain its customer base and pull customers to shift to the hotel’s services, green technology could become an enabler for hotels to become competitive.

Investing in green technology enables hotels to significantly cutback on operating cost. This enables hotels a wider profitability margin and room to offer promotional prices to attract more customers (Jones, 2002).

Green technology has taken a central role in the sustainability of hotels. The concept of sustainability of hotels involves the aspects of environmental protection and business viability.

The use of green technology also contributes to the viability of business firms in terms of financial standing and non-financial competencies in the long-term. Going green attracts the niche market of environment enthusiasts that contribute to sales. Using the range of green technologies available would also result in savings from operating costs in the long-term, which increases the profit of hotels and gives them flexibility to invest in marketing activities.

It is a sound strategy for hotels to consider green technology as a process and a collection of tools in support of sustainability goals.

Switching to the cloud from a client server platform pays off with a big drop in both the initial capital outlay and the ongoing operating costs for the property management and other systems.

pects of a franchisee’s business, from guest check-ins and housekeeping services to billing and finances. Over time new features have been rolled into the software platform making it more robust and useful for hotel owners—it’s currently distributed in eight countries and available in four languages. And while plenty of cloud-based PMS packages are now available from third-party vendors like Micros, Maestro, and RoomKey, Choice’s internal solution has garnered its fair share of attention. “We had been getting knocks on the door from IT vendors at other hotel companies and individual Choice franchisees that own other brands, saying they were interested in our product,” says Pacious, “So we set up a new division so we could take a look at other opportunities we could develop.” This led the company to launch SkyTouch last year, a new division that develops and markets cloud-based software solutions to hotels inside and outside the Choice system. Pages: 1 2 3 4 2013-06-18 Sean Downey !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); (function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/all.js#xfbml=1"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk')); (function() { var po = document.createElement('script'); po.type = 'text/javascript'; po.async = true; po.src = 'https://apis.google.com/js/plusone.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(po, s); })(); (function() { var li = document.createElement('script'); li.type = 'text/javascript'; li.async = true; li.src = ('https:' == document.location.protocol ? 'https:' : 'http:') + '//platform.stumbleupon.com/1/widgets.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(li, s); })(); inShare0 Related Articles attachment-3

his led the company to launch SkyTouch last year, a new division that develops and markets cloud-based software solutions to hotels inside and outside the Choice system. Pages: 1 2 3 4 2013-06-18 Sean Downey !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); (function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/all.js#xfbml=1"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk')); (function() { var po = document.createElement('script'); po.type = 'text/javascript'; po.async = true; po.src = 'https://apis.google.com/js/plusone.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(po, s); })(); (function() { var li = document.createElement('script'); li.type = 'text/javascript'; li.async = true; li.src = ('https:' == document.location.protocol ? 'https:' : 'http:') + '//platform.stumbleupon.com/1/widgets.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(li, s); })(); inShare0 Related Articles Hotel Market Insight: Cleveland a

This led the company to launch SkyTouch last year, a new division that develops and markets cloud-based software solutions to hotels inside and outside the Choice system.

When evaluating the TCO of software, one should not restrict the calculation to the initial cost of purchase, but should also calculate the cost of managing the software to its complete life and should incorporate the following points in their calculations. Cost of initial deployment and employee training. On-going fees for maintenance, software updates and upgrades as well as help-desk support. Costs associated with downtime Cost associated with the business process re-engineering.

In this rapidly changing industry, hoteliers should always look for property management tools that will ease operations, automate procedures, reduce the risk of human errors and give hoteliers enough time to attend to guests.

As technologies advance, the old clears a path for the new. Some individuals may be inclined to hang on to what they are comfortable with, but they won't advance if they don't make room for the best and brightest

From 2015 through 2019, total operating expenses increased at a compound average annual growth rate of 2.2 percent at the properties in the study

During this same period, the hotels’ cost for telecom service increased at a CAGR of 9.7 percent

As part of efficient cost control, organizations within the industry are undergoing IT audits

the cost of internet service increased at an average annual pace of 16.1 percent

The 9.7 percent combined CAGR for telecommunications cost is more than three times the CAGR for any other individual hotel department cost during the same five-year period

Telecom costs increased the most in the upper-midscale (CAGR 21.5 percent) and upscale (CAGR 13.9 percent) chain scales

Individually, the cost of phone service rose by a CAGR of 5.7 percent

organizations are upgrading certain technologies

consolidating telecom vendors across portfolios

Owners may be able to upgrade a Dedicated Internet Access to current market pricing—saving 20 percent in the process—while improving the speed capabilities by 200 to 300 percent

In manufacturing operations, all costs are generally assigned to products or product lines and identified as direct costs and indirect costs.

Know the total cost of all facility work done both directly and indirectly. “To the untrained eye, the facilities maintenance arm of a business appears to be a black hole of cost. The costs of these FM services add up, and unless discrepancies arise, that is where most of the business analysis ends. However, facilities maintenance managers, who are privy to all of the nuances that make up eac

h work order, understand the complexities and overhead involved in this sector of business.

Consider less obvious improvements that impact facility energy use. “Some energy-related projects will be more or less hidden from the users and primarily pursued to reduce energy demand, such as chiller and fan-unit upgrades. Such projects may end up providing the building users with better temperature control, but this is not the primary goal of the upgrade

Operational changes such as reducing the hours of HVAC and lighting operation, and changing setback temperatures, which require very little expenditure (if any at all) do not directly affect user experience, but can produce large reductions in electricity loads. In general, working with the building operations team to reduce energy use can produce impressive reductions in loa

his allows building and facility management professionals to determine whether the cost to improve a particular element of a building or a system in it against the cost savings over the same period. If the cost of an upgrade over its lifetime offers an advantage over the building operational costs it will save, then it’s generally considered a good investmen

“Finding the right suppliers to maintain your facilities can be difficult and time-consuming. From janitorial services, to groundskeeping and maintenance supplies, ensuring suppliers are providing apples-to-apples quotes, developing contracts with clear service levels, and validating that supplier quality

“Boilers today can reach efficiencies of up to 96 percent using condensing technology; however, a typical building, including new buildings, uses atmospheric type boilers which, for all intents and purposes, are only slightly more advanced than a science lab Bunsen burner. This technology is reliable and it works, but it is expensive to operate

An energy audit systematically identifies and develops opportunities to help reduce energy use in an institutional or commercial facility and, as a result, decrease building operating costs. Focusing the audit is imperative for maintenance and engineering managers.

“Commercial kitchens are high energy users, consuming roughly 2.5 times more energy per square foot than any other commercial space, according to the US Environmental Protection Agency (EPA).  Of that, as little as 40% is used in the preparation and storage of food, says the UK’s Carbon Trust; much of the wasted energy is dispersed into the kitchen.

All commercial buildings are insulated; building codes make it mandatory to insulate up to  a certain level. Unfortunately, because most buildings are put up under strict guidance to budgets, they are usually put up with only the minimal amount of insulation

Develop performance measures for your PM process with an emphasis on measuring the amount of PM that is work completed compared to all other work. Total PM hours should be the highest percentage of all the department’s maintenance work. This goal might seem impossible, but over time, it is very achievable

“Preventative maintenance is all about planning, plain and simple. Every piece of equipment or machinery at your disposal or under your care should have a schedule of what type of maintenance it requires and when it requires that check-up.

“Failure modes are defined as “how something fails.” Let’s use a flat/membrane roof to show an example of what a failure mode is. On a flat/membrane roof, one failure mode may be “penetration of roof membrane,” and the causes of this failure mode could be many. Knowing the failure mode(s) of a specific maintainable item such as a membrane roof and its causes can be key to early detection of roof failure (not meeting the intent of the end user) so the repair can be made before it affects an operatio

“Catch small problems now before they become big ones. Addressing small details can add up to huge improvements in appearance and functionality. Ask your facilities services provider, janitorial company

You may schedule preventive maintenance based on meter readings on an equipment. However, equipment meters usually do not differentiate between work time and idle time

Greasing the rack and pinion of a beam saw, for instance, can cause grease and saw dust to solidify inside the gears over time, eventually preventing them from moving. If you’re unsure which tasks are beneficial to each piece of equipment, ask your equipment representative.”

Having spare parts and supplies around the time of a major preventive maintenance schedule is absolutely critical. Asset management software allows you to check the availability of the spare parts for dates when the work orders are due. This report can help you identify parts that are insufficient for the required work orders in the future. If you know which parts you are falling short on, you can order them in advance from suppliers rather than waiting till re-order limits are reached

“Appropriate repetition and reinforcement are necessary. The average person is bombarded with more than 300 messages while at work, and multiples of that outside of work, Finney says. Getting a message to land with an audience might take as many as 12 repetitions, in some cases, he says

Let’s get together: when you’re designing your facilities, design social spaces for your employees. These might be lunch or break rooms, games rooms, gyms, or even community gardens.

While other managers may work to manage clients or staff, your job is to manage facilities and all that occurs in them. Your corporation’s physical assets are just as important as your human resources, and you are the expert in this field. Whether it’s collating data or contributing to the organization’s bottom line, your input is a valuable part of corporate decision-making

 “Workplace inclusion has to be clearly defined before any initiatives can be pushed forward. One useful definition of an inclusive office is a workplace in which all staff are treated with respect and have equal access to resources and opportunities. Facility managers should build on this high-level description to create an idea of what concepts like equal access, diversity and fairness look like in their own facilities

Space costs money. Knowing that we are moving towards a working environment consisting of virtual or mobile workers, investing time in developing new workplace designs that can suit these new ways of working while increasing space utilization rates can result in impressive cost savings

Performing facility maintenance and engineering tasks is like sailing among icebergs. What technicians can’t see will sink them — or their facilities. Thermal imaging technology gives technicians the ability to see the unseen, making it easier to spot failing motors and electrical components,

This concept is broadly used to describe our attempt to formally identify in-house talent in many of our labor shops. We identify talent through a competitive selection process based on potential vs. skills and promote our selected personnel to the worker and helper level while training them to achieve appropriate full mechanic level with associated certifications/licenses

This directly leads to the client receiving a more fit-for-purpose solution and ultimately receiving greater value which grows a greater relationship.

In other words, there has to be a compelling reason based on our mission for why we would submit budgets for anything.” By presenting specific information on how and why you’ve chosen your budget numbers, you can help the C-suite see that your budget is well within reason

When you automate the work order process, you remove human error associated with it. Essentially, you’re taking the people out of the process and ensuring nothing gets missed or overlooked

“There are many different software options out there than can aid FMs in organizing and streamlining their everyday tasks. This ranges from software designed to help manage all maintenance activities to logging and tracking facility visitors for security purposes. 

uch smart sensors, operating costs are dramatically reduced, productivity is enhanced, and occupants’ comfort is improved.

“One of the most exciting features of Facilities Management software is the ability to manage heating and cooling remotely, or set a programmable thermostat to move set temperatures up or down throughout the day. Facilities planners love the ability to analyze and explore energy use from heating and cooling systems

“Maintenance and facilities administration systems must frequently abide by national and global regulatory requirements. All maintenance administrators face occasional random or audits inspections by regulatory authorities. Maintenance software enables you to prove regulatory conformity and decrease the amount of paperwork and preparation that is needed for an audit.

KPIs allude to opportunities and errors in your company. Paired with the Internet of Things (IoT) and energy management systems, KPIs can be used to highlight missed maintenance tasks, greater traffic area of your business or problems with machinery

“Closely monitoring energy and water use to reduce building-operating costs is another benefit. By allowing owners to monitor and analyze the performance of multiple systems—air-conditioning levels, lights on automatic dimmers, water usage

“A feature that’s gaining a lot of ground is using facial recognition technology to let people in and out of the building. It’s more secure than key fobs or cards, and unlike cards and fobs, you can’t forget your face at home. It’s like batting a triple, or killing three birds with one stone

You cannot do your job properly without the correct information. If you don’t have proper records on the state of your facilities, you can’t do your job as a facilities manager.

“A surprising number of facilities managers have no true system in place for managing their space.  More than a quarter of everyone interviewed – 28 percent –

. It may help significantly with compliance with various industry standards, such as HIPAA in the healthcare industry and Sarbanes-Oxley in the financial field. It can help to document best practices for avoiding accidents, or in the worst case scenario,

This method identifies how critical a piece of equipment or maintenance task is to your business and will ultimately show you where it should land in your prioritization process

Smartsheet is a spreadsheet that you share with your co-workers, but its features go far beyond Excel. This tool combines the traditional spreadsheet with project management tools, templates, and forms and allows you and your colleagues to access spreadsheets on mobile devices and work on them collaboratively

The business world is increasingly embracing a larger remote workforce. Offices are used as areas to collaborate, develop, and design new ideas. The day-to-day work can be, and often is, done from home

“Another possibility for cutting costs, say experts, is not just moving staff around, but moving work around also. This means carefully examining all outsourcing contracts to see if they can be scaled back and the work completed by in-house staff

“Verify assets from a minimum of two data points, such as the barcode and the item’s serial number.

After collecting data and developing a maintenance schedule for your assets, you need to plan for the long-term maintenance of your asset inventory

However good asset management and maintenance planning is, there comes a time when an asset reaches the end of its useful life and should be disposed of.

“If you’re trying to get a handle of your documents, the first thing you should do is an asset assessment. Detail the condition of all the main equipment and systems, and document those conditions

Strategic asset management integrates key relationships between planning and delivery activities.

Maximize your use of vertical cubic footage by placing seasonal products or those that move less frequently in harder-to-reach vertical storage areas

Real-time data means real-time solutions to situations before they become problems. Just think of the time and money you’ll save by identifying issues before they blow out of proportion

Instead of printing out lengthy reports for every shift, now you can access your insights from any smart device—such as your computer, phone, or tablet—and get updated sales, inventory, customer feedback, and more, no matter where you are. 

Legacy systems only allow on-premise access to data, which means you have to be in your restaurant in order to access the information on your POS system.

If you anticipate growth or change, a cloud-based POS system is better enabled to grow with you. 

While buying up all of the necessary technology to get a cloud-based POS system off the ground may seem expensive, they tend to have cheaper operating costs in the long run and some, like Upserve, offer free support 24/7/365. 

With a cloud-based restaurant POS, you have the ability to add on a mobile POS unit that provides a number of benefits.

That decrease in time spent waiting for their check or credit card to return to the table also increases guest satisfaction, boosting your reputation. A mobile restaurant POS also provides contactless payments with a built-in EMV reader, minimizing the exchange between servers and guests – something that is particularly important in this moment.

Cloud-based POS systems update automatically and for free, just like the apps on your mobile device, while traditional POS systems require manual updates that can be labor intensive and costly. 

The beauty of the cloud-based POS format is how scalable and customizable it is—it can work for single-location full service and quick service restaurants, multi-location restaurants, and restaurant groups alike. 

Whether it’s updating your menu on the regular, launching new or improved loyalty programs, or requiring more precise inventory tracking, the more your needs will shift over time, the more sense it makes to opt for cloud-based.

If the internet ever goes down, the system that your legacy POS relies on will be offline and non-functional. Luckily, on a cloud-based restaurant POS system you have the option of switching to offline mode as a back-up. You’ll stay up and running until the internet is able to connect again.

Thanks to the cloud and its encrypted online storage, there’s no risk of hardware or software incompatibility or failure, no viruses or driver hiccups, and no risk of a hard drive accidentally deleting a weekend’s worth of sales reports. It’s all backed up, automatically. 

Plus, younger generations of workers—think millennials and Gen Zs—will be able to get right on board with a cloud-based POS solution with little-to-no training.

Customers will feel good knowing their credit card information is secure and encrypted with the most up-to-date technology. 

No matter what type of establishment, your cloud-based POS can track every last drop of product, allowing you to spot discrepancies in an instant and fix gaps before they become problematic.

Hardware costs are separate from service, and maintenance and support services often come with a hefty fee. 

While traditional POS systems certainly have lower start-up costs, they tend to come with plenty of hidden costs that reveal themselves over time.

upfront costs are kept to a minimum and monthly subscription fees are lower. 

Best of all, instant free upgrades mean no lost revenue from downtime or inconvenient hardware upgrades as your business grows. Instead, plans can be upgraded or downgraded at will, and most providers don’t even charge a fee for the trouble. 

If you have existing setups in place, many third-party vendors have upgraded apps for cloud POS systems to help you maintain your current rewards and promotions planning. 

Most studies are showing that those who switched are sticking with a cloud-based solution, and that legacy POS systems will only decline moving forward.

After over three decades with a legacy POS system that only slowed them down, they made the move to a cloud-based POS to bring their restaurants into the future.

“Our restaurants are chef-driven, so we have specials that change every day. We need to add buttons every day. We change pricing every day. Having to stop and reset all the terminals because it’s not instantaneous was a headache.”

Not only did constant resets of the system create roadblocks for the team at Homegrown Hospitality, but service was also less than stellar and cost more than what it was worth.

We went through a lot of pain—our system would crash all the time, credit cards wouldn’t spool, and data would be lost. Our IT department would spend numerous hours a week just trying to recover data,” Simon explained.

“That was pretty much the breaking point: we were at the point where we needed to upgrade, but it would have cost us several hundred thousand dollars. So we decided to source something new. The functionality and capability of Upserve won us over.”

hospitality industry

energy savings

42% of energy use comes from lighting, of which 70% is inefficien

improve the bottom line

enhance guests’ comfort

hospitality managers are under pressure to cut costs without compromising on their guests’ experience

Philips’ 7 W master GU10 LED lamp with DimTone

cost of lighting this area has been reduced by 82% with a payback of one-and-a-half years based on 12 burning hours a day.

With the growing number of smartphone mobile ordering and payment applications, restaurant information technology divisions have gone from a cost center serving brands’ operations to a crucial part of the revenue stream.

With the growing number of smartphone mobile ordering and payment applications, restaurant information technology divisions have gone from a cost center serving brands’ operations to a crucial part of the revenue stream.

With the growing number of smartphone mobile ordering and payment applications, restaurant information technology divisions have gone from a cost center serving brands’ operations to a crucial part of the revenue stream.

With the growing number of smartphone mobile ordering and payment applications, restaurant information technology divisions have gone from a cost center serving brands’ operations to a crucial part of the revenue stream.

With the growing number of smartphone mobile ordering and payment applications, restaurant information technology divisions have gone from a cost center serving brands’ operations to a crucial part of the revenue stream.

With the growing number of smartphone mobile ordering and payment applications, restaurant information technology divisions have gone from a cost center serving brands’ operations to a crucial part of the revenue stream.

With the growing number of smartphone mobile ordering and payment applications, restaurant information technology divisions have gone from a cost center serving brands’ operations to a crucial part of the revenue stream.

With the growing number of smartphone mobile ordering and payment applications, restaurant information technology divisions have gone from a cost center serving brands’ operations to a crucial part of the revenue stream.

Customers are more frequently demanding a connection to a brand on their smartphones, and restaurants are considering an increasing number of technology options to meet those demands

Often hotel investment groups own multiple properties so if they are pleased with VRF/VRV technology incentives, they will replicate it across their hotel portfolio.

For both hotels and apartments building HVAC is the largest energy cost item. VRF/VRV’s will annually reduce total energy costs for these two markets by at least 20% and may reduce current building energy cost by as much as 40%

Meeting planners will leverage technology to gather in-depth attendee information: Finding out what makes attendees tick is a crucial part of a successful event management strategy. Now event organizers can use technology to gather and compile information in real time, which enables them to adjust their meeting strategies on the fly and demonstrate ROI.

Using technology tools to gauge attendee needs, get real-time data on event effectiveness and streamline planner workloads makes sense, as does a one-stop solution that leverages the ever-present smartphone.

However, there are other services that may be better suited for an outside partner than regular staffers.

Oftentimes, when facility managers and on-staff technicians are busy doing things like lighting updates, furniture assembly or remodeling of any kind, they’re doing so on borrowed time.

By outsourcing more services – like construction services, HVAC services, electrical services, plumbing services and exterior services – overhead costs can be kept down, while more specialized service contractors provide quick, reliable care in both emergency situations and preventative, at a low rate.

While hotel management staff may be utilizing the latest technology to streamline services related to guest reservations and checkout, facility management staff may be missing out on opportunities to save with the use of technology.

Computerized maintenance management systems (CMMS), for example, can assist with task scheduling, inventory management and work order management.

A computer-aided facility management (CAFM) system is another software facility managers can use.

Some solutions also offer a help desk, space planning, scheduling assistance and other features that can be used to manage nearly all aspects of facility management.

When looking to technology to reduce costs, facility managers will want to select software solutions which fit their specific needs.

The right software depends on the size of the hotel and number of facilities and staffers. Consider purchasing software that can scale with the hotel if it grows.

Some money-saving initiatives require an up-front cost, and sustainable hotel features is one of them.

By taking aim at reducing facility management costs, hotel facility managers are showcasing their eagerness to make changes that will result in happier guests and a more satisfied staff.

Given the hotel’s advantage in quality over the guest’s portable devices, the proper packaging of services will lure even the most avid self-contained guest back to using the hotel’s telecom services.

Hotels are unable to compete on price with devices that the guest has brought with him.  What the hotel can do is offer a better experience at a reasonable price to entice guests to use the hotel’s telecom infrastructure.

Attracting the Guests to Use the Hotel’s Telecommunication Services

The guest now has a variety of choices for communicating including fax over the Internet, e-mail, cell phones, calling cards and now even Internet-based phones.   All these alternatives offer a less expensive means of communicating than using the traditional hotel guestroom phone and other services such as fax.

No matter what telecommunications strategy a property takes, one thing is for certain, it needs to be a different one from the past.

The guest now has a variety of choices for communicating including fax over the Internet, e-mail, cell phones, calling cards and now even Internet-based phones.   All these alternatives offer a less expensive means of communicating than using the traditional hotel guestroom phone and other services such as fax

No matter what telecommunications strategy a property takes, one thing is for certain, it needs to be a different one from the past.

Attracting the Guests to Use the Hotel’s Telecommunication Services   Hotels are unable to compete on price with devices that the guest has brought with him.   What the hotel can do is offer a better experience at a reasonable price to entice guests to use the hotel’s telecom infrastructure. No matter what cell phone the guest may carry or what service provider is used, no wireless connection is as good as a land-line connection

Guests had little choice back then but to use the guestroom phone and grumble about the cost.

Assuming that the wireless reception quality is acceptable, it is very difficult for the hotel to compete on a cost basis .

Assuming that the wireless reception quality is acceptable, it is very difficult for the hotel to compete on a cost basis

Another concern among hoteliers is what can be termed the self-contained guest

Another concern among hoteliers is what can be termed the self-contained guest

Theoretically, the self-contained guest needs no hotel telecommunications services .  

Theoretically, the self-contained guest needs no hotel telecommunications services

Guests had little choice back then but to use the guestroom phone and grumble about the cost.

Hotels are unable to compete on price with devices that the guest has brought with him.   What the hotel can do is offer a better experience at a reasonable price to entice guests to use the hotel’s telecom infrastructure. No matter what cell phone the guest may carry or what service provider is used, no wireless connection is as good as a land-line connection

The early 1980s marked the beginning of an era of profitable hotel telephone departments.  The advent of call accounting systems (thanks to deregulation) enabled hoteliers to easily mark up calls to a profitable (some say too profitable) level.  Guests had little choice back then but to use the guestroom phone and grumble about the cost. This era has come to an end.  With few exceptions, most hotels have seen between a 15 percent and 25 percent drop in telephone revenues over the last five years.  The main reason for this decrease is guest choice.  The guest now has a variety of choices for communicating including fax over the Internet, e-mail, cell phones, calling cards and now even Internet-based phones.   All these alternatives offer a less expensive means of communicating than using the traditional hotel guestroom phone and other services such as fax . A fax machine in the guestroom was considered a premium amenity for many years.  With the Internet explosion, however, the machines have seen less use.

When they enter their room, guests need a comfortable room. Our sensor is capable of detecting the presence of the guest in the room and automatically switching on. The sensor is also able to detect a guest sleeping and stays on. When the guest is not in the room the air conditioning comes on intermittently to ensure the temperature in the rooms stays pleasant when the guest returns. Energex also offers a web based interface which allows hotels to control the temperature in a room.

Adopting an operations management platform that allows hoteliers to import data into one centralized dashboard combines critical accounting and performance data to aid hoteliers in identifying trends and making more informed decisions.

Hoteliers must expect the best but prepare for the worst and have a back-up accounting team in place ready to resume operations in the event of a disaster.

While increased corporate travel demand and a healthy economy paint a rosy picture for the hotel industry, the report also warns that the lodging ecosystem is vulnerable to threats from multiple fronts.

These unique challenges require hotels to be nimble, educated, and equipped with the latest technology to streamline processes and drive financial performance.

Hotels live or die on the ebb and flow of fluctuations in their business.

hotel-specific accountants can scale on demand to offer the needed expertise and ramp up quickly.

Because the hotel industry has a very specific set of needs, it is imperative for hoteliers have the right tools to navigate today’s challenges. The global travel industry shows no signs of slowing down any time soon, so hotels must incorporate cutting-edge technology to streamline operations, optimize labor management, and access critical data while preparing for the next unexpected event.