Physical Maintenance in Economy Hotels - Book Report/Review Example

Physical Maintenance in Economy Hotels Introduction Physical maintenance plays a major role in improving energy efficiency and keeping the total costs optimal. Such costs as operating and maintaining engineering systems, in particular the in-house manpower, outsourcing contractors, energy consumption and equipment deterioration must be properly monitored and controlled (Burt and Pinkerton, 1996). Physical Maintenance in Economy Hotels (Holiday Inn) and Luxury Hotels (Sheraton Hotel) The Sheraton Hotel, a luxury hotel, is a member of the Starwoods Hotels. The Holiday Inn, on the other hand, is a member of the InterContinental Hotels Group (IHG). It is an example of an economy hotel. Holiday Inn usually makes use of outsourcing services. Contractors are outsourced; this allows the hotel management to minimize operating costs in a tough business environment. The main reason of outsourcing in economy hotels is to boost efficiency, to increase revenue and reduce risk. The sole reason is to keep operating costs at a minimum. A part from outsourcing physical maintenance services, the hotel also outsources accounting, security and storage human resources. Outsourcing is often done for both tactical and strategic reasons. Tactical outsourcing is mainly based on a cost-cutting maneuver, with little consideration about risks linked to the decision. Strategic outsourcing deals with firm margins and value successive structures highlighting four specific issues which make outsourcing worth considering. These are financial issues to lower fixed costs, gain tighter control of budget through predictable costs, operational issues to get work done more efficiently by specialists and resource and competence issues which gives the ability to focus on core assets by getting rid of minor ones (Donaado and Nogatchewsky, 2009). This strategy is ideal for economy hotels. People not only need hotels for business or relaxation but also for relaxation. This inspires the sprouting of luxury hotels such Sheraton Hotel. Physical maintenance practices in such a luxury hotel differ broadly from those of the Holiday Inn. The business competition mandates the hotel management to adopt the best physical maintenance practices. This involves constant checks of facilities and renovations. Sheraton Hotel makes use of in-house technicians for physical maintenance. This presents an advantage over Holiday Inn. For instance, emergency situations can quickly be attended to by the in-house specialized technicians. Hotel managements have discovered the disparity between outsourced technicians and in-house technicians. This saves the situation as well as the time that would be used to outsource technicians. In-house technicians are also available for at least 15 hours on a given day and even on weekends unlike outsourced technicians who offer temporary services. Sheraton Hotel also uses maintenance contracts. It signs long contracts of even up to three years. The specialized contract companies usually bring in their staff to form in-house maintenance department. On the other hand, Holiday Inn runs its own maintenance departments. An agreement between the property owner and hotel operator specifies each one’s responsibility regarding maintenance (Ayree, 36). Intense competition in today’s market requires managers to attend to hotel services that retain customers. Hotels that are successful in the delivery and maintenance of their facilities are able to build customer loyalty and customer retention both of which drive up shareholder value (Chan et al, 2003). Physical Maintenance Diamond Rating Sheraton Hotel achieves its rating based on its physical maintenance scope among other factors. Physical maintenance encompasses the maintenance of furniture and equipment and the general impression given to clients. Sheraton Hotel’s diamond ratings criteria differ much form that of Holiday Inn. The minimum requirements for Sheraton, for instance, are very high. It requires more fittings, regular physical checks and maintenance inspections. It needs more mirrors, heating facility in the bathroom, tray of large scale, personal care products in falcons, bathrobe and slippers. There also is the provision of twin couches and bedside button. This is mandatory. For Holiday Inn, these amenities can only be availed on demand but not mandatory (Ayree, 33). Classification of Physical Maintenance Practices Hotel physical maintenance practices are classified into four: routine, corrective, preventive and emergency. Sheraton Hotel pays attention to all these categories. It performs routine maintenance which includes meter readings, lubrications, start-up, monitoring and shut-down. Its corrective maintenance serves to restore their equipment to their original functional state. Preventive maintenance involves activities of inspection, adjustment and replacement to prevent system breakdowns (Chan et al, 2003) All these maintenance practices are not the case in Holiday Inn. Economy hotels tend to overlook the need for routine physical maintenance. It is assumed that this practice is insignificant, this way, economy hotels do not realize that preventive maintenance reduces system breakdowns therefore cutting on overall costs. Differences in Best Practices in Luxury Hotels versus Economy Hotels Hotel best practices differ from one type of hotel to another. They include customer service, physical maintenance, employee retention and loyalty, quality standards and profitability. Sheraton Hotel manifests high quality décor, upscale restaurants, suites, first class amenities and customized services. Holiday Inn has clean comfortable rooms, functional but limited range of amenities and limited services offered that target price-sensitive guests. Attracting and retaining employees is an uphill task. Among its best practices, Sheraton provides housing and education to their employees. The hotel also focuses on advancement opportunities and individual development. This helps them attract and retain employees. Holiday Inn does not have this provision. Sheraton makes use of customer feedback consistently. Its use of advanced technology facilitates customer feedback acquisition. This helps the hotel management to meet customer needs based on feedback received. Sheraton has an enhanced person to person interaction. This is facilitated by trained hotel staffs available 24 hours. This best practice boosts customer interaction and satisfaction. Holiday Inn has limited staff and minimal client-staff interaction. Sheraton also offers the best descriptions of their hotels. These include their physical amenities, exact hotel location, driving directions and exportation, room description, name and type among others. This detail evidently lacks in Holiday Inn, an economy hotel that may not even have transportation services or much physical amenities to offer. Conclusion You get what you pay for (articlebase.com). Hotel best practices also influence the costs charged. Physical maintenance as a best practice influences room quality. Room quality consequently influences the prices paid. Room quality also influences the diamond star rating for hotels. This is the reason why economy hotels come at a low cost compared to luxury hotels. This is to say that physical maintenance, room quality per se, differ in luxury and economy hotels. References Burt and Pinkerton, 1996. A purchasing manager's guide to strategic proactive procurement. New York: Hospitality press. Chan, K.T., Lee, R.H.K., & Burnett, J. (2001). "Maintenance performance: a case study of hospitality engineering systems", Facilities, 19 (13/14) 494 – 504 Donada, C., Nogatchewsky,G (2009). “Emotion in Outsourcing. An empirical study in hotel industry”, International Journal of hospitality Management, 28(30), 367-373 Susan Aryee (2011). Hotel Maintenance Management: Strategic Practices in Hotel Operations. New Jersey: Fan press. Read More