2014 Hotel Data Conference at the Loews Vanderbilt Hotel in Nashville, TN. (Photo by Smith Travel Research)
Yes, it’s that time of year again…but wait! Before you reach for the aspirin bottle…
Remember, budget season can lay the groundwork for a well-run property.
August through December marks the period when properties and management companies gather data for their 2015 maintenance budgets.
Why is your maintenance budget particularly important this year?
The industry’s economic uptick stimulated occupancy rates. During a panel at the recent Hotel Data Conference, Dan Hansen from Summit Hotel Properties said “two ways to win with rising occupancy are ‘positive comments on social media’, and ‘quality of asset’.” Rising occupancy means more wear and tear on furnishings, fixtures, and equipment. As you expense your routine recurring repairs, it pays to examine each line item carefully for an accurate dollar estimate.
Here’s why it’s well worth the time and effort:
5 Ways Your Budget Can Boost Your Revenue:
1. Answer the age old question: repair or replace?
Are repeat repairs justified on equipment that has seen better days? If repair costs are significant, it may make sense to replace equipment. hotel ServicePro allows you to track your work order history through every maintenance ticket. View a year’s worth of entries for accurate, verifiable budget data.
2. Ensure you’re staffed for optimum maintenance.
Yes, labor is one of the top expenses in your maintenance budget. But adequate staffing is critical to keep building systems in good condition. Strike the right balance in next year’s maintenance budget. Use hotel ServicePro to list out time worked, then project where additional labor hours may be warranted.
3. Highlight the importance of engineering.
Engineering typically makes up 10%-12% of a property’s total expenses. Do results justify that expense? Engineering staff are now major role players in the financial health of a property. They help manage resources, control costs, and extend the life of assets.
4. Prove the adage–your profit is in the details.
Routine maintenance activities can add up fast…or add to your bottom line. Use hotel ServicePro to control expenses now and plan for next year:
- Track inventory control, including spare parts and building equipment.
- Track contract services, such as pest control, window washing, landscaping,
and pool maintenance.
- Save energy (and increase safety and security) with properly
5. Keep guests coming back, and encourage positive social media comments.
From front desk to regional headquarters, managers know that a well-maintained property draws and keeps valued guests.
Did you know there’s a way to keep things up to par without a mountain of paperwork?
hotel ServicePro eases recordkeeping demands with a quicker, more efficient way to track maintenance activities right on your mobile device.
Now that you’ve got reason to celebrate the (budget) season, let me know how your property uses hotel ServicePro to crunch the numbers for the year ahead!
May your balance sheets be in the black,