Facilities Management Concept in the Hospitality Sector Report

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Updated: Jan 6th, 2024

Abstract

Facilities management is a very important concept in the field of hospitality. The concept determines the quality of services that an establishment delivers to its target consumers. A well-designed approach enables delivery of superior quality services using facilities that match customer expectations. As such, using the approach, an establishment achieves consumer satisfaction and progress in the competitive market. The findings from the reviewed hotels demonstrate the essence of facilities management concept and its importance in the hospitality sector.

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Introduction

Hospitality industry is a field that relies greatly on perceptions from customers regarding what they believe is best in terms of quality. The reliance occasions from the fact that hotels, restaurants, and other establishments, which compose the industry, are service-oriented unlike several other establishments that offer tangible products to their clients. As a result, potential consumers often use their experiences to make their judgments concerning the best and poor quality services.

Imperatively, managers and stakeholders in the hospitality sector need to engage in initiatives that improve the general outlook of the establishments and augment the overall experiences of clients. Some of the major hospitality areas that require strategic planning and developments include the restaurant, lodgings, front office, and other recreational areas such as swimming pools.

In essence, the developments and initiatives require skilled human resources, finances, and modern facilities, which match customer expectations. While several initiatives and developments affect the overall operations undertaken by the human resources, others incorporate the concept of facilities management.

Principally, facilities management is one of the major concepts executed by managers and stakeholders in the hospitality industry. Facilities management encompass operations that concern infrastructure, human resource, and general organization of the facilities in hospitality establishments. Design, shape, location, quality, and state of the facilities are among the core components encompassed in facilities management. It is important to highlight that facilities management is very essential in the performance of hospitality establishments and greatly determines their progress or failure.

A well-designed and executed facilities management approach leads to wonderful and impressive results, whereas poorly undertaken approach can lead to losses in organizations. As such, managers and other stakeholders concerned with hospitality operations should ensure that the approach selected is effective and comprehensive. Therefore, the report examines the concept of facilities management, consumer review findings, and their implications using establishments like Mountway Holiday Apartments and Joondalup City Hotel.

Literature Review

Facilities Management

In an establishment, facilities management comprise optimal use and employment of its assets in a manner that leads to their maximum utility. In the hospitality industry, facilities include hotel rooms, restaurant furniture, and other physical components of the establishment. Notably, a well-designed approach, which ensures that these facilities meet consumer expectations, yields attractive results to the organization.

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According to Barret and Baldry (2003), facilities management is a concept that deals with aspects of infrastructure and physical components of the hospitality industry that are very important in augmenting the overall customer experience. While the human resources play an integral role in determining client perceptions concerning service quality, the appearance, design, shape, and location of the facilities are crucial in compounding these perceptions.

Facilities management incorporates utilisation of infrastructure, furniture, and other important assets of an organization in a way that leads to customer satisfaction. The concept advocates for employment of the organization’s infrastructure through approaches, which ensure that these assets are not only appealing to the target clients in terms of appearance, but also match their pre-consumption and consumption expectations.

From the concept, managers and stakeholders in the field of hospitality need to understand the importance of investing in developments, modifications, and other strategies that aim at improving the outlook and sustainability of their infrastructure and facilities (Jones, Hillier, & Comfort, 2014; Ransley, & Ingram, 2004).

The need to develop and modify the facilities of an organization transpires from the fact that, while consumers base their judgements on employee performances, they use the state of the facilities to compound their perception on service quality. In addition, facilities determine the quality of services that consumers receive from a particular organization. For instance, an organization that has excellent and modern facilities, which meet the requirements of contemporary societies, is likely to deliver services that are of fine quality as opposed to an organization that uses old and outdated facilities.

Importance of Facilities Management

For Businesses

Facilities management is very important to businesses such as hotels, restaurants, lodgings, and other establishments in the hospitality sector. In essence, facilities management helps organisations develop, modify, and design their infrastructure as well as facilities in a way that is optimal and effective. Using a well-designed facilities management approach, an organization is able to manage its facilities, sustain them for long periods, and in turn, enjoy prolonged benefits from their sustained use.

Chen (2008) explains that facilities management enables businesses to deliver best and fine quality services to their customers. The ability to deliver fine and superior quality services emanates from the high productivity using facilities that are fine and up to the required standards. Besides high productivity occasioned by modern and fine facilities, the organization can also save time and resources associated with frequent delays and losses, which take place because of breakdowns or malfunctioning facilities.

Another importance that substantiates the crucial nature of facilities management comprises consumer satisfaction and increased sales, which translate to profits and high market share. When organizations invest in facilities and ensure that they are in the required conditions, states, and designs, the quality of services delivered becomes elevated, and thus, consumers receive high quality services (Mutalib, Sapri, Mohammad, & Lavy, 2015; Ren, Chrysostomou, & Price, 2012). By enjoying the services and associated experiences, customers increase their consumption frequencies, and hence, sales and revenues increase.

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It is vital to elucidate that increased revenues and client satisfaction helps a business entity achieve a higher market share as opposed to other competitors in the dynamic market. Imperatively, when clients become satisfied, they market the products of the relevant business entity using word-of-mouth marketing, a concept that increases the revenues and greatly boosts the image of the subject organization. Therefore, businesses cannot underscore the significance of facilities management in their quest to maximise their sales and optimise their resources.

For Customers

Principally, the concept of facilities management is also very important to clients, who visit hospitality establishments and other business entities. The importance of the concept stems from the fact that when organizations employ the concept using correct approaches, the quality of their services improve. Improved service quality has a range of benefits to the clients, who visit the business establishment. When customers visit a well performing tourism organization, they become satisfied because they receive the best services in terms of quality and quantity (Xu, Chan, & Qian, 2012; Lai, & Yik, 2008).

With the use of fine and superior facilities, the quality of services delivered is high and satisfactory to modern consumers, who associate quality with the price. For instance, when customers visit a hotel with the intention of spending a night in their rooms, the quality of the rooms greatly determine the extent of their satisfaction and perceived service quality. If the rooms are of good quality and the facilities are outstanding and exceptional, the customers enjoy their stay, and hence, become satisfied.

High quality of services occasioned by excellent facilities is instrumental to not only an organization or a business, but also to potential consumers. The implication of high quality products and timely production means that consumers receive their desired services on time and in their required states and quantities. Lai and Yik (2011) assert that facilities management is a concept that cuts across both the businesses and its potential clients.

As such, client dissatisfaction, which often transpires due to delays and use of substandard facilities, becomes minimal. Minimised instances of delays and low quality products translates to reduced complaints that usually arise from dissatisfied clients, who express their displeasures because of poor or substandard services. Remarkably, minimised complaints, timely delivery of high quality products, and use of superior quality facilities enhance the importance of facilities management in the context of potential consumers of a business entity.

Emerging Trends

Some of the trends that are emerging in the field of facilities management include technological advancements, increased competition, customer dynamics, and increased cost of production. These emerging trends have affected how several organizations apply the concept in contemporary societies. Imminently, many organizations are currently applying the concept in a way that harmonises with the changing technologies and dynamics.

According to Jayawardena, Lawlor, Grieco, Savard, and Tarnowski (2013), technological advancements have affected the mode of production and the quality of products that several tourism organizations deliver to their potential clients. Moreover, the advancements have led to high competition, which is cutthroat and challenging.

It is vital to elucidate that in the absence of compliance with the advancements presented by technology, an organization is likely to incur losses instigating from reduced sales. As such, organizations and businesses are compelled to employ technology when applying the concept of facilities management. Moreover, increased competition, customer dynamics, and high cost of production have also changed the manner in which businesses employ the concept of facilities management.

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Evidently, these emerging trends are changing the operations of organizations and businesses. Increased competition has led to a wide spectrum of choice for the modern customer, who has a wide range of substitutes and complementary products. Furthermore, competition has initiated a scenario where competing firms reduce their product prices in an attempt to increase their market share, a factor that has seriously affected several businesses in contemporary societies. The dynamic nature of the present day consumer, who values utility for the money spent and product quality, is another emerging trend that has affected the application of facilities management (Lee, Hsu, Han, & Kim, 2010; Penny, 2007).

In aligning their products to these consumers, who are dynamic and trendy, several businesses have to ensure that the concept of facilities management matches with the demands and expectations advanced by these set of consumers. A combination of technological advancements, increased competition, and customer dynamics, leads to high cost of production since the revenues earned are low in relation to the expenditure incurred in the process of production, supply, and delivery.

Other Themes

Other themes identified from recent materials used in the report include customer-oriented approach in application of facilities management concept. Furthermore, another theme comprises the use of focus groups, customer surveys, and social media platforms to get client feedback concerning product quality and probable corrections (Payne, 2000; Redlein, 2004). The theme of customer-oriented approach advocates for inclusion of customers through focus groups, representatives, and other customer associations in the application of the concept.

According to Tarí, Claver-Cortés, Pereira-Moliner, and Molina-Azorín (2010), by including customers in the application of facilities management, they feel that the organization values them and appreciates their significance. As a result, the customers own the organization and associate themselves with its brand and products. Apart from being loyal and faithful to the subject organization, these consumers also become good ambassadors, who promote the services delivered by the organization to their friends, relatives, and other members of the society.

Another theme that became apparent in the study of recent materials is the concept of customer feedback and use of focus groups, customer surveys, and social media. Duarte Alonso and Ogle (2008) as well as Stipanuk (2006) assert that due to technological advancements, several consumers in the tourism sector are easily accessed using social platforms.

Therefore, by using these platforms, a business can easily communicate with its target consumers and receive their perceptions concerning service quality. With consumer feedback, an organization then strives to convert the information into finished products. A well-designed application of the concept is very instrumental in achieving the much desired consumer satisfaction and increased revenues for the subject business. It is notable to outline that customer feedback is very practical in identifying knowledge gaps and areas that require modifications or developments in an organization or business entity.

Findings of Customer Reviews

Findings concerning Mountway Holiday Apartments

The findings collected from consumers, who visited Mountway Holiday Apartments demonstrate various strengths and areas that were satisfactory. These strengths and satisfactory services emanated from rooms, location, and the price of services offered in relation to the facilities. Evidently, consumers expressed their satisfaction on issues that pertained to hotel facilities and their overall organization. Some of the highlights from the findings comprised the rooms, which were clean and comfortable. From the findings, consumers stated that the hotel facilities such as rooms were good and smart in relation to the price.

Moreover, the consumers highlighted that the location of the facilities was convenient for them as they easily accessed the town quickly without incurring unwanted expenses. Additionally, the findings reflected the fact that the kitchenware was up to date and good. Sliding doors, air-conditioning, and comfortable beds were among the facilities that augmented customer satisfaction and experience in the hotel. The clients stated that the sliding doors were very instrumental in minimising the noise from the town centre and increasing the comfortable nature of the rooms.

Some of the weaknesses that emerged from the findings comprised dirty carpets, outdated kitchenware, malfunctioning door slides, and inadequate parking spaces. The clients stated that the carpets were not clean and that the windows were dirty. From their assertions, there was a clear disconnection between pre-consumption and consumption experiences.

Some of the clients explained that the pictures looked very appealing but the real facilities were old and outdated. From the findings, the parking space was not adequate and sometimes, consumers had trouble in getting a parking lot for their vehicles especially at night. Additionally the findings reflected the fact that the internet rooms required an overall uplift in the appearance as the clients explained that they were dated. The findings also outlined facilities such as dripping bathroom taps and slow time taken to clean the rooms after the clients checked out.

Findings concerning Joondalup City Hotel

Air-conditioned rooms, good and well spaced parking, spacious rooms, and well functioning satellite TVs are among the facilities that consumers advanced as providing satisfactory services in Joondalup City Hotel. From the findings, clients elucidated that these facilities were working in a fine manner and met their requirements in terms of quality and state. The findings assert that the rooms were spacious and air-conditioned, an element that made their stay comfortable and exceptional.

From the findings, it is clear that the spacious rooms provided well-designed bathrooms for clients. In the findings, other facilities that augmented client experiences during their stay in the hotel included the DVD players and convenient location that facilitated easy access to shopping malls, transport services, and beaches. These facilities according to the consumers make a stay in the facility outstanding and serve as strengths for the establishment.

Conversely, some of the findings comprised recommendations and areas that require rectification from the facility. The areas that emerged from the findings include room design, bathrooms, lounge, and other additional recreational facilities. From the findings, clients outlined facilities like bathrooms as tiny and poorly designed.

In the findings, consumers complained that the design of the bathroom made its floor and showerhead vulnerable to lime and rust, which led to its untidy and unattractive nature. From the assertions of the consumers, the facility needs to fix some of the toilet seats that are loose as they affect the service quality. Other facilities highlighted by the consumers include the lounge, which to them was missing and the noise that would be minimal if the facility designed rooms away from the busy town centre and the elevator.

Implications of the Findings

From the findings, some of the recommended areas that the hotels need to focus on include rooms, space, location, noise, and maintenance. Apparently, the patterns followed by the findings demonstrate a challenge in the rooms, space, noise, and location. The patterns identified have a direct relationship with the concept of facilities management and its significance in the hospitality industry. Evidently, the findings pose recommendations, which comprise room design, space, and location.

As such, the establishments need to ensure that their rooms have a good design, space, and maintenance so that the challenges related to dirt, rust, and malfunctioning facilities reduce and consumer satisfaction as well as service quality increase. Moreover, the recommendations also concern the ways that the hotels can employ to minimise noise in various areas such as rooms and restaurants. For instance, some of the recommendations emerged from consumers, who stated that the establishments needed to construct rooms and other facilities away from noise prone areas like roads and elevators. The recommended changes display a close relationship with the concept of facilities management and its significance in consumer satisfaction and in the overall performance of a business entity.

Principally, customer reviews concerning the services offered by business establishments and the physical facilities have great implications on their overall performance and market share. While positive reviews improve the state, image, and brand of the establishments, negative reviews damage their image and reputation as well as their market share. It is paramount to understand that when consumers become satisfied from a service, they market it to others and a business entity improves (Scanlon, 2007; Booty, 2009; Jones, & Zemke, 2010). Therefore, the establishments need to understand that client reviews are very important and can determine their progress in the competitive market.

The implications or consequences that occasion from the application of facilities management concept in the hotels affect various stakeholders. Some of the stakeholders, who feel the effects of the implications, include the human resources, suppliers, producers, management, and the customers of the subject establishments. For instance, if a facility receives poor review from customers, its sales reduces and employees suffer from dismissals. On the other hand, the management become anxious as they anticipate the possible ways of redressing the problem. Therefore, facilities management is a concept that the stakeholders in the field of hospitality cannot underscore in their quest to achieve customer satisfaction and improve their performance.

Conclusion

Facilities management is a very important aspect of an organization as it determines performance and its perceived product quality. In essence, organizations should understand that besides the smart and exceptional services offered by the human resources, facilities play an important role in dictating the quality of delivered services.

The report examined the application of the concept in Mountway Holiday Apartments and Joondalup City Hotel using customer reviews and recommended possible strategies that can be useful in advancing the quality of their services. Notably, the role that the concept of facilities management plays in business entities is imperative and scholars as well as stakeholders in the field of hospitality need to employ effectively.

References

Barret, P., & Baldry, D. (2003). Facilities Management – Towards best practice (2nd Ed.). Oxford, UK: Blackwell Publishing.

Booty, F. (2009). Facilities Management Handbook. Oxon, UK: Butterworth Heinemann.

Chen, K. (2008). An Empirical Study of Maintenance Costs for Hotels in Hong Kong. Journal of Retail and Leisure Property, 7(1), 35-52.

Duarte Alonso, A., & Ogle, A. (2008). Exploring Design among Small Hospitality and Tourism Operations. Journal of Retail and Leisure Property, 7(4), 325-337.

Jayawardena, C., Lawlor, F., Grieco, J., Savard, M., & Tarnowski, M. (2013). Challenges and Innovations in Hotel Operations in Canada. Worldwide Hospitality and Tourism Themes, 5(2), 177-189.

Jones, P., Hillier, D., & Comfort, D. (2014). Sustainability in the Global Hotel Industry. International Journal of Contemporary Hospitality Management, 26(1), 5-17.

Jones, T., & Zemke, D. (2010). Managing the Built Environment in Hospitality Facilities. Upper Saddle River, NJ: Prentice Hall.

Lai, J., & Yik, F. (2008). Benchmarking Operation and Maintenance Costs of Luxury Hotels. Journal of Facilities Management, 6(4), 279 – 289.

Lai, J., & Yik, F. (2011). A Probe into the Facilities Maintenance Data of a Hotel. Building Services Engineering Research and Technology, 33(2), 141-157.

Lee, J-S., Hsu, L-T., Han, H., & Kim, Y. (2010). Understanding how Consumers View Green Hotels: How a Hotel’s Green Image can Influence Behavioural Intentions. Journal of Sustainable Tourism, 18(7), 901-914.

Mutalib, A., Sapri, M., Mohammad, I., & Lavy, S. (2015). Facility Management Knowledge Development in Malaysia: Added Value in Hospitality Managerial Competency. Facilities, 33(1/2).

Payne, T. (2000). Facilities Management. Oxford: Chandos Pub.

Penny, W. (2007). The Use of Environmental Management as a Facilities Management Tool in the Macao Hotel Sector. Facilities, 25(7–8), 286–295.

Ransley, J., & Ingram, H. (Eds). (2004). Developing Hospitality Properties & Facilities (2nd Ed.). Oxford: Elsevier Butterworth-Heinemann.

Redlein, A. (2004). Facility management: Business process integration. Hamburg: Diplomica.

Ren, Z., Chrysostomou, V., & Price, T. (2012). The Measurement of Carbon Performance of Construction Activities: A Case Study of a Hotel Construction Project in South Wales. Smart and Sustainable Built Environment, 1(2), 153 – 171.

Scanlon, N. (2007). An Analysis of Environmental Operating Practices in Hotel and Resort Properties. International Journal of Hospitality Management, 26(3), 711-723.

Stipanuk, D. (2006). Hospitality Facilities Management and Design (3rd Ed.). Lansing: Educational Institute of the American Hotel and Motel Association.

Tarí, J., Claver-Cortés, Pereira-Moliner, J., & Molina-Azorín, J. (2010). Levels of Quality and Environmental Management in the Hotel Industry. Their Joint Influence on Firm Performance, 29(1), 500-510.

Xu, P., Chan, E., & Qian, K. (2012).Key Performance Indicators (KPI) for the Sustainability of Building Energy Efficiency Retrofit (BEER) in Hotel Buildings in China. Facilities, 30(9/10), 432 – 448.

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IvyPanda. 2024. "Facilities Management Concept in the Hospitality Sector." January 6, 2024. https://ivypanda.com/essays/facilities-management-concept-in-the-hospitality-sector/.

1. IvyPanda. "Facilities Management Concept in the Hospitality Sector." January 6, 2024. https://ivypanda.com/essays/facilities-management-concept-in-the-hospitality-sector/.


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IvyPanda. "Facilities Management Concept in the Hospitality Sector." January 6, 2024. https://ivypanda.com/essays/facilities-management-concept-in-the-hospitality-sector/.

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