The Importance of EAM for Hotel and Hospitality Businesses

The hotel and hospitality industry largely runs on two principles: maintaining high-quality service to maintain customer satisfaction and the ability to keep costs down. The way to go about achieving this is through the proper management of assets (and staff) within a hotel.

The value of Enterprise Asset Management (EAM) is on full display when everything from the maintenance of doors to the servicing of a washing machine is taken care of. This makes sure your guests have the experience of a lifetime, and though they might have to check out at 11 am, they really do not want to leave.

Let’s explore in this post just how important EAM is for the hotel and hospitality business.

What is Enterprise Asset Management for Hotels?

EAM is basically a smart way for hotels to keep all their assets running as efficiently as possible. These assets include, but aren’t limited to, ovens, freezers, elevators, furniture, gas lines – you get the idea. The process begins right at the acquisition phase and goes up to the point of disposal. EAM’s purpose is to track all your equipment, schedule regular checkups, expose any issues, and warn when something is about to break.

Ideally, you wouldn’t want a guest reporting a broken refrigerator because it does not leave a great impression on an industry that literally is called “hospitality.” So, instead of waiting for things to fall apart, EAM helps hotels fix and manage them properly from the get-go. In the long run, this also greatly increases the lifespan of the assets.

Typically, EAM involves using software that integrates asset data, creates maintenance schedules, and provides the ability to monitor assets in real-time. 

For example, it makes sure the air conditioning runs at its peak during summer and schedules its maintenance during planned downtimes or off-season, if possible. Moreover, it tracks assets using IoT devices and sensors to gauge their performance and efficiency. If an elevator is underperforming, the system alerts the maintenance team immediately.

Also, it can help greatly in inventory management since it’s such a big deal for hotels. From keeping spare parts to consumables ready when needed, it keeps an active track of these to greatly reduce the chances of understocking or overstocking.

Why EAM is Critical for Hotels and Hospitality

With a fair bit of confidence and little doubt of disagreement from the other side, arguably the most important factor for this industry is customer service. Poor hotel asset management is a surefire way to decrease customer experience.

Ill-managed assets are an absolute nightmare. For the most part, hotels tend to be the getaways for most people, a place where they can relax and expect nothing but the best treatment.

That covers the customer experience part, but we did not touch upon another factor: security. A hotel must guarantee the safety of its guests and staff. With the help of EAM systems, the industry can stay updated on regulation and compliance requirements.

Doing all this, as important as it is, costs money. One of the major expenses that a hotel incurs is repairs and maintenance from their entire budget. EAM systems cut back on these costs without causing the hotel to stay behind on quality. The savings can be used elsewhere.

Benefits of EAM for Hotels and Resorts

The implementation of an effective EAM system brings several benefits to the hotel that uses it, including but not limited to the following:

1. Improved Operations

Hotels and resorts make use of countless assets that require constant attention. Everything from HVAC systems to kitchen equipment and more needs to be well taken care of. Yes, every industry wants to achieve operational efficiency, but the sensitivity of the hospitality business and its customers must be taken into account.

In the best of hotels, if one of their necessary equipment items isn’t working, it will greatly impact the guest experience. EAM systems offer centralized management for all the assets within, making the process much easier and reducing unexpected breakdowns and service disruptions.

In addition, you can also improve operational performance with facility management strategies.

2. Cost Reduction and Budget Optimization

Keeping costs down while maintaining high standards of service is no easy feat. It only makes sense to use the latest and greatest available tools to try and achieve this Herculean task, and an EAM system can be key here. It helps reduce costs by making the process of tracking assets much easier, and as a result, it makes budgeting much more accurate.

Since EAM systems track each tool throughout its lifespan, they can easily determine each asset’s total cost of ownership (TCO). With such data, the system can inform the responsible personnel when it’s time for an asset to be repaired or replaced and what’s the best course of action.

Moreover, it helps avoid the terribly uncomfortable situation of performing emergency repairs. When guests are here, and equipment is being repaired right in front of them, especially if it’s essential to their overall experience, it isn’t a fun day for anyone. And, of course, last-minute repairs are always more expensive than regular servicing.

To add fuel to the fire, if the required spare part isn’t available, the business is almost certainly going to get a bad review. EAM systems also help manage inventory so no overstocking or understocking occurs.

3. Compliance and Risk Management

Hotels must make sure their assets are up to code and operating within legal parameters. Some of the compliance and regulation standards that the hospitality industry must meet include:

• ISO 9001: Quality Management System – Ensures consistent quality in products and services.
• ISO 14001: Environmental Management System – Focuses on minimizing environmental impact.
• ISO 45001: Occupational Health and Safety Management System – Promotes a safe and healthy workplace.
• HACCP (Hazard Analysis and Critical Control Points): A globally recognized food safety system that helps prevent foodborne illnesses.
• Green Globe Certification: A leading sustainability certification program for travel and tourism businesses.
• GDPR (General Data Protection Regulation): Applies to companies processing the personal data of individuals within the European Union, with similar laws for each country.
• Occupational Safety and Health Act (OSHA): This act outlines workplace safety standards to protect employees from workplace hazards.

EAM systems help hotels stay compliant and create a digital record of all inspections, maintenance activities, and certifications. This not only minimizes the risk of legal issues but also provides peace of mind to guests, knowing they are staying in an environment that follows the norms.

4. Better Decision-making

EAM systems can integrate with sensors and IoT devices to actively, in real-time, monitor assets’ performance and usage trends. This data is extremely valuable for making calculated decisions rather than relying on guesswork or outdated methods.

These insights help determine when equipment needs maintenance and further guide decisions regarding capital expenditure, asset upgrades, or even operational changes. For example, if an air conditioning unit isn’t performing at its peak due to its age, managers can schedule a replacement for it without causing disturbance to the guests.

5. Happy Guest Experience

The experience of guests is core to the industry, and to keep that experience positive, all assets must be in functional condition. For example, if a hotel’s hot water system is regularly maintained and monitored using EAM, guests are less likely to be forced into taking a cold shower. And nothing would get you a worse rating than forcing someone used to hot showers to take a cold one, especially on vacation. It all really boils down to keeping the guests happy. 

Key Areas of EAM in the Hospitality Industry

Every little advantage makes a difference in hospitality. With the help of EAM, the following three areas can be greatly assisted:

1. Asset Tracking and Inventory Management

The hospitality industry has to manage a wide variety of assets, including HVAC systems, kitchen equipment, and IT infrastructure. Everything is crucial for the proper running of a hotel. Trying to keep tabs on each asset, as well as managing inventory manually or even with a couple of software programs, becomes too much of a hassle.

EAM systems provide a centralized platform to monitor assets, allowing the responsible staff to keep tabs on the asset’s location, condition, and usage. On the inventory management side, EAM systems help hotels efficiently manage their spare parts, tools, and supplies.

2. Preventive and Predictive Maintenance Scheduling

One of the greatest advantages that EAM offers the hospitality industry is shifting from reactive maintenance to proactive maintenance. Typically, equipment isn’t fixed or replaced until it breaks down, renders itself unusable, or someone complains about it. This approach isn’t great for business.

Instead of waiting for equipment to fail, EAM allows hotels to proactively maintain their assets by automating maintenance schedules. For example, air conditioning units require periodic cleaning and filter changes. EAM systems can automatically alert the maintenance team when upkeep is due without having to wait for a complaint or breakdown. 

Systems such as fire alarms, elevators, and emergency lighting must be regularly inspected to meet safety standards, ensure compliance with regulations, and create a safe environment for guests and staff.

Predictive maintenance takes things a step further. While preventive maintenance focuses on scheduling, predictive maintenance uses historical records and AI to forecast when equipment might break down. It then alerts the team accordingly so they can take prompt action. However, only a few EAM systems, like LLumin, have this capability.

3. Energy and Resource Optimization

Every industry is taking steps toward environmental conservation and achieving sustainability goals. One of the fastest ways to reduce a carbon footprint is by optimizing energy and resource management.

The benefits are big. EAM helps companies reach their sustainability goals while reducing utility costs and increasing savings. Using EAM, hotels can monitor the energy consumption of their assets and identify outliers, such as a heater consuming more energy than expected or a lighting system doing the same during peak hours.

In addition, EAM software can help adjust lighting schedules or suggest switching to energy-efficient bulbs or heaters to reduce energy consumption and costs.

As sustainability becomes increasingly important for both consumers and businesses, EAM’s ability to track and optimize resource use gives hotels the tools they need to reduce their environmental impact while also driving savings.

How to Implement EAM in Hotels and Hospitality

Implementing Enterprise Asset Management (EAM) software in hotels and the broader hospitality industry isn’t as complicated as it might seem, but it does require a structured approach, strategic planning, and integration with existing systems. Here’s a step-by-step guide to help you get started with EAM implementation:

1. Start with What You Need

The first step is understanding what is driving this move towards EAM. What challenges is your hotel facing that you’ve decided to opt for an EAM system?

Is it frequent breakdowns? Maybe you intend to be more energy-efficient, or perhaps you’re just looking to reduce costs and improve asset lifespan. Whatever the goals may be, clearly define them and map out all the assets that need attention.

2. Research and Choose the Right EAM Solution

Not all EAM solutions are made the same. Some of them are much better suited to your needs and team. When selecting an EAM solution, here’s what to consider:

• Industry-specific features: Look for features relevant to the hospitality business, like preventive maintenance scheduling, guest-facing service integration, and energy management.
• Scalability: Businesses grow with time, and the system needs to be able to grow with it.
• User-friendliness: Opt for software with an intuitive interface that your staff can actually learn and enjoy using. If it’s too complicated, the team might not adopt it easily.
• Cloud vs. On-Premises: Decide between cloud-based EAM for flexibility and cost-effectiveness or on-premises solutions for greater control. It may be best to use cloud-based systems, but it’s best to check with your IT department regarding it.
• Vendor support: Choose a provider with a proven track record in the hospitality industry and strong customer support.

3. Plan Out the Implementation

Do not jump in without a proper course of action, as it might result in mere chaos. EAM implementation must be planned, and all staff members must be informed about the transition so they can prepare for it. For ease, break up the implementation process into different phases:

• Preparation Phase: Decide on timelines, assign roles (like who’s overseeing the integration), and set aside a budget.
• Installation and Testing Phase: Roll it out step by step, testing simultaneously, and make sure everything works smoothly.
• Go-Live: Once it passes the testing phase, go live with the program but keep monitoring to catch any hiccups early.

Ideally, with a clear plan, minimal disruptions will be caused to your operations during implementation.

4. Integrate EAM with Your Property Management System (PMS)

For an EAM to truly thrive within the tech ecosystem of your hotel, it needs to be able to integrate with your existing Property Management System (PMS). A connection between these systems allows you to unify hotel asset management with guest services, room bookings, and maintenance requests.

It can automatically trigger work orders when a guest reports an issue. For example, if someone says the air conditioning isn’t working, the PMS can push that info to the EAM system, which notifies the maintenance team immediately. Both your PMS and EAM vendors, along with your IT department, need to prioritize data compatibility and clear communication between these systems.

Learn how your company can maximize productivity with effective work order management tools.

5. Train Your Staff

The best EAM system will not fetch you the benefits you’re seeking unless your team is trained to use it effectively. Vendor support and training modules are extremely helpful in this case. Provide your team with hands-on training for different roles, from maintenance staff to operations managers.

Keep the training practical, focused, and as engaging as possible because nobody is in school anymore. Teach the essential features first so your team can get started and learn extra features on the move. Create easy-to-follow guides or quick reference materials, and encourage feedback on them so adjustments can be made if necessary.

6. Monitor and Optimize Post-Implementation

It doesn’t stop at training and going live. Even after the EAM system is live, continuous monitoring is necessary. Track KPIs like maintenance response times, asset uptime, and energy savings to measure the system’s impact and make use of analytics provided by the software to identify trends and improve processes.

How LLumin Can Help with Hotel Asset Management

All the benefits we spoke of in this post cannot be achieved without using an effective EAM system, so let’s talk about our CMMS+ software, LLumin. It’s a solution designed to help companies simplify their hospitality asset management by providing a centralized platform that can manage everything from routine maintenance of equipment to energy optimization.

LLumin’s system is extremely user-friendly, integrates well with existing hotel systems, and offers AI and machine learning capabilities to help with routine tasks by automating them and providing valuable information in the form of detailed reports. From inventory management to predictive maintenance, all of it becomes possible and easy with LLumin CMMS+.

Schedule a demo today and find out how our software can boost your hotel efficiency with tailored CMMS solutions.

Closing Thoughts

Running a hotel isn’t easy, but smart asset management can make a BIG difference. EAM can help massively in optimizing maintenance, improving energy efficiency, and managing resources better.

The result? You’ll cut costs, boost sustainability, and create an unforgettable guest experience. In short, the right tools don’t just keep things running, they help your hotel thrive among the fierce competition.

FAQs

How does EAM improve guest experiences in the hospitality industry?

EAM makes sure that equipment within a hotel is in top shape. For example, when assets like air conditioning, elevators, and lights are regularly maintained, there are fewer breakdowns or service interruptions. This directly results in guests having a worry-free stay without any issues in their room or any other facility, which is how it improves guest experiences.

What types of assets are managed using EAM in hotels?

EAM helps manage a wide range of assets within a hotel, including but not limited to room furniture, HVAC systems, elevators, kitchen appliances, lighting, and even outdoor amenities like pools or landscaping equipment.

Can small hospitality businesses benefit from EAM solutions?

Every business, no matter the size, benefits from EAM solutions. Every business needs help managing its assets, and all of them want to save time and money. Proper management of assets means fewer unexpected breakdowns and better performance from assets, resulting in better operations and less money spent on repairs and emergencies.