Editorial

Citation

Finch, E. (2002), "Editorial", Facilities, Vol. 20 No. 7/8. https://doi.org/10.1108/f.2002.06920gaa.001

Editorial

The hospitality industry is now emerging as a major beneficiary of the facilities management ethos. An industry that in the past has perhaps been known for its excellence in customer care and service culture, it is beginning to recognise opportunities for making real estate work more effectively. Two of the papers in this issue of Facilities address the hospitality sector.

The paper by Okoroh et al. attempts to "establish any trends that suggest a relationship between the application of facilities management techniques and the success of hotel businesses". Looking specifically at the medium sized hotels in the UK the paper is able to draw out some insightful conclusions. In particular it points to the low productivity levels, at 2.5 per cent lower than the rest of the UK economy, and the various facilities management techniques that could be leveraged to reduce this gap. The paper argues that as well as improving the use of the asset, facilities management can encourage more productive work systems and increase the chances of return customers and future sales.

The paper by Hassanien and Losekoot focuses its attention on the Egyptian hotel industry. In particular it considers the disposition of hotel general managers towards refurbishment and renovation. This research uncovers similar results to that of Okoroh et al., pointing to the untapped potential of facilities management strategies in hotel management.

Customer relationship management (CRM) is one trick the facilities management community could pick up from the hotel industry – in this respect, the hotel industry is light years ahead! The thinking behind CRM is simple: it costs less to keep a guest coming back than to attract a new one. As a consequence, they are using technology to identify and assess the "lifetime guest". These individuals or groups are then targeted with promotions, incentives and a tailored service. Large hotel chains like the Ritz, Marriott and Wyndham are collecting vast amounts of information to develop a clear idea of what their most valued customers like and how they choose to spend their money. With the advent of networking technology, they are able to distribute this information to every hotel. When you book into a hotel in Cairo or Madrid, the guest history system knows whether you are a smoker, what type of pillow you prefer and how you like to spend your money. The ultimate goal of CRM is to nurture customer loyalty and repeat business. With the advent of mixed-use hotels, which possess a collection of retail stores or franchised restaurants, we can expect to see CRM concepts rolled out into broader facilities management applications. Clearly the learning opportunity between the facilities management industry and the hospitality industry is a two-way process!

Edward Finch