Costs of Hotel Maintenance Increase as Do Maintenance Costs in Luxury Vacation Rentals
Aug. 8, 2006. As the hotel industry continues to enjoy strong uptrends in occupancy and rate in its third year of recovery, there are increasing signs that the pace of increases in certain expenses such as maintenance is gaining momentum, According to a recent study by PKF Hospitality Research. The firm reports from 2001 to 2005, hotel maintenance expenses grew 18.3 percent.
This is nearly 33 percent greater than the pace of growth for all other hotel operating costs during this same period. Not surprisingly, the report also concluded that the maintenance costs tended to be higher at high-end hotels than at limited service hotels.
Studies by other firms have found that guest satisfaction is impacted by the first impression a person experiences when they enter their guestroom. Immediately, their eyes are drawn to the condition of the furniture, fixtures, and furnishings that are most evident.
Robert Mandelbaum, director of research information services for Atlanta-based PKF-HR points out the importance of not skimping on repairs, "Implementing cost controls in the maintenance department is a struggle for management. On the one hand, operators need to contain this rising expense. On the other hand, skimping on repairs can be detrimental to guest satisfaction. A tear in the carpet, or a little scuff on the surface of nightstand can set a negative tone to a guest's stay."
Our own experience with operating luxury vacation rentals indicates that good maintenance is job one for both guest satisfaction and in preserving the value of your property. Not only are guests happier when they experience a luxurious, pristine property, they treat it with more respect. A shabby rental is only an invitation for guests to treat it shabbily. We will deal with this topic more thoroughly in our August newsletter. Although costs of maintenance are rising for vacation rentals as well as hotels, we believe that good maintenace is a wise investment.
