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Jordan Hollander
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Jordan is the co-founder of Hotel Tech Report, the hotel industry's app store where millions of professionals discover tech tools to transform their businesses. He was previously on the Global Partnerships team at Starwood Hotels & Resorts. Prior to his work with SPG, Jordan was Director of Business Development at MWT Hospitality and an equity analyst at Wells Capital Management. Jordan received his MBA from Northwestern’s Kellogg School of Management where he was a Zell Global Entrepreneurship Scholar and a Pritzker Group Venture Fellow.
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Whether or not your hotel is LEED Certified, sustainability is top of mind for everyone from guests to investors. But managing and tracking sustainability efforts in a measurable way is near impossible without the right tech in place.
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Hotel sustainability software significantly impacts a variety of key performance indicators (KPIs) that are crucial for the successful and sustainable operation of hotels. One of the primary benefits of employing such software is the enhancement of energy efficiency, which directly affects the energy consumption per guest night. By optimizing systems that control heating, cooling, and lighting, hotels can dramatically reduce their utility costs, a major expenditure in the hospitality industry. This also contributes to a lower energy intensity ratio, a critical KPI for measuring the energy efficiency of hotel operations.
Another significant KPI impacted by sustainability software is water usage per guest night. Through active monitoring and management of water resources, this software helps hotels identify leaks and inefficiencies, promoting water conservation measures that not only reduce costs but also support environmental sustainability.
Waste management is another area where this software makes a marked difference. By tracking waste generation and segregation, hotels can increase their recycling rates and decrease landfill use, which in turn can improve their waste diversion rate. This is increasingly important as consumers and regulatory bodies alike demand higher environmental responsibility from the hospitality sector.
Moreover, the software’s capabilities in carbon footprint tracking help hotels monitor and manage their greenhouse gas emissions. This affects the carbon footprint per guest night KPI, providing data that can be used to make operations more sustainable and potentially qualify for carbon credits or meet regulatory standards, which can enhance a hotel's reputation and guest satisfaction.
Financially, the reduction in energy, water, and waste management costs directly improves the hotel's operating profit margin. Additionally, through guest engagement features, hotels can enhance guest satisfaction scores by involving customers in sustainability efforts, turning environmental responsibility into a competitive advantage that attracts eco-conscious travelers.
Overall, hotel sustainability software offers a multifaceted approach to improving hotel operations by impacting critical KPIs related to cost, compliance, customer satisfaction, and environmental stewardship, thereby supporting a hotel's bottom line and its sustainable development goals.
Hotel sustainability software offers a comprehensive suite of features aimed at enhancing the environmental stewardship of hotel operations. Here’s a summary of the key features and the jobs they are designed to accomplish:
Energy Management: This software often includes tools to monitor and optimize energy usage within the hotel. This can involve tracking electricity, water, and gas consumption, and may integrate with systems to control lighting, heating, and air conditioning to reduce energy waste.
Waste Reduction: It helps hotels track waste production and disposal, encouraging practices that reduce, reuse, and recycle materials. This might include managing food waste, encouraging towel and linen reuse, and handling hazardous materials properly.
Water Conservation: Tools within the software can help monitor water usage and identify leaks or areas of high consumption. It might also suggest water-saving practices and technologies, such as low-flow fixtures.
Sustainable Sourcing: The software can assist in managing procurement processes to favor environmentally friendly products, from cleaning supplies to guest amenities.
Carbon Footprint Tracking: Many systems provide tools to calculate the carbon footprint of hotel operations, helping to set and achieve reduction targets. This can be critical for reporting and compliance with environmental regulations and standards.
Reporting and Compliance: The software often includes features to help hotels comply with local, national, and international environmental regulations. It also generates reports that can be used for internal management or external communication about sustainability efforts.
Guest Engagement: Some systems include modules designed to involve guests in sustainability efforts, such as apps or in-room devices that provide feedback on energy and water consumption, or incentives for participating in the hotel’s sustainability programs.
By integrating these features, hotel sustainability software supports the hotel industry in making more informed decisions that benefit the environment, reduce operational costs, and meet the growing consumer demand for sustainable travel options.
The pricing of hotel sustainability software typically varies based on the range of features offered, the size of the hotel property, and the specific needs of the hotel management. Generally, for a basic to moderately comprehensive suite of sustainability management features, hotels can expect to pay between $700 to $1200 per year per property. This cost bracket is quite common in the industry and is designed to be accessible for small to medium-sized hotel operations while offering substantial value in terms of energy, water, and waste management capabilities.
At the lower end of this price range, hotels might access fundamental features such as basic monitoring and reporting on energy and water usage, which can provide significant insights into areas where costs can be reduced through more efficient practices. Towards the higher end of the spectrum, the software may include advanced features like predictive analytics for energy and water usage, integration with existing hotel management systems, and more robust tools for guest engagement in sustainability practices.
This pricing model is particularly attractive because it often comes with scalable options. Hotels can start with a basic package and, as they realize cost savings and return on investment from reduced utility bills and operational efficiencies, they can opt to upgrade their services to include more sophisticated features or additional properties.
The investment in sustainability software is generally offset by the reduction in operational costs over time. Reduced energy and water bills, lower waste management costs, and improved regulatory compliance can all contribute to significant financial savings, making the initial cost a feasible expenditure for long-term sustainability and profitability.
Implementing and using hotel sustainability software can vary in complexity depending on several factors, such as the specific software features, the existing infrastructure of the hotel, and the staff's familiarity with using digital management tools. However, most vendors aim to make their software as user-friendly and integrative as possible. Here's a breakdown of some common challenges and facilitators:
Integration with Existing Systems: One of the major challenges can be integrating the new software with the hotel's existing management and operational systems. This might include property management systems, energy management systems, and other operational technologies. Seamless integration is crucial to ensure that all systems communicate effectively without disrupting hotel operations.
Data Management and Accuracy: Collecting and managing data effectively can be a hurdle, especially in establishing initial benchmarks and ongoing monitoring. Ensuring data accuracy and reliability is essential for effective management and decision-making.
Staff Training and Adoption: The success of any new software largely depends on how well the staff can use it. Training can be a significant challenge, particularly if the software is complex or if the staff is not tech-savvy. Resistance to change is a common human factor that can complicate the adoption of new technologies.
Cost of Implementation: Beyond the subscription or purchase cost of the software, there are often additional costs related to hardware upgrades, training, and possibly increased IT support. Budgeting for these expenses can be a challenge for some properties, especially smaller hotels.
User-Friendly Design: Many software providers design their products with a focus on user experience, featuring intuitive interfaces and easy-to-navigate dashboards. This enhances usability and helps reduce the learning curve for hotel staff.
Customizable Features: Some software solutions offer customizable features that can be tailored to the specific needs and scale of a hotel. This flexibility allows hotels to start with basic features and add more complex functionalities as they become more comfortable with the software.
Vendor Support and Training: Comprehensive support and training from the software provider can greatly ease the implementation process. Good vendor support includes initial training sessions, readily available customer service, and ongoing training materials to assist with any operational questions.
Incremental Implementation: Implementing the software in phases can help manage the transition. Starting with core functionalities and gradually introducing more complex features allows staff to adjust to the new system slowly.
While there are challenges to implementing hotel sustainability software, many of these can be mitigated with careful planning, adequate training, and choosing the right software vendor that offers a product tailored to the hotel's specific needs and capabilities.