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Reducing Hospitality Operating Costs with Technology
With the right tech, cost savings won’t mean the guest experience will suffer
January 14
Return to Work or Hybrid Permanence?
By Travis Hull, Director, Hospitality

Interest rates and inflation are running rampant across the hospitality industry. Even if revenue is growing, it can be challenging to keep up.

There’s a lot of advice about managing energy costs and streamlining labor that makes practical sense. Switch to LED light bulbs, install smart thermostats, automate your check-in process — but for some reason, those answers don’t feel like they’ll actually make a dent in operating costs.

Furthermore, these helpful tips are just that — the very tip of a greater conversation about truly managing energy costs. And check-in automation hasn’t even begun to scratch the surface of how technology can streamline operations.

Before changing hundreds of light bulbs throughout your hotel, ask yourself, is this enough? Is this treating an immediate symptom or a sustainable long-term solution? Because a true future-proof solution should be the answer — a solution that completely automates the building ecosystem. It doesn’t just reduce energy consumption by replacing light bulbs, but it automates those lights by turning them on when needed and shutting them off when they’re not. A system that can report real energy usage numbers for you so you can quickly make decisions to help mitigate areas of high consumption. A system that can grow with you and won’t become obsolete down the road.

Many hospitality leaders are finding the solution in control and automation systems.

One notable facility is Circle Wellness Spa. They’ve created an entire business model focused on reducing costs and enhancing the guest experience. The founder, Paul Hennessey, attributes their success to intentional automation and control. “The custom programming and Crestron technology we use allow us to operate the spa with less turnover time and staffing resources. This concept would not be commercially viable without the use of automation because our costs to operate would be far too high.”

But how did they do it? When everyone else is struggling with high costs, how was Circle Wellness able to create a flourishing business with expectations to expand to other markets?

The Wellpod at Circle Wellness

Automating: Beyond Booking

Self-booking and automated check-ins are frequently pushed as the key to reducing costs. But this is old news. There are plenty of inexpensive software solutions that have been helping facilities run these types of services for years. The consensus seems to be it’s still not enough.

Circle Wellness knew this, and they took their automation several steps further to truly make a dent in their operating costs.

Their core offerings come in three unique experiences: the hot and cold tubs, the stone bed, and the “WellPod.”

The WellPod is a reinvention of the sauna: a multi-sensory wellness room featuring Himalayan salt walls, thermally modified wood finishes, multi-channel lighting, a radiant infrared heating system, fresh-air ventilation, and encompassing surround sound.

Technology plays a critical role in driving the experience for guests as they take part in these circuits. Online booking software leads the experience, allowing guests to effortlessly check availability and schedule appointments. And thanks to continued automation with Crestron technology, an app communicates all confirmed appointments to the designated circuits, initiating the pre-check-in events, which include filling the tubs and setting the room ambiance  — all without added labor costs.

Once guests arrive, beyond a quick hello from the staff, the Crestron touch screens serve as the primary automation interface, putting the guests in control. As Hennessey notes, “Technology exists from the beginning to the end of the guest experience; from our booking software integration and our guest communications to issuing our guests' site access codes and triggering sessions which cues to the full experience, including AV design and HVAC controls.”

Little Caesar Arena

Energy Management: Beyond LED Bulbs

If a simple bulb swap isn’t enough to create a sustainable energy management strategy, then where can we look next?

Little Caesars Arena in Detroit, Michigan, took their lighting energy consumption very seriously. It led them down a path to their building becoming LEED Silver Certified and reduced their energy costs by 17% per year. So, how did they do it?

Arena Assistant General Manager Jim Bullo states, “We needed a solution that could adhere to the rigorous standards of both the NHL and the NBA, as well as assist us with managing energy efficiency. With Crestron, we can deploy a robust lighting infrastructure that meets the requirements and allows my team to easily control the system 24 hours a day.”

By utilizing the preset modules on the Crestron lighting system, any lights can be easily adjusted during the day by quick tablet controls. The system has also been programmed to automatically shut down excess zones and only provide functional lighting in occupied areas.

While the arena isn’t exactly the same as a typical hotel lighting system, the same energy management and cost savings techniques can be applied to a hotel of any size. That’s the beauty of these lighting systems: not only do they reduce costs, but they are scalable to any-sized facility, and once implemented, they can grow with your needs.

One Sydney Harbour

For a more direct comparison, we can look to the One Sydney Harbour apartment complex, which houses over 800 apartments.

Their strong focus on minimizing energy consumption led them to incorporate dimmed lighting scenes and automated blinds to maximize daylight harvesting.

Crestron processors and occupancy sensors govern lighting with precision across communal spaces like entrances, concierge areas, and parking and recreational facilities. To offer a connected experience to the users, extensive integration with building services, including the control of the façade blinds, a weather warning system, an intercom, and access control were added.

These types of technologies ripple beyond cost savings. As noted by Director of One Sydney Harbour David Edgar, "The tenants love the customization they have in their apartment and how they can control everything, even remotely, through Crestron. The added level of building safety available through the Crestron touch screens also pleases the residents.”

While reducing costs is important for continued business success, it’s crucial to remember that the primary element of hospitality is delivering a great guest experience. If a technology solution can deliver both cost savings and an enhanced guest experience, it may be time to invest in a solution and stop chasing short-term remedies.

For more insights from top hoteliers from companies like Virgin Hotels, Luxury Hotel Partners, Noble House Hotels, and more, download the ILHA Tech Integration Committee Report.

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Residential Lighting

Your body runs on a 24-hour cycle called a circadian rhythm. Lighting affects one major aspect of it: your sleep-wake cycle. Replicating natural light provided by the cycles of the sun with artificial light can improve your mood, concentration, creativity, and energy levels, as well as promote better sleep. This can be accomplished using tunable LED light fixtures and technology such as the Crestron SolarSync® photosensor.

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Hospitality Technology Solutions

Smart guest rooms that turn new visitors into repeat guests. Conference rooms that help them get down to business. Ballrooms that help them have a ball. Only Crestron enables you to provide premier, personalized guest service combined with robust, scalable, cost-effective property-wide monitoring and management. All on a single platform.

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