Certified Facility Manager (CFM) Practice Exam

What constitutes the major element of utilities expenditure in hospitality facilities?

1. Natural gas

2. Water

3. Electricity

4. Waste management

The correct answer is: Electricity

Electricity represents the major element of utilities expenditure in hospitality facilities due to the extensive amount of energy required to operate a variety of systems and services. Hospitality establishments typically rely heavily on electricity for lighting, heating, air conditioning, cooking, entertainment systems, and maintaining customer comfort. Additionally, the varying demand for electricity can significantly drive costs, especially in larger facilities where operational hours extend into the night and encompass multiple amenities. While water and natural gas are also necessary, they generally contribute less to the overall utility costs compared to electricity, given the prevalence of electric-powered appliances and systems in modern hotels and restaurants. Waste management, although an essential service, usually operates under a different expenditure category and does not directly contribute to the utility consumption experienced by these facilities in the same way that the continuous power supply does.