IoTs impact on RevPAR
By Dan Levine, CEO, Cytexone
From the business perspective of hotel operations and financial management, KPIs and performance measurement mean everything. The concept of RevPAR, is at top of mind. RevPAR is they key performance metric in the hotel industry calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured. It all comes down to optimizing all the space invested in to the benefit of happy guests who continue to spend and generate revenues. The bottom line is profitable operations repeated month after month.
Where does IoT fit with RevPAR?
The reality in the hotel business is a room cannot be rented if something as simple (yet critical!) as the phone in the room is not working. Having a meltdown of any of these key communication, fire prevention systems, lighting or HVAC systems can wreak havoc on sales. In modern hotels and resorts, each of these systems can be smartly connected, and work as one system.
Most people think of IoT as future wizardry reserved for eye-popping amenities such as interactive food menus and TV services, which is great. However, the back office element of IoT is just as exciting for hotel management. For the wide majority of hotels, implementing centralized cloud services and intelligent devices that are a part of the Internet of Things (IoT) have become a part of their IT spend. This is because IoT has a direct impact on RevPAR, as a key part of a greater smart hospitality solution. Smart hospitality connected with IoT means that everything is intelligently connected so that systems and experiences can be monitored and managed cost-effectively. Just 15 years ago this was not possible as low power wireless connectivity, smart devices and the cloud were not yet established.
Putting the Cloud to Work
Hotel management loves IoT because, when installed properly and monitored in the cloud, it means less downtime for their rooms, less wasted time, and fewer headaches.This inspires hospitality experts to further create and hone IoT with cloud-based management systems and keep it in the toolbox as key difference.
To put the cloud to work on behalf of driving RevPAR, the facilities and technology staff can deploy management and monitoring systems that are securely and remotely accessed and also adjusted when needed. If a device, system or service fails that problem can often be seen in real-time, and a service provider can then quickly respond.
With the cloud, discovery and management tools can efficiently review the system connection, device operations and overall system health. And when a problem needs fixing, all systems will be working in the speediest fashion to restore things to order. Other tangible benefits of cloud remote connectivity include cost and security, reducing on site, local systems and support needs and eliminating elaborate hardware expenses. A simple CPU only is needed to connect. From a security perspective, a cloud networking model also has many benefits, placing the organizations sensitive data in the safe hands of specialized security expertise. Using the cloud for security (or Security as a Service/SeCaaS) is a good way to remove the inconsistent, and often haphazard way that local Network security settings are effectuated or products configured.
IoT drives the bottom line. Hotel Operators will increasingly use IoT and the cloud to meet their clear mandate of keeping rooms open and useable for guests. The benefits of smart hospitality solutions is that when everything is connected expertly, there are much greater economies of scale to monitor and manage critical systems, and systems are diagnosed and fixed much faster. The impact on RevPAR becomes measurable and a higher standard is set. It is hard to deny the positive benefits of IoT and the cloud has on hotels and resorts.
PenVine for CytexOne