Why "Tech" is not a "four letter word" - By Chris Hartmann, HVS International
Many in the industry view technology as a problem, rather than an opportunity. This article explains how properly managed, and with a view toward the future, technology can offer hoteliers better service, lower costs and increased profits. “Technology” is often looked at by veteran hoteliers as conveying “impersonal, cost saving and guest dissatisfaction”.
Many in the industry view technology as a problem, rather than an opportunity. This article explains how properly managed, and with a view toward the future, technology can offer hoteliers better service, lower costs and increased profits.
“Technology” is often looked at by veteran hoteliers as conveying “impersonal, cost saving and guest dissatisfaction”. That attitude is understandable given the complexity and ever-changing nature of hospitality technology, but today, it can also be a very damaging point of view.
To look at the state of technology in hotels and resorts today, it’s important to understand that “technology” today is not simply a network infrastructure, computers and the IT department. Technology is a key component of every aspect of hotel ownership. Management of, and a comfort with, today and tomorrow’s technology is necessary in every department.
Let’s begin with infrastructure. Hotels built for the last 50 years of the millennium had a pretty simple infrastructure - coax line to each TV and a phone line to each phone. Both could be run from the equipment room to each guest location and in many cases, the coax and all related equipment came from the TV content provider. Today’s need for wired HSIA in most new construction has complicated that and tomorrow’s need for IPTV, VoIP phones and centrally controlled and monitored equipment (thermostats, minibars, doors) complicates it even further. Beyond the limitation of 300 feet on most data lines, there are multiple ways of handling the convergence of everything to data-based. Many people argue that technology changes so rapidly that anticipating it doesn’t make sense, but the reality is that infrastructure evolves much more slowly than the equipment at the end and to build only with today’s needs in mind makes tomorrow’s changes extremely costly.
The next area of concern is guestroom equipment. Today’s typical guest, particularly at upscale, boutique and resort properties has an incredible array of home technology. Certainly they have an HDTV, hundreds of TV channels, music on demand from many sources and high quality audio equipment. They also have a carefully integrated system and the time to devote to understanding how to use it. When they travel, they would like to have a similar quality experience, but it also has to be much simpler and more intuitive than what they have at home. Even something as simple as an accurate channel guide and program listing is often missed by hotels who make sure that every other facet of the guest experience is perfect.
Third in the technology arena is software. CRS, PMS, POS and Sales & Catering have come a long way over the last 5 years, but most are still primarily focused on managing room or F&B inventory and sales. To be sure, this is and will remain critical to lodging operations, but today’s software needs to also address guest information as effectively as room information. Whether it’s CRM, guest preferences, guest service and task management, or guest history, it’s all about having the right information and using it appropriately. In addition, though it may be accepted in low-service industry such as cable TV, guests having to constantly identify themselves to hotels at reservation time, at check-in time, when in the restaurant or when calling for service, should not be necessary in these days of RFID, fingerprint scanners, bar codes and mag stripe scanners. Retaining usable information for long periods of time now is not only possible, but an important tool. As with the infrastructure and equipment, having data available for future use, even without an immediate ability to work with it, is valuable. Data warehousing and business intelligence tools to analyze that data are beginning to come into their own in many small and medium businesses. Tools to integrate data from sources as disparate as the POS and Smith Travel Research are necessary to provide a complete picture.
Last, but certainly not least, is the Internet. The Internet has opened up vast capabilities, most of which are just beginning to be explored by the lodging industry. Most important is the ability to market and sell your property in ways unimaginable when Y2K was the big concern. Not only does the Internet allow everything from full property tours to instant reservations, it allows the experience to be crafted to the individual needs of your prospective guest by that guest. The web also provides an unprecedented communications channel between the property and their guest or prospect. This communications medium is not only rich, it’s 2-way, which means that whether your guest is responding to your e-mail, reading your newsletter or surfing your site, you can learn as much about him as he does about you. Most importantly you can use that information to provide better service to both that guest, and future visitors as well.
In the near future, wireless capabilities for communications, asset tracking, task management and guest identification will require new equipment and infrastructure. Alternative Internet connections (WiMax, powerline, business cable) will provide higher speeds at lower cost. Portable entertainment options based on personal video devices, remote access to home media via the Internet, or online content will augment traditional video-on-demand and free to guest TV. Central control and monitoring of everything in the guest room, from occupancy to consumption for better guest service and stronger security, will become standard. Finally, the integration of technologies, supported by the industry though groups such as HTNG (Hotel Technology Next Generation), will allow suppliers to share common information and infrastructure.
Those hoteliers who view technology as a cost center and afterthought to the successful operation of any property risk becoming out of touch with their customers. More dangerous however is that those who don’t recognize and exploit today and tomorrow’s technologies for their competitive advantage will quickly be overtaken by those who do.