3 December 2008

New technology innovations are having a profound effect on the hospitality industry, giving hotels, restaurants, casinos and travel companies the potential for more exciting customer experiences. Lindsay James finds out more

The impact of new technology on the hospitality industry promises to be far-reaching. From the perspective of a hotel, casino, travel company or restaurant, important advances have the potential to create more efficient and profitable businesses, as well as creating more appeal to guests.

"Technology today is focused on helping hospitality venues maximise profitability from each guest," says Tina Stehle, senior vice president and general manager of Agilysys Hospitality Solutions. "In order to do that, understanding the guest becomes a priority. Property management solutions, for example, are targeting guest preferences and incorporating features such as guest-oriented reservation management. Also, technology is incorporating features that capture and store guest information, such as history, itineraries and interests; and that enable the set-up and maintenance of a single guest master across multiple systems."

At the heart of a technologically advanced hospitality business is integration technology such as Microsoft BizTalk Server, which allows applications and systems to exchange data and seamlessly interact with each other. Once this is in place then operators can implement numerous value-added solutions that have an immediate positive effect on customer service.

If every part of a hospitality business can access the same information it makes things so much easier, both for the customer and the provider.

Klaus Hatle, CEO Cenium "Centralised, integrated information hubs give hoteliers access to what is possibly their greatest asset; the wealth of guest information trapped in siloed databases," says Bill Frizzell, global hospitality industry technology strategist at Microsoft. "Unlocking these databases and making information available to appropriate parts of the enterprise can improve the guest experience - and the guest's profitability for the hotel."

"The only way a system is going to be productive is if it is integrated," says Klaus Hatle, CEO of Cenium, which develops hotel management systems based on Microsoft's Dynamics NAV enterprise resource planning (ERP) platform. "It is becoming more and more common for hospitality providers to offer a wide range of services - for example, a hotel can have numerous restaurants, a golf course and a spa. If all of these are linked and can interact with each other then it makes for much better business."

By collecting information from disparate systems, hotels can establish a lifetime value for each guest, based not simply on the number of stays but on usage of services. "Property management systems that store guest data, such as preferences and past itineraries, make it possible for hotels to market certain amenities to certain guests, such as spa appointments or golf lessons," says Stehle. "And self-service kiosks can be programmed to up-sell room categories based on guest buying habits or to make special offers."

Hotels can further customise the guest experience by accessing the detailed profile of each guest and interfacing with a variety of room control systems. When a guest checks in, the hotel can adjust elements such as room temperature and lighting, as well as make sure the guest's preferences in music and video entertainment are playing in the room.

"For casinos, this is even more important because they can tie into gaming information to identify that a particular guest is a 'high-roller' or prefers a particular slot machine," says Brad More, president of hospitality industry solutions provider Cyllenius. More adds that knowledge of a guest's history allows hotels to market more effectively, for example, to target golf enthusiasts with news of an upcoming tournament.

This integration of information brings further benefits. "If every part of a hospitality business can access the same information it makes things so much easier, both for the customer and the provider," says Hatle. "For example, a customer can book a game of golf and a make a reservation for dinner when he checks in. If his game of golf runs over then the staff at the golf course can amend his restaurant reservation, rather than him cutting short his game of golf or missing his reservation and the restaurant losing business."

Radio frequency identification (RFID) technology is another solution that runs off an integrated system. "Many of our implementations now use RFID," says Hatle. "At check-in, guests and their family members are given RFID equipped bracelets that allow them to charge meals, products, and theme park attraction tickets to a single tab, giving them the convenience of only having one bill at the end of their stay." Equipped with both passive and active RF antennas, these kinds of RFID bracelets also provide location services, allowing parents to use kiosks located throughout the resort to discover where their children are at any given moment.

Enhancing the guest experience through technology doesn't stop there. Today's leading-edge hotels have in-room systems that do far more than allow guests to watch their favourite film. "In-room entertainment has come a long way in recent years," says Frizzell. "It used to be that you would go to a hotel to get an experience that you couldn't get at home, but nowadays this isn't true as many people can access great entertainment systems in their everyday lives. With the convergence of the social and work digital lifestyle, guests want to bring their technology with them, so hospitality venues now have to go a step further and allow the customer's technology to link seamlessly with its system."

With the advent of IPTV, it is now a straightforward task to deliver superior in-room entertainment, using the TV as a display device. "Hotels in Las Vegas, for example, are looking to extend the gaming floor experience to the in-room experience with the TV," says Frizzell. "This is captivating for guests, regardless of whether they have an interest in gambling. Hotels can also use the IPTV platform to seamlessly promote upcoming events and nearby attractions, control in-room music, provide gaming options, display a customer's bill - even control the thermostat and lights."

Starwood's Sheraton University City Hotel in Philadelphia is one establishment that has implemented advanced in-room technology. The hotel's solution is eRoomsuite from SuiteLinq, which uses Microsoft technology and integrates productivity software with entertainment and communication capabilities. SuiteLinq installed the solution in 200 customer rooms, and in addition to the large flat screen TV for viewing has installed a desktop experience for use by the guest, featuring an HP thin-client device with a 17-inch flat-panel LCD monitor, stereo speakers, keyboard and mouse. Hotel customers connect through the SuiteLinq portal to the Internet, Microsoft Office programs, and entertainment content. In addition, Sheraton delivers customised hotel and local information through the portal to its guests.

Starwood has also partnered with Microsoft to implement products and services at the Link @ Sheraton experienced with Microsoft, the communications hub in its hotel lobbies. The partnership is one component of a comprehensive effort to enhance and differentiate the guest experience at Sheraton's 408 hotels across 75 countries, currently rolling out globally.

Sheraton's Link is a lobby lounge space that meets the needs of Sheraton's core guests by enabling them to work, relax and remain connected with friends and family during their travels. It offers free Wi-Fi and Internet-enabled computer stations to allow guests to e-mail, search the Web, review local attractions and even print up boarding passes. Through its relationship with Microsoft, the new, enhanced Link @ Sheraton experienced with Microsoft will offer Windows-based computers providing visitors with search, maps, e-mail and information. In addition, many Link computers will also feature webcams, allowing guests to have free video-chats or e-mail video postcards back home. Guests will also have access to televisions, daily newspapers, and food and beverage offerings.

"Today's traveller is part of a connected digital community, with instant access to information and technology for work, entertainment and social networking," says Sandra Andrews, Microsoft's US hospitality industry director. "With Link @ Sheraton experienced with Microsoft, Sheraton and Microsoft are helping forge the convergence of the digital lifestyle and work-style in the experiences offered to this new breed of guest."

Microsoft's Surface technology is also starting to appear in the hospitality industry, having recently been launched at Harrah Entertainment's iBar ultra-lounge in the Rio All-Suite Hotel & Casino in Las Vegas. Harrah's is the first company to deploy a suite of customised applications for Surface and to install it in an entertainment venue, providing guests with uniquely personalised and engaging social experiences with the units.

"With Microsoft Surface, Harrah's is designing new and exciting ways to engage our millions of existing customers as well as offering a new genre of innovative opportunities for guests to discover the uninhibited excitement of our venues," says Tim Stanley, Harrah's CIO and senior vice president of innovation, gaming and technology. "This launch of Microsoft Surface into our business is another example of our next-generation interactive customer relationship management capabilities that aim to deliver personalised, interactive and immersive experiences for guests."

"People continue to be excited about the endless possibilities of Surface technology and how it can transform everyday scenarios, including the social and entertainment space," says Pete Thompson, general manager for Microsoft Surface. "With this latest deployment, we're now bringing some of those possibilities to life."

Providing a superior guest experience doesn't stop when the guest checks out. Taking benefit from the worldwide interest in social networking, hospitality venues can stay in touch with their customers after they leave. "Today, social networking technologies are enabling hospitality organisations to redefine their relationship with customers by extending the guest experience far beyond the four walls of the hotel," says Frizzell. "Through Web-based social communities, hotels can create virtual gathering places that bring travellers together to share experiences, ideas and information. The results can create connections between guests that will strengthen the relationship between a hotel and its customers."

Successful online communities like FaceBook and MySpace provide a starting point for helping hospitality organisations understand how to harness the power of social computing to build brand loyalty. These sites enable people to share interests, gossip, advice, photos, music and much more.

"By providing a place for customers to maintain relationships with people they meet during their travels, hospitality venues can make their brand the centre of social interaction long after guests have gone home," says Frizzell. "A virtual community based on friendships established while people are guests at a property carries credibility that traditional marketing can never deliver."

This feature is taken from the Winter 2008 edition of Retailspeak

Add a comment