Mr. Chin

Technology

The Bottom Line of Next Generation Technology in Hotel Rooms Today

By David Chin, Director of Information Technology, Stanford Hotels Corp.

In 1969, futurist Isaac Asimov predicted that in 50 years there would be a hotel on the moon.

Now that 2019 is only a few light years away, the idea of a lunar lodge isn't so far out - especially considering the technological advances that have occurred in hotels on this planet in the last decade.

Historically, the hospitality industry hasn't exactly been the leading hotbed of technology. Earlier this millennium, the best you'd usually find was billing and room reservation systems linked using the room TV as a display. And guest services tended to be centralized with terminals at reception and in restaurants.

Beginning in the late '90s, the demand for cutting-edge media entertainment and communication caught the industry by surprise and hoteliers realized that to provide a truly quality stay for their guests, state-of-the-art technology had to become an integral part of the in-room experience.

Now, IT is everywhere. In-room mini-bars are connected to IP networks that add purchases to the bill 30 seconds after a cold beverage is lifted from the fridge. The flat screen TV offers streaming music services with soothing screensaver photos. Even the room key has become part of a technology link that allows guests to buy food in restaurants and access voice mail and wireless Internet portals.

And a new generation of gadget-minded and gear-toting business and leisure guests are forcing hotel operators to continuously -- and at warp speeds -- adopt new information and entertainment technology systems.

Hoteliers are finding technology is one way to distinguish themselves relative to their competition. Whether its plasma TVs, digital entertainment or high-speed Internet access, hotels need to select the right technologies and make sure they can work together.

With the proliferation of mobile devices such as personal digital assistants (PDAs), portable DVD players, MP3 music players and Smartphone devices, modern-day guests often arrive at hotels with all the technology they need.

In response to the ever-increasing tech demands of today's guests, the challenge for the hotel industry is finding a way to integrate these devices with existing in-room hotel systems to create a better guest experience.

By providing a consistent, integrated and seamless standard of tech services, hotels can ensure that loyal guests are rewarded with a content-rich environment that helps them stay connected to the world-at-large and supports their arsenal of high-tech business tools and personal entertainment toys.

All the comforts of home and office

Walk into a coffee shop, airport or hotel lobby and invariably someone is tapping away on a laptop. It's all about connectivity 24/7/365. And if it's not a laptop, people are glued to a wireless Blackberry, Treo, Motorola Q, or a cell phone.

Connectivity has become an obsession for some, a necessity for others. No wonder, then, that hotels are wired to provide guests with high-speed Internet access (HSIA) from the comfort of their rooms.

High-speed Internet access is no longer a novelty in hotel guests room. It is among the most important amenities guests have come to expect. Research has found that 65 percent of business customers travel with laptops, and over 50 percent of these use them to check their e-mails and connect to the company. Over 60 percent of them have Ethernet cards, which allow for 30 times faster connectivity than conventional dialing.

Wireless Internet access, on-demand cable television, and instant access to movies are just some of the expectations of today's tech-savvy hotel guests. To continue to identify and meet these expectations as well as deliver superior service, hotels must create a smarter guest experience that incorporates these and other leading technologies into the hotel room -- offering the same at-home multimedia experience and sophisticated office set-up that guests have grown accustomed.

Travelers of all ages and income levels are increasing their expectations in terms of in-room entertainment and information availability, and wise hoteliers around the world are rushing to introduce guests to the next must have tech amenities.

Generation Gap

Suffice it to say, technology has probably done more to shape guests' expectations and preferences than any loyalty program, room upgrade or 450 thread-count linen.

But what exactly do guests want in hotel room technology?

According to a recent white paper by the Center for Marketing Effectiveness produced in collaboration with Hotel Technology Next Generation, every generation uses technology differently. In the next decade, the report states, three different generations - Baby Boomers, Generation X and Generation Y - will bring distinct sets of technology preferences and user experiences into the hotel.

Each generation gravitates toward different devices due to their varying preferences for content and their ability to access it. By understanding these preferences, hoteliers can determine which in-room devices will provide the experience most appealing to their multi-generational guests.

For instance, the Baby Boom Generation at approximately 78 million people is the largest segment and represents $43 billion in buying power for retailers. Their technology needs are the straightforward plug-and-play type driven less by entertainment and more by the desire to communicate with family.

Members of Generation X, born between 1965 and 1980, were brought up on TV, Atari and personal computers. These more tech-savvy entrepreneurs have grown up alongside many new technologies, including the World Wide Web and mobile phone. Hotels need to be aware of Gen X's demands to carry and connect their own devices and access their own content.

The Yers, born between 1981 and 1995, are more than 57 million strong and considered the future market for most consumer brands. Like Generation Xers, members of Generation Y expect to remain connected wherever they go and continually look for new ways to access and interact with their personal content.

Trend watchers note that nine out of 10 teens have a home computer and 50 percent have Internet access. More than half of teens aged 12 to 17 (about 12 million) own a cell phone and a quarter of all 18- to 24-year-olds have Web-enabled phones.

The cell phone, however, may prove to be a more difficult technology for hoteliers to accommodate than the Boomers and echo Boomers preferences for TV, PCs and portable devices. These future guests will likely expect to be able to access and personalize content as part of their in-room experience.

Additionally, with this generation's fixation on instant messaging and virtual social worlds like Friendster and My Space, quick and affordable access to the internet in guestrooms is a significant factor to consider.

Finding new and better ways for all three of these generations to recreate the technology experiences they have at home (and to a lesser degree the workplace) in the hotel room will become extremely important to the future success of real-time hoteliers.

In-room time increases revenues

Hotels are deploying advanced, network-enabled technologies not only to streamline IT resources and reduce operating expenses, but just as importantly to increase customer loyalty and boost revenues.

Industry research long has shown that the amount of time guests spend in their rooms directly correlates to increased revenues from room services and other pay-for-use products and services such as Internet, movies and cash mini-bars.

With the right in-room technology, guests will "check in, plug in and stay in" longer.

For example, room service revenues at Stanford Hotel's Hilton Washington Dulles property saw an increase of 80 percent after installing the state-of-the-art GuestLink technology. This first-of-its-kind, in-room service lets guests easily connect all of their electronic gadgets and gear to a 42-inch HDTV flat screen.

And according to the hotel's general manager, Greg Langweg, it has radically changed the amount of time spent as well as the ways people use their hotel rooms. He says not since the late 1950s when colored televisions were installed in hotels has an innovation come along that so dramatically changes the way guests spend time in their rooms.

Smart investment in the future

Hoteliers making long-term technology decisions are studying not only how different generations interact with technology today, but also are trying to anticipate what they will expect in the guest room of tomorrow - be it around the corner or on the moon.

In the short-term, hotels are leveraging their existing infrastructure. Examples include using cable modems to get HSIA to guestrooms via wiring traditionally reserved for TV, using voice connection to link from the room to the Local Area Network, or wireless solutions via the desktop PC or set-top box.

But, as you consider significant future technology investments, it will be wise to consider the patterns of technology use in each generation. Guest loyalty, and ultimately profit, will follow from smart investing that caters to guest needs and preferences, not simply from purchasing and installing the latest technological innovation.

It's no secret that technology has become integral in our daily lives. We expect to get information now, and stay connected to the world with a touch of a button. And, our ability to control what we watch and listen to whenever, wherever, with devices like TiVo and the iPod represent a significant shift in the way that consumers interact with content. These behaviors and preferences spill over to travel.

Hotels seeking to gain a competitive edge will pay close attention to these trends and act accordingly. Guests want to customize their hotel room experience, and expect to have the same benefits of home while away. Beyond luxury bedding, and in-room spa products, technology, and the ability to be 'plugged in,' will be the driving force behind guest loyalty.

David Chin is director of Internet Technology for Stanford Hotels Corp. He is responsible for Stanford’s global IT strategy, network infrastructure, enterprise applications, telecommunications, and hotel technologies. He also manages multiple data centers and the a 24/7 support staff. Mr. Chin has a MBA with a focus in Technology Management; a BS in Management Information Systems, Business Management, and Human Resources Management; as well as many technology certifications. Mr. Chin is a Certified Hospitality Technology Professional, of which there are less than 300 in the world today. Mr. Chin can be contacted at 415-398-3333 or dchin@stanfordhotels.com Extended Bio...

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