HOTEL BUSINESS REVIEW

January FOCUS: Mobile Technology

 
January, 2017

Mobile Technology: A Permanent Sense of Immediacy

Advancements in mobile technology continue to evolve at a furious pace. It has created a permanent sense of immediacy between hotels and their guests, and has defined how they interact with each other. Mobile check-in and mobile check-out are quickly becoming commonplace, not only for guest convenience but also because it generates savings for the hotel. Digital entry is also being deployed which allows a smartphone to open hotel rooms or guest-only areas like fitness rooms or spas, enhancing security for all in the process. Mobile service requests allow guests to interact with on-property staff from wherever they are, for housekeeping, dining or concierge services. Guests will soon be able to use their smartphones to control room temperatures, adjust room lighting, and change the channels on their room televisions. Smart controls will also allow guests to personalize their rooms pre-arrival, even selecting their choices for the mini bar. Mobile payments are also being embraced by hotels, providing guests with the option to use their smartphones to pay for all their purchases during their stay. And strategically-placed beacons allow hotels to send real-time marketing promotions directly to guest smartphones as they pass by. Most of these developments are being driven by a need to appeal to the 80 million Millennials who will soon supplant Baby Boomers as the generation spending the most on travel. The millennial generation is characterized by a preference for technology-driven, personalized experiences, and they expect hotels to provide them with up-to-date, seamless and robust mobile technology. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in this mobile space, and will report on the solutions that are proving to be most beneficial for both hotels and their guests.

This month's feature articles...

Kacey Butcher

Can you imagine your bank choosing not to provide a way to check account status and transactions outside of your monthly paper statement? Can you further imagine a popular franchise restaurant only having paper take-out menus? You would be forced to contemplate what other aspects internally within the organization would make doing business with them complicated and archaic. There you find your own personal underlying immediate expectation of baseline service and operational procedures, where a decision is often made instantly to move onto the next provider. A decision to choose another provider that seemingly knows how to service customers with the utmost up-to-date standards. READ MORE

Dave Weinstein

As with so many industries, the smartphone has transformed how organizations interact with their customers. Look at the automotive industry, the airline industry, and of course, the hospitality industry. You start your car's engine and set the climate control to the desired temperature, buy airline tickets and check-in on your flight and do the same with your hotel room, all from your phone. There is a slew of services that traditionally are offered by hotels via the “book” on the desk. The book is still there, but some hotels allow you to order via the television while others offer integrated tablets. READ MORE

Alastair Cush

A growing number of properties are implementing mobile access guest room locking systems and the apps that support them. Many chain standards mandate mobile access and independents are joining the trend. What few operators understand is that mobile access implementation has changed not only every aspect of hotel door locks but also many other areas of hospitality operations. More people are actively involved in the decision making process for hotel locks than before. Mobile access has integrated the lock process with numerous property and chain departments from sales to guest loyalty and brand marketing. The original purpose of improving guest door locks was exclusively loss prevention and security. READ MORE

Jim Vandevender

Meeting data and technology have evolved considerably since the days of the bulky ,expensive mail ordered meeting planner guides and hotel catalogues. The ways in which hotels find and book groups is far different than the antiquated methods of not so long ago. As better technology surrounding meetings and events becomes available , hotels appetites for group business seems to also increase at a parallel pace making the need to keep the related technology evolving even more paramount. The companies that provide hotels with this meeting intelligence are continually developing new and more advanced methods of gathering this sought after data to keep up pace with the demand. READ MORE

Court Williams

In some ways, running a successful hotel comes down to a proposition both simple and sometimes complex: delivering service that exceeds the expectations of your guests. You need to provide comfort and hospitality, but also something extra to set yourself apart from other properties. Without differentiating yourself in the market, you risk becoming just one of many hotel options, rather than the preferred choice for your market. One valuable way to set yourself apart from your competition is through embracing technological opportunities available to hotels. If you leverage mobile technology, a wealth of options are emerging that can deliver new conveniences and services that enhance the guest experience. READ MORE

Scott Schaedle

It's no secret that mobile technology has reshaped the consumer travel experience. Today's traveler can check in and out of a hotel without ever speaking to a human being. That lack of human interaction and direct communication is both a good and bad thing for the hospitality technology industry. From booking a reservation to leaving a review, mobile use continues to rise in the hospitality technology sector, and is not slowing down any time soon. Today, nearly 60 percent of travelers book hotels using a mobile device while 81 percent of travelers find user reviews important when considering which hotel to book. READ MORE

Terence Ronson

There's only one way to view this - we live in a mobile world. Almost any consumer product or service developed today, is most likely created with a mind-set that one day it will somehow be used in a mobile manner. Consigned to oblivion are the days when we need to return to a desk to do email, go to a fixed line to make a phone call, plug into a network port for internet connectivity, have a hard-wired antenna to watch TV, or wear a wired headset to listen to music. READ MORE

Michael P. O'Day

For many hotel guests, the most appealing hotels are the properties that offer instant connectivity with the bandwidth capable of supporting multiple devices. As our need for faster speeds and higher quality content continues to grow, hotel guests now expect uninterrupted service putting more pressure on hotel IT building designs. As more guests shift to the "always connected" mindset, hotels must be able to deploy technology solutions with minimum downtimes that can grow with the increasing dependence on mobility. Hoteliers must now meet today's guest technology expectations while preparing for tomorrow by installing an infrastructure in which the bandwidth and technology can be expanded. READ MORE

Marc Stephen Shuster

Cyber threats have seized the spotlight in 2016. From enterprise data breaches costing millions, to the emergence of fraud and hacking as an on-demand service, to the politically-inspired interception and disclosure of the US Presidential campaign's emails and, some have alleged, the hack of the election itself, cybercrime emerged from the realm of cyberpunk fiction and established its place as a mainstream social, economic, and political force in 2016. The rise of hacking has been driven by three factors: the pervasive use of network driven technology, the use of aggregated electronic data by companies, and the fluid resale market for stolen personal, financial, and healthcare information. READ MORE

Suman Pal

Imagine for a moment, passing guests in queue at the hotel front desk waiting to check-in while you're heading straight to your room instead, or securing your favorite table and skipping the wait list, all without having to talk with a single staff member. No, you're not dreaming. The day of frictionless guest service is here. Guests are demanding it. How well is your hotel embracing it? The rapid evolution in mobile, social and cloud technologies combined with a monumental shift in guest expectations has launched us into what is one of the most pivotal transformations in hospitality. READ MORE

Larry Gorman

It used to be that a General Manager was tied to the front desk in order to solve issues or keep track or manage a hotel. With a cloud-based PMS, a GM can technically run the hotel from anywhere on a phone or tablet. A 100% we-based system allows two way communication at the hotel, and management can stay informed on operations from anywhere. The difference between cloud-based systems and server-based networks is as dramatic as the difference between an iPhone and a land-line. Traditional phones are like anchors—they're tied to a specific place, your home or office. READ MORE

Adam Gillespie

Hotel technology is constantly trying to catch up and accommodate guests' interests compared to what they use at home. Each year, hotel properties are faced with evaluating and upgrading to the latest and greatest technologies to accommodate their guests, but at what cost? In an increasingly complex world, businesses need to adapt with shifting trends and technologies. The hotel industry's landscape has responded with corporate solutions that allow for minimal capital expenditures. Previous models required capital budgeting techniques to adjust to a larger margin when it comes to acquiring critical technologies. READ MORE

Doug  Lodder

Managing mobile connectivity at hotels has become a cumbersome affair. From soaring mobile data trends to the growing number of devices guests bring on trips, winning over the hyper-connected consumer presents more challenges than ever before. By the numbers, mobile data traffic is forecasted to increase eightfold by 2020; 81 percent of the traffic will be done via a smartphone and 80 percent of data will be consumed on Wi-Fi. This analysis flags two key takeaways for the hospitality industry: the demand for seamless hotel connectivity will only continue to expand and Wi-Fi is a sure bet for powering digital experiences. READ MORE

Michael Arner

Hospitality, traditionally slow to adopt new technology, is today everywhere threatened by it. There is physical competition in the form of a glut of new rooms provided, for example, by homestay networks like AirBnb. There is virtual competition in the form of difficult-to-manage online profile and review aggregators such as TripAdvisor—which can represent low-cost affronts to an expensively acquired and laboriously nurtured brand. At the same time, there is a new generation of customers that technology has trained to be fickle with their brand loyalty, impatient with waiting for services, impatient with wanting for access, impatient in general. READ MORE

Mark Heymann

Mobile technology by its nature limits face-to-face interaction between a hotel's service staff and their guests, thereby depersonalizing the guest experience. Yet service, especially in higher end brands, is a key differentiator in driving bookings and loyalty. So how will guest-facing automation impact service levels and pricing? And will any cost savings realized through technology benefit the guest or just the hotel? READ MORE

David Lund

In the hotel business, we have three pillars, the guests, the colleagues and the money. They're not equal. There not equal because we ignore the third pillar and we do so at our own peril and out of ignorance to what we can do to manage this cagey and slippery bugger. This article will show you what's possible and point to a fantastic model that has your owner happily paying for the whole deal. It's no longer acceptable to throw our hands up in the air and say the numbers are the accounting departments responsibility as if the rest of us are 5-year old's without a clue what to do. If your one of those it's time to move and get some financial leadership game on. READ MORE

Jan Kalanda

To insure a sale at a good price, hospitality property owners should approach the market carefully and methodically. In this article, the authors review eight areas and recommend actions owners can take to improve the value of their property prior to sale. Selling your hotel or other hospitality property is a big step. You've invested time and resources in the property, so of course you hope for a good price when you go to market. To make a sale of you hotel happen at a good price you need to be sure you've optimized the property's value before putting it on the market. READ MORE

DJ  Vallauri

As hoteliers, how do we define “customer service” and how does it play into our daily hotel operations? The answer leads us to wonder if customer service can be considered as a competitive advantage for hotel operators. In this article, I share my thoughts on how hospitality customer service can be leveraged to drive new and repeat business into a hotel. When you think customer service in hospitality one brand comes to mind that epitomizes the meaning of great customer service, The Ritz-Carlton Hotel Company. They have successfully used customer service as a marketing differentiator within the hospitality luxury market place. READ MORE

Steven D. Weber

Many of today's hospitality consumers are not only looking for a place to rest their head, but also for a one-of-a-kind experience. If the ingredients for such an experience are stored on computers, in e-mails, in manuals, or even in the heads of employees, then they are susceptible to misappropriation. The risk of misappropriation is compounded by the ease by which employees today may misappropriate those trade secrets by using their smart devices to take photographs, send e-mails, and transfer files. Waiting until the unthinkable happens is unacceptable. READ MORE

Bob Mattler

There is a new innovative way to pay for hospitality construction projects: Property Assessed Clean Energy (PACE) financing. PACE, adopted as enabling legislation in 32 states and with active programs in about half of them, is gaining momentum as a flexible, available and creative tool in which to finance almost any technology that saves energy and/ or water. PACE can take the place of expensive loans or additional owner equity to finance construction projects that can be repaid long term from those very same energy and water savings. This article will explain Property Assessed Clean Energy, who pays for PACE, some common building systems ripe for PACE financing, who is using PACE and why. READ MORE

Julian Jost

What is it exactly that millennials want? For hotels, this question is more pertinent than ever as Generation Y becomes the largest share of the American workforce. As millennials take more positions as meeting planners, our focus should shift to how to incorporate millennial meeting trends and keep hotel meeting spaces on the cusp of innovation and competition. Mr. Beaubien made a great step towards answering that question in his article on "The Rise of Generation C and Small Meetings," featured on Hotel Executive. In his answer, he focused mainly on technological aspects like online bookability and payment options. From the experience I have with Spacebase, an online booking platform for unique meeting and workshop venues, I can confirm this 100%. Our customer base is mainly young and part of Generation Y. READ MORE

Roberta Nedry

There's nothing like warmth, when it comes to hospitality, that blanket of welcome that surrounds a guest or customer when caring and proactive efforts cause greater comfort to happen while making frigid moments forgotten. As guests contemplate their seasonal choices for leisure and business travel in the new year, global warming may be a genuine environmental concern but global warming takes on new meaning when through the eyes of hospitality and a meaningful service emphasis. In this case, warming the hearts of guests and customers is a weather proof strategy for all seasons in the arena of Guest Experience Management. READ MORE

Grace Kang

The Green Lodging Trends Report 2016 launched last month with the objective to catalyze green practices and innovation across the hotel industry worldwide. The report is a result of a survey open to all hotels around the world regardless of service type, location, segment or size. One of the main benefits to the participants was the ability to benchmark against its peers on over 100 sustainability related best practices. Each participant received a confidential compare report showing the uptake of best practices, segmented by global, region, country, city, service type and hotel type, where applicable. The result was the production and release of the Green Lodging Trends Report 2016, which summarizes data collected from 2,161 hotels located in 44 countries. READ MORE

Amy Bailey

There's a big red bulls eye in the hotel industry. In fact, accommodation and food services ranks #1 in sheer volume for wage and hour prosecutions by the Department of Labor. That's 24.4% of all the cases that have been brought since 1985. To put that number into perspective, hotels, restaurants, and bars—from the behemoths to the holes in the wall—have been required to pay more than $276 million in government prosecutions alone, with an average payout of $9.5k for every business affected. READ MORE

Simon Hudson

As TV chefs have morphed into global celebrities in the era of TV reality shows, a new restaurant trend in Open Kitchen Dining has emerged. Although the concept is not totally novel - after all, sushi bars have been doing it for years - it is the polished level of performance, highbrow cuisine and the proliferation of the trend that is more recent. All around the world, restaurants are putting their executive chefs on display, cooking part, or even all, of a meal right in front of diners who often sit at counters, watching every move. Cooking has become a reality show, adding an extra cachet to the restaurant experience. This ascendance of culinary scrutiny has gone hand in hand with a heightened interest in farm fresh ingredients and a general food fetishism which encompasses new fads in organic, gluten-free, lactose-free, vegan and vegetarian eating. READ MORE

Bonnie Knutson

No consumer characteristic exists in isolation. They exist in various profiles which the marketing industry calls lifestyle segments. In other words, knowing your DINKS, SINKS, and HENRYS will help you keep heads on your beds. In this article, we are concentrating on HENRYS - those High Earners, Not Rich Yet folks. Specifically, smart hoteliers will hit bullseyes in 4-Ss - Status, Service, Story, Smarts - with this market. The takeaway for every hotel brand will be this: HENRYs are important and have the potential to drive your revenues. The key to capturing and keeping this market is finding the sweet-spot between class and mass. And as you see, I'm a firm believer in hotels not looking to other hotels for ideas. Rather, look outside the industry for ideas that can be adapted and incorporated into your story and experience. READ MORE

Nicole Perrotta

At some point, we have all experienced that sinking feeling when a valued employee walks in to let us know that they are leaving. We ask ourselves the question, what went wrong? (if you didn't, you should have) After navigating through the initial onslaught of emotions when discovering you have lost yet another good employee, you might ask yourself, “What is missing? How do I retain top talent in this new generation of employees that constantly job hop in hopes of quick advancement?” READ MORE

Coming up in March 1970...