Ms. Stehle

Technology

Five Smart Technology Purchases

By Tina Stehle, Senior Vice President & General Manager, Agilysys Hospitality Solutions Group

Positioning Your Hotel for Success in 2011 and Beyond

The economy is finally showing signs of recovery. And while that gives hoteliers good reason to be optimistic, it's still critical that they make smart technology purchases, choosing solutions that will help decrease costs (or at least keep them in line), streamline efficiency and enable the property to realize a competitive advantage.

Some of the newest technology has a big 'wow' factor, but the return on investment may not justify the expense. Fortunately, there are exciting software selections that can help position your hotel for success and provide a fast ROI.

Following are five technology concepts that can help your property stay ahead of the competition in 2011 and beyond.

#1: Guest-centric property management

Today's hotel guests arrive with a high level of expectation. Whether traveling for business or pleasure, they want a personalized stay. Guest-centric property management systems enable hotels to capitalize on this trend by establishing guest profiles — including history, past itineraries, interests and preferences — and extracting that information to provide highly customized service. This data also can be shared among properties, so that guests receive the same VIP attention regardless of which location they visit.

Guest-centric property management solutions also incorporate intuitive features that can help predict guest preferences and make recommendations based on previous patterns. For example, if a guest books a king non-smoking room, the system will suggest that type of room the next time the guest makes a reservation. What’s more, properties will see new revenue streams as the system up-sells guests based on past purchasing behavior. For example, if a guest had a massage during her last visit, the system might suggest a spa package the next time she books a room. Offers can be created around special occasions, such as birthdays and anniversaries; or, packages can be created that incorporate specific guest interests, such as dining, golf, spa visits and shows.

Guest-centric property management systems also encourage repeat business as properties use the guest profile data to strengthen their loyalty programs. For example, a guest that typically dines at one of the hotel’s restaurants might receive an offer for a free dinner for two when booking a three-night stay.

As competition for guests intensifies, maximizing guest data is increasingly important in retaining guests and increasing profitability. In fact, having a PMS tied to a rich historical database of guest preferences and purchasing behavior will likely become necessary to survival in the years to come.

#2: Business intelligence

Hoteliers that want to prosper in today’s economic environment are increasingly turning to business intelligence applications that enable them to assess risks and make more informed decisions. This is especially important during economic downturns, when a wrong decision can have a devastating impact.

A business intelligence solution enables hotel managers to view reports on a daily basis, rather than waiting until the end of the month, so they can respond quickly to even the most unpredictable situations. Moreover, when analytical data is readily available, routine problems are less likely to be escalated up the management hierarchy. When managers have access to reports, charts, graphs and analyses, they can take proactive measures to improve performance and ensure that profit expectations are met.

Business intelligence can also help uncover problem areas that might otherwise go unchecked, such as fraud or poor performance. For example, if your restaurant manager notices an increased depletion of a particular inventory item, yet can't find matching sales of that item, a business intelligence solution can enable him to review purchases versus revenue and make necessary adjustments within the organization.

Hotels can use business intelligence to track spending, measure performance, analyze procurement data and conduct in-depth financial analysis. With detailed reports and dashboards, managers have a clear picture of spending patterns and trends and can make decisions that conserve resources and increase profitability. They can also use supplier performance data to enhance negotiations.

Additionally, hoteliers can use business intelligence to determine the success rate of advertisements, direct mail campaigns and e-mail promotions. They can then tailor the property's marketing campaigns in an effort to gain an edge over the competition.

#3: Mobile technology for F&B

Hand-held POS systems. Smart-phone apps. iPads and iPods. Mobile technology keeps growing all the time, and the hospitality market, in particular, is seeing an interest on both the server and self-service sides.

One of the most intriguing uses of smart-phone and other mobile technology in the hotel environment is as an extension of the point-of-sale system in the food and beverage area. Here, this technology can be used as an order-taking device, offering a practical and cost-effective way to streamline service in restaurants, bars and poolside. Just as with standard POS terminals, smart-phone technology enables servers to open guest checks, select menu items and send orders to the kitchen, but with greater speed and efficiency. And F&B-specific applications enable managers to configure promotions and incorporate employee-level security, menu items and modifiers.

Today's smart-phones are lightweight, yet sturdy and durable enough to withstand a hospitality environment. Their wide screens allow easy viewing of selections with little or no glare, and most have enough battery life to last through a full day's work and beyond. The odds are also great that most of your employees already use a smartphone, which means there is no learning curve.

Best of all, the price is right. The primary resistance to this kind of technology in the past has been the high price point. Now, with smartphone technology widely available, the cost is reasonable — much lower than a tablet PC - making it an attractive and affordable option for properties of all sizes.

#4: Document management

Whether you want to solve a specific paper problem or need to revamp your entire filing system, a document management solution can provide a wide range of benefits, including improved efficiency, reduced costs and increased security, all while reducing the paper trail and helping your property ‘go green.’ Moreover, today’s cutting edge solutions take document management to an entirely new level with features like bar coding, driver’s license and passport scanning, e-mail archiving and signature capture.

A document management solution streamlines recordkeeping by systematically storing and archiving scanned documents, images and other files. These files, which can be indexed in multiple ways, can then be retrieved quickly and easily using text query search capabilities. Employees in different departments and even in different locations can access the same information through their computers.

An electronic document management solution also helps ensure that the hotel’s business documents are securely managed and archived. User permissions guarantee that documents are accessed and modified only by employees who have the proper authorization. Compliance-related documents, in particular, can be managed properly, minimizing risks and helping the hotel avoid liability.

Then, there are the cost-saving benefits. Going paperless reduces the obvious charges, such as file storage and photocopying costs, overnight mail charges and paper and toner consumption. It also eliminates the cost of lost documents or the time it takes to recreate a document that has been destroyed or misplaced. Yet, the biggest savings are often related to the labor costs involved in filing and retrieving paperwork. For example, if an employee spends an hour each day filing documents, this equals approximately 250 hours per year. If that employee earns $20 per hour, then the hotel is spending $5,000 a year on simple filing tasks that could be eliminated by going digital.

#5: Self-service check-in

In 2011 and beyond, hotels will continue to look for ways to enhance the guest experience while also utilizing staff more efficiently. A self-service kiosk solution can enable you to do both.

First and foremost, self-service kiosks expedite guest service by shortening lines at the front desk and performing all the basic functions of check-in and check-out, such as encoding and dispensing room keys and printing receipts. Yet, kiosks also can perform more sophisticated functions, such as allowing guests to select rooms, make dinner reservations and obtain copies of their folios at any time during their stay. Kiosks can produce hotel maps, print up-to-date event schedules and generate special messages based on management-defined criteria.

Self-service kiosks can even market your property. Many can be programmed to up-sell room categories based on availability and guest buying habits or make special offers, such as spa or restaurant discounts. Audio and video features touting hotel amenities, restaurant menus and local attractions are popular kiosk additions. Kiosks can also run applications that enable guests to exchange loyalty points for room upgrades; and, for gaming properties, run applications that provide comp redemption for the casino.

Hotels that employ self-service kiosk solutions for check-in and check-out often find they are able to utilize employees differently - and more effectively. For example, many properties reassign some of their front-desk staff to jobs that provide long-term benefits, such as managing guest loyalty programs. Kiosks also allow employees to devote extra time to guests who prefer traditional check-in or need extra assistance.

Although large casino-resort properties and convention hotels — both of which process large numbers of guests in short periods of time - realize the greatest benefit using self-service kiosks, there are significant advantages for hotels of all sizes.

Preparing for the future

Investing in technology now can be a smart move. As the market recovers, you'll be ready, instead of playing catch-up.

The key is to choose solutions that will make a positive impact on your bottom line — whether it's cost savings, improved staff productivity or an enhanced guest experience (which equates to revenue in the long-run). Although it's easy to get caught up in the 'cool' factor, technology should always have an objective evaluation that demonstrates a real benefit.

Competing in the hospitality environment has never been more challenging. Yet, with the right technology in place, you will be well positioned for success, both in the coming year and well into the future.

Tina Stehle is senior vice president & general manager of Agilysys Hospitality Solutions Group. Agilysys is a leading provider of innovative IT solutions to corporate and public-sector customers, with special expertise in select markets, including retail and hospitality. The company uses technology — including hardware, software and services — to help customers resolve their most complicated IT needs. Ms. Stehle joined Agilysys in 2004 through its acquisition of Inter-American Data, Inc. (IAD), where she served as vice president of software services. Ms. Stehle can be contacted at 800-262-3600 or tina.stehle@agilysys.com Extended Bio...

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