Hey, You, Get Off of My Cloud!

Surviving the Transition to "Community Model" Software

By Bernard Ellis President & Founder, Lodgital Insights LLC | April 24, 2016

After cautiously testing the cloud computing waters for almost twenty years, the hospitality industry has been diving in head first lately, and for the most part, made nice, controlled entries with minimal splash. And for the majority, the dive was followed by a graceful, controlled float to the top. Others, however, found themselves disoriented, bumping into other swimmers, and gasping for breath. The cloud is indeed like a community pool in many ways, but after reading this article, there's no reason why you shouldn't be able to quickly find your lane and swim faster laps than ever.

Quick Insight From the Path Not Taken

So why do I claim to have so many answers? Please allow me to share a little history that might explain why this issue is particularly near and dear to my heart. Not ready to commit to a career in the hotel industry at age 18, I opted for a liberal arts college and majored in sociology. I figured it wasn't completely off track: after all, large hotels are one of the few places where under one roof you are likely to cross paths with people from all rungs of society, potentially from all corners of the globe, and even more interestingly today, to witness the unprecedented five generations currently sharing the hotel workplace. And my sociology degree did indeed train my mind to have an even more nuanced and inquisitive appreciation of the diversity around me. However, what it didn't prepare me for was the beautifully dressed bride, red-faced with fury and screaming at full volume across the front desk, nor for her even more unpleasant mother, nor the panicked, disorganized meeting planner who generously distributed blame to everyone but herself, nor the beloved celebrities who weren't nearly as friendly in person. In fact they were kind of a pain. Yes, what I came to realize was that I liked the systems a lot more than I liked the guests.

But not to worry, dear readers: the hospitality technology field has provided just as much if not more opportunity to exercise my sociology training. I've always been suspicious that the herky-jerky, often rhyme-less, reasonless way our industry adopts new technology might not be quite normal, and in fact, could even be considered deviant. Having now had three years at Infor to compare notes with my counterparts who serve other industries, such as healthcare, public sector, retail, and industrial manufacturing, I can now definitively confirm that, no, our industry is not normal-far from it in fact!

Was it All a Dream?

Conveniently, cloud computing offers a perfect example to illustrate my point. I have actually been evangelizing cloud since 1999, the year when I began a 12-year stretch of working for growing companies who each only offered one product, a web-native Software as a Service (SaaS) solution, the first being a CRS and the second being a revenue management system. So, why, even in print, is my tone coming across a little surly, if our industry began humming along on cloud computing more than 15 years ago? After all, some of my Infor colleagues are only just now managing to convince some of their manufacturing customers to dip their toe in the water. Well, what I didn't fully appreciate at that time was just how much of a "cloud bubble" I was in. Viewed from more of a distance, it was easier to see that, as with so many other emerging technologies, hospitality hadn't actually been all that heroic about early adoption. Instead, the industry was actually following its usual "slow-slow, quick-quick, slow-slow, quick-quick" dance rhythm of technology adoption, whose tempo is set by low tones of wary apprehension that are occasionally lured to the dance floor high noted promises of lower costs. There had not been nearly as much early adoption as I had thought.

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Eco-Friendly Practices: Corporate Social Responsibility

The hotel industry has undertaken a long-term effort to build more responsible and socially conscious businesses. What began with small efforts to reduce waste - such as paperless checkouts and refillable soap dispensers - has evolved into an international movement toward implementing sustainable development practices. In addition to establishing themselves as good corporate citizens, adopting eco-friendly practices is sound business for hotels. According to a recent report from Deloitte, 95% of business travelers believe the hotel industry should be undertaking “green” initiatives, and Millennials are twice as likely to support brands with strong management of environmental and social issues. Given these conclusions, hotels are continuing to innovate in the areas of environmental sustainability. For example, one leading hotel chain has designed special elevators that collect kinetic energy from the moving lift and in the process, they have reduced their energy consumption by 50%  over conventional elevators. Also, they installed an advanced air conditioning system which employs a magnetic mechanical system that makes them more energy efficient. Other hotels are installing Intelligent Building Systems which monitor and control temperatures in rooms, common areas and swimming pools, as well as ventilation and cold water systems. Some hotels are installing Electric Vehicle charging stations, planting rooftop gardens, implementing stringent recycling programs, and insisting on the use of biodegradable materials. Another trend is the creation of Green Teams within a hotel's operation that are tasked to implement earth-friendly practices and manage budgets for green projects. Some hotels have even gone so far as to curtail or eliminate room service, believing that keeping the kitchen open 24/7 isn't terribly sustainable. The May issue of the Hotel Business Review will document what some hotels are doing to integrate sustainable practices into their operations and how they are benefiting from them.