Studies have shown that the average stay of a guest in a hotel is 1.8 days. With the customer spoilt for choice between the various brands, what lures him to a property is the “differentiator” and what matters mainly is the information technology benefits that he can draw from his stay. Earlier a guest looked for only the three Bs – bed, breakfast and bath. After 2010, a fourth B was added – broadband, which has evolved over the years and is Wi-Fi in its current form. But this is only one aspect of how technology is increasingly making a difference to the industry in general and each property in particular.
There are few functions or departments in the hospitality industry where IT does not play a part. Technology is the nervous system of any business that is crucial in day-to-day operations. Broadly, one can look at three major roles that are played by the different components of information technology (IT) that help in increasing operational efficiency, guest satisfaction, cost reduction, etc.
GUESTFACING TECHNOLOGY
Hoteliers need to ensure that systems deployed in the guest rooms are easy to adapt by the guest. One lure of a hotel is also the strength of the broadband offered. The property needs to provide good, reliable and fast internet for those who want an unrestricted and dedicated bandwidth for a dream experience. A guest today uses multiple devices and needs charging points for each of his gadgets. A common charging port for all of them would be a welcome convenience.
Guest security is another concern for the industry and technology has played, and continues to play, an important role. Gone are the days when surveillance was brushed off and deemed offensive to a guest. Today, nearly all hotels realise that it’s not possible to run a hotel without CCTV surveillance at the premises. Hotels are making comprehensive IT-enabled security at premises as one of their USPs to boost business. One innovation that is being seen in some hotels is the automatic muting of the television when the guest’s in-room phone rings; this technology could also enhance security through an application and have the TV project the image of the person knocking on the door. Keeping the aesthetics and the minimal cost aside, this could become the USP, especially for the single lady traveller.
Digital menus with multiple language options, promotions on the menu iPad while the guest is waiting for his food, digital signage that can be used effectively not just to guide the guests but also serve as a promotional tool — are all ways that will help increase sales and revenue. Another technological advancement gaining prominence is NFC or near field communication, which is a set of ideas and technology that enables smart phones and other devices to establish radio communication with each other by touching the devices together or bringing them into proximity to a distance of typically 10cm (3.9 inches) or less. This can enable the smart phone to work as a door key. Hotels can reduce their investment on keys and there is reduced chance of the guest losing the key – as he will not lose his mobile.
Until the emergence of digital space and social media, IT and telecom took a backseat. The necessity of social media in the daily life of the general public made hospitality leaders think seriously about necessitating technology to increase top line for the company. It has not only become the driving force to increase revenue, it also helps retain guests with the brand. The hotel can map guest preferences, capture their feedback and analyse the same. Hoteliers can also address complaints and resolve them immediately. A responsive website, easy to use apps will tempt the Guest to download the same for future use.
Though technology helps the industry, it also cannibalises existing technologies. For example, the widespread use of mobiles and drop in charges for connectivity has reduced revenues from telephone calls.
REPORTING
It is a world of big data, which means data is available in both structured and unstructured forms. In any business the need for accurate and timely information is a necessity so that business owners or managers and staff can make prudent decisions based on information that is collected from different sources and compiled for data mining. Hence, IT systems are the key to keeping a finger on the pulse of the business.
There is a need for an application/technology that helps in mapping both structured and unstructured data while searching for specific information. It is all about collecting and collating that information and using it the way you want to increase the revenue.
Guest demands and preferences are changing with the mobile phone playing a central role in the life of the customer, hence there is a need for IT systems to be mobile-friendly. In fact, it would not be out of line to say that the demands of the guest are technology driven and the industry has to meet them for success in the business.
BACK OFFICE OPERATIONS
Technology is a part of every back-office operation in the hotel, right from the purchase and inventory management to reception and guest mapping. All the information and data gathered though big data computing help the back of house systems to work in sync with each other to ensure efficient processes that in turn result in guest comfort. The information from these IT systems also helps in improving processes and productivity.
SOLUTIONS
The government norms that came into being in 2009 offered little clarity — a reason most hotels deferred from implementing them. The main reason for this is that the norms were common for hotels, bars, baristas, airports, malls, etc. Considering that each one has its own challenges, they need to be addressed separately. There needs to be a notice specific to each industry to meet their requirements.
With bookings through smart phones and iPads increasing, every brand has understood the value of digital marketing and how to increase revenue creating and using its own ‘Responsive’ brand website.
When the times are changing fast the industry has to be ahead of the curve. IT systems make it possible to analyse the data and share the data with all the stakeholders in the business. This also increases the responsibility to protect all the data and information collected that may be sensitive that can be done only through IT systems. Hence, data security is a key element that can be accomplished with good technology systems. For technology in operations, the industry needs to keep and follow the tenets of IT technology in vogue today – SMAC. SMAC or social, mobile, analytics and cloud, is the concept that four technologies are currently driving innovation in business.
More guests are deciding on short stays at hotels. Due to short booking windows, forecasting and budgeting is becoming complex and IT systems need to facilitate the process. The hospitality business has three stakeholders – guests or customers, staff and owners. Each of them connected like a three-legged stool and if one of them is not served properly, the three-legged stool can fall. The owners serve the staff, who then serve the guests and the guests serve the owners back with payment for services. With this complex process of serving each other the importance of tools such as technology play an important part in the business operations.
With inputs from the GHTP Executive Board Members
