| The information-intensive hotel industry has | | | | ability to connect the different islands of |
| discovered IT is critical at all points of | | | | information and enable us to understand what |
| the business chain | | | | works, what doesn't, who customers are and |
| | | | what their buying patterns are. The Internet |
| Back then, making travel plans involves many | | | | has become an accelerator for the adoption of |
| processes. You call up your travel agent and | | | | sophisticated technology that will enable the |
| she supplies you with a list of possible | | | | delivery of greater customer service and |
| hotels, room availability, rates and special | | | | higher productivity. |
| offers. You pick the date for the trip and | | | | |
| confirm your hotel preference. She then makes | | | | The Internet and VPN have allowed the |
| the booking through the computer system and | | | | connection of different systems, bringing the |
| off you go. Behind the scenes, she sends a | | | | data back into a central repository and be |
| confirmation fax to the hotel with your | | | | able to understand what it all means, in |
| details. At the receiving end, the hotel will | | | | real-time. |
| enter your details into their computer | | | | |
| system. When you arrive at your destination | | | | Lifecycles and priorities |
| and you check-in at the front desk, the hotel | | | | |
| staff verifies your reservations, assigns you | | | | "Those hoteliers who view technology as a |
| the room and hands you the keys. | | | | cost center and afterthought to the |
| | | | successful operation of any property risk |
| Fast forward to today. Technology has caught | | | | becoming out of touch with their customers. |
| up with the industry. As the travel agent | | | | More dangerous, however, is that those who |
| issues a confirmation to your hotel about | | | | don't recognize and exploit today and |
| your reservation, the global travel | | | | tomorrow's technologies for their competitive |
| distribution system (Amadeus, Galileo, Sabre | | | | advantage will quickly be overtaken by those |
| or Worldspan) will connect to the hotel's | | | | who do," added Hartmann. |
| back office and make the appropriate entry, | | | | |
| minimizing error and ensuring accuracy of | | | | But just as Hartmann is right in his |
| customer's details. | | | | assessment of how business managers look at |
| | | | technology, CIOs like Izaks must continue to |
| Hotels have also adopted a more sophisticated | | | | grapple with the issue of technology |
| system for tracking customer information. | | | | lifecycles and priorities. In good times and |
| Hotels now use data warehouses and data | | | | bad, budgets remain a constant in the life of |
| mining tools to better understand their | | | | a CIO. |
| customers' individual preferences. | | | | |
| | | | Identifying the business priorities, |
| The Internet is used to communicate to their | | | | evaluating and recommending one standard for |
| business partners -- travel agencies, | | | | the organization, and sticking to what's been |
| airlines, government tourism boards, cruise | | | | given budget approval are part of the |
| liners, car rentals and global distribution | | | | challenge. Advances in technology offer |
| channels -- and provide updates on room | | | | numerous temptations to throw out what's been |
| availability, rates and special offers. | | | | approved. But most hoteliers will agree that |
| | | | changing the strategy mid-stream is not |
| Competition for a growing class of travel- | | | | easily undertaken. |
| and tech-savvy customers has forced hotels to | | | | |
| adopt the latest technologies to ensure that | | | | Technology is changing very rapidly. Things |
| partners are updated on the current hotel | | | | get replaced faster with each refresh and the |
| developments. The Internet has spawned a new | | | | rate of will even be faster in the future. |
| segment of customers who use the Web to scout | | | | Just as technology is an enabler of new |
| for hotel rooms and seek weekend bargains. | | | | business, it is also becoming an inhibitor. |
| | | | Izaks laments that the inhibitor then becomes |
| Key component | | | | getting the right technology into the |
| | | | business, even as that technology cycles |
| Chris Hartmann of global hospitality | | | | through faster than our ability to integrate |
| consulting firm, HVS International, said the | | | | it in. |
| technology used in the hotel industry has | | | | |
| evolved. "To look at the state of technology | | | | "This presents a challenge for the CIO: being |
| in hotels and resorts today, it's important | | | | able to identify the technology we need, as |
| to understand that 'technology' today is not | | | | opposed to what we'd like to have, and |
| simply a network infrastructure, computers | | | | allocating budget for it. We have a five-year |
| and the IT department. Technology is a key | | | | budget cycle where we look at the technology |
| component of every aspect of hotel ownership. | | | | we purchased last year and track its |
| Management of, and a comfort with, today and | | | | depreciation on our books. At the same time, |
| tomorrow's technology is necessary in every | | | | we look at our business needs today and start |
| department," said Hartmann, who leads | | | | preparing for technologies we might need |
| technology strategies for HVS. | | | | three or four years into the future. To keep |
| | | | this picture top-of-mind as we work our |
| Technology investments require well-defined | | | | annual budgets makes for challenging budget |
| objectives aligned with overall business | | | | planning cycles." |
| strategy. Whether it is a hotel | | | | |
| redevelopment, acquiring or repositioning | | | | The hotel industry, like others in the |
| hotel assets, scores of decisions require | | | | hospitality business, is in a constant state |
| technology insight and operational | | | | of battle readiness. The two gulf wars, SARS, |
| understanding. Failure to take into account | | | | avian flu, and the Asian financial crisis |
| the importance of technology at the onset | | | | have forever changed the way the industry |
| will result in substantial costs associated | | | | looks at its future. |
| with retro-fitting, last-minute | | | | |
| implementations, and ongoing operational | | | | The industry is accelerating the adoption of |
| challenges resulting from poorly selected | | | | technology to reap the benefits it has to |
| systems. | | | | offer in the shortest possible time. The |
| | | | challenge for managers like Izaks is to stay |
| CIOs believe that the business of running an | | | | abreast of the changes, keep an open mind to |
| IT organization has changed significantly | | | | the future, and be prepared to lead every |
| from what it was ten or 15 years ago. Shane | | | | day, 7x24. |
| Izaks, general manager, information | | | | |
| technology at the Hong Kong and Shanghai | | | | Convergence in a hotel suite |
| Hotels Limited (best known as Peninsula | | | | |
| Hotels) said to be an effective CIO today, | | | | Thanks to the mobile phone, guests today |
| you need to understand the business you are | | | | avoid using the hotel's phone system to place |
| in to get business units to buy into your | | | | international calls, causing a fall in hotel |
| ideas. | | | | communication revenues. Because of this |
| | | | hoteliers have come to regard their voice |
| High expectations | | | | communication infrastructure as a cost center |
| | | | rather than a profit center. In addition, |
| "You not only need to understand hardware and | | | | with more business travelers demanding for |
| software from a systems point of view but | | | | Internet connection in the room, hotels have |
| from also from a business point of view. This | | | | invested in data networking. But for how long |
| is how IT is able to drive the business. | | | | will hotels keep spending on two different |
| Technology and processes have matured in | | | | networks? |
| complexity to the point that understanding | | | | |
| the business is paramount to ensuring the | | | | Shane Izaks believes that convergence is |
| successful integration of IT into the | | | | inevitable. "The Internet presents |
| business. The CEO, CFO and COO have high | | | | opportunities to introduce new ways to |
| expectations of the role that technology | | | | enhance customer experience and thus |
| plays in the business of running a hotel," | | | | differentiate ourselves from the rest of the |
| Izaks said. | | | | industry." |
| | | | |
| Today's business unit manager, CEO, and his | | | | Communication technologies allow a certain |
| management team - CFO and COO - understand | | | | yet needed differentiation, by offering more |
| the importance of IT and expect the CIO to | | | | and more personalized services to this new |
| understand the business so that there is a | | | | wave of guests coming from China, Korea or |
| tighter integration of technology into the | | | | Russia. Therefore, hoteliers are looking at |
| business. The technologies today are much | | | | building up their competitiveness by |
| more complex and the resulting integration | | | | improving guest services, increase staff |
| makes for a more successful alignment of | | | | efficiency and maximize their return on |
| technology to business. | | | | investment. |
| | | | |
| Izaks says the question is not whether | | | | Marc-Alexis Remond, director of marketing and |
| technology is sophisticated enough to match | | | | business development at Alcatel, points to |
| the business process "The real challenge lies | | | | three beneficiaries of a converging network. |
| in the IT team's ability to understand the | | | | |
| interdependence of IT and business, and to | | | | "Hotel guests want personalized services, |
| build processes that would allow for the | | | | fast answers, first call resolution and |
| symbiotic co-existing of two different but | | | | access to advanced communications and |
| interdependent systems," he adds. | | | | entertainment applications. Hotel staff and |
| | | | executives need mobility and collaborative |
| Years ago, hotels had isolated islands of | | | | solutions that keep them connected and |
| systems that didn't talk to each other. No | | | | available, with access to information, in |
| one had a single view of the business; | | | | real time and easy interactions with guests |
| financial systems, CRM and bookings were on | | | | and colleagues. |
| different systems that didn't talk to each | | | | |
| other, and data was often rekeyed in to | | | | "Everyone wants a highly reliable data and |
| spreadsheets to make sense of it. This was | | | | telephony solution that provides consistent |
| the only way for hotel chains with properties | | | | user services across the enterprise while |
| located in many parts of the world to have | | | | benefiting from the maximum operational cost |
| some picture of what the overall business was | | | | savings for the minimum investment." |
| like. | | | | |
| | | | The trick is to identify the right |
| At that time, no-one was able to know in | | | | technologies and applications and find |
| real-time precisely what was happening in | | | | vendor-suppliers with a strategy for |
| properties within the hotel chain, how the | | | | deploying enterprise IP telephony solutions |
| business performed during particular periods, | | | | over any data network (LAN switches, routers, |
| or was able to view and share customers' | | | | etc), whether provided by themselves or a |
| profile and service preferences. | | | | third party. Staying with standards-based |
| | | | solutions will mitigate the risks of vendor |
| Today, technology advances give us the | | | | lock-in. |