Staying Ahead of the Technology Curve

Guest Column for Hotel Interactive
By David Hart

As technology in our industry continues to evolve, hoteliers are confronted with the challenge of continually staying ahead of the curve. With significant responsibilities on the plate of today’s owners and operators, it’s easier said than done. Turning to your franchisee association’s or advisory council’s technology experts is a good way to cut through clutter and learn about the latest technologies, as well as obtain the best prices on new products and services.

There are currently many technology issues facing IHG affiliated hotels, and the industry in general. Three main areas of concern for hoteliers are televisions, Internet connectivity/bandwidth, and the evolution of on-property telecommunications systems. In each instance, IAHI, the Owners’ Association of IHG, is striving to find the best way to use high-tech to serve the needs of all of our guests – while operating our properties efficiently.

TELEVISIONS
Hotel television purchase and installations used to be a fairly simple process.  Before the creation of flat panel TVs, the greatest concern was the size of the screen. Today, there are many decisions that are, or will, confront us. Tube TVs will soon no longer be manufactured. Hotel owners of all brands – from economy to luxury properties – will be forced to replace their traditional tube sets with much more costly flat panel televisions. These panels may cost two or three times more than what was paid in the past for this commodity. The new panels will be HDTV compliant, which is a great feature. However, you will need a digital signal to create this view.  If your hotel delivers an analog signal through existing cabling, you will have a number of other costly decisions to make beyond the purchase of the panel in order to utilize this technology.

You will need to determine which model of flat panel TV makes the most sense for your hotel. If you offer in-room pay-per-view movies, your panel must be equipped with a chip that precludes in-room video recording. This chip can add $200 to the cost of the panel. Travelers now rely on the in-room panel as a launch point for their own devices such as DVD players, laptops, play stations, a sling box, or an MP3 player (use the built-in speakers). Thus, guests now seek easy plug-and-play capability. To accommodate this, an in-room “connect box “ may cost upwards of $150. Once again, there are important decisions to be made and more costly solutions to explore.

The IAHI Technology Committee is examining these options, which will ultimately allow us to tap into volume-purchasing programs that will lower costs for our members. 

THE INTERNET AND BANDWIDTH
Another industry challenge which we are tackling through the IAHI Technology Committee is Internet connectivity and bandwidth. Internet access quickly moved from a perk to a guest expectation. In addition, optimum levels are required during peak demand. And, of course, most hotels provide this necessary service free to guests. Deciding whether to offer hardwired installations, wireless service, or both is an important decision you need to make. Providing the proper bandwidth during high occupancy is also a big issue, mostly due to increased cost with no off-setting revenue. Other concerns stem from the use of the above mentioned guest devices. For example, a few sling boxes being used on property can eat up a huge chunk of any hotel’s bandwidth.

TELECOMMMUNICATIONS SYSTEMS
The use of cell phone has put our in-house telephone departments out of business. Our telephone departments have gone from moneymakers to money losers. Other than administration and guest-to-desk or guest-to-guest communication, guest room telephones and the expensive switches they run on are white elephants. However, the industry continues to purchase and maintain these systems. This is a big capital and operating cost in return for such low guest service delivery. This dynamic must change.

The IAHI Technology Committee is evaluating our in-room phone systems. We are determining if simpler, less costly telecommunications systems can replace the legacy systems. Is VIOP the best alternative? What can we do in the interim to reduce costs? The IAHI is working diligently to provide guidance on the next generation telecommunications systems while continuing to use its strength to reduce cost on the current service.  

In order to be prepared for these high-tech challenges in this new millennium, examine all of the above issues and turn to the technology experts within your owners’ group and franchisor for advice, guidance, and best pricing. Your guests will thank you with their repeat business. And, you will be glad that you saved money and improved your bottom line.

David Hart is the Immediate Past Chairman of IAHI, the Owners’ Association of IHG, Co-Chairman of IAHI’s Technology Committee. and president and chief executive officer of Hart Hotels, Inc. in Buffalo, New York.