Tech Talk

Moving to the tech beat

The advancement of technology has helped redefine hotel operations over the years. Industry leaders opine that it is only hotel companies with cutting edge technology that will stay ahead in the race to success. Express Hospitality presents an industry view

It is no hidden fact that technology is a powerful, but invisible tool in a business that is still a lot about people. Given both the importance of technology and its rapid pace of change, many hotel companies are taking a leading stand in providing technology to their properties and continually upgrading it. Today, technology is looked at as an investment that adds directly to the bottomline of hotel companies, and many hoteliers assert that it is one of the key determinants to achieving a potentially high revenue.

Hospitality systems and their interfaces are rapidly moving to Internet-based technology, which allows dramatically easier and more flexible integration and hence more complete guest/operational data. Many hotel operators are moving to take full advantage of this opportunity to streamline their operations, but adoption is frequently hampered by older systems and outdated infrastructure. The investment required to upgrade is significant, but the full benefits of this change cannot be realised without it.

This highlights the industry's continuing need for education, both of management companies in how to recognise and quantify the business benefits of properly integrated technology, and of the end users in using their systems most efficiently. Most current systems are underutilised, a situation not helped by the industry's reluctance to invest in regular refresher training for the users. Full optimisation of the operation requires effective systems integration and adoption of the new technology.

Industry leaders share their views:

Anil Madhok, managing director, Sarovar Hotels

“As the traveller the world over and specially in India has got tech savvy, it is imperative for every hotel to match this pace and continuously update their technology to stay at par with any other hotel in any corner of the world. In this regard, be it resorts or business hotels, most of them offer options for broadband Internet, WiFi connectivity, video conferencing and of course personalised business centre services round the clock.”

Koos Klien, president, Hilton Middle East & Asia Pacific

“In 2004, across all industries, e-commerce grew to over US $300 billion, with the travel industry as the largest single sector representing 36 per cent of global online revenues. Hilton's global results outperformed the market trend. By 2008 we are expecting that over half of all reservations will come from electronic channels. Continuing investment in brand website technology, marketing and education will help us to grow our market share as more customers book online. With more than 5 million visitors to our sites every month, this presents us with a powerful opportunity to enhance our brand by successfully managing the web page content of every hotel.

Room nights booked by our websites globally grew by 94 per cent in 2004, largely due to the introduction of our international brand websites, which achieved the full year target in just over five months. Our websites now represent 7 per cent of our individual business, up from only 3 per cent in 2003, with many more untapped opportunities to grow revenue. We continue to invest in a range of marketing activities including search engine optimisation, email communications and online marketing campaigns. This activity reached over 100 million users, attracted 50 million visitors to our sites and delivered over 600,000 reservations in 2004.

Our sister company in the USA, Hilton Hotel Corporation, is piloting self-check in kiosks. We will monitor their success with the view to perhaps introducing it to Hilton International, particularly in the markets where labour costs are high and the frequent business traveller is confident of the destination and the hotel and does not want a lot of fuss.”

Lalit Suri, chairman and managing director, Bharat Hotels

“Internet has made communication a strong, easy, approachable and cheaper method of acquiring sales. Email marketing and advertising have provided faster and cheaper mediums to reach the customer for selling rooms and other areas. Global distribution system (GDS) enabled third party Internet services has given customers a different range of products at different prices to make a choice. Customers can be given secure user IDs and passwords for making their reservations online through Internet through CRM using our hotel website. We can know our customer better before he arrives at our hotel. Using Internet services, customers can do a virtual tour of the hotel through the website before making reservations. Direct online distribution costs, attract affluent customers and lessens the dependency on intermediaries and more traditional and expensive channels.”

Mandeep Singh Lamba, president, Fortune Park Hotels

“At our hotels we have a fully developed technical cell, which provides technical support to all hotels, both of pre-opening and post-opening nature. Hotels need to provide guidelines and detailed specifications for all plant and machinery, facilities planning (kitchen, laundry, back-of-the-house) and on-going repairs and maintenance work. Regular energy audits are conducted to ensure that the energy costs are always in control. It is also imperative to ensure that advancements in technology and best practices in the industry are communicated to all hotels. As also, information on new products and systems is made available at periodic intervals.”

Raymond Bickson, Managing Director, Indian Hotels Company

“The world looks to India as an IT leader. We would like to position the Taj as the foremost hospitality company as far as IT is concerned. Since we have the possibility of working with Tata Consultancy Services, which is one of the largest IT and software development companies in the world, we have been assertively working to integrate and use technology to its optimum in our business and the services provided, as it is the way forward for any hotel company to keep pace with changing times and changing customer needs.”

Sandeep Gupta,Executive Director, Choice Hotels India

“We identified technology quite early on as a key thrust area - we were the first to install a custom-made and dedicated instant reservation system and we were the first to provide a countrywide toll-free reservations facility. We are now working on seamless integration of our reservation system with property management systems at each hotel.”

Sunil Mathur, Head, Development - Hotel division, India & Middle East, Cendant Corporation

“IT in hospitality is not going to be the order of the day, it already is. The hotel business today is led by speedy electronic reservation systems, global sales-distribution and multi-level linkages with other components of the travel trade. The distinct feature of established brands is its ability to provide international class management technology.”

Paul Kirwin, President, Carlson Asia Pacific

“Most business transactions undoubtedly will occur over the Internet in the near future. Advancement in reservation systems and GDS will certainly happen. It is only a matter of time. As a company we have managed to increase our presence the world over because of our extensive use of technology amongst other factors.

With so much new technology outdating its predecessors, it is a challenge to keep up. Answering machines, walkmans, and even CD players seem like ghosts from ancient times. And they are. The era of complete comfort and convenience is here to stay. And as long as people know how to maintain a balance between technology and natural life, then this advancement may be a healthy evolution.

On that note, we all know that to succeed in hospitality means to maintain and elaborate on the very basic elements from simply shaking hands and adding that personal touch, to going out of our way to make things happen, being constantly innovative, establishing good eye contact and sharing a smile with the guests. This industry was built on the essence of providing and fostering personal attention. Therefore, we cannot allow this philosophy to be lost in the new age of technology. Pursuing technological advancement is secure only when it enhances the personal attention offered to the guest, and not when it replaces it.

Whether we are guests or serve guests, there are times when we find ourselves walking on a blurry, fine line where it becomes difficult for us to distinguish the office from home. Achieving a healthy balance is critical.”