Guest-Writer

Using technology as a differentiator

Technology can be an effective tool to differentiate from competition and apply it as a strategic weapon in the marketplace. By Atanu Ghose

Sometimes, you simply know when you arrive somewhere different and unique, similar to what Dorothy felt when the tornado transported her to the Land of Oz. Most hotels and hotel companies strive for such a sense of differentiation by employing a variety of strategies. Door attendants in formal topcoats are one way, opulent décor with elaborate floral presentations set amid marble, gilt and original artwork is another. A signature restaurant offering a regional or specialty cuisine works as well. Technology too can be successfully used as means of differentiation.

The business logic supporting this strategy strengthens as technology becomes more important to our guests and meeting planners for their business and professional reasons. Many baseline elements of technology offerings are no longer differentiators (voice mail and telephone modem jacks, for example) but simply part of the price of entry in the marketplace. Some aids that are differentiators today, are rapidly heading toward commoditisation. High-speed Internet access (HSIA) is one example. The key thing to note here is that numerous hotels and hotel companies see technology as a crucial differentiator and apply it as a strategic weapon in the marketplace. The objective of this strategy is to take customers away from competitors and increase the repeat market.

Hotel Information Systems

Guests today are savvy consumers who expect outstanding service. The staff works hard to stay ahead of the competition, and so should the project applications that are or should be used. Hotel Information Systems empowers hotels to create a business system that successfully manages the property, converts information into knowledge and realises greater profits. A typical Property Management System (PMS) is divided into various modules that interact to provide a comprehensive and easy-to-use system. Its intuitive and well-structured user interface allows the staff to acquire the essential skills of property operations quickly and easily. With functionality in an Internet native centrally deployable environment and a properly designed user interface one should be able to access all-important account information from one screen instead of several. Each module should allow you to search and retrieve information for a guest, group and company accounts using virtually any criteria. The process should involve no complicated menu screens, thus increasing productivity.

Another global feature that is extremely important is a detailed guest, group and company records. Used with a variety of customised reports, these detailed records allow precise targeting of various marketing efforts to improve occupancy rates, increase yield and enhance strategic planning. Each module should have a customisable report selection menu. The reports should have provision for sorting and filtering of data to enable viewing of the exact information might be required at a moment's notice. A good PMS enables a hospitality enterprise to increase revenue and occupancy, improve guest loyalty and reduce costs by centralising and streamlining your operations.

Some of the principles of employing technology as a differentiation strategy:

Make it obvious: Make it obvious throughout the property that you are offering these services. In short, tell everyone that this is what you do by doing it consistently throughout the property.

For example, a US based hotel provides public Internet access computers in the lobby, real-time reader board displays, browser-based information screens in the elevators, digital telephones in the guestrooms and wall-mounted Ethernet jacks over the desks. The visitor will also likely see people using Wi-Fi services in the public spaces as well.

Keep it current: Technology is a rapidly changing environment with very rapid cycles from early adoption to established tools. Within this environment, budgets must support implementing new technology and include maintenance and upgrades rather than a one-time investment.

Think carefully about pricing: Although guest-facing technology is expensive to deliver (especially on a retrofit basis), one needs to consider the impact of charging guests incrementally for every service. Consumer backlash against the hotel industry's telephone pricing policies is one of several factors that drove the decline in telephone revenue.

Understanding of customer requirements is why many of the forward thinking hotels (the Radisson SAS in Copenhagen, had both two MBPS Ethernet and Wi-Fi in each room free of cost), do not charge per use for HSIA services in guestrooms or public spaces.

One approach to reconciling the dilemma between funding technology services and not 'charging by the drink' is to bundle a package of upgraded amenities into room types available at a higher rate. These amenities might include free telephone service, Internet access, and so on, in addition to bathrobes and continental breakfast. Most of the major brands have such room types labelled Executive Room, Concierge Level or some similar category. These rooms typically earn premium rates.

Service, service, and service: The historical mantra for hotels has long been location, location, and location. Offering a technology-based service to guests states a commitment to making the property succeed. The hotel must have an effective mechanism for supporting guests with technology services. Some properties rely on trained hotel staff, while others utilize vendor resources. What you cannot do is ignore the need to make support available.

Meeting planners matter: The necessary corollary to service, service, and service is the need to support the crucial business meeting segment effectively. Business Meeting planners are more service-sensitive than price-sensitive, and simply cannot tolerate a failed Internet connection or videoconference. More so than guest room technology, technology services sold in the meeting rooms need to be fully supported and supportable.

(The writer is IT Head - Dynamic Vertical Software)