frictionless hotels: enabling the omni-experience the news/mobili… · enabling the...

A N N U A L R E S E A R C H I N C LU D E S :• HotelsrevealdetailedITbudgets,businessdriversandallocationsPAGE 4

Topchallenges,focusareasandtechnologystrategiesfor2017PAGE 12

Guest-facingandpropertyupgradesandrollouts,pluspaymentsecurity,bigdataandcloudstrategicfocusareasPAGE 20

PLUS: Howhotelsarecreatinganomni-experienceforguestsPAGE 20

Technology spending and allocations reset as hoteliers put laser focus on driving direct reservations through

customer analytics

Frictionless Hotels:

Enabling the Omni-Experience

Frictionless Hotels:

Enabling the Omni-Experience

2017

Copyright © 2016 Hospitality Technology. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or information storage and retrieval systems without permission in writing from the publishers. For article reprints & e-prints, please contact PARS International at (212) 221-9595, Fax: (212) 221-9195 or email: [email protected]. POSTMASTER: Please send address changes to HOSPITALITY TECHNOLOGY, P.O. BOX 261, LOWELL, MA 01853. PRINTED IN THE U.S.A.

FrictionlessHotels:EnablingtheOmni-ExperienceTechnology spending and allocations reset as hoteliers put laser focus on driving direct reservations through customer analytics

Omni-channelisastrategythatretailhasembracedasabusinessbestpractice.Thebroaddefinitionofomni-channelboilsdownto:amulti-channelapproachto sales/service that provides a seamless shopping/customer experience,fromdesktopormobiledevicetophoneor in-store/on-property.Theterminol-

ogy intheprevioussentence is importantbecause it representsthefactthatwhilewe’vebeen saying for some time that omni-channel should be adopted by hotels, the retail-centricdefinition—seemstocauseadisconnectforhoteliers.

Ratherthanforcingacceptanceoftheworditself,perhapsomni-experiencewouldbeamorepalatableterm.Let’sexaminetheroots: 1. Omni-—allthings;limitless;inallwaysorplaces 2. Experience—beingaffectedbywhatonemeetswith.Thecombinationofthesewordsleadstoastrategicterm,thatwe’llattempttodefinerecallingthatthebasisofomni-channelisaboutcreatingaconsistentandfrictionlessexperience.

OMNI-X (omni-experience): an integrated approach to putting the customer’s prefer-ences first througha comprehensive blend ofdigital and physical channels.Thegoalofomni-experienceistodevelopanunderstandingofguestsandcreateconsistentexperienc-esateveryinteractionwiththebrand.Theomni-experienceseekstoattractandgrowloyalcustomersthroughseamlessinteractiveexperiencesthatcomplementtheirpreferencesandhabits. Fostering this strategy requires a collaborative approach between IT, marketing,managementandsalesstafftocreateacompletelyfrictionlessexperienceforguestsfromalltouchpointsandacrossallphasesoftheguestjourney.

Thetotalhotelexperienceneedstodeliverservicesbetterthanguestsareexpectingwithzero friction. The findings from Hospitality Technology’s 2017 Lodging Technology Studyindicatethathoteliersarereadytoembracethetenetsoftheabovestrategy,eveniftheyarenotreadytoembracethetermyet.Hotelsreinedinbudgetsfromlastyear,whentheaver-agehotelbudgetfor2015wasreportedas6%ofrevenue.In2016,budgetscameinat3.5%ofrevenue.Despitethat,morethanhalfofrespondentssaythatITbudgetswillincreasein2017.Hotelsare readytospend,but investmentdollarshaveshiftedtobuilding infrastructuresthatwillsupportfrictionlessexperienceswithattentionbeingpaidtodataandanalytics.

Throughout the study, several questions garnered responses that rose to the topseparatedfromthemid-tierbyamarginofatleasteightpoints.These“anomalies”illus-tratethathoteliershaverealizedthatinordertogivecustomerstheseamless,personalizedexperiencestheywantfrombookingtocheck-in/check-out,heavierinvestmentinanalyt-icsiswarranted.Thisemergedasathroughlinethatwewillexploreingreaterdetailinthefollowingchapters.

ABOUT THE STUDY:

The 2017 Lodging Technology Study is published by Hospitality Technology magazine and evaluated with support

from EKN Research and Dr. Mehmet Erdem of UNLV Hotel College. The report offers a representative sample of

the overall marketplace with a diversity of property types. This year’s sample size includes IT decision makers with

oversight for more than 15,280 hotels within the United States. These hotels span all segments including luxury,

upscale, midscale and economy. Respondents come from both corporate and branded properties as well as inde-

pendents and management companies.

INTRODUCTION2 0 1 7 L O D G I N G T E C H N O L O G Y S T U D Y

BRANDDIRECTORAbigailA.Lorden

[email protected]

EDITORIALEDITORDorothyCreamer

[email protected]

[email protected]

SALESSENIORACCOUNTEXECUTIVELeahSegarra

[email protected]

[email protected]

[email protected]

[email protected]

ART/PRODUCTIONCORPORATEDIRECTOROFPRODUCTION

[email protected]

CREATIVEDIRECTORColetteMagliaro

[email protected]

[email protected]

[email protected]

ONLINEMEDIADIRECTOROFLEADGENERATION

&[email protected]

[email protected]

[email protected]

MARKETING/EVENTS/CIRCULATIONDIRECTOR,EVENTPLANNINGPatBenkner

[email protected]

[email protected]

SUBCRIPTIONS978.671.0449REPRINTS:PARSInt’l,212.221.9595x319

CORPORATEOFFICERSEXECUTIVECHAIRMAN

AlanGlass,[email protected]&CEO

PeterHoyt,[email protected]&PRESIDENT

OFSTRATEGICPLATFORMSNedBardic,[email protected]

CHIEFDIGITALOFFICERJoelHughes,[email protected]

PRESIDENT,CANADAANDCHIEFBUSINESSDEVELOPMENTOFFICER

KorryStagnito,[email protected]

ChrisStark,[email protected]

JeffGreisch,[email protected]

4MiddleburyBlvd.|RandolphNJ07869973.607.1300FAX:973.607.1395

•Apparel•Convenience

•Grocery/Drug/Mass•Hospitality

•Multicultural•SpecialtyGourmet

•StoreBrands•Sustainability

UnitedStatesMarkets

CanadianMarkets

•Convenience•Foodservice

•Pharmacy

Entering into 2017, growth for the U.S. hotel industrywasprojectedtobe“continuedbutmuted,”accord-ing to STR and Tourism Economics. This prognosiscameatthetailendofayearofhistoricallyhighoc-

cupancyratesandrobustADRgrowth,whiletheindustrystabi-lizeditsperformancelevels.ContinuedlackofpricingpowerledSTR’spresidentandCEOAmandaHitetopredictadecelerationofgrowthin2017ashoteliersbecomelessconfidentinpushingrates. “Nonetheless, demand is still growing to all-time highs,andRevPARwillcontinuetoreachrecord levels,”saidHite inastatementatthetailendof2016.

Hospitality Technology is charting similar stabilization intechnologyinvestment,with2016ITbudgetscominginat3.5%of revenue.Aftera flurryofEMVprojectsandmobile solutionsdrove up spending in 2015 to 6% of revenue, many CIOs resettheir ITbudgetstosustainable levelsfor2016.Theoverallout-lookfortechnologyinvestmentremainspositive.Morethanhalfofhotels(57%)plantospendmoreontechnologyin2017thantheydidtheyearprior,and42%areplanningtospendaboutthesame.Just2%willdecreasetheirITspendingin2017.

Atthehighestendofthespectrum,about10%ofhotelsinvest-ed6%ormoreoftheirrevenuesintechnologyin2016.Another39%setasidebetween3%and5.9%ofrevenueforIT,andthelargestgroup(51%)operatedwithtechnologybudgetsof3%orless.

Toprovidefurtherinsightintohowthesepercentagestranslateintoactualdollars,weprovidethisprofileof2017surveypartici-pants:most(58%)haverevenuesbelow$50million,aboutathird(31%)have revenuesbetween$50millionand$499million,andthesmallestgroup(11%)haverevenuesof$500millionormore.

C H A P T E R 1 :

BUDGETS&BUSINESSDRIVERS2 0 1 7 L O D G I N G T E C H N O L O G Y S T U D Y

SmallerITBudgetsYieldBiggerInvestmentinEnablingFrictionlessExperiencesAs tech spending stabilizes, hotels prioritize investments in customer engagement, analytics and security

Hotel Technology Budgets as a Percent of Revenue

MID

RA

NG

E

3.5%Industry Average

Despite a softening in IT budgets, hotels still plan to increase investments in 2017.

10% investlessthan1percentofrevenueonIT

26% invest1to1.9percentofrevenueonIT

15%invest2to2.9percentonIT

15%invest5to5.9percent

ofrevenueonIT.

11%invest4to4.9percentofrevenueonIT

13%invest3to3.9percentofrevenueonIT

10% invest6percentormoreofrevenueonIT

4 • WWW.HOSPITALITYTECH.COM• 2 0 1 7 LO D G I N G T EC H N O LO GY S T U DY

10%

39%

51%

MO

DE

ST

*Datafrom2016actualbudgets.

57%Will spend

more

42%Will spend the same

2%Will spend less

HEAVY

scaleanddata,andtheywillneedtoinvestheavilyininnovativetechnologies,”accordingtoGartner.

Theomni-experience isalreadytakingshape,and inhotelswill continue to lead to disruption in how consumers find andbookrooms,wheretheygoto ratepropertiesandtellpersonalstoriesabouttheirstay,andwhattheyconsidertruepersonaliza-tion.Inanindustrydesperatetorecoupdirectreservations,ana-lyticswillbethekey.

CUSTOMER-CENTRIC TECH TAKES TOP PRIORITY IN 2017Asapartofthisyear’sresearch,HTqueriedhotelierstoevalu-atealistofstrategicgoalsfortheirtechnologyinvestments,andidentify those of high importance. In 2017, there are two clearpriorities.Morethanhalfofoperators(52%)arefocusingonim-provingdigitalcustomerengagement.Theirsecondpriorityisacontinuedfocusonpaymentanddatasecurity(40%),whichhasdroppedfromitsfirst-placerankingoneyearago(at62%inthe2016study).Lastyear’slaserfocusonsecuritywaslargelydrivenbyEMVrollouts.

Thesetoptwostrategicobjectives risetothetopbyawidemargin.Theremainingeighttechnologygoalsareseparatedbyjustafewpercentagepointseach,andthelistincludestwoties.Thethirdplacerankingisatiebetweenanalytics(aroundboththebusinessandthecustomer),andtheabilitytoimproveem-ployeeproductivity,bothcominginat29%.Guestroomtechnol-ogycomesinfourthplaceintheranking(24%).Thisisanotabledrop from2016whenguestroomtechnologywasapriority for56%ofhoteliers,andrankedsecondplaceonthelist.Roundingout the top five is another tie: enabling seamless reservationsacrossallchannelsandenhancingbandwidth,bothselectedby21%ofhoteliers.

The close rankings reported for 8 of the 10 “top strategicgoals”inthisyear’sstudyareindicativeofthepervasiverolethat


DIGITAL GIANTS CREATE DISRUPTION & OFFER ROADMAP FOR RELEVANCEInlessthanfiveyears’time,ahandfulofcompanieswilldominatetransactions;andbyhandful,wepointtosevenfirmsidentifiedbyGartneras“DigitalGiants.”By2021,Gartnerpredictsthat,“20%ofallactivitiesan individualengages inwill involveat leastoneofthetop-sevendigitalgiants.”Gartnerdefinesthecurrenttop-sevenbymarketcapitalizationasGoogle,Apple,Facebook,Ama-zon,Baidu,Alibaba,andTencent.Platformsofferedbythesefirmswill be connected to more than 10 billion sensor-based devicesthatresideinconsumers’homes,ontheirpersons,andinbusinessenvironments.Websearch,mobile,socialnetworking,messagingandmusicstreamingwillprovidethesegiantswithbothdirectandindirectknowledgeofconsumerbehavior.

As the giants push disruption into all corners of industry,theyalsoprovideablueprintforrelevancy.Initsreport,“StayingRelevant in the Stampede of the Digital Giants,” PwC profiledthebigseven,andidentifiedthreewaysthey’veaddedunprec-edentedvalue in their respective markets. First, they facilitatethedeliveryofservicesthroughecosystemstheybuilt.Second,they match supply and demand, enabling people and busi-nessestoconnectseamlessly;andthird, theyfacilitatedigitaltransactionsthatallowuserstoexchange information,goods,servicesandpaymentalmost instantly. Inshort,theyownthetransactionecosystem,andthentheyenableseamless,instanttransactionsonthoseplatforms.

Ratherthanbuckingtheirinfluence,PwCadvocatesthatotherbusinesses embrace the change these giants have ushered in.Hotels,assuch,mustembracearelentlessfocusonthecustom-er.AccordingtoHT’sresearch,theyhave.Hotelsarenowsquarelyfocusedonenablingdigitalcustomerengagement(52%saidit’stheirtopstrategicgoalfortechnology),drivingmoredirectreser-vations(56%saidthisistheirtopomni-experiencegoal),andim-provingguestanalytics(56%saidit’satopBIgoal).Theformulaofdeliveringexactlywhatthecustomerwants,when,howandwhere theywant itmustalsobethe central tenantof innova-tioninhospitality.“Thesuccessofthedigitalgiantsimpliesthatleveragingdataandanalytics,aswellasglobalscale,isthewaytowinindigital.Therewillbechallengerstothegiantsthathave


DigitalGiantsStatsSourceasofFebruary2016:PwC

Digital Giants’ Revenue Compared to Hotel Industry

$100 to $499 million

58%

8% 8%

3%

23%

Apple $641B Google $455B

Baidu $48B

$500 to $999 million

$1 billion+

Facebook $262B

$50 to $99 million

< $50 million

Amazon $252B

Tencent $170B

Alibaba $167B

3 Ways Hotels Should Act Like Digital Giants

Create a Digital Ecosystem: Enable frictionless access to your brand.

Match Supply and Demand: Find customers and provide personalized offers.

Be Frictionless: Empower guests to conduct transactions easily and instantly.

1 2 3

was occurring in traditional industries. In aJuly 2016 podcast,AndreessenandpartnerBenHorowitzproposedanewmantraforsoftware:itprogramstheworld.

Andreessen went on to describe the Internet of Things,explaining that massive deflation in technology has enabledchipstoofferthesamepowerforhalftheprice.“Theendstateischipswillbefreeandtheywillbeembeddedineverything.”Soft-warecanbewrittentorunallhomes,cars,orhotels—industryafterindustrycanbereprogrammed.“Entrepreneursjustassumethatifthere’ssomethingtobedoneintheworld,theremustbeawaytowritesoftwaretodoit,”hesaid.

In hotels, software spending outpaces hardware by eightpercentage points. This aligns with research from both therestaurant industryandthegreater retail industry,where soft-wareisalsothelargestlineitem(at32%and25%oftotalITbud-gets,respectively).

Incontrasttoretail,however,hotelsallocatelessoftheiroverallITbudgetsoninternalpersonnel.Retailersinvest23%oftechnol-ogybudgetsontheirtalent,cominginaclosesecondtothe25%theyallocatetosoftware.Inhotels,thehumanresourcecomesinlastplace,behindsoftware,hardwareandnetworking.Onepossi-bleexplanationforthisisthatretailisfartheralonginitscloudmi-gration,allowingforthereductionofcostlysystemmaintenance.

PwCcontendsthatthesevendigitalgiantsareabletokeepandattracttoptalent,whilefosteringcreativityandinnovation,furtherhelpingthemtomaintainacompetitiveedge.Talentedtechnology teams will be a critical component in tackling thechallengesthisindustryfacesin2017.Theabilitytodrivedirectreservationswillbedependentonanalytics.Datascientistsanddigital-savvyITleaderswillneedtocollaboratetodeliverthefric-tionlessomni-experiencethatguestsnowfullyexpectwitheverytransaction.•


technologynowplaysinallaspectsofhoteloperationsandtheguestexperience.

Conspicuous in its absence from the list of priorities is themigrationofsolutionsfromon-premises intothecloud. Infact,just13%ofoperatorsnamed“cloud”atopstrategicobjectivein2017. Itsabsencefromthe list,however, isnotduetoadeclinein interest. Onthe contrary, this year’s research indicates that,bytheendof2017,abouthalfofhotelswillhavechosencloud-basedsystemsastheirpreferredservicedeliverymodelforava-rietyofcriticalsystems,includingpropertymanagement,centralreservations, customer relationship management, and revenuemanagement.Cloudcomputingisn’tastrategicgoal—it’snowstandardoperatingprocedure.

To complete our 360 degreeview of budgets,we examinedthedistributionoftechnologydollarsacrossmajorspendingcat-egories: software, hardware, networking/telecom, and person-nel.Softwaretakesupthebiggestportionwith32%ofbudgets.This finding reinforces what HT’s research and general tech-nologypunditshave longknown.Software iseatingtheworld.ThephrasewascoinedbyMarcAndreesen,co-founderofven-turecapital firmAndreesenHorrowitz.Hisstatementstemmedfromthebeliefthatsoftwarewasresponsiblefordisruptionthat

TOP 10 STRATEGIC GOALS FOR TECHNOLOGY IN 2017

DISTRIBUTION OF IT BUDGETS FOR 2017: AN INDUSTRY COMPARISON

Improve digital customer engagement/guest loyalty 52%

Enhance payment and data security 40%

Improve business & customer analytics 29%

Increase employee productivity 29%

Enhance guestroom technology 24%

Enable seamless reservations across all channels 21%

Enhance bandwidth 21%

Support new business models 19%

Keep up with the competition 18%

Reduce cost of managing technology 15%

Two priorities stand out from the pack: Digital customer engagement and security

will drive tech projects in 2017.

Software Hardware Internal personnel OtherNetwork / connectivity /

telecom

32% 32%

25%24%

20% 21%

15% 16% 17%20%

23%

7% 7%

15%

27%


HOTELS RESTAURANTS RETAIL

What role do technology and analytics play in creating the personalized experiences guests demand? SHECTERLE: Hotels are uniquely able to gather profile data through the many sources of interaction

both on and off property. It’s about revealing trends that would not otherwise be visible and keeping it as simple as possible to manage. Availability of data and reports should be easy. A solution that offers a dashboard view of performance metrics keeps it simple. Whether integrating with a PMS, a POS, or both, a single tool streamlines analyses and IT enables the business in making this data available for greater customer intimacy and anticipation of returning guests’ needs.

As guests share more data, how must hoteliers address security? What are key considerations to address threats and ease concerns of guests?SHECTERLE: Security doesn’t have to impede adoption of new technologies. The cloud service model allows for tighter control over access points between the guest and service provider, and reduces concerns associated with on-property equipment and data vulnerabilities.

Employee training is also critical. Guest data crosses your entire network. Hotels that regularly exercise security controls with ongoing communication and staff training will significantly minimize their risk of a data breach.

Upon rollout, conducting a pilot is essential to not only proving technical feasibility, but also demonstrating credible security for

other departments and data affected by the deployment.

What advice would you offer to hotels for measuring and ensuring ROI? SHECTERLE: Hotels are able to satisfy their ROI while improving their ability to meet the needs of all guests by leveraging mobile POS technology. With mobile POS, guests place orders more frequently as a result of servers being more accessible. Venues with service areas where attention to guests may be impacted by a lack of adequate area coverage, such as pools, convention areas, golf courses or bars, are reporting a more than 70% lift in revenue with mobile POS technology. At the same time reportedly, there is an increase in guest and staff satisfaction, as well as staff tip sizes.

How are guest expectations impacting developments in hotel technology? How would you recommend hoteliers keep pace with those expectations?SHECTERLE: Millennials are the key drivers. They have become the fastest growing guest segment within the hospitality industry. Service today must include enabling guests to be self-sufficient. However, it should also include the option to interact with a “live” person and the flexibility to supplement that interaction with technology.

Innovative and self-service technologies include mobile check-in and check-out, mobile payment processing, seamless connectivity across platforms and devices, and geo-based offers to name a small handful. Every technology touch point can be a make-or-break experience, an opportunity to win or lose the repeat business that drives bottom-line performance.

E X E C U T I V E Q & A

Mobility & Analytics Key to ProvidingQuality Guest Experiences

A d V E r T I s E m E n T

RobeRt

ShecteRle,

dIrECTor ofmArkETIng, AgIlysys

www.agilysys.com

11.Agilysis_LdSt_v3.indd 1 12/8/16 10:49 AM

Lastyear,hoteloperatorstoldHTthattheyhadanewtopchallenge.Forthefirsttimeinfouryears,keepingpacewithguestexpectationsfelltothenumbertwospot,unseatedbycomplexitiesinmeasuringthere-

turnoninvestment(ROI)fortechnology.Werevisitthisquestiontofindoutwhatwillplaguehoteliers’technologyeffortsin2017.

Thisyear’stopchallengeisbudget-related,withthelargestchunkofhoteliers sayingthey lacksufficient IT funds (select-edby39%ofrespondents).Thisalignswiththeoveralldropinspendingwechartedin2016.Thatsaid,technologyinvestmentisexpectedtopickupin2017ashoteliersmovefromtheheavyresearchphase—particularlytoevaluateanalyticalcapabilities—andstartworkingonactualsystemdevelopment.

HotelierstellHTthattheirsecondbiggestchallengein2017istheburdenofmaintainingexistinginfrastructures(37%).Thiswillbeacorefocusasbetteraccesstodatabecomesapriority.Anoverallresistancetochangetakesthirdplaceonthisyear’slist (28%).The same number (28%) said that they’re troubledbyoutdatedtechnologyinfrastructures.Keepingupwithguestexpectationsfellevenfurtherin2017,nowcominginfifthplacein HT’s ranking (27%). The inability to measure ROI barelymadethetopten—gettingjust19%ofthevote—adropfrom46%lastyear.

C H A P T E R 2 :

TECHNOLOGYSTRATEGY2 0 1 7 L O D G I N G T E C H N O L O G Y S T U D Y

BusinessIntelligenceDrivesTechnologyStrategyAnalytics will play vital role in fostering personalized, seamless experiences

Hotels’top two challengesarelackofITbudgetsandburdensomeinfrastructure.

TOP FRICTION POINTS IMPACTING HOTEL TECHNOLOGY

TOP TIER

MID TIER

LOW TIER

39%

37%

29%

29%

27%

27%

24%

24%

21%

19%

10%

LackofsufficientITbudget

Burdenofmaintainingexistinginfrastructure

Resistancetochangeinorganization

Outdatedtechnologyarchitecture

Guestsexpectgreatertechnologythanwecankeeppacewith

Lackofskilledtechnologyresourcesin-house

Effortrequiredtosystemintegration

Deliveringtechnologyprojectsfaster

Resistancefrompartnerstoinvestinnewtechnology

InabilitytoderiveROIfortechnologyroll-outs

PoorIT-Businessalignment

1 2 • WWW.HOSPITALITYTECH.COM• 2 0 1 7 LO D G I N G T EC H N O LO GY S T U DY

When asked to evaluate friction points, two challenges rose to the top. Hoteliers found it difficult to distinguish between mid-tier categories, indicating that they are equally troublesome.

When Virgin Hotels (www.virginhotels.com) was ready to open its Chicago property, the first hotel to launch under the Virgin name, the team knew a robust management platform that could support the brand’s focus on service and innovation was vital.

The ability to customize the system to fit the brand’s needs was a big consideration and a primary reason Virgin selected Infor HMS (www.infor.com). “With some property management systems, you don’t have much leverage to get the level of customization you want,” says David Moth, vice president of operations at Virgin Hotels. Finding a provider that could align with the hotel’s commitment to service and innovation as it pursued its expansion plans was also important. “We needed a partner that could work closely with us to interface with the other systems we planned to use to operate the hotel,” Moth explains.

Bringing together the many components Virgin Hotels uses to manage the property was crucial. The interfaces Infor HMS supports have helped to develop efficient workflows and provide guests with the kind of experience they expect from service-centric Virgin. “If a guest calls down or enters a request through our mobile application, it’s logged and dispatched to the team as part of that system integration,” Moth says.

As he evaluated systems across the marketplace, one feature that stood out to Moth was Infor’s Dataspy tool. It provides robust search capabilities and allows individuals to create their own HMS desktop based on what they do and which aspects of the system they use most. “With Dataspy, the system does what you want instead of being limited to doing whatever the system can support,” Moth says. That approach sets Infor HMS apart from the

legacy property management systems Moth had experienced.

Creating a better guest experience is a top priority for Virgin Hotels and Moth says Infor’s development group has been a close partner in those efforts. After the initial installation, Infor added enhancements to the system, including advanced usability for the front desk agents greeting new guests. “Those agents are using iTouches for check in,” Moth explains. “Infor looked at our process and made some big strides on the mobile application.” The updates have helped streamline activities and provide Virgin’s clientele with an even better arrival experience.

Guests aren’t the only ones at Virgin Hotels seeing good results. The housekeeping team carries mobile devices and Infor HMS allows them to set room assignments in the morning or be notified on the go if a guest arrives early or has a special request. “They’re able to put that room next in their sequence and respond to specific needs efficiently,” Moth says.

Maintenance requests can also be sent back through the system, saving time and keeping the teams moving. Employees were quick to adapt to the system and their feedback about its impact on operations has been overwhelmingly positive.

Moth believes Infor HMS is a great solution for independent hotels, pointing out that the platform can be installed on-premise or leveraged in the cloud for brands keen to minimize servers and other hardware. Moth encourages operators to consider their functionality requirements today as well as what they may need tomorrow. Moth believes that with Infor’s ongoing support and development of the HMS platform, it has positioned Virgin Hotels to be ready to meet the needs of today’s and tomorrow’s guests.

S P O N S O R E D c a S E S t u D y

Integrated HMS Improves Efficiency, Experiencerobust interfacing capabilities enable customization

a D v E R t i S E m E N t

www.infor.com

13.InforCaseSf_LdSt_v2.indd 1 12/8/16 10:51 AM

MEETING GUEST EXPECTATIONS IS ULTIMATELY ABOUT BETTER DATAWhilekeepingpacewithguestexpectationssawadipfromlastyear,itremainsachallengefor1outof4hotelexecutives(27%).Thisalignswiththeconcernthathoteliersarelaggingtheircom-petitors when it comes to customer-facing technologies; 26%believetheyarebehind.

Thisshiftpointstoanawarenessthatallthings—revenueoptimization,directreservations,evenguestsatisfaction—arepoweredbysmarterbusinessdecisions. Inaword,data.Theirgreatestchallengeswilllieinbuildingouttheinfrastructureandintegrationrequiredtoaccessthisdata.Techbudgetsformoresolidpropertymanagementtoolswillincreaseashoteliersmovefromtheresearchphase,intotestinganddeployment.Halfofhotelsareexpectingtospendmoreontechnologyin2017thantheydidin2016,manywilladdorupgradepropertymanage-mentsystems(48%)andbusinessintelligencereportingcapa-bilities(27%).

In a unique approach to delivering on guest expectations,MarriottHotelshas rolledoutMBeta,an innovation labthatfunctions as the world’s first hotel in “live beta.” The M BetamadeitsdebutinOctober2016atCharlotteMarriottCityCen-

ter.Thehotelwillallowforrapidprototyping,invitinggueststotestandgivefeedbackinreal-timeon“betabuttons”through-outthehoteltomonitorguestfeedbackwithalivetally.

“Weareinvitinggueststobepartoftheinnovationanddeci-sionmaking,”saidMikeDearing,managingdirectoratMarriottHotels,inarelease.“MBetaatCharlotteMarriottCityCenterisaforward-lookingtestinggroundforexcitingnewconceptsasweconstantlyevolveandchallengeourwayofthinking.”

Bigdatawillbecomethegreatdifferentiatorasbusinessesseek to yield analytics from all possible areas. The ability totrackpersonalpreferencesandoffertherightrate,attherightmoment,fortherighthotel,willbeacentralcomponenttodriv-ingmoredirectreservations.Forthetimebeing,manyhotelsarefullyentrenchedineducationmodeforanalytics(50%).Aboutathirdarecriticaloftheircurrenteffortstoexploreanalytics,with34%admittingthattheylagcompetitors.Only11%ofoperators


Fewer Hotels Rate Themselves As Innovative

Overall Technology Innovation

Property Management Technologies

Customer-Facing Technologies

Analytics Maturity

21%

64%

11% 11%

54%

34%

13% 15%18%

26%

69%

60%

Hotels’ largest insecurities when comparing themselves

to competitors, come from customer-facing technologies

and analytics — two areas which are top strategic

goals for 2017.


20% of hotels say they’re more

innovative

25% of retailers say

they’re more innovative

33% of restaurants

say they’re more innovative

Competitive Comparison: Hotels Lack Confidence in Current Customer-facing Tech & Analytics

BETTER THAN AT PAR LAGGING

Hotels with big data efforts

underway increased 8% from 2016

to 2017.

63% 55% 2017

2016

Big Data: What Are Hotels Doing About It?

50% Learningmore

37% Notconsidering

8% Executing project/ program

5% Exploring viapilots

believetheyareleadingtheircompetitorsinanalyticsmaturity.Tofindoutmoreabouttheareasthatareripeforanalytical

exploration,HTpresentedparticipantswithalistofareastheycouldminefordeeperbusinessanalytics.ThislistincludessuchareasasRevPar,guestinsights,socialmediaanalytics,andtheeffectivenessofpromotions.Twosegmentsrosetothetop.Spe-cifically,60%ofhotelssaidtheabilitytooptimizeRevParisacore focus area of business analytics.This is closely followedbyguestinsights,at56%.TheseselectionsreinforcethathotelshavealaserfocusonbetterunderstandingtheguestinordertodrivedirectreservationsandoptimizetheirRevPar.Social media remains an untapped area, withjustaquarteroftheindustryfocusinghere.

What isalarmingisthe37%ofhotelsthatare still not considering big data strategies.Hotelsthatdownplaytheimportanceofana-lyticsdosoattheirperil.This isacapabilitythat will ultimately set the innovators apartfromthelaggards.•

InnovationCallsforBlendedSkillSetForresterpredictsthat30%ofCEOswilleliminateCMOsfornothavingawell-roundedsetofskillsascompanieslooktodrivedigitaltransformationacrosstheenterprise.Tosurvive,ForresterstressesthatCMOswillneedtohonetheirabilitiesandexpertiseinordertoestablishstrongerrelationshipsbetweencustomersandbrands.

Thisraisessimilarquestionsaboutthefutureoftechnol-ogyleadership.ChiefDigitalOfficers(CDOs)andChiefAna-lyticsOfficershavetangibledeliverablesandtheirrolescanrelatedirectlytodrivingbookings.CDOsforexample,areoftenresponsiblefore-commerceandmobile-facingapps,anythingthatfallsintotherealmofthedigitalenviron-mentandhowcustomersareusingit.ItwillbeimperativeforhotelstoempowerCIOsandCMOstohaveownershipofinitiativesintendedtodrivemoredirectbookings.

CXO(chiefexperienceofficer)isarelativelynewertitlethathasemergedinthelastsixorsevenyears,butitspur-poseisrootedinthebasictenetsofasalesrole.ThegoalofapersoninthispositionwouldbetoworkacrossIT,market-ingandHRtomakeallthesedepartmentscollaborateoncreatingatotalexperienceforcustomers.Ultimately,theCXOistaskedwithidentifyingwaystoimprovetheoverallexperienceandcreateafrictionlessjourneybetweenthecustomerandthebrand.

HTaskedhotelierstoidentifywhatrolescurrentlyexistintheirorganizationsand/orwhatisontheirroadmaptobringonboardwithintwoyears.TheresultsshowthatwhileCMOandCIOarestillthetoppositionsforcompaniestohaveonstaff,ChiefInsights/AnalyticsOfficerswillbeinplaceataquarterofhotelsby2019.Thisisimportantbe-causedatawillbevitaltoidentifyingactionablestrategiesforimprovingexperiences—especiallyasguesttouch-pointsincreaseacrosstheenterprisewithInternetofThingsandmobilitybecomingincreasinglyprevalent.Toaddressthis,hotelsmustputpeopleinplacewhowillbetaskedwithcentralizingthosevariouscustomerinteractiontouchpointsacrosschannelsandlookforwaystoimplementtechnolo-gythatwillmakeguestsfeelbothempoweredandcateredtoinapersonalway.


TOP TIER

MID TIER

LOW TIER

RevParoptimization

Guestinsights(profiling/analysis)

Labormanagement

Personalizingpromotions

Promotionseffectiveness

Socialmediaanalytics

Occupancymanagement

ADRoptimization

Servicespricing

Logisticsoptimization

Rateparity

TOP AREAS OF FOCUS FOR DEEPER BUSINESS ANALYTICS

60%

56%

32%

29%

26%

24%

23%

19%

10%

8%

3%

C-LEVEL LEADERSHIP BY 2018

66%

53%

25%

16%

10%

Chief Marketing Officer (CMO)

Chief Information Officer (CIO)

CXOs will be more prevalent than CDOs

in two years.

Chief Insights/Analytics Officer

Chief Experience Officer (CXO)

Chief Digital Officer (CDO)


60% of hotels are prioritizing revPar optimization for

analytics.

How can technology enable frictionless hotel experiences?HORGAN: Hospitality technology is still very fragmented between traditional IT specialists, global technology providers, and in-house developments. Key industry

challenges are technology fragmentation, data fragmentation, lack of unified guest view, and brand differentiation. Having a tightly integrated component-based solution that shares a centric guest view across all touch points will enable hoteliers to create unique guest experiences. A key innovation is having the ability to see the traveler/guest in a 360 view from shopping and inspiring offers, to checking in and beyond.

What role does technology play in creating personalized experiences? HORGAN: Hoteliers are aspiring to leverage the power of mobile to create a conversation between the hotel property and the guest pre-arrival, “during stay,” and post-checkout, which can all be used to build a personal relationship and increase guest loyalty. A lot of personalization is not just about offering a service that someone wants, but offering it in the way they want to receive it — and when they want to receive it. This may include: room attendants having access to necessary guest preferences so that they can personalize the in-room touches more effectively for each guest, or management being alerted automatically when a VIP or very loyal guest checks-in so they can greet him personally.

What do you think is exciting in new, guest-facing technology?HORGAN: Wearable technology and robots

are already a reality in hospitality. Guests are freed from carrying physical room keys and can use their smart watch which creates a better experience. Robots can autonomously navigate through a hotel to deliver extra towels to a room. Robotic concierge and wayfinding is also already in use at properties. The opportunities to embed wearable technology and robots in the hospitality industry seem to be limitless so to really embrace this technology, being an open company and building the right API integrations with multiple partners is critical as well as the fact that wearables need to be considered as part of mobile first design.

With the need for systems integration, what should hoteliers keep top-of-mind? HORGAN: Equally important to the technology available, is the migration or change management program to help hoteliers actually implement those new technologies. All hoteliers struggle to ensure their people can optimize usage of technologies to reap all the benefits, especially given high staff rotation.

What do you think are the key reasons for moving systems above property? HORGAN: A key benefit is scalability, as by utilizing services on a subscription model, the user doesn’t need to worry about finding additional server space, hosting, bandwidth, etc. Moving systems above property also means a move from capital expenditure (CAPEX) to operating expense (OPEX) to ensure a hotel only pays for the services it uses, when it uses it. And finally, we can’t forget that hoteliers will benefit from accessing the tools they need from multiple devices as well as automatic upgrades when available.


Leveraging Tech to Foster Customized Experiences & Empower Staff


Lee Horgan,

CEO, AmAdEUs HOspITAlITy, AmAdEUs IT GrOUp

www.amadeus-hospitality.com

19.AmadeusQ&A_LdSt_v2.indd 1 12/8/16 10:51 AM

Inthissection,theresearchtakesadeepdiveintoavarietyoftechnologyareastotrackactualdeploymentplans.Weevaluate omni-experience tools (such as mobile check-in/out, personalized offers, and guest analytics), guest-

facing technologies (such as WiFi, in-room televisions, anddigital signage), and property systems (such as propertymanagement and point of sale systems). In all, 31 specificareasareexplored,withsubstantialactivityplannedinthreecore areas: solutions that support direct bookings (56%),boostingguestWi-Fi(50%),andupgrades/changestoprop-ertymanagementsystems(48%).

SEAMLESS LOOP: CHARTING THE LIFECYCLEWe’ve already learned that more hotel CIOs are prioritizingdigitalcustomerengagementthisyear(52%in2017comparedto32%in2016).This leapinprioritysuggeststhathotels in-tendtoinvestinsomethingthey’velongknown—experienceiswhatsells.Wewilltakethatonestepfurthertosaythatthefrictionlessomni-experiencewillbewhatsellsmosteffectivelyin2017andbeyond.

This begs the question: are hotels putting their moneywheretheirmouth is?Tofindout,weaskedsurveytakerstotelluswhatcapabilitiesthey’re fundingontheirpathwaytodelivering a frictionless omni-experince. Overall, results arepromising.Drivingdirectreservationstopsthisyear’slist(56%are focusing here). If theguestmakesa reservation through

C H A P T E R 3 :

TECHNOLOGYINVESTMENTS2 0 1 7 L O D G I N G T E C H N O L O G Y S T U D Y

TechAdoptionFocusesonOmni-ExperienceHotels invest in personalization and mobility to ease friction points

TOP TECH INVESTMENTS TO DELIVER AN OMNI-EXPERIENCE FOR GUESTS


GUEST-FACING TECHNOLOGY UPGRADES & ROLLOUTS

GuestWiFi

CustomerMobileApp

Promotions

CRM/Loyalty

SmartTVs

Interactivedigitalsignage

Location-basedtech

Tabletsatfrontdesk

UpgradeAddfor1sttimeSwitchingtonewsupplier

45%

33%

33%

28%

23%

21%

10%

8% 10%

12% 2%

2%

8% 8%

8% 3%

7% 2%

7% 3%

5%

7%

While all variables enable frictionless experiences across the guest stay,

the top three have a direct impact on bookings. This indicates hoteliers are placing emphasis on bringing reservations back home through

personalization and seamless engagement.

Drivingmoredirectreservations

Guestlifecyclecustomeranalytics

Mobilemarketing

Mobilecheck-in

Personalconciergevia

mobiledevices

Personalized

offers

Offeringseamless

reservations

Integrateditinerary

management

Mobilecheck-out

18%

6%

35%

37%

19%

21%40%

39%56%

How can hotels differentiate the in-room experience with guest-facing technology?TANENBAUM: Guests today have higher expectations for a hotel room with technology equal to or better than the gadgets they have at home.

Hotels that embrace Smart TV technology provide their guests with the in-room amenities that they are accustomed to – from streaming music, movies, and television shows to accessing smart widgets and apps. Hoteliers can differentiate themselves by leveraging the TV screen as another interaction point and provide a more personalized and enhanced experience. The in-room TV should be treated as a digital concierge to give the guests an easy way to access various hotel amenities and on-site services to make their stay more enjoyable.

Keeping up with guest expectations is always a concern. What do you think is exciting in new guest-facing technology that will deliver on exceeding demands?TANENBAUM: The industry is beginning to see a need for over-the-top content (OTT) and cross-screen integration with mobile devices. Screen casting is an easy way for guests to integrate their mobile devices with their hotel room TV to access content from apps including Netfl ix, Hulu, Youtube and more. This allows hoteliers to provide greater entertainment options through the functions of a Hospitality TV. By deploying Samsung SMART TVs, guests can access Samsung’s Smart HUB application library. These are exciting ways for hoteliers to exceed expectations by giving the guest the control and fl exibility they demand when consuming media.

What role do you see technology playing in creating the personalized experiences that guests crave? TANENBAUM: To enhance the personalized guest experience, the Smart TV can be used to access reservation-management features such as quick checkout. Using the TV, guests can check out of their hotel room and review any charges on the screen, saving time and allowing for maximum interactivity not possible with the usual printed sheet under the door. For international travelers, hotels can completely customize their approach by presenting content in the guests’ native language. Hotels can track and monitor how their guests utilize these services to make each returning stay even better. Hoteliers should recognize technology as a vital tool in increasing guest satisfaction and brand loyalty. How can hotels measure and ensure an ROI when upgrading technology? How can technology be optimized to boost profi ts?TANENBAUM: Hoteliers should look to utilize the in-room TV screen as an advertising platform to promote all the amenities and services that they can offer – from in-room dining, spa services, restaurant reservations, etc. With any advertising vehicle, the TV screen can be leveraged as another stream of revenue for the hotel property. Hotels can also partner with local businesses to provide a guide to the best dining locations, shows, and other popular places for the guests to explore outside of the property. Through a customizable UI, the TV welcome screen can be a way to boost profi ts and ensure a strong return on their technology investment. Samsung HMS technology even takes this a step further by offering in-room control of HVAC, lighting and other amenities which provides a great guest experience as well as better, cost-saving energy management for the hotel.


How Smart TVs will Offer the Next Generationof Frictionless, Personalized Service

A D V E R T I S E M E N T

JONAS

TANENBAUM,

VP OF SALES & MARKETING, HOSPITALITY TV, SAMSUNG

WWW.SAMSUNG.COM/BUSINESS

21.Samsung1116_v3.indd 1 12/8/16 10:51 AM

a third-party channel, they’ve already broken the chain ofcomplete seamlessengagementwiththebrand.About40%ofhotelswillfocusonengagingguestsviapersonalizedoffers,and39%willbeimprovingtheoverallbookingexperienceviaseamlessreservations.

Guest lifecycle customer analytics is a priority for 35%.Mapping the guest lifecycle must go beyond simply under-standing where guests made their reservations and whattransactions took place during their stay. Advanced guestprofiles and progressive models for the lifecycle can lead tonewopportunities for automation. It can leadto changes inbusinessmodelsoroperationalworkflows.Thisisanareathattechnology service providers must prioritize. Hotels shouldseek topartnerwith firmsthat canprovidenext-generation,dynamic insight.Doing sowill notonlyoptimize the currentstay,butdrivenewleads.

Mobile check-inandcheck-out rankas lowerprioritiesonthislist,with19%and6%respectively.AccordingtoHT’s2016CustomerEngagementTechnologyStudy,twothirdsofhotelguestssaytheabilitytocheck inonamobiledevicewouldinfluence their decision to select one hotel over another (allother things being equal). That study also found a distinctservice gap: just 39% of hotels offer mobile check-in. Simi-larlytwothirdsofguestsexpressdesireformobilecheck-out,

butonly25%ofhotelsofferit.Thisisadistinctgapindesireversusavailability.

For those hotels that have added some form of mobilecheck-in/out,it’stimetorevisitthoseapplicationsandensurethey provide relevant lifecycle data back to an overall plat-form.Notdoingsoisleavingpreciousdatauntapped.

GUEST-FACING & PROPERTY SYSTEMSTogaugeadoptionratesforguest-facingandpropertytech-nologies,we asked hoteliers to review a list of systems andidentifyiftheyhaveplanstoupgrade,addforthefirsttime,orswitchsuppliers.

Notsurprisingly,guestWi-Fiwillseesignificantactivityin2017:45%willupgradeitand5%willswitchtoanewsupplier.HT’s 2016 Customer Engagement Study found that 91% ofguests’ booking decisions are influenced by a hotel’s abilitytoofferfree,reliableWiFi.Thegoodnewsisthat99%ofhotelsofferWiFi,butjustoverhalf(53%)provideitfreetotheguest.Tieredaccessisthepricingmethodpreferredby40%ofhotels.

Aboutathirdofhotelsplantoupgradetheircurrentmobileapp,andafewmore(7%)willrolloutanappforthefirsttime.Televisionswillcontinuetogetafacelift,withabout1in4ho-telsplanningtoupgradetheirSmartTVs.

Theareasthatwillseethegreatestamountofnewrollouts



PropertyManagementSystem

PointofSale

SalesandCateringTechnology

CentralReservationSystem

BusinessIntelligenceReporting

ComplianceMonitoring

CoreAccounting&FinanceSoftware

LaborManagementSystems

RevenueManagementSystem

MobilePayments

PredictiveAnalytics

MobileBack-officeCapabilities

EmployeeMobileApp

InternetofThingsplatform

PROPERTY SYSTEM TECHNOLOGY UPGRADES & ROLLOUTS

48%

25%

24% 2%

18%

18%

17% 2% 7%

17% 2% 10%

16% 7% 2%

15% 14% 3%

13% 11% 2%

12% 5% 4%

9% 9% 7%

5% 2%

9% 4%

8%

32% 2% 16%

3%

1 out of 6 hoteliers will be switching POS

suppliers in 2017.

UpgradeAddfor1sttimeNewsupplier

5% 2%2%

3%

arelocation-basedtechnology(12%ofhotelswilladdthisforthefirsttime),andtabletsatthefrontdesk(10%plantoaddthemin2017).

Thesameroll-outscalewasappliedtoalistof14propertytechnologies. Predictably, property management and pointofsalesystemsemergedasthetoptwoareascallingforen-hancements.Weseecontinuedmomentumforbusinessintel-ligencereportingas18%plantoupgradesystemsand9%plantoaddforthefirsttime.

ItisworthnotingthatoneoutofsixhoteliersareplanningonswitchingPOSsuppliers.Thismightbebecausehoteliersarelookingtoupgradelegacysystemstoaddthelatestfea-tures,suchasmobilepayment.ItcouldalsobedrivenbythecontinuedmigrationtoEMV.

Intermsofnet-newrollouts,mobilepaymentswillseethemostactivity(14%),followedbypredictiveanalytics(11%).OnlyafewhotelshaveplansinplacetoinstallanInternetofThings(IoT)platformformanagingconnecteddevices.

Earlier in the studywenotedthatmigratingtothe clouddidnotmakethecutof“Top10StrategicTechnologyGoalsforHoteliers,”fallingto13%thisyear,from31%justoneyearago.Itwouldbeerroneoustosuggestthathoteliersarenolongerdriventorunsystemsaboveproperty.Onthecontrary,cloudsolutions are becoming the de facto standard for a varietyofplatforms.

Withtheexceptionofthepointofsale,roughlyoneoutoftwohotelswillberunningatleastonemajorsystemincloudwithinthenext12months.Thisrapidadoptionisstrikingwhenconsideringthatasrecentlyas2015,lessthanaquarterofho-telswererunninganysystemsinthecloud.Emailwastheonlytoolthathadmovedintothecloudatthattime,andtodaywenolongermeasureit,asitsusehasbecomestandard.

PAYMENT & DATA SECURITYHotelstoldHTthatpaymentanddatasecuritywouldbetheirtop focus for technology in2017,andourdatashowsthis iswithgoodreason.Whenaskedwhattheircompaniesaredo-ingtoprotectpaymentdata,theresultsaretroubling.

Lessthanhalfofhotels intheHTstudyusetokenization(46%),end-to-endencryption(49%),orhavemadetheswitchtoEMV-readyterminals (44%).Operatorshavebeenslowtomake the switch to EMV systems, with many owners citingthe cost of upgrading hardware as prohibitive. Only 56% of


MIGRATING SYSTEMS ABOVE PROPERTY: APPLICATIONS IN OR MOVING TO CLOUD

RevenueManagementSystems(RMS)

CRM/Loyalty

PropertyManagementSystem(PMS)

CentralReservationsSystem(CRS)

Sales&Catering

Corporate/EnterpriseSoftware

PointofSale

44%

37%

34%

34%

13%

25% 52%23%

23% 64%

25% 25% 51%

19% 47%

43%23%

14% 49%

44%12%

IntheCloudWillmigratetocloudin12monthsNoplans

More than half of hoteliers

will be running these systems in the cloud

by 2018.

What trends do you see impacting hotel technology? MARKLE: Industry and system consolidation are big trends driving broader adoption of technology in hotel management. While there has been a lot of focus on guest-

facing technology, as brands and management companies expand and gain market share, they are looking to improve operational processes through investments in back-of-the house technology. Larger management enterprises are looking to SOPs, centralized technology and shared services to leverage costs across all properties. These factors contribute a greater willingness to invest.

More and more, hotel management company CFOs, CIOs and CPOs are looking to move back-of-house systems to the cloud to give them above-property and corporate level visibility and control, be it in purchasing, property performance data or analytics. The “C-Suite” is focusing on cloud based systems that are scalable as they grow their portfolios, which are more cost effective than on premise solutions.

What advice would you give to hotels that want to measure ROI after upgrading their technologies? MARKLE: For back-office operational software such as procure-to-pay automation, hotels should evaluate both soft and hard costs. For example, cost reduction, revenue generation through rebates, compliance and payroll optimization can demonstrate ROI. Our hospitality customers typically see a 10% to 20% cost reduction and a payback period of three to nine months. After that, the visibility, efficiency as well as hard and soft cost

savings continue to impact the bottom line each year. Most hotels using manual processes buy only

30-40% of their F&B and other hotel supplies brand, utilizing discounts and rebates. However, when the purchasing process is automated with, flagged, searchable products and prices from approved suppliers, most customers shift their compliance rate up to 90%, saving many thousands, if not millions of dollars annually.

What technologies could hotels use to improve their margins? MARKLE: We are seeing the mid-size and larger brands and hotel management groups focusing on BI tools. Global reporting and spend analytics are a top priority. Automating, centralizing and managing functional processes like purchasing, inventory, maintenance, budgeting, forecasting, finance, eInvoicing, recipe management and capital projects can immediately improve margins across hotel locations. Cloud-based procure-to-pay platforms, property management systems and virtual payment systems that show instant data will soon be in every hospitality business.

What role can data play in streamlining operations? MARKLE: Capturing supplier data is critical for understanding and controlling spend. With the right technology, property managers can gain full visibility into supply chain and immediate insights that will allow for cost savings. BI tools allow supplier analytics by period, region, brand, and manager, total spend and non-compliance items. Companies can view spend category amounts and percentages to better evaluate suppliers, price breaks, incentives and discounts. Analyzing supplier data can help guide companies to buy the right products at the right price from the right supplier.


Technology’s Role in Improving Ops and Achieving Return on Investment


Steve Markle,

ChIEf OpErATIng OffICEr, BIrChsTrEET

www.birchstreet.net

23.BirchStreetQ&A_LdSt_v3.indd 1 12/8/16 10:52 AM

(53%). Interactivebathroommirrorsarealsogainingground,havingjumpedto45%thisyear,upfrom32%oneyearago.

Augmented andVirtual Reality (AR/VR) experiences ap-peared on the list for the first time and received 39% of thevote,cominginaheadofroboticswith23%. MorehotelsarefindingcreativeusesforbothVRandAR intheiroperations.BestWesternHotels&Resortshaveseensuccessimplement-ingAR andVR for both guest-facing and employee initia-tives. In 2016, the company launched a customer servicetrainingprogramthatincludesalivehospitalityvirtualreal-ity simulator that enables frontdesk,housekeeping,main-tenance, and breakfast staff to practice and develop theirinterpersonal and guest communication skills in realistic,lifelikescenarios.

Futuristictechnologieswillfindahomeastheseapplica-tionscontributetothefrictionlessexperienceforguestsandhotel operators. What is clear from this year’s study find-ings is that hotels are shifting their investments to lay thegroundwork for enabling the omni-experience that guestswant,inafrictionlessandpersonalizedmanner.Thisrequiresmore attention to data and analytics than ever. The intelli-gencemaynotbetheultimateend-game,butitwillcertainlybetheenabler.•


hotels regularly test systems and processes. Overall, thesefiguresarestartlinglylow,whenconsideringtherisk.“Hackerslove hospitality,” saidJohn Bell, founder of security consult-ingfirmAjontech,LLC,inaninterviewwithHT.ThisstatementiscorroboratedbyVerizon’s2016DataBreachInvestigationsReport,whichstates,“nearlythreequarters(74%)ofallthreatstosecurityinthehospitalityindustryinvolvedPOSintrusions.Andtheyaccountedfor95%ofbreaches,wheredatawascon-firmedstolen.”

HT provides some guidance on how hoteliers can tacklemakingthemigrationtoEMVinaRoadmap,“RemovingFric-tion from EMV,” available for download at www.hospitality-tech.com/research.The reportbreaksdownatransitionpro-cessinsix,digestiblesteps.

THE FUTURE Forthesecondyear,HTaskedhotelierstolookintothefutureandtelluswhichemergingtechnologieshavethepotentialforrealapplicationinhotels.Theindustryisquicklywarminguptotheideaofinteractive/gesture-controlledwalls.Morethanhalfofhotelierssaythesewallshavereal-worldpotential(at52%inthisyear’sstudy,upfrom36%oneyearago).Abouthalfalsosee real potential for RFID-enabled tracking for hard goods


EMERGING TECH WITH MOST FUTURE POTENTIAL

53% RFID-enabledtrackingforhardgoods

52% Interactivewalls(gesture-controlled)

45% Bathroommirrorsfunctioningasaninteractivedisplay

42% Artificialintelligence(AI)/Voice-enabledDevices

39% AugmentedReality/

VirtualRealityExperiences

23% Robotics

15% Electro-responsivefibersinbedding/pillows

10% Personalholograms

50%

25%

10%

WHAT HOTELS ARE DOING TO ENSURE PAYMENT SECURITY 56%

Regularly tests systems and

processes

49%Self-certifiesforPCIcompliance

49%Usesend-to-end

encryptionforcardholderdata

46% Usestokenizationatthecardswipe

44% HasupgradedterminalsforEMV/Chip-basedcards

43% Usesathird-partyformanagedsecurityasaservice

36%UsesaQSAforcertifyingPCIcompliance

26%Hasbreachprotection

SECTION TITLE2 0 1 5 L O D G I N G T E C H N O L O G Y S T U D Y

HOSPITALITY TECHNOLOGY THANKS THE SPONSORS OF THE 2017 LODGING TECHNOLOGY STUDY. THEIR SUPPORT HELPS TO MAKE THIS LANDMARK RESEARCH POSSIBLE.

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