Hyb 2017
Hyb 2017
Hyb 2017
SPECIAL
EDITION ON TECHNOLOGY
PMS
BIG DATA
MACHINE LEARNING
GRM SECURITY
VIRTUAL REALITY
CHANNEL MANAGEMENT
TECH ROI
SOCIAL MEDIA
INTERNET BOOKING ENGINES
REVENUE MANAGEMENT NFC
DIGITAL STRATEGY
VENTURE CAPITAL
STARTUPS WEARABLES
ENERGY MANAGEMENT
MOBILE APPLICATIONS
SERVICE BUS
DIGITAL PAYMENTS
HIGH-SPEED INTERNET
GUESTROOM TECHNOLOGY
CRM
CLOUD SAAS
REPUTATION MANAGEMENT
DATA SECURITY
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HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY
2017 SAAS
SPECIAL
EDITION ON TECHNOLOGY
PMS
BIG DATA
MACHINE LEARNING
GRM SECURITY
VIRTUAL REALITY
CHANNEL MANAGEMENT
TECH ROI
SOCIAL MEDIA
INTERNET BOOKING ENGINES
REVENUE MANAGEMENT NFC
DIGITAL STRATEGY
VENTURE CAPITAL
STARTUPS WEARABLES
ENERGY MANAGEMENT
MOBILE APPLICATIONS
SERVICE BUS
DIGITAL PAYMENTS
HIGH-SPEED INTERNET
GUESTROOM TECHNOLOGY
CRM
CLOUD SAAS
REPUTATION MANAGEMENT
DATA SECURITY
Welcome to The Hotel Yearbook 2017 – Technology. We are very proud to present,
ISBN 9782970089681
90000 >
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for the fourth year in a row, such an extensive compendium of insights and advice
HOTEL YEARBOOK 2017 contributed by a selection of the most thoughtful and respected opinion leaders in
Special Edition on TECHNOLOGY
www.hotel-yearbook.com this dynamic part of the hotel industry.
ISBN 978-2-9700896-8-1
In this publication, you will find more than 30 articles, each addressing a rapidly
evolving element of the hospitality technology landscape. If you are involved in
integrating technology into your company’s operations, you will not want to miss the
CO-PUBLISHER and EDITOR-IN-CHIEF
Woody Wade,
chance to read what this knowledgeable group of experts has to say. Their articles are
Wade & Company SA not only insightful, but practical and actionable.
CH-1091 Grandvaux, Switzerland
E-mail: wade@11changes.com
www.11changes.com This year, for the first time, we invited a senior executive from the hotel industry to
take on the role of Guest Editor-in-Chief. Floor Bleeker is the Chief Information Officer
CO-PUBLISHER and MANAGING EDITOR
Henri Roelings,
for Mövenpick Hotels and Resorts, based in Dubai. Thanks to his hands-on experience
Hsyndicate, as a technology executive, with an insider’s understanding of the industry’s tech
Maastricht, The Netherlands challenges, he was able to assemble a stellar group of authors to address the various
E-mail: henri@hsyndicate.org
www.hsyndicate.org aspects of how the tech landscape is changing. We’d like to thank Floor for his energy
and ideas, and for the terrific results he achieved!
PUBLICATION PARTNER
Hospitality Financial and Technology
Professionals (HFTP) Last year, in our 2016 edition, we highlighted a handful of interesting new tech
start-ups. This year we are carrying on this tradition, but we have done so in a more
ACADEMIC PARTNERS
ESSEC Business School structured way: We approached two organizations that support promising start-ups
Emirates Academy of Hospitality in the hospitality arena, and asked them to choose some of their interesting tech-
Management
based “babies” to profile. METRO Accelerator, powered by Techstars, is a mentorship
program for tech start-ups across the entire hospitality value chain. And at Les Roches
International School of Hospitality Management, the “Made in Les Roches” program
showcases alumni start-ups in the hospitality space. These two organizations each
proposed a selection of young companies applying their entrepreneurial talent and
energy to pursuing a fascinating range of different tech solutions addressing all kinds
of hospitality challenges, and we’d like to thank them for sharing them with us. You
will find the profiles of these start-ups beginning on page 54.
DESIGN AND ART DIRECTION
Guus Vrencken, The Hotel Yearbook could not even exist without the continuing support of two
extralarge | visual communication, other organizations, the Hospitality Financial and Technology Professionals (HFTP)
www.extralarge.nl
and Hsyndicate. Together, they help assure excellence in our content, and wide
ORDERS distribution of the finished publication. We’d like to thank them both very sincerely for
Copies of this publication may be ordered
their generous help and always useful advice.
online at www.hotel-yearbook.com
Price €19.50 per copy.
For now, we wish you a fascinating read, as you delve into the many technology
REPRODUCTION
Reproduction of excerpts from this publication is
challenges – and solutions – described in this year’s edition!
permitted under the condition that both the author’s
name and “The Hotel Yearbook 2017 - Technology”
Yours,
are cited.
fl
HOTEL Yearbook
FORESIGHT AND INNOVATION IN THE GLOBAL HOTEL INDUSTRY
2017 SAAS
SPECIAL
EDITION ON TECHNOLOGY
PMS
Table of contents
BIG DATA
MACHINE LEARNING
GRM SECURITY
VIRTUAL REALITY
CHANNEL MANAGEMENT
TECH ROI
SOCIAL MEDIA
INTERNET BOOKING ENGINES
REVENUE MANAGEMENT NFC
DIGITAL STRATEGY
VENTURE CAPITAL
STARTUPS WEARABLES
ENERGY MANAGEMENT
MOBILE APPLICATIONS
SERVICE BUS
DIGITAL PAYMENTS
HIGH-SPEED INTERNET
GUESTROOM TECHNOLOGY
CRM
CLOUD SAAS
REPUTATION MANAGEMENT
DATA SECURITY
BEACON & PROXIMITY TECHNOLOGY
GUEST WIFI
INTERNET OF THINGS PRIVACY
IoT DEVICES
HOTEL OF THE FUTURE
CEO VIEW OF TECHNOLOGY
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WOODY WADE
WELCOME HENRI ROELINGS 5 Welcome
DISRUPTION TAMMY FARLEY 10 Big data and big trends mean big opportunity
for revenue managers in 2017
SUNDAR
THE CLOUD SWAMINATHAN 14 Cloud-driven leadership:
& PETER AGEL 5 mandates to grow market share
PAYMENT SYSTEMS DIEDERIK VAN GOOL 24 Customer-centric hotel payments: Are you missing
an opportunity to get more direct bookings?
MOBILE ACCESS MARKUS BOBERG 26 Taking the guest experience to the next level
with mobile access
IOT AND SECURITY ALEXANDER DÖRSAM 34 Why hack a thermostat in a hotel room?
REVENUE OPTIMIZATION SHERRY MAREK 40 Total hotel revenue management? Scratch that!
Call it revenue optimization!
ANALYTICS PAUL VAN MEERENDONK 46 Ride the wave: The analytics tsunami is upon us
SPECIAL
EDITION ON TECHNOLOGY
PMS
Table of contents
BIG DATA
MACHINE LEARNING
GRM SECURITY
VIRTUAL REALITY
CHANNEL MANAGEMENT
TECH ROI
SOCIAL MEDIA
INTERNET BOOKING ENGINES
REVENUE MANAGEMENT NFC
DIGITAL STRATEGY
VENTURE CAPITAL
STARTUPS WEARABLES
ENERGY MANAGEMENT
MOBILE APPLICATIONS
SERVICE BUS
DIGITAL PAYMENTS
HIGH-SPEED INTERNET
GUESTROOM TECHNOLOGY
CRM
CLOUD SAAS
REPUTATION MANAGEMENT
DATA SECURITY
BEACON & PROXIMITY TECHNOLOGY
GUEST WIFI
INTERNET OF THINGS PRIVACY
IoT DEVICES
HOTEL OF THE FUTURE
CEO VIEW OF TECHNOLOGY
ISBN 9782970089681
90000 >
www.hotel-yearbook.com
This e-publication may be ordered online | € 19.50
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Jagger
bluep th
® ® ®
START-UPS tsenso
resment
MONITORING
simplicity for SOLUTIONS
everyone
58 Hospitality TECH Startups
TM
GUEST VALUE PIERRE BOETTNER 70 Guest value: the limiting factor to digitization in
hospitality
THE EVOLVING PBX DAVID MAAYANI 72 The end of the PBX as we know it
VISUAL CONTENT GUY TRIGALLEZ 78 Realistic visions on the virtual world of hospitality
INNOVATION HUB SANJAY NADKARNI 84 Innovation Hub @ EAHM: Bringing research and
educational benefits to hospitality stakeholders
TECHNOLOGY DRIVING M&A PRAKASH SHUKLA 94 Hospitality industry expansion is being fueled
by alternatives
HOTEL OF THE FUTURE JAMES LAW 96 Envisaging the hotel of the future
Open platform
Pineapplesearch.com is an open platform ready for
content submissions by all industry stakeholders.
Non profit
Pineapplesearch.com is operated by Hospitality
Financial and Technology Professionals (HFTP),
a global professional association in the world of
hospitality.
Every article in this edition has a special connection to me. Hospitality Technology Next Generation (HTNG) has always
There are authors I have worked with, writers who taught and played an important role in our industry and my career in
mentored me, as well as a lot of old industry friends. particular. I am very pleased that we have both the first and the
current President featured in the Yearbook to address the future
I attended the Hotel School in The Hague, and my first real of HTNG and innovation in our industry.
job as a young graduate was at The Emirates Academy of
Hospitality Management in Dubai. Both institutions have This edition of the Hotel Yearbook wouldn’t be complete
provided thought leadership articles for this book, along with without a vision for the future and we have plenty of that, too.
some of my mentors that have supported me throughout my We discuss how virtual reality will impact our industry, what
career. the future of hotel architecture has in store, and how Hostech
startups are moving the industry forward.
During my time at Jumeirah Group I was fortunate to work
with some of the most innovative executives in our industry, Lastly, at Mövenpick we are currently going through a large
and quite a few of them became C-level executives of some of transformation process with many technology-led changes.
the world’s leading hotel groups. Bill Walshe, now the CEO of Good communications is often the difference between success
Viceroy, was one of the first sales and marketing executives to and failure of those transformational IT projects, and we have
recognize the commercial value of IT for example, and he shares articles from the specialists that helped us successfully navigate
his vision in this book. this change and communications process.
I have also learned to appreciate the value of governance, I would like to thank every contributor for creating a fantastic
and you will find articles written by some of the top security edition of the Hotel Yearbook.
specialists and IT specialized lawyers, and my favorite asset
manager, in this edition as well. They are known to give heads of I hope you enjoy reading it as much as I did putting it together!
www.hotel-yearbook.com 7
VIEW FROM THE TOP
A CEO’s perspective on
technology
by Bill Walshe i
Are we optimally realizing the role technology can play in revenue generation yet? As we apply technological solutions
to many of our challenges in the hotel industry, how can we be sure that we won’t discount safety in favor of innovation?
Given its widening role, where does IT optimally fit in the organizational chart of a hotel management company? And
when will the hotel business see its first CEO whose career was shaped as a manager with one of the leading technology
brands of our time? Bill Walshe, CEO of Viceroy Hotel Group, ponders these and other thought-provoking questions.
Let’s start with a bold statement of our times. Years ago, as a At Viceroy, our technology strategy has three core pillars:
Sales & Marketing guy, I never imagined myself having to think • Security
through the implications of technology in crafting a global • Facilitation
marketing campaign or closing a sale. Perhaps I was simply • Revenue generation
naïve. Fast forward to 2016, my paradigm has changed beyond Our guests and ownership groups sit at the heart of all three.
all recognition and I now find myself musing on the possibilities
of robotic colleagues, intuitive loyalty program management Guests entrust us with their data. Partners entrust us with their
driven by artificial intelligence, and how long it will be before assets. Our role as a management company is to advocate the
“Alexa” has a family. “unseen” importance of a secure infrastructure in delivering
safe and reliable guest technology. It saddens me to learn that
Advances in technology are changing every aspect of the in 2015, data held by hospitality firms was (in 98% of cases)
hospitality industry: how architects and developers plan and compromised within minutes (Verizon RISK team). The ability to
design incredible spaces, and how construction and core detect, react and be ready with a solid incident response plan is
infrastructure is deployed. Additionally, operational practices on critical to guest and colleague data and identity safety.
property are being redefined by continued innovation that will
radically change our approach to human resourcing and talent. How we prepare for, manage and maintain our networks,
Most importantly, our consumers’ expectations around how hardware and software solutions is a central obligation of our
they engage and transact are challenging the very core of how brand at a legal, compliance and human level. All colleagues
our industry delivers hospitality. The big question ahead of all must understand the importance of data protection and the
of us must be “How do we maintain technological investment disastrous implications of any breach in trust.
and delivery in lock-step with our guests, whose expectations
are driven by industries and brands born with agility and Technology’s role as a facilitator cannot be understated.
reinvention as a natural behavior?” Hospitality brands seek to achieve more with less, and
consequently they look to the benefits of increased automation,
improved connectivity across multiple platforms and systems
and solutions that simplify life for guests and colleagues alike.
www.hotel-yearbook.com 9
SPONSORED CONTENT: DISRUPTION
The hotel industry is far from a static one, and is heavily The impact of industry consolidation
influenced by a variety of factors, from cultural shifts in The staggering pace of hotel industry consolidation over the
consumer behavior to the constantly changing tides of the past year has left many hoteliers wondering what the long-
global economic markets. Current disruptive trends, including term effects will be on their markets and their properties.
the impact of industry consolidation stemming from high-profile However, this trend has also brought about many benefits and
mergers & acquisitions, the rise of alternative accommodation opportunities. In addition to helping traditional hotels maintain
options like Airbnb, and the growing importance of group a competitive edge compared to alternative accommodations,
revenue, are not only generating more data, but are making it has also helped to create economies of scale with suppliers,
interpretation of that data increasingly difficult. As the needle and provide a counterbalance to the large OTAs. However, these
gets smaller and the haystack through which revenue managers M&As do not come without their pitfalls.
must dig to find that needle gets larger, it is critical for revenue
managers to be able to pinpoint the big opportunities by Increased consolidation by large hotel chains has made them
effectively decoding the data that is being created by these even bigger and increased their clout in taking back their route
growing trends and shifts in the market. to market. This has caused the lines between all the key players
to be re-drawn, and tends to cut the smaller players out of the
As these radical changes continue to take hold and create a equation. For example, the erosion of rate parity due to the rise
ripple effect throughout the industry, data technology is also of loyalty rates from the large hotel brands, while a positive for
continuing to evolve and is becoming an even larger influence the large brands, does have negative effects on small and mid-
on the daily operations of hotels, allowing revenue managers sized hotel companies. These companies often don’t have the
to capture relevant data. Even so, a high level of diligence is infrastructure to support similar programs and offer loyalty rates
required in their data analysis in order to make the best, most to their repeat guests. While consolidation may serve to balance
informed decisions that ensure continued success. Looking power between the OTAs and the big brands, small and mid-size
to 2017, we explore some of the more significant and current hotel companies, as well as independents, can get lost in the
disruptive trends, and what savvy revenue managers will mix and have a hard time regaining their footing in the market.
need to be taking from, and doing with, the big data they are
gathering about each segment of their market, in order to make As the consolidation trend continues to intensify moving
it actionable. into 2017, savvy hotels will be the nimblest in navigating the
changing market landscapes, using smart data to outperform
www.hotel-yearbook.com 11
SPONSORED CONTENT: DISRUPTION
An additional $30 billion goes towards food and beverage and What’s next?
another $10 billion on venue space. This is a huge earning During 2017 and beyond, it will continue to be critical for hotel
potential for properties that can accommodate this segment, revenue managers to stay ahead of big trends and big data
and hoteliers need to respond quickly in order to increase their in order to take advantage of the big opportunities that come
chances of winning the business. Smart revenue managers can from both. Current and future hotel industry consolidation, the
go beyond traditional and often suboptimal Minimum Available rising popularity of alternative accommodations and advancing
Rate (MAR) strategies, using analytics to quickly figure out how technology in the group business sector will all continue to
to address the needs laid out in a group RFP, and calculate the impact the hospitality industry in varying ways, but the big
optimal price where profitability will be maximized. data that comes with it has the potential to ensure each hotel’s
continued success.
Revenue managers are receiving more group RFPs than ever
before, due to advanced technology that makes it easier to issue At the very least, big data will continue to serve in helping
them. Unfortunately, the tools and methodologies in place for revenue managers drive the best business through the right
responding to these RFPs has not continuously advanced along channel at the right time and for the most optimal rate. In
with that technology, causing revenue managers to become the year to come, big data is poised to become less of an
the bottleneck in the process of sending responses. This can uncharted territory and will become easier to navigate, helping
be costly to hotels, since a large majority of group RFP’s are revenue managers to decipher and truly understand market
awarded to first responders. Today, big data is helping to bridge and competitor trends, and changing guest behavior. This
that gap. data can pave the way for revenue managers and hoteliers to
more clearly understand shifting market landscapes, pinpoint
Making use of innovative data sources, like lead-scoring (e.g. demand in varying locations, decipher the impact from new and
from cvent), helps to prioritize RFPs and streamline the sales recurring disruptors, and effectively bridge the gap between the
and group revenue management processes. Group pricing various processes that allow hotels to run successfully.
analytics can cut through what has traditionally been a large ■
workload for revenue managers in seconds. This allows revenue
managers to more quickly figure out an appropriate pricing
strategy that will maximize revenue from the group, so response
times on RFPs can be minimized and the proposed services
more pinpointed to the group’s needs.
uu www.LetItRain.com
Master your data. Refine revenue, sales and Maximize revenues with powerful
marketing strategies and identify new competitive market insights that lead to
opportunities with actionable data-driven insights. better, faster pricing decisions.
SPONSORED CONTENT: THE CLOUD
Cloud-driven leadership:
5 mandates to grow market share
by Sundar Swaminathan i & Dr. Peter Agel i
Hotel technology is not about the nuts and bolts; it’s about finding ways to apply the nuts and bolts to enhancing guest ex-
periences, improving efficiency and motivating staff. Oracle Hospitality’s Sundar Swaminathan and Dr. Peter Agel share some
wide-ranging ideas for exploiting the cloud to its fullest.
Do you know your guests really? Unlike conventional software models that require the significant
capital expense of purchasing licenses, cloud is sold as a
For hoteliers, it is a seemingly simple question but one that service, enabling clients to buy as little or as much computing
requires a significant amount of knowledge to answer well: their resources as needed. Available on demand and broadly
likes and dislikes, wants and needs, preferences and aversions. accessible through client platforms, including mobile devices
and workstations, cloud instantly delivers the latest capabilities
Just as importantly, can you recognize them when they walk to help hoteliers tackle a host of challenges.
into your lobby?
Perhaps, most importantly, cloud enables properties to “stop on
If these queries are followed by silence, stop and take note: a dime” and change direction to stay in line with shifting market
Delivering such individualized service in ever-escalating degrees demands. In fact, an Oracle-sponsored study (Cloud Computing
is what will drive the industry in the years ahead. And to achieve Comes of Age) conducted by Harvard Business Review Analytic
it, hotel management will need to demonstrate bold leadership Services validated that point: 64% of global business and
inspired and buttressed by information technology. technology leaders surveyed said using cloud increased
their business agility. Furthermore, the study showed that
Specifically, cloud-based solutions will play an integral role “cloud leaders” – who embraced a more managed, enterprise
because it’s the best means to address the industry’s divergent approach to cloud – capitalized on their newfound agility, with
mandates – operate efficiently at scale yet simultaneously 72% launching new products and 62% expanding into new
provide personalized service for each guest. Cloud technology market segments.
can do both because of its speed, flexibility and affordability. For
those who might worry that an even greater reliance on IT will Going forward, wielding cloud to address the following top
erode the human element of hospitality, fear not. By moving to priorities will redefine hotel leadership:
the cloud and resolving IT challenges “above property,” hoteliers
and their staff can actually elevate engagement with guests – Accelerate innovation
and deliver the exceptional experiences they’ll cherish. It’s been repeated ad nauseam that one of the key challenges
facing hoteliers is the need to reduce IT cost and complexity. But
the worst consequence of failure often goes unsaid: Unmanaged
IT kills innovation.
money and manpower for maintenance and support. Indeed, To make matters worse, hotels often aren’t truly connected,
industry experts say the on-premise model is unsustainable, disenfranchising guests – especially Millennials – from on-
considering that 75% of expenses are typically drained by demand Web service that they expect to receive everywhere.
routine maintenance and integration efforts, leaving only
25% available for actual innovation. Such conclusions were Hoteliers must understand that they’re operating in an Era
corroborated by the HBR study’s findings, too, which included of Individualization. In a major Oracle study that recently
52% of cloud leaders reporting that the technology has freed surveyed 300, C-level executives from various North American
up their IT organization to focus on more strategic issues. industries, 84% said their organization has witnessed
customers wanting a more individualized experience. But fewer
Adopting cloud is all about accelerating innovation. Simply than 20% gave their organization an “A” in its ability to offer
put, conventional software is updated infrequently because highly individualized customer or employee experiences. Cloud
deployment to individual, on-premise servers is costly and remedies that weakness and enables hoteliers to:
time-consuming. That’s why implementing new capabilities
seemingly takes forever. But cloud data centers incorporate • Provide staff real-time access to rich profiles of each guest,
advancements routinely, making them quickly and easily detailing preferences, stay history and consumption patterns
accessible to clients. Empowered by cloud’s centralized • Deliver a connected experience, making the entire
control and operational efficiencies, hoteliers can accelerate property a borderless environment and enabling guests
innovation across the board: for example, faster introduction of to be recognized, whether they’re enjoying the hotel or its
new services at locations, better management of distribution restaurants and shops.
channels, speedier delivery of targeted promotions and • Equip staff with mobile devices and applications, untethering
enhanced guest experiences. them to cater to guests wherever and whenever needed.
www.hotel-yearbook.com 15
SPONSORED CONTENT: THE CLOUD
France, Germany, Mexico, Japan, United Kingdom and United Such communication is the key to improving collaboration and
States. More than one third (36%) of Millennials who had worked productivity. For hotels with restaurants, cloud can orchestrate
in the industry in the past five years said their employers’ use operations – from the back office to the kitchen to the dining
of technology was lacking. What’s worse, only 15% said their room – and improve efficiency of tasks such as inventory and
employers sought their suggestions for better using technology labor management, meal preparation and order processing.
to improve service.
Optimize distribution
Millennials, like all workers, want to make meaningful Distribution is a varied and complex challenge, but such
contributions, and empowering them with cloud and mobile difficulties can’t be excuses for underperforming in this vital
platforms provide them the means to that end. It’s important arena. A hotel’s success, if not survival, depends on mastering it.
to boost morale by reducing training time and encourage
engagement with intuitive, easy-to-use displays that yield Trying to analyze voluminous amounts of data for rate
improved operations, from service delivery to reporting to self- management or juggling partnerships with third-party
managed tasks (i.e. shift scheduling). intermediaries almost guarantees paralysis. Both scenarios
underscore the importance of using cloud technology that can
Lower operating costs effectively share data with “best-in-breed” channel and revenue
With the ability to address so many facets of the business, management providers, enabling them to tackle their respective
cloud solutions hold the potential to become the single, most- specialties and maximize your presence in the marketplace.
important driver in reducing operating costs. That’s critical In the case of revenue management, cloud continuously
because it goes hand-in-hand with boosting productivity, sends historical rates and occupancy data as well as current
improving efficiency and minimizing waste. information to revenue partners, providing the best information
to optimize rates.
With cloud, the need for on-premise servers at every location
is eliminated. The implications of that change are enormous: On the direct booking front, cloud enables hoteliers to fully
Downtime configuring servers at various properties and integrate online efforts with their PMS. Achieving seamless
dispatching costly contractors become issues of the past. operations means customers booking directly can access room
Productivity is bolstered because operational failures are availability in real time and up-to-date information about
virtually nonexistent. (Applications, servers and storage are various hotel initiatives. Remember: The guest experience
all managed and monitored 24 hours a day, 7 days a week begins on your website. Delivering accurate information
and 365 days a year in the cloud.) And new functionality strengthens relationships, bolsters the brand and maximizes
can be activated at multiple sites simultaneously, meaning bookings.
innovations can be introduced faster. For example, cloud-
based property management systems (PMS) can mobilize They’re all part of the results cloud and innovative leadership
front-desk, housekeeping and maintenance staff with devices can reap.
that provide real-time access to hotel and guest information. ■
uu www.oracle.com
Property Management
Point of Sale
Distribution
MICROS + Oracle
Complete. Mobile. Secure.
oracle.com/hospitality
or email oraclehosp_ww@oracle.com
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. Oracle and Java are registered trademarks of Oracle and/or its affiliates.
THE CLOUD: LEGAL ISSUES
Cloud computing
agreements: Five things
to look out for
by Joby Beretta i
In the Hotel Yearbook 2016, several contributors predicted the use of cloud computing shifting to the mainstream. Some
of the benefits highlighted were reduced cost and increased flexibility, accessibility, updating, security and guest service.
Now Joby Beretta of UAE-based The Bench offers some practical guidelines to consider when making this move.
Before jumping into the cloud, you should be aware of the other group hotels. You should also review your guest-facing
associated legal issues. The precise legal risks depend on terms and conditions to ensure they cover the proposed
a number of factors including the type of cloud (e.g. public, solution, and pay particular attention to the use of any sensitive
private, hybrid), service (e.g. Saas, PaaS), solution (e.g. PMS, data (e.g. medical history obtained at gyms, spas etc.)
CRM), type of data (e.g. guest, employee) and the country (e.g.
the location of your hotel and your supplier’s IT systems). 2. Data security
With the increased accessibility of cloud technology, enabling
The following are the top five legal issues that I suggest are users to access the data potentially from anywhere in the
considered before implementing a cloud-based solution. world, also come increased data security concerns. If there is
a data security breach and guest or credit card information
1. Keep an eye on your data! is hacked into, misused or disclosed, the relevant regulator
When hotel guest data is stored on-site, compliance with will be knocking on your door – and it is your brand that will
data protection laws is relatively simple. However, with the be impacted. Just this year a number of major hotel chains,
transition to cloud solutions, in order to ensure compliance including Trump Hotels Collection, were reportedly affected by
you need to know exactly where your supplier is intending to data breaches relating to credit card information. Cloud systems
store, transfer and provide access to the data. In many countries relating to POS and others holding credit card information are
(especially in Europe), there are fairly onerous data protection particularly at risk.
laws preventing the transfer of data outside of the jurisdiction
without the guests’ consent and/or without the assurance that Although the supplier should have more up-to-date technology
the data is going to a country with adequate levels of protection. than many hotel systems, you should still carry out due
diligence on their systems, processes and disaster recovery
I therefore recommend obtaining sufficient information on plans and include adequate contractual protection (e.g. PCI DSS
the supplier’s system architecture and seeking contractual compliance etc.) in this regard.
protection that the supplier will comply with all applicable data
protection laws. You cannot however pass all responsibility 3. Service levels and service credits
onto the supplier. You will also need adequate internal data When transitioning to the cloud, it is essential to understand
protection policies to ensure that you are complying with the the level of service you will receive. This includes the service
relevant laws when accessing or sharing guest data, e.g. with description and service level but should also deal with planned
uu www.thebenchlaw.com
maintenance and what happens if the system goes down. Don’t 5. Termination
expect the supplier’s standard form agreement to be generous You should also consider what happens if it all goes wrong.
in terms of service credits for failure to meet the service levels Firstly, if there is a breach from your side (such as a delay
or unplanned downtime. Generally, the supplier will want these in payment), should the supplier have the right to suspend
capped at a percentage of the fees, and normally they will be or terminate the service? If these are revenue-generating
expressed as the exclusive remedy for breach of the service cloud solutions, then you would want to argue “No”, but at a
levels. minimum, you should be provided the opportunity to remedy
the breach. On the flip side, you need to be comfortable with
This may or may not be appropriate depending on the your rights to terminate for the supplier’s breach and similar
circumstances, and I suggest the supplier’s standard template scenarios so you are not locked in with an underperforming
should be challenged and amended as necessary. supplier. You also need adequate provisions dealing with what
happens upon termination, e.g. transfer of data from the cloud
4. Limitation of liability solution back to you or an alternative supplier (in a suitable
Many cloud solution suppliers (especially SaaS) take a very strict format).
line on the types of liability they will accept, so carefully review
(and challenge where necessary) the list of exclusions (e.g. loss Finally, before signing any cloud agreement, I would strongly
of data, revenue, etc.) and the proposed liability caps. Pay suggest you run it past a good technology lawyer!
particular attention to whether key warranties and indemnities ■
(especially IP) fall within these caps.
www.hotel-yearbook.com 19
HOTEL OS - SERVICE BUS ARCHITECTURE
Introducing the Hotel Operating System, or Hotel OS. Coined here by citizenM’s Nick Price, this cloud-based concept supersedes
the old notions of a service bus, moving the PMS to the periphery as it provides the basis for consolidating fundamental
information across dissimilar source systems. In short: an integrated, well-oiled machine. Dream or reality?
Let’s start with a clear statement. I’m not talking here about your
father’s enterprise service bus (ESB), born in the 1990’s and used
sporadically in large enterprise deployments, most commonly
in the telco and financial services industries – Tibco, Neuron
and many others being product examples. These guys were the
cutting edge and took many of the knocks for the rest of us while
we sat back, watched, waited, and learned from their experience.
No, here I’m taking about a newer generation of capability most
commonly found in public cloud technology stacks, and used
for communicating between applications or modules within an
application. Microsoft, Oracle, IBM, Google – service buses are
everywhere today and becoming mainstream.
Channel Manager
CLOUD HOTEL
PMS YIELD
YIELD HVAC
D
LOCK
ROOM
A CONTROLS
S LIGHTS
H
B HOTEL OS
BLINDS
O
A
TV/VOD
R
D
S
KIOSK
CRM & EMAIL MEETINGS FINANCE VOIP KEY
brand.com
LOYALTY COMMS MGMT ?
GL
PAYMENT POS
PABX MGMT
and deployment architectures – we now see XML replaced by A bus makes sense if you want to correlate events happening in
JSON, SOAP replaced by REST API’s, and applications are now different (micro)services. Keep these events in-memory, make
finally being constructed in SOA terms – as services, loosely them visible for real-time monitoring and analytics.
coupled and coordinated via messaging. In this large-scale SOA
world, service bus is again a legitimate, highly desirable, and in So, that’s what a service bus is and what it does and its history.
fact necessary, part of the modern application dev/ops toolset. But how does this in any way relate to hospitality?
In its very simplest form, a modern ESB consists of a collection The answer is that service bus and a micro-service architecture is
of queues managed by a coordinating service that provides a valuable strategic weapon for hospitality companies.
publish and subscribe event messaging semantics to connected
applications or services, and they are delivered as low-level For many years, the PMS has been the legitimate center of hoteliers’
functionality within a cloud application stack forming the systems universe. It sits at the epicenter of the systems architecture
service-based abstraction layer between applications or acting as the hub of on-property communication, and over time
application components. But in that stack, and above the service has become the system of revenue recognition for pretty much
bus, we also have a rich development environment in which to everything that goes on in a hotel. It’s the metaphorical kitchen
develop and host modern application services, and this is where sink of assumed functionality and responsibility, and to many of us
the value of a modern ESB really starts to become apparent. it has become a monster that we long to get rid of, but believe we
can’t. We feel powerless, locked in, and helpless, a slave to the PMS
When you hear “ESB” today, you should think of a flexible, machine. But wait... perhaps we can in fact do something? Not all
distributed, scalable infrastructure, where you can build, deploy, at once, but maybe a little at a time, by peeling back the layers of
and monitor any kind of (micro)services in an agile and efficient poorly thought through functionality or poor implementation, to
way. Development and deployment can be done on-premise, in arrive at a place where the PMS does only those things that it was
the cloud, or a mixture of both. Think about that for a second: intended for in the first place: mostly room inventory, availability,
a single distributed infrastructure that can span cloud and on- pricing, sales and distribution, reservation, check-in/out, room
premise, and do so at hyper scale. That’s perfect for our industry, allocation, and settlement.
isn’t it? Even more so, when the same technology stack can
be procured as OPEX rather that the familiar CAPEX enterprise But what about all that other functionality: What do we do
license model of the past. about that? We reimplement in smaller, simpler, more modern
applications better suited to the task. In place of one big PMS,
Let’s round out the definitions and move on. A modern ESB is we might think of a core rooms-focused PMS and five or ten
built for: integration, orchestration, routing, (some kinds of) additional applications, probably located above-property in the
event processing / correlation / business activity monitoring. cloud, and most likely contracted on a SaaS OPEX basis. ↓
www.hotel-yearbook.com 21
HOTEL OS - SERVICE BUS ARCHITECTURE
Peeling back the layers of PMS functionality is a liberation. It’s the systems perhaps, or a unified reservation record.
start of a process of de-emphasizing the role of PMS, something • And because it is built on a modern public cloud infrastructure
that I have been arguing for a long time is both overdue and that is being continually updated, Hotel OS brings with it
extremely necessary if we, the technology providers to our modern reporting and business intelligence tools that are not
hotelier colleagues, are to provide a responsive, agile, and some add-ons, but a fundamental and aligned part of the core
capable technology infrastructure aligned with the reality of the technology stack.
mobile first, cloud first world in which we now live. • And lastly, the more systems that are connected to, and
communicate over, the Hotel OS bus, the more derived value
So, if we de-emphasise the PMS, moving it to the periphery of can be realized. When all systems participating in a business
our hospitality systems architecture, reducing its functionality, process (think check-in, check-out, web reservation, etc.)
what takes its place? What now forms the hub of our architecture, communicate over the bus, an opportunity arises where we
taking on the integration role? The answer is obviously service can correlate events to visualize and map the processes in real
bus and the micro-services above it, comprising something that time, providing an opportunity to take immediate and possibly
the tech industry might call a middleware. But regardless of the automatic corrective action – the dream of any hotelier.
name, it’s a functionality that is much better suited to the task at
hand today than anything that we have had available to us before. In conclusion, I say that It’s time to move on from the world where
the front desk asks the multi-repeat customer whether he/she
So, let’s come up with a better name than service bus or has ever stayed at the hotel before, responding when told, “Yes”
middleware for this new non-PMS-centric architecture. For want with an enthusiastic, “Well, welcome back!”, and I think it’s clear
of a better term, I contribute to the lexicon, hotel operating to all of us that this acceptance of failure is just not good enough
system, or simply Hotel OS. anymore – if it ever was.
With this Hotel OS, and at its core, the global-scale service The somber reality though is that guest interactions like this
bus and middleware technology hosted by public cloud, we are an everyday example of hospitality technology failure, all
can start our journey towards a global enterprise hospitality too frequent, and at hotels worldwide. We can further extend
system comprised of loosely coupled applications from multiple the everyday customer expectation misses to room technology;
suppliers. Hotel OS is not a one-to-one replacement of what we issues such as air conditioning malfunctions, or low water
had before, and it’s not a fantasy either. It’s real, in use, and there pressure, or lights or door locks not working. The list is endless,
are not surprisingly a number significant advantages over the and these are all very common issues, so let’s fix these irritants
previous PMS-centric model: before the guest ever finds them. The room connected to Hotel
OS can place rooms in a non-saleable condition and even
• Being both native cloud and on-premise, Hotel OS allows for automatically dispatch a maintenance engineer, the room
optimum placement of system components to suit the need, automatically returning to sale when the problem is fixed. The
and this choice of placement can even be different between only things standing in our way here are complacency and
hotels without changing or breaking the architecture. acceptance of failure. It’s not technology’s fault any more. Now
• Hotel OS abstracts the specifics of any one system, so multiple we must do something about it, and the Hotel OS is a good place
similar systems can be used across the enterprise. Think to start.
multiple payment, multiple POS, even multiple PMS. ■
• Hotel OS provides the basis for consolidation of fundamental
information across dissimilar source systems – a unified
customer record across multiple customer profile and loyalty
Nick Price is the founder of NetSys Technology, a software development and technology consulting company focusing
on the hospitality and travel sectors. As part of his portfolio of responsibilities, Nick also holds the post of CIO at
citizenM, a happening Amsterdam-based hotel company with global aspirations. Nick has worked with citizenM
since early 2013 and is responsible for a large and growing set of digital technologies, including traditional IT. Prior
to starting NetSys, Nick held the CIO post at global luxury hotel brand Mandarin Oriental for twelve years, where he
participated in a significant global expansion of the company from its base in Hong Kong. Nick is an inductee in the
HFTP (Hospitality Financial and Technology Professionals) Hall of Fame and a co-founder and past-president of HTNG
(Hotel Technology Next Generation).
Customer-centric hotel
payments: Are you missing
an opportunity to get more
direct bookings?
by Diederik Van Gool i
As hotel brands desire to grow direct bookings and additional ancillary revenue streams to get ahead of others in the race,
their next big challenge is to offer a customer-centric travel service that supports guests throughout their journey – from inspi-
ration, booking and payment, to transfers, check-in, stay and departure. As Worldpay’s Diederik Van Gool explains, embedding
a customer-centric payment eco-system can be a key enabler for this vision.
A service that generates more direct bookings, manages complexity around taking payments
itinerary changes, offers ancilliary services, facilitates check-out and forwarding funds to individual
and takes payment seamlessly sounds ideal, doesn’t it? There’s properties and third parties. But it’s
only one catch. not that complicated.
What should be technically easy to implement is almost So what are those critical areas in
impossible due to the property-by-property payment model your payment set-up to get more
that exists in the hotel industry today. Payment information is direct bookings and ancillary sales?
currently captured during the booking process and forwarded
to each individual property, which in turn has its own acquiring 1. Become the “merchant of record”:
agreement to process payments. This is a core requirement to become a true hotel “e-retailer”.
Taking payments for bookings means taking on more
The hotel industry has to shift to a model where payments responsibilities such as contracting with an acquiring bank,
are managed centrally to increase revenue opportunity while managing the payment process, funding the associated costs,
improving the booking experience for guests. This is the only organizing the onward flow of funds, keeping fraud low and
way that ancillary services can be offered centrally without the taking care of chargebacks. It might sound overwhelming,
need for a “many suppliers to many properties” relationship. but every travel agent in the world has mastered these basic
It would also enable pre-payment rates to be processed requirements – and they do it to make a profit!
immediately and centrally, without the need to forward
payment information in a PCI compliant manner. 2. Offer an amazing payment experience:
Conversion is everything. The key challenge is to create a seamless
Many hotel chains have shied away from converting their omni-channel customer experience across all guests’ payment
brand website into a true transacting platform on par with touchpoints. This is a lot easier if it is done centrally, for all your
online travel agents. One of the main reasons is the percieved properties. Optimize the look and feel of the payment screen with
uu www.worldpay.com
adaptive payment pages, store payment details of frequent guests 5. Control the payment flow:
and enable one-click, invisible payments. Detailed payment reports can help match bookings with
payment transactions to reconcile your accounts. Being in full
3. Customize your payment method mix: control of when and what is paid to whom gives you the ability
Offer the payment methods your customers want to pay to deduct any agreed commission fees at source.
with, and the currencies your customers understand, to win a
higher share of wallet in countries where credit cards are not 6. Pay your individual properties:
commonplace. How can you forward revenue from holding accounts to
individual properties and third parties? There are several
While cards are still predominantly used in the travel sector, options. Using costly and time-consuming international bank
alternatives like Sofort, Ideal, PayPal or Alipay are becoming transfers is probably the least preferred. Using a global transfer
increasingly important. Research done by Worldpay demonstrates system which is funded centrally (in multiple currencies directly
that Alternative Payment Methods (APMs) will form the majority from your online sales) and converts international transactions
(59%) of all online payments on a global level by 2017. into local bank transfers is a lot faster, and more cost-effective.
This can be complemented by virtual credit card systems for
4. Manage fraud and chargebacks: pay-outs via “one-time” credit card numbers.
Fraud will always be a cost in business, but if managed well
it can be controlled. Use fraud management tools that can Choosing a customer-centric set-up for your payments eco-
be customized for the travel sector and fine-tuned to match system is the first step to more direct bookings and ancillary
your company’s exact needs. Automated chargeback tools revenue. This can be easily achieved with a complete and
combined with a strong chargeback services team from your integrated payment service: from taking payments, managing
acquiring bank can minimize the administrative overhead that stored credit cards and fraud prevention to chargeback
you will require internally. processing and managing funds and pay-outs to properties in
local currency.
■
www.hotel-yearbook.com 25
SPONSORED CONTENT: MOBILE ACCESS
Providing guests with the ability to unlock guestroom doors using personal smart devices is no longer just a futuristic concept or
non-essential amenity. With record numbers of hotels around the globe now adopting digital key solutions in order to streamline
operations and better serve the increasingly tech-savvy, mobile-oriented generation of guests, mobile access solutions are going
mainstream. As Markus Boberg of ASSA ABLOY Hospitality explains, growing demands for instant service have spurred hoteliers
to seek out platforms that minimize wait times and inconvenience. With continuing advancements in mobile access innovation,
more and more hospitality professionals are finding that they too are able to benefit from a solution that takes personal budgets
and needs into account, while allowing them to tap into today’s increasingly mobile lifestyles in a way that maximizes guest
satisfaction without jeopardizing security.
The explosion that has been the influence of mobile technology extend this outlook to the very moment that they first interact with
on countless global industries has also made itself apparent a hotel, with the simple download of a mobile access app. Once
within the hospitality market, with a seemingly endless array of a guest initiates a request to use the solution, an effective mobile
solutions being churned out on a yearly basis. But while each access platform will automatically assume all necessary tasks such as
may aim to provide hoteliers with a way of catching up with check-in, guestroom allocation and digital key distribution. For weary
increasingly technology-laden guests, as with any product, only travelers seeking to bypass tiresome inconveniences upon arrival,
those designed to meet a legitimate need can ever hope to the ability to leverage mobile access’ benefits proves increasingly to
provide a return on investment. By focusing on providing guests be a game-changing factor in the booking decision process. In fact,
with a tool that allows them to use smart devices as electronic studies indicate that a remarkable 73 percent of travelers would
guestroom keys, mobile access technology consequently prefer to use mobile access if given the option. Such numbers are
stands apart in its ability to answer longstanding demands undoubtedly having an impact on the buying decisions of hoteliers,
for a streamlined and hassle free hotel check-in experience; with a recent Hospitality Technology report revealing digital key
one that, thanks to society’s growing emphasis on the value of platforms as being among the top nine investments for 2016.
time, is measured more by speed of service, rather than level
of human interaction. When initially unveiled, mobile access Yet as with any solution involving guestroom access, security is
understandably may have been viewed by some as an exotic, understandably a concern due to the liability that it may incur.
eye-catching amenity designed to provide cosmetic value. But Here again, hoteliers will find that industry-renowned platforms
with the capacity to free guests from front desk lines and instead go to great lengths to implement cutting edge technology that
allow them to go directly to their rooms the very moment that does not just maintain a property’s pre-existing level of security;
they arrive, mobile access technology has proven to be invaluable it may actually aid in enhancing it. Any mobile access solution
to the skyrocketing number of properties that have since worthy of consideration will leverage the latest in encryption
implemented it around the world. innovation to guarantee that any transmitted data is fully
protected at all times. A reputable solution will, for instance, be
Based on a BLE and NFC framework, mobile access solutions able to encode all information sent to a guest’s smart device such
crucially rely on technology that is already present on the vast as room number details and the digital key itself. From there, it
majority of smartphones and personal devices available to should also be able to offer continued protection by ensuring
consumers. With this advantage, the mission of mobile access from data placed on a smart device remains securely stored within
the start is one of providing guests with ease of use and accessibility. the app; once presented to a respective lock, the app safeguards
Widely considering their smart devices to be indispensable tools that against any transmitted data falling into unauthorized hands.
facilitate daily activities and tasks, today’s guests can now effortlessly
uu www.assaabloyhospitality.com
www.hotel-yearbook.com 27
THE IT TEAM
So much more
than “fixers”
by Brenda O’Neil i
One of the most common concerns expressed by IT teams is that they are seen as “the people you call when the printer
stops working”. Changing the perceptions of IT – from fixer to strategic business partner – demands that communication
is not an afterthought, but an integral part of every project from the get-go. Brenda O’Neil, head of the Dubai-based Right
Consultancy FZE, explains how to improve this vital connection.
The concept of “the guest experience” in hospitality has The evolution of IoT technology in hospitality
significantly evolved over the last 5-10 years, mirroring changes Let’s start with RFID technology. RFID-enabled devices are found
in both demographics and technology. In the recent past, guests in everyday applications like security tags and room keys. This
preferred to speak with a “live” person when making hotel or technology is simple – it broadcasts an identification number
restaurant reservations, and they appreciated a warm greeting that identifies the tag or key. However, this short-range function is
upon arrival. Now, many guests (particularly Millennials) prefer typically all the RFID-applications can do.
interacting with technology to interacting with hotel staff. For
these guests, smartphones, tablets and laptops are their 24/7 IoT tags and devices however have a unique address that can
companions. The bulk perhaps is a hybrid - guests who want to be identified on the Internet, making IoT devices networkable.
interact with staff, and wish to supplement that interaction with They can communicate with other Internet-connected devices,
technology. including other IoT devices, tablets, smartphones, computers and
network access points providing a wide array of new capabilities.
For hoteliers, the clear mission is to provide an incomparable
experience for each and every guest. In order to do that, you must The technology of IoT
know your guests. Armed with guest data – such as anniversaries, A basic IoT requirement is interconnectivity between devices and
room preferences, favorite wines and the like – you can systems. Application Programming Interfaces (APIs), specifically
personalize your services to create highly customized offers. Representational State Transfer (RESTful) APIs, are key to this
interconnectivity and data exchange, and are especially critical for
The results are increased guest satisfaction and loyalty. Moreover, lodging systems – such as the PMS, CRS and CRM – to support IoT
spending levels per visit will grow, because the service provided enablement. In the simplest terms, APIs are sets of requirements
meets – and even exceeds – guest expectations. Let’s explore how that govern how one application interacts with another. APIs
hotels are leveraging technology to create these individualized make it possible to move information between programs, and
guest experiences. they enable applications to run on top of an operating system.
www.hotel-yearbook.com 31
SPONSORED CONTENT: INTERNET OF THINGS
Yet, for hotels, perhaps the most intriguing use of IoT technologies Start planning now
is in the area of guest service. Properties that want a competitive It’s not too early. You might consider an incremental deployment,
advantage will leverage the IoT to provide highly customized beginning with areas where you realize the highest return on
guest experiences and deliver targeted offers and services that investment and guest satisfaction. Take IoT into consideration
enhance the guest stay. when making technology investment decisions and partner with
providers who offer systems with open architecture. This not only
Leveraging IoT technologies for the guest experience enables all of your networked devices to communicate more
The adoption of IoT technologies is going to be very quick in the seamlessly, but also provides the greatest flexibility to customize
coming years. Gartner predicts there will be more than 20 billion the delivery of unique offers and services.
IoT connected devices by 2020. And many devices that are placed
in hotels will be enabled with IoT capabilities. Whether it is the expanding needs of newer generations or the
hoteliers’ imagination of what they can offer and how they re-
As new HVAC models and elevator controls come on the imagine guest experiences, IoT technology is a key component to
market, many of the more advanced ones are likely to have IoT bringing that vision into reality. Maximize the value of every guest
capabilities that will streamline hotel operations. HVAC systems engagement. Preferences change quickly. Start planning now.
that use IoT technology could report when a motor is showing ■
signs of failing and report it to the maintenance department, for
example. The presence of IoT capabilities in your hotel creates
greater possibilities for more digital services and interactions that
are actually desired by guests.
About Agilysys
Agilysys is a leading developer and marketer of software-enabled solutions and services to the hospitality industry. The company specializes in
next-generation point-of-sale, property management, inventory and procurement, workforce management, analytics, document management
and mobile and wireless solutions. These solutions are designed to streamline operations, improve efficiency, increase guest recruitment and
wallet share, enhance the guest experience and maximize revenue potential. Agilysys operates extensively throughout North America, Europe
and Asia, with corporate services located in Alpharetta, GA, and offices in the United Kingdom, Singapore, Hong Kong and Malaysia. For more
information, visit:
uu www.agilysys.com
While the Internet of Things (IoT) continues to grow and provide the basis for myriad services and efficiencies, it also poses
potentially serious security threats. Alexander Mohammed Dörsam, Head of Information Security and Partner at Antago
GmbH and CEO of Dörsam Cyber Defence, explains how easy it is to hack into a hotel – and what you need to do to keep
this from happening.
The Internet of Things (IoT) was ranked the second most important
strategic technology trend of 2015 by IT research firm Gartner in
their world-renowned annual list, after Computing Everywhere, and
has been included in many other technology trend lists globally.
It’s surprising that despite all the information that is publicly While controlled hacks – such as the ones performed at the hotels
available, including a security checklist and statement from the designed to demonstrate the KNX vulnerability, performed without
CEO of the KNX association, there is so little attention paid to this actually damaging any systems – require a lot of professional
major vulnerability, and no solution offered. knowledge and experience, regular hacks of this nature can be
done by amateurs. The necessary know-how is in the public
As clearly stated in the KNX security checklist, the only way to domain, the entry barriers are low, and the hardware used for this
secure an installation is to ensure there is no physical access by an hack can be purchased online for less than eight dollars. Hacking is
unauthorized party (anybody other than the hotel management no longer exclusive to the professional hacking community and can
for example) to any of the installed KNX products or cables. While be done by amateurs as young as twelve years old – which is the
physical access to these devices can be prevented inside a private average age of a hacker today.
residential environment, this is by definition impossible to do in any
public building such as a hotel. What can we do to solve this issue?
The solution is not to take the “smart“ out of smart buildings, but to
How a live hack went down optimize the security of the systems used and to carefully consider
Having contacted manufacturers that use the KNX protocol for security when selecting new technologies for the hotel. The Internet
years without success, I decided to raise awareness by reaching out of Things is here to stay, and buildings will become even smarter in
to building automation vendors that don’t use the KNX protocol. I the future. The key is to make them more secure as well.
received a response from INTEREL, a specialist supplier of hotel guest
room management systems. Subsequently, when talking to senior IT Unfortunately, for the thousands of hotels that have installed
and engineering hotel executives, we were invited to do a live hack at a KNX-based room management systems, there is no proper solution
luxury hotel in the UAE that uses products based on the KNX protocol. other than to replace the technology with specialist hospitality
systems that don’t use the KNX protocol. This becomes even more
During the live hack, I demonstrated the weakness of the KNX critical for hotels that have their door lock systems connected by
protocol and the impact it can have on a hotel’s operation in three KNX, as this is an immediate threat to guest safety.
easy steps – and in just eight minutes:
My recommendation to hoteliers and the hospitality IT community
1. Armed with a screwdriver and my KNX module with hack is to review their guest room management systems – and to make
software (called “Thanatos”), I checked into the hotel and this a priority for 2016.
entered the room. ■
Alexander Dörsam is a consultant specializing in IT security. As a partner in Antago GmbH and head of Information Security, he deals with IT
security incidents in banks, pharmaceutical companies and energy companies on a daily basis. In addition, Alexander carries out research on the
security of building management systems, anti-forensic research and evidence injection, among other focal areas.
www.hotel-yearbook.com 35
SECURITY: A PRACTICAL GUIDE
Building an adaptive
security program for the
hotel industry
by Dileep Sreedharan i
Cyber attacks in the hotel industry are on the rise, and in particular, this year, there has been a series of high-profile
data breaches affecting payment cards and guest data. Experts had already warned that the hotel industry would be the
next big target for cybercriminals. Cyber criminals are releasing technology-focused malware such as MalumPoS that
are designed to target systems running point of sale systems. The industry is also facing an unprecedented technology
revolution that provides innovative solutions either to enhance the guest experience or to improve the operational
efficiency of staffs. For the Hotel Yearbook, Jumeirah’s Dileep Sreedharan provides a practical guide to security.
Key challenges
Connected devices / Internet of Things (IoT) Building an adaptive security program for hotels
The hotel industry is going to witness a massive adoption of The security threat within the hotel industry is going to grow
IoT-based solutions that is designed to enhance the guest – and may become more complicated. Advanced Persistent
experience and improve the operational efficiency of the hotel Threats (APTs), targeted malware, attacks on hotel’s WiFi,
staff. IoT-based solutions such as location-aware marketing, keyless entry systems, self-check-in, etc., are some of the new,
energy metering sensors, guard tour systems, etc., are some of constantly evolving threats the industry faces. As hoteliers
the solutions that have already made their presence felt in the continue to spend on innovative and smart technologies,
hotel industry. Hoteliers are even considering using drones to cyber security needs to play a major role in ensuring security
provide essential services such as for patrolling and delivering and privacy issues are addressed in all areas. Hoteliers need
hotel amenities. Other systems such as smart transport, smart to develop cyber security programs to adapt to the changes in
recycle bins, and smart streetlights are just a few among technology and adopt a cultural shift from a “prevent block” to a
thousands of technologies that are about to be introduced. “continuous response” approach model.
According to a Symantec Internet Security Threat report
released this year, the number of connected devices will grow An adaptive security model focuses on establishing key
from 6.4 billion to 20.8 billion by 2020. capabilities to implement a “continuous response” program
which will help the hotelier to be agile and responsive to the new
The bad news is that these technologies have been designed threat vectors. This model recognizes key principles of adaptive
with limited or no security in mind. IT security teams will have to security architecture defined by Gartner, and establishes key
struggle to meet the privacy and security requirements of these capabilities with their essential controls which will help hoteliers
systems. According to Symantec research, millions of Internet- analyze security threats from all angles and develop a control
connected TVs are potentially vulnerable to click fraud, botnet model that is flexible to the changes in technology.
attacks, data leaks, and even ransomware. ↓
www.hotel-yearbook.com 37
SECURITY: A PRACTICAL GUIDE
Capability no. 1: Prediction b) Isolation of system / networks – reduce the attack surface by
The cyber security program should include capabilities to predict isolating systems. Implement segmentation using firewalls
risks that might affect the hotel. But you can only predict if you to isolate systems so that even if one system is breached,
know your existing operating environment, what technologies you hackers would not be able to penetrate to another system.
are considering, and how different threat actors will exploit the Implement private network concepts within the guest
changes. wireless, so that guests can only communicate among their
connected devices. If a Wi-Fi network is used to control room
a) Baseline systems – establish a baselining model for management functions, then you need to take measures
everything you do. Changes will be introduced, new to trust devices and secure communication channels.
technologies will be added, new vulnerabilities will be Implement controls on the wireless network to allow only
discovered, and new threat actors will be introduced within trusted devices to connect by using a certificate or at least a
the environment. Create a continuous re-baselining approach MAC address.
to review those changes and focus on the threats that affect
your systems. For instance, you may be upgrading your c) Control third party access – Most systems require remote
IPTV systems, and this change may require you to provide support from vendors to install the application or to provide
continuous remote connectivity to the vendor as part of the after-sale support. Hotels have very limited IT support
agreed service level agreement. This change is a deviation staffs, and they rely on vendors to provide all assistance.
from your current operating environment and may require Analyze what type of access is needed and to which system.
additional controls to mitigate any risks associated with this Implement a centralized remote access for vendors to log
connectivity. in to only systems under their support contract. Implement
approval of a workflow-type of solution which enables the
b) Threat intelligence – Subscribe to an industry-focused requirement of the IT staff’s approval before getting access to
threat feed source to gain intelligence on adversaries and the system.
understand their attack types. These feeds can be then
passed to the security monitoring system. d) Adopt the least privilege approach – Running software with
reduced privileges can protect the system when exploited
c) Analyze emerging technology trends – Security is always late by vulnerabilities that take advantage of the privileges
in the game because they are involved only in the last stage of the running user. Revoke local administrative access
of providing the service, and it will put immense pressure on from all systems and use identities that have limited
the business to take risk-based decisions. However, security access to the system. Use a privilege access management
can also stay ahead if they consciously keep an eye on solution to manage identities of privileged users such as IT
the technological developments in the hotel industry and administrators.
develop controls to minimize or limit hotel’s exposure. One
best way to address this challenge is to include the IT security e) Use smart technologies to do basic security review – How
team with the hotel’s innovation team. can you make sure all of your endpoint systems, such as
PCs / laptops, are running with fully functional endpoint
Capability no. 2: Prevention security software? If you don’t have a fully operational
Preventive capability is one area where IT security is very much endpoint security software, then you won’t get either visibility
focused on the Information Technology system, but it needs to of security breaches or required protection. A traditional
expand to other areas of guest-facing technology and operation scanning approach won’t work, especially when you have
technology. large, geographically dispersed networks. It is a time-
consuming task for the security engineers to go and find these
a) Take the harden approach – Remove unwanted service and systems. You need to implement smart solutions to hunt for
less secure protocols from all devices or applications. It is a unprotected systems using machine learning methods to
common practice that vendors usually leave the system with maximize the endpoint protection footprint.
the default configuration, especially for guest technologies
where most vendors have limited security knowledge. Create f) Prevent incidents – Implement preventive controls to limit
hardening security baselining standards for all types of unauthorized access to the network. For instance, use
systems installed in the hotel network and ensure they are wireless rouge access detection and intrusion prevention
applied. For instance, create security standards for the IPTV system to limit attack on the guest wireless network.
system, In-room management system, guest wireless, door
access control, Point of Sale (PoS) system, CCTV systems, g) Endpoint security – Traditional perimeter-based security
etc. If you are providing an iPad device with application to model is collapsing due to the adoption of the cloud and
control room management function, then those devices must mobility solutions. Consider implementing endpoint security
be hardened and make sure only approved applications are protection solution to protect all endpoints whether they are
allowed to run. server, laptops, interface systems or smartphones.
b) Detect anomalies – The challenge is how do you monitor c) Forensics analysis – Ensure that you have in-house or a third
security violations in your systems that do not support any party forensic expert to investigate an attack, contain the
form of security monitoring. One approach is by detecting situation, and restore operations back to normal.
anomalies in the normal pattern of network traffic or
endpoint behavior by using machine learning solutions. d) Booking partners – Identify your booking partners used for
Anomaly-based detection will help you identify interesting booking car rentals and air travel, and establish an incident
activities such as unusual account creation, unusual escalation procedure to involve them as soon as possible
connection requests etc. when you detect a breach.
c) Contain incidents – When you install a system, no matter The key capabilities of the adaptive security model will enable you
which technology, always define a quarantine procedure. to define controls that can adapt to changes in the environment
Once the incident is confirmed, your immediate response and help you design a “continuous response” based cyber security
should be to contain the situation. You may want to programs. Such a model can help you address specific threats
quarantine a PC, a server, or maybe a portion of a network. your environment is facing so that you can limit or minimize your
exposure to a cyber-attack.
Stay secure.
■
Dileep Sreedharan is Information Security Director of the Jumeirah Group. In this role, he is responsible for the design
and implementation of cyber security program across the group. Dileep joined the Jumeirah Group as Director of
Security in 2009, leading the technology division of physical security and was also involved in establishing enterprise
risk management and crisis management functions within the group. Prior to joining Jumeirah, Dileep worked for
NCR Corporation for nine years, heading its IT Security division in the Middle East & Africa. He holds a master degree in
Business Administration and also obtained professional security certifications such as CISSP and CISA.
www.hotel-yearbook.com 39
SPONSORED CONTENT: BUSINESS INTELLIGENCE
The exciting evolution of revenue management continues to develop in the hospitality industry. Initiatives in revenue manage-
ment by hotel groups and hospitality vendors started in the 1980s, focused mostly on room revenue. Over the last few years,
the official evolution path in revenue management has grown to include virtually every revenue stream, affecting colleagues
throughout the property, writes Datavision’s Sherry Marek. A significant amount of data is now available to the team at the
property level or at the corporate level to assist in the decision making/tracking process, she says. Many properties use the
term “revenue optimization” to encompass the process, and use the title in the job description.
www.hotel-yearbook.com 41
SPONSORED CONTENT: BUSINESS INTELLIGENCE
expect the ability to negotiate for a better room, look for flash Make sure housekeeping and restaurants are aware of these
sales on Cyber Monday and expect to find lower rates in the trends. This gives them time to change staffing levels or work
shoulder seasons – for instance in October in Miami, at the height on other projects to the benefit of the guests. Determine short
of hurricane season. term and long term goals for the year and goals for the next three
to five years. By using accurate and useful data, the revenue
The design of E-commerce sites is much better today. Fifteen optimization process will be ingrained in the property’s culture,
years ago, RM teams used multiple awkward, unwieldy green allowing them to maximize profitability while ensuring guest
screens that proved cumbersome to update pricing and satisfaction.
restrictions. Today, the systems used to update RM strategies in
the online environment provide better connectivity among many Another advantage of involving multiple department heads in
distribution sites. A time reducing, hair-saving solution! the revenue management process is that it should result in better
forecasting from each department as everyone understands
The future the goals and (hopefully) gets their data from the same trusted
Literally every industry is applying RM techniques to the products sources. A revenue optimization team may have many goals and
it sells. It’s not just at hospitality management schools where this ideas, but the end game is to establish a strategy that is agreed
is studies; many MBA programs now include classes addressing on by multiple colleagues to maximize profitability across the
RM. In 2002, Columbia University’s graduate school offered an property. The team should be agile enough to evaluate and
elective called “Pricing and Revenue Optimization”. Articles can measure metrics, communicate without barriers, shift focus
be found explaining RM techniques to publishing executives, and rearrange priorities based on results in real time. And don’t
retailers and even managers at the local Starbucks. Starbucks forget the key step – as each milestone is achieved, celebrate the
actively uses their CRM and their customer purchase patterns to success with the whole team!
entice their ”Reward” members to purchase new items or return ■
at another time of the day for more rewards.
About Datavision
The premier provider of Business Intelligence for the hospitality industry, Datavision has been in use in hotels and resorts for decades. Datavision
integrates information from all the hotel’s key systems and delivers actionable business intelligence right to the desktop or mobile device. Completely
flexible and infinitely customizable, self-service BI tools can mashup data in a variety of ways – Excel reports, dashboards, SSRS reports, ad hoc slice &
dice, providing instant results by streamlining and standardizing the delivery of important intelligence to the right people at the right time.
uu www.datavisiontech.com
Boosting direct
hotel bookings with
personalization as the
solution
by Kristian Valk i
In the past few years, we have seen an increasing effort by hotels to improve their direct channels so as to reduce their de-
pendence on online travel agencies (OTAs). Hotelchamp’s Kristian Valk writes that hotels should not get rid of OTAs and third
parties but aim for a better balance to manage control over their own distribution.
Looking back at the past decade, hotels based their digital have a clear pricing strategy on their distribution and ensure
marketing strategy and budgets on channels and third parties they offer the best rate guaranteed via their direct channels.
such as OTAs in order to gain more bookings. In recent years the Besides optimizing their pricing strategy, hotels should also be
battle for online hotel reservations has come to a boiling point; critical on the user experience of their well-designed websites,
hotels pay more commission and advertising costs each year as booking engines and mobile presence. The healthiest and
they cannot compete against the advanced technology of OTA most profitable channel in the whole distribution range is of
websites. Globally, hotels are searching for solutions to improve course the direct hotel website where no or little commission
sales through their direct channels, engage with potential hotel is involved. On average, an online customer journey exists of
guests and drive more direct bookings via the general customer visiting 22 different websites before a guest finally decides to
journey. make a booking. Considering the customer journey, making a
direct booking on the website should be convenient – and that’s
The chances and challenges for hotels exactly the point where hotels should start optimizing their
Extensive research proves that the majority of people visit conversion rate.
hotel websites for more information, mainly related to visual
impressions and price. This is known as “the billboard effect”. Solutions based on personalization
However, between 97% and 99.5% of potential guests leave On aggregating websites such as metasearch and OTAs, every
the hotel website without completing a booking and tend to hotel is presented in the same way. For this reason people tend
continue their search with OTAs. These websites focus purely on to visit the specific hotel website in order to be convinced it is
conversion, neglecting the customer experience, whereas hotels the right option for them. If hotel websites are able to catch
have to differentiate themselves against their competition. the visitor’s attention based upon their specific needs and
requirements, this is where the magic happens.
Hotels should not get rid of OTAs and third parties but aim for
a better balance to manage control over their own distribution. During the onsite booking journey, people already share a lot of
This is part of fixing the basics; revenue managers must quantitative and qualitative data. For example, there are a lot of
uu www.hotelchamp.com
anchor points in the calendar, such as specific days and dates Cialdini and the persuasion principles, which are often used in
of the stay, and whether it falls upon weekdays, weekends, the hotel industry are one of the most used triggers to influence
high-season, low-season and public holidays. Additionally, people in decision making and can be adapted online. While
further data can be collected based on their room preference entering the battle for the online hotel reservations, hotels
(i.e. single rooms, double rooms, executive rooms and suites), should find out what works best for their potential hotel guests
number of guests, including number of adults and children, through a/b testing. They cannot rely on assumptions. Impact
as well as specific requirements for the stay (business meeting can be made with personalizing the customer journey, next
rooms, spa treatments, weddings packages etc). Based on our level engagement and interactions.
research and experience, we realized hotels do not analyze
and use this data to instantly provide potential guests relevant Hotels should benefit from the fact that the majority of
triggers based on their preferences. potential guests do visit brand websites. By using the same
level of conversion knowledge and advanced technology as
The onsite booking journey of a potential hotel guest provides the global giants, hotels can convince their visitors to book
a wealth of digital information which hotels can easily use and directly and positively impact customer engagement as well as
apply to smarten up the customer journey for each individual establish the right balance in their booking channels.
website visitor or visitors with the same preferences. Hotels can ■
create and identify different audiences and be creative to offer
personalized and relevant services. Interacting and engaging
with predefined audiences makes direct website visits much
more relevant.
www.hotel-yearbook.com 45
SPONSORED CONTENT ANALYTICS
With the sophistication and adoption of analytics growing tremendously, there’s a massive opportunity to evaluate your
own analytical capabilities – both as part of an organization or as an individual – and map out how analytics can move you
from being reactive to proactive and predictive in revenue management, says Paul van Meerendonk, Director of Advisory
Services, IDeaS Revenue Solutions.
www.hotel-yearbook.com 47
UPDATE FROM HFTP
HFTP - Advancing on
many fronts
by Frank Wolfe i
Hospitality Financial and Technology Professionals (HFTP) is a professional association with an ardent dedication to provid-
ing continued professional development and industry resources. It is also a long-standing supporter of the Hotel Yearbook.
Frank Wolfe, the organization’s CEO, provides a briefing on the association’s latest activities.
Hotel property management systems (PMS) have been around for a long time. They have evolved over time to become highly
sophisticated and impressive business tools. But as Jos Schaap, CEO and Founder of StayNTouch, reminds us, from the days
when a System36 with a hard drive the size of a bathroom mirror was the envy of hoteliers around the world to today’s cloud
solutions, one thing has always remained a constant: the requirement for the PMS to connect seamlessly to as many things as
possible technologically.
There will always be guests that want to do away with the This is the future, and the future is now.
pleasantries surrounding the service aspect of a hotel – at ■
certain times anyway. They just want to go to their room, relax
and possibly do some work, get room service and check out in
the morning. The challenge lies with the guests who still want to
receive exemplary, relationship-based service.
About StayNTouch
StayNTouch is a “Software as a Service” hotel property management systems (PMS) company focused on developing solutions that help hotels
raise service levels, drive revenues, reduce costs, and ultimately change the way hotels can captivate their guests. Developed with mobility in
mind, the pioneering platform enables hotels to create long lasting relationships with their guests by delivering personalized service levels that
today’s guests require. StayNTouch operates on tablets and smartphones, empowering hotel employees to go above and beyond in exceeding
guest expectations at every touch point.
uu www.stayntouch.com
www.hotel-yearbook.com 51
SPONSORED CONTENT: APPS
Hotel apps:
What’s next?
by Roger El Khoury i
In an increasingly competitive environment, with mounting pressure on profitability, hoteliers continually look for ways to
make their operations more efficient while ensuring an enhanced guest experience. Not an easy feat, writes Roger El Khoury,
Managing Partner of NEORCHA, but one where mobile applications have a big role to play. Here’s how.
I think it’s safe to say that mobile is here to stay. Hotels have Apps can streamline hotel processes and reduce hassle for
been investing heavily in their digital presence, from responsive guests. A good example is mobile check-in/out, which is seen
websites and social media strategies to online distribution and as one of the most critical guest satisfaction triggers as it’s the
mobile applications, to ensure they respond to the changing first and last impression the guest has of a hotel. Many hotel
behaviors and expectations of their guests. Hoteliers are companies are still struggling with this often cumbersome
increasingly using mobile to attract guests to their hotel, and process because of legal requirements, local regulations and
in turn, travelers have become more familiar and comfortable credit card authorizations. Mobile technology is increasingly
with researching and buying travel online. The question now is, used to enhance this process, which has a positive impact
what can hotels do to enhance the guest experience and upsell on guest satisfaction and reduces cost, as less paper and
their services once guests have arrived at their doorstep? With manpower is required once it’s automated.
booking and other pre-arrival services covered, what’s next for
hotel apps? When adopting mobile check-in, it’s vital to look for technology
solutions that comply with local government regulations and
In the 2015 GBTA Business Traveler Sentiment Index™, 55 that are easily integrated with your hotel’s own management
percent of global travelers said that their overall business travel systems. Once deployed, hotels benefit from capturing
experience is enhanced by the use of mobile applications that accurate data and preferences from guests before they arrive,
are provided by travel suppliers, event organizers or travel streamlining check-in processes and reducing waiting time, and
destinations. In the same study, 61 percent of travelers said that proactively engaging with guests, for example through in-app
in the future they would be “interested” or “very interested” in messaging.
using GPS navigation tools to find services when they travel. In
the 2014 Fortune and Travel+Leisure magazines readers survey, Once mobile is effectively used to simplify check-in, the
55 percent of readers identified hotel WiFi as the most valued question becomes how we can make hotel stays smarter and
hotel amenity, while 71 percent of business travelers sneaked in simpler between arrival and departure; the most critical point of
some sightseeing and shopping time in between meetings. The the guest lifecycle.
opportunities to upsell hotel services are infinite, but how can
hotels use mobile apps to take full advantage? Mobility, combined with the use of beacon technology, allows
hoteliers to proactively engage with guests – on-and offline –
uu www.neorcha.com
throughout their stay. Integrating check-in with a hotel’s loyalty The future of apps is bright, smart and simple – but only if you
program, for example, allows for personal preferences to be can secure enough downloads and active engagement with the
captured at any time, allowing the app to instantly personalize technology. I am often asked the question how we ensure the
a guest’s stay; from automatic room assignments and instant use of apps. Here are a few tips:
loyalty redemptions, to push notifications for offers and
promotions. Or why not offer the services of a virtual concierge • Integrate your hotel loyalty program; offer special rates and
on your hotel app that won’t just provide useful tips and privileges for members if they book through the app and let
information about the destination, but also books restaurants them redeem points in real time
and entertainment before the guest arrives? That’s a lot of • Add a QR code to your marketing collateral, pre-arrival
potential additional revenue before the customer arrives. communication and website to make it easy for guests to
download the app
Another powerful application of beacon technology on a • Offer film streaming subscriptions with each download
mobile app is tracking and maximizing the movement of • Incentivize guests to download the app to simplify and enrich
guests; offering a personalized greeting when they arrive at their stay; reward them for pre check-in use of the app
the hotel (or even the airport), alerting housekeeping, getting • Provide instant messaging with staff members and
a car out of the valet as soon as guests are ready to leave, or management
guiding them to different points of interest and services within • Allow guests to use the room phone via the app, to connect
the property: It’s all possible. Internal marketing teams benefit with their family and colleagues at no cost, on their own
equally from movement tracking, being able to identify popular device
hubs for guests within the property as ideal spots for digital • Extend location-based services, including way-finding, to
signage or pop-up stores to promote hotel services. guide guests through the hotel
• Offer keyless entry with the app
Once people accept the use of this form of “Big Data” and ■
experience the benefits of better service, more personalization
of the hotel guest experience will be possible with less
manpower and at a lower cost.
www.hotel-yearbook.com 53
SPONSORED CONTENT: INNOVATION
There are historically valid reasons why so few technology-based innovations were adopted by the hospitality business, writes
Olaf Koch, CEO of Metro AG. But these reasons no longer hold water, and that is why his company goes to such lengths to help
hospitality innovators develop their ideas and bring them to market.
This raises the question: Why did such modernization not reach
the broader HoReCa sector? There are various answers to this
question.
uu www.metroaccelerator.com
www.hotel-yearbook.com 55
METRO ACCELERATOR
CREATING AN UNFAIR
ADVANTAGE FOR
HOSPITALITY AND
FOOD TECH STARTUPS
METRO supports innovative minds with a technology
startup program for the hospitality sector
www.metroaccelerator.com
Follow
us on
HOSPITALITY TECH STARTUPS
Helping tech entrepreneurs is a way to influence the future, says Techstars’ Jens Lapinski. He explains how he got started in
the start-up business.
My dad had a hobby when he was a kid. That hobby was science fiction literature. He had
a huge collection of books during his childhood. I started to read them after we visited my
grandmother and picked up boxes and boxes of books. I was hooked on Sci-Fi from age
eight. My biggest dream always was to become an astronaut.
When I was 12, I broke my back in an accident. I was in hospital for some time, had to learn
how to walk again. I have not been allowed to do many types of sports since then. Obviously,
the accident also disqualifies me from going on a rocket.
At school, I was always better at natural sciences than the humanities, so I studied biology. I got
a scholarship to go to the UK where I managed to get the scholarship to attend the Institute of
Biotechnology at Cambridge for my PhD. That experience changed my life in more than one way.
The Institute was founded and run by Professor Chris Lowe. Chris was a serial entrepreneur
who had not only founded several biotech companies, but also the Institute itself. Every
project in the Institute had an industry-facing or entrepreneurial angle to it. So did mine.
One of the things that I learned at the Institute was that if you want to create a successful
new technology or technology business, you can’t do it by yourself. You need other people
to do it with. The most important support you can receive is typically not (just) cash, but Jens Lapinski is a Managing Director
advice and guidance. at Techstars where he invests in ten
technology startups per year. He founded
In more than 15 years of joining a startup, building my own startup, as well as building a the Berlin office in 2014, which has quickly
startup studio, I have realized that the more you give, the more you’ll get in return. It was for become the second largest location for
that very reason that I joined Techstars. The Techstars motto is #givefirst. Right now, there Techstars globally, after New York.
are about 150 employees at Techstars and all of them comply with this ethos.
Supporting tech founders and helping them grow their business is my way of building the
future. Here are the ten startups that I have been working with this year. I can’t fly to the stars,
but maybe some of them will become rocket ships.
#givefirst
■
About Techstars
Techstars is a global ecosystem that empowers entrepreneurs to bring new
technologies to market wherever they choose to live. With dozens of mentorship-
driven accelerator programs and thousands of startup programs worldwide,
Techstars exists to support the world’s most promising entrepreneurs throughout
their lifelong journey, from inspiration to IPO.
uu www.techstars.com
HOSPITALITY TECH STARTUPS
www.apparier.com www.cheerfy.com
HOSPITALITY TECH STARTUPS
Hoard helps vacation rental hosts to find a welcoming The main problem in the event staffing industry is the low
reception desk where guests can pick-up and deposit quality staff provided by staff agencies, for astronomical
the keys to their rented flat, get a drink or a coffee and fees. They often charge twice what the staff are actually
relax from their exhausting journey. The online platform being paid. But event organizers have been forced to pay
partners up with local cafes, bars and convenience stores that money as there have been no other options to hire
that want to become such a reception desk and bring more temporary staff – until now. hyre is an online marketplace
footfall to their stores, increase their revenues, offer a new that is revolutionizing the event staffing industry by
great service to their existing customers and differentiate connecting event organizers with high quality event staff.
themselves from their competitors. Vacation rental hosts For event organizers, hyre is the easiest and fastest way
book “key codes” on www.hoardpost.com. The partnering to staff events. Organizers are given complete and total
local stores receive a smartphone to register and hand out control over price and quality of staff through the platform’s
keys safely based on the key codes which the guests need unique performance rating system. For event staff, hyre is
in order to pick-up the keys. Hoard creates a “win-win” the most convenient way to book shifts, allowing them to
situation for hosts and local stores, a concept which has have flexibility and entire control over their schedule. The
been proven with several hundred partner stores and platform’s rating system also helps them stand out and
thousands of hosts in more than 15 cities across Europe. rewards great performance with higher earning potential.
www.hoardpost.com www.hyrestaff.com
HOSPITALITY TECH STARTUPS
Jagger
The #1 co-commerce
Chatbot assistant for platform
restaurant managers in hospitality
Jagger is a virtual marketing assistant for restaurant Pantreeco is an online communication tool which
managers that provides the easiest and fastest solution strengthens supply chain management for small and
to build effective online marketing campaigns. It helps medium sized businesses, across hospitality. By connecting
save precious time and thus increases the number of the devices teams communicate on, we help buyers and
customers. Due to their busy schedule, many restaurant suppliers move away from managing business partnerships
managers don’t have the time or the knowledge of how solely with e-mail, fax and SMS. Pantreeco brings the
to run smart online marketing campaigns. As a smart conversation, from order right through to fulfilment, into
chatbot assistant with artificial intelligence capabilities, one central location. The benefits of real-time information
and having a messaged-based user interface, Jagger and integration into inventory and accounting systems
represents an innovation with which every manager can means teams are reducing the risk of miscommunication
easily communicate. Jagger can be operated in a simple and incorrect deliveries, and they are operating in a more
way and is particularly helpful when it comes to promoting collaborative and effective business. With Pantreeco the
special events. It informs managers of upcoming events partnership wins.
and offers to run the campaign for them. Managers only
need to answer a few questions via chat so that Jagger can
take care of running the campaign for them.
www.gojagger.com https://pantree.co
HOSPITALITY TECH STARTUPS
resment
simplicity for everyone
We help hotels improve their customers’ satisfaction, while resment offers an innovative HR management assistant for the
increasing their online visibility and rankings, thus ensuring hospitality industry. So far, resment combines the employee
more recurring direct bookings for them. Additionally, management and document management system as well
Reputize is an end-to-end Online Hotel Reputation as an interactive and innovative shift management, a smart
Management platform. As a growing SaaS start-up based in time tracking solution with an own tablet-terminal, payroll
London, we help the hospitality industry better understand accounting, and holiday and absence management. resment’s
and improve customer experience and manage brand solutions change and ease the way how companies will work
reputation by aggregating online reviews from more than in the future by combining multiple benefits. The solution
100 OTA’s and social media mentions together with internal provides significant cost savings through automated and
guest feedback into a single business intelligence platform. digitized HR management processes. resment succeeds in
eliminating time-consuming and error prone activities, such as
the manual calculation of time tracking sheets, adaptation of
working time changes, planning of shifts for upcoming weeks
and coordination of absences and holidays. With resment,
business owners can integrate their employees into HR
management easily, moving the owner’s role from executing
toward coordinating. They succeed in reducing efforts which
equally leads to higher employee satisfaction based on a
transparent and up-to-date HR management.
www.reputize.co www.resment.com
HOSPITALITY TECH STARTUPS
tsenso
MONITORING SOLUTIONS
www.smunch.co www.tsenso.com
HOSPITALITY TECH STARTUPS
Hot.es was founded by Conor O’Connor along with Ade IYASSU is the premier discovery and booking app for
Muriel, Jose M. Fernandez and Joe Haslam in December salons, spas and beauty services. We make women’s lives
2011. We enable hotel bookings via smartphones. On the easier by providing 24/7 real-time access to thousands
Hot app you can find discounted hotels in over a hundred of salons. Customers can search, book and pay online
cities. Hot’s vision is to provide hotel rooms for same-day for services such as sport & fitness, yoga, tattoos, holistic
booking in every city in the world. Currently we offer 5,000 treatments, manicures, massages and hair salons.
hotels in 333 cities across Europe, the Middle East, Africa Through our marketplace of salons and spas, we also
and Latin America. Hot.es was awarded the prize for Best help businesses acquire new clients and fill empty seats.
Startup 2016 by the Andalucía Business Club. The platform is easy to join and simple to use. Our unique
interface connects directly with the schedules of salons
and in real-time, which means that there is no extra work
required to showcase appointments on IYASSU. IYASSU
serves thousands of salons and spas across Central and
Eastern European.
http://hot.es/ https://iyassu.com/
HOSPITALITY TECH STARTUPS
Moreinx AB is a Swedish research and development Supercharge is a content production company connecting
company specializing in the development and brands to mass audiences. We bring products on
commercialization of its patented nano-based G3 paradisiac vacations, and craft campaigns where highly
technology in the areas of oncology, vaccine adjuvant and influential social media personalities share their lifestyle
drug delivery. The company is run by a team who come showcasing these products. Instead of shooting regular
from various industries with a focus on realizing discoveries campaigns, we brand activities, putting the spotlight on the
and inventions. Our group has innovative visions and works experience rather than traditional advertising strategies.
with both standard and non-standard methods to achieve We partner with hotels, restaurants, airlines, and local
results. We currently have several ongoing collaborations tourism boards so that each day of the trip is designed for
and alliances globally. These strategic relationships take maximum exposure. Our vetted influencers follow rigorous
many forms, but our goal is always the same: to advance posting schedules providing maximum reach and an
scientific research and to deliver innovative, differentiated extended timeline for our client’s campaigns. Once trips are
solutions that provide value to patients, physicians and complete, we provide our clients with analytics, conversion
health care systems around the world. metrics, and media assets..
http://moreinx.com/ www.superchargeagency.com
HOSPITALITY TECH STARTUPS
bluep th
®
TM
Enhancing digital guest
Grow and retain your experience with indoor
company’s talent through positioning and location
peer mentorship based services.
Talking Circles is an internal skills-sharing tool that bluepath provides state-of-the-art indoor positioning (IPS),
matches employees within a company based on skills navigation (INS) and location-based service (LBS) solutions
they can give and take. The vision at Talking Circles is to on iOS and Android mobile platforms. These services
empower employees to take ownership of their career enable our clients, partners and technology alliances
development and focus on developing skills they care to extend all the advantages of GPS-based solutions for
about. For employers, the benefits fit into improving indoor environments. bluepath delivers a high accuracy
performance, innovation and retention, all of which and reliable IPS technology using an unobtrusive, green
directly impacts bottom-line profitability. Employers gain and low cost beacon infrastructure that can be easily
a skills mapping tool and powerful analytics that help deployed and maintained within any environment for
in organizational design and strategic decision making. multiple purposes. bluepath environments can vary from
Talking Circles lets employers boost engagement and hotels, airports, retail, MICE, industries and other business
retention, reduce employee turnover and develop their verticals. bluepath also provides tailor-made solutions
workforce. natively within the portfolio which are used for real-time
asset and user tracking for safety, efficiency and security.
Very innovative organization when it comes to the business
platform; scale and adapt as per the needs of the future
and revolutionize the guest journey with the digital touch
and let clients and partners enable the full power of LBS.
http://talkingcircles.co/ www.bluepath.me
HOSPITALITY TECH STARTUPS
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HOSPITALITY TECH STARTUPS
MENTORSHIPS
My approach to
revolutionizing the
hospitality industry
by Ian Millar i
Maintaining a high level of innovation is crucial for the well-being of the entire HoReCa sector, writes Ian Millar of the Ecole
hôtelière de Lausanne. One way to foster this innovation is through mentorships, he explains: By providing our professional
expertise to young innovators, we can help them become competitive – and this ultimately enables them to contribute to the
future of all of us in the industry.
The hospitality industry is striving for innovation. Conquering willing to innovate for. By providing professional expertise,
new frontiers requires us to face new challenges and, above we can help young innovators to become competitive which
everything else, to create an environment in which innovation eventually enables them to contribute to our all future. The
can flourish. I’m convinced that bringing together professional entrepreneurial spirit of creative startups has to be the focal
expertise and the innovational spirit of young entrepreneurs point of this framework at all times. As a METRO Accelerator
is vital if we want to establish a bright future for the entire mentor, I have seen firsthand how important it is to impart
hospitality sector. knowledge and to be part of a powerful network.
I have been living hospitality for my entire life. Believe it or not, I believe that It is impossible to meet the high standards of
my passion started when I was born in a hotel room and up our industry and to create value for our customers if we don’t
to now, I have spent the most of my time living in hotels. As learn to act as a global community. The METRO group and its
Senior Lecturer at the Ecole hôtelière de Lausanne and Certified partners are aware of this issue and willing to spare no expenses
Hospitality Technology Professional, I am deeply engaged with whenever there is a chance to create value for customers – a
the hospitality industry on a professional level. Based on my necessary contribution to create the badly needed ecosystem
everyday experiences, I strongly believe that maintaining a that embraces innovation. All the participants of this ecosystem
high level of innovation is crucial for the wellbeing of the entire will benefit equally: fresh impulses and innovation in exchange
HoReCa sector. for expertise and business networks.
But in order to leverage innovation, we need to create the There is too much at stake and so much to win since both
necessary framework first. By embracing a “give first” mentality, the startups and the mentors will benefit mutually from the
we can create an environment that young entrepreneurs are collaboration. Startups need the support of experts who can
HOSPITALITY TECH STARTUPS
provide substantial knowledge. Despite their bright ideas and value to the industry its customers. I believe that in order
and inspiring concepts, these young innovators simply lack to advance the hospitality sector, we need to be brave and
experience, networks and know-how. In order to allow for embrace innovation. The METRO Accelerator is serving as a
innovation and progressive concepts, startups need mentors beacon for a progressive ecosystem that stands for creativity
for orientation and to establish contacts. and innovation. I believe that the more mentors are ready to
share their knowledge and support startups, the more the
To reach our goal, it is imperative that more professionals entire hospitality sector will flourish. And I believe that we
engage in mentorships. Taking part in a mentorship program are brave enough to create this bright future for our HoReCa
has numerous advantages. Mentors will get the opportunity community.
to have their finger on the pulse of the time. They will get the ■
chance to acquaint themselves with the latest technological
developments and innovations. They will have the chance to
better themselves by reviewing their own experience against
the fresh ideas of young and creative minds.
When it comes to digitizing key aspects of a hotel stay, are hotels thinking through the impact on the guest? Pierre Boettner,
co-founder of hospitalityPulse, addresss a few hard questions, namely: Are we adding real value for our guests? Are we draw-
ing the right conclusions from new technologies, and from technological advances other industries have introduced? In short:
Are we even on the right track?
What will be next? Are we even on the right track, are we Don’t get me wrong: Whenever digitization creates true
adding real value for our guests? Have we drawn the right convenience and advantages to guests, we should embrace it
conclusions from new technologies and from their advances with open arms! But all too often we fail to improve the guest
in other industries? Are airlines sufficiently related to hotels experience by adding direct guest interaction through mobile
to lend themselves to that? Just look at their flight check-in or other paths; we have expended many efforts digitizing parts
experience, which is now firmly in the hands of devices. While the of our business, without rethinking how hotel operations work
communication to the passenger continues to be “…speed up and without fully connecting the dots and the interactions.
your process…”, “…bypass lines…”, the reality is that (check in) Guests using convenient solutions to indicate their preferences
lines have simply been moved to become the baggage drop off during booking are facing the true availability at the moment
line, security line, etc. It is quite transparent to the traveler, that of check in. CRM preferences are not available to the front desk
there really is little gain for them. They even see more work such or restaurants. As a consequence, we start to improvise, and
as tagging their bags transferred to them, and fully understand inadvertently create a guest experience that no longer conforms
the significant upside to the airline, in having fewer, and much with the digitally created expectation. Therefore the next steps
less qualified staff at check-in. in digitizing should be less about transferring manual decision
making to guests, and more about decision automation. Only
When it comes to dealing with guests, hospitality is the industry then can the needs of both business and guests be taken into
par excellence – the benchmark, if you will. One may wonder if acocunt in an optimal way. It’s about enabling existing systems
digitizing everything may even get in the way of a “perfect” stay to interact with, or embed decision making. Then we can start to
experience. seriously engage on a digital strategy that recognizes that we are
dealing with humans!
We often learned the hard way where to be smarter about ■
areas we digitized. We learned that while guests value booking
online, they can easily get overwhelmed by too many room-rate
combinations. That families don’t care for business packages.
We learned that business travellers declined the dinner packages
offered through digital upselling. We learned that when you are
asking loyalty guests for their preferences, applying them during
every next stay becomes an imperative, or cause frustration. We
may learn that guests checking in online may not care to pick
About hospitalityPulse
Optimal room assignment is critical to guest satisfaction. Its impact
on inventory usage and revenues is significant. hospitalityPulse
spent several man-years engineering the optimization algorithms to
solve this complex, industry wide problem. roomPulse is an industry-
first room assignment solution with patent-pending optimization.
Leveraging mathematical modeling with deep understanding of
hotel operations, roomPulse looks at all pertinent inventory and
reservation information, to determine the most optimal assignment
while applying availability-based upgrade rules.
uu www.hospitalitypulse.com
www.hotel-yearbook.com 71
THE EVOLVING PBX
Times were good for the PBX department, recalls GrayMatter Networks’ David Maayani. “We were the darlings of the IT crowd.
Guests made phone calls, we generated healthy revenue margins while covering our costs – life was good!” Then the cell phone
happened. Literally overnight, our revenue from guest calls disappeared. Left in the dust were the monthly costs for circuits,
maintenance and staff. Boom to bust overnight: the only calls guests now make are for a towel, a hamburger… or to complain.
As legacy systems age and support contracts expire, we find experiences. The brands realized that guest interaction at
ourselves looking around to the next thing. Buzzwords like the Front Desk is very closely followed by interaction via the
“cloud based”, “VoIP” and “unified communications” all running telephone. No longer are legacy “PBX Department” Operators
on “converged networks” surround us with ever growing meeting the brand experience needs. Virgin Hotels’ “Yes!”
urgency to do something... while all we want is to get a dial tone department and 1 Hotels’ “Hive” are just two examples of
and make a call. brands expanding this guest interaction with highly trained staff
on how to answer the calls, how to triage and resolve issues
Let’s take a moment and take a new look at these new quickly, what words to use, how to incorporate the guest’s name
technologies and maybe even at some growing trends. Maybe into the response and more.
not all is lost.
Statistics and management reports of the various queuing and
In North America, as well as many other regions, emergency routing methods of these calls are reviewed daily to maintain
services (911 in the USA) must be available at all times. quality. Phone calls are reviewed and constant feedback and
Enhanced 911 laws require transmission off specific location training is provided to maintain an edge. The software based
data (down to the room number in some states) in addition to PBX systems today make this a child’s play – we no longer need
stricter brand standards for alerting, logging and even recording to spend thousands of dollars on getting these features.
of emergency services calls. Legacy systems need expensive
reprogramming, while new IP based systems can easily be Value hotels are also realizing the power and flexibility of
configured for this. software based or IP based PBX systems. During the rush-
hours of check-in or check-out, the Front Desk staff are not
Guest services such as in-room dining, valet and house- only inundated with guests in front of them, but also with
keeping have developed into brand specific enhanced guest phone calls. The value brands no longer employ expensive PBX
operators, opting to route the calls directly to the Front Desk. and group sales. Outbound dialing micro-calling centers (1 to 5
This leads to frustrated guests, employees, and callers. New people) are being set up in the bowels of hotels. Software based
and innovative companies have discovered a niche of remote IP PBX systems allow for integration into solutions like Constant
PBX operator staff. Installing a new PBX that has full VoIP Contact, SalesForce and Zoho. Click to call on the portal pages,
capabilities allows routing of calls to remote call centers where screen pops (browser based – nothing to install) and more
skilled operators assist guests and callers. The technologies features are all included. Call agents can focus on the actual
allow for customer answering and branding of the calls – task at hand and not on the tools needed to perform it.
the guest never knows the operator is off-site and actually
handling many hotel calls. This reduces traffic to the Front One surprising find is that advent of the wake-up call. It would
Desk significantly (industry estimate of 70% reduction) while surprise many to learn how many wake-up call s are generated
providing Operators at 40% savings over direct employees. at a typical, 3-star, New York City property. Enhanced wake-up
All this is possible with industry leading PBX systems that call techniques like automatic (system calls guest) to manual/
support VoIP and advanced routing. VIP (system calls Front Desk, agent hits a button and gets
transferred), advanced alerting and notification, and escalation
Cloud-hybrid systems are also quickly replacing legacy systems of missed calls are easily developed and deployed. You want
that are being fork-lifted out of the traditional PBX rooms in a wake-up call to dual-ring your room phone and cell phone?
the basement. These are often referred to as “cloud based”. No problem. You want the PBX to use the XML API to the room
Though marketed as “cloud”, these systems have some level control server and turn on the lights, too? Sure! It’s software
of on-site equipment for redundancy, fail-over and technology based. Don’t ask what it can do – tell me what you want done!
reasons. Hotels can enjoy an extremely low, sometimes no-
capital expenditure cost, and fold the PBX into a pure operating Don’t rush out to purchase a new PBX just yet. Your current
expense. The management of the PBX, call routing, voice- legacy PBX still works – how can you justify it? You don’t have to
mail and all standard move/add/changes are managed via a replace it. Some hotels are placing this new generation of PBX
vendor-provided portal. Some innovative vendors are coming systems in front of – in line with – their legacy systems. Get all
up with a pay-as-you-go type model where the hotel is paying the enhanced functionality in your admin/back-of-house areas
per occupied room per month. This way, in low occupancy (low and maintain your analog phones to the rooms – that’s OK!
revenue) months, the cloud-based solution cost is reduced Upgrade the rooms when needed, in a phased approach.
substantially and the vendor makes up for it in high occupancy
(high revenue) months. The hotel does not need to struggle The evolution of the PBX is not done yet – as communications
with an upside-down cost model – costs follow occupancy converge, VoIP becomes cheaper, and hotels enhance the guest
directly. experience, you will see more innovation in this space. Stay
tuned….
Just as external calling by guests has dropped significantly, a ■
new trend is emerging where the admin sales departments are
making more and more outbound calls. Hotels, in order to
increase sales, are directly calling out and targeting corporate
www.hotel-yearbook.com 73
HTNG IN 2017
Hotel Technology Next Generation (HTNG) was founded in 2002 as a non-profit industry association with a mission to foster
collaboration and partnership, in the development of next-generation systems and solutions to enable hoteliers and their
technology vendors to do business globally in the 21st century. One of the key industry issues HTNG initially set out to solve
was the complex nature of integration between systems. As Monika Nerger explains, the hospitality industry has changed
considerably since then, and HTNG is creating a vision for the next decade to support the ever-changing demands of our
industry.
www.hotel-yearbook.com 75
SPONSORED CONTENT: TECHNOLOGY IN HOUSEKEEPING
Technology has the potential to enhance the guest experience in many ways. One of them, perhaps not immediately recog-
nized by hoteliers, is to automate housekeeping operations, which will not only streamline processes and increase productivi-
ty, but give housekeeping staff greater opportunities to interact with guests. Eric Rogers, Vice President EMEA of FCS Computer
Systems, explains.
Despite these statistics, it’s interesting to see that many hotels still
rely on manual processes to run their back-of-house operations,
including housekeeping, missing out on opportunities to use
technology to streamline processes, achieve efficiencies, improve
guest satisfaction and increase productivity.
About FCS
Founded in 1982, FCS is a comprehensive hospitality technology
solutions and services provider, with an extensive portfolio of
integrated products used by more than 5,000 hotels with over 8,000
installations in 32 countries. FCS mobile applications are available
on staff mobile devices, providing enhanced efficiency with the
ability to assign, view and update tasks on the go. This functionality
seamlessly integrates into six web-based guest serving applications,
including e-Connect, e-Housekeeping, e-Laundry, e-Recovery,
e-Engineering and e-Concierge, to enhance service optimization
and the guest experience. These applications all integrate with
the hotel’s PMS and other third-party systems via FCS Gateways
products; Unicorn and Phoenix. With FCS Enterprise Reporting,
hoteliers can maximize both revenues and property reputation
with streamlined access to business analytics and operations
performance intelligence.
uu www.fcscs.com
www.hotel-yearbook.com 77
VISUAL CONTENT
Virtual reality holds enormous potential to help hospitality businesses grow, says Guy-Georges Trigallez of Amsterdam-
based No Dutch No Glory. By giving potential customers a more realistic sample of the real thing they will experience on-
site, hotels can depict what their brand stands for while drawing guests further into a sales funnel.
www.hotel-yearbook.com 79
ANALYTICS
A bridge has been long needed to connect analytics and analysts, one that serves students who wish to be analysts and
active professionals who want to be students. Whether centralized or decentralized, there is a new wave of talent coming,
writes Peter Starks, CEO of REDGlobal and educator-at-large. It is armed with new business simulation experience that
can help you accelerate market and profit share. If they are under your radar, he says, take heed.
The hospitality “River Data” is professionally contained and available. Downstream is a new bridge. It offers a panoramic view
monitored. The left riverbank is buttressed by companies who of the countryside, easy access to both sides of the river, and it
serve up indispensable comparative metrics and indexes. The reaches places drones can’t. It’s the new bridge on the river data;
right riverbank is reinforced by the contributions of companies a metaphor for the unprecedented advancement in revenue and
who distill water samples into essential predictive analytics. And business acumen education and training provided to upper- level
overhead, drone companies compile social media feedback. hospitality students and in-service professionals through executive
education.
This vital triumvirate dependably shows your current position,
and suggests your next market moves. Enter the compiler: yield Example:
analyst, commercial manager, or revenue management team. Only Five years ago a revenue management university course would
they can see what lies beyond the riverbanks in the surrounding either be an elective or not be offered at all. If offered, it might be
countryside; the realities on the ground, if you will, that computer led by a talented and dedicated instructor who nonetheless was
programming isn’t yet ready to offer, but nonetheless must be given the assignment just a few weeks in advance of the class and
factored in. Working together, these four components form had little knowledge of, and no experience in, the topic. The courses
the man-machine partnering for hospitality revenue and yield had to rely on Internet articles and the few textbooks available.
decisions. This has changed, dramatically.
The traditional “man” part isn’t easy. It can be a daily marathon Consider the girders and trusses of the new education and training
of jogging the countryside, swimming laps from riverbank to bridge:
riverbank, followed by much paddling through meetings and social
media. In some instances, marathoners carry a weighty backpack • Revenue Management has become a required course and/
of policies, procedures, budget requirements, or organizational or part of a major concentration in hospitality programs
dysfunctions that can slow the pace. It can be exhausting for the of leading universities. These new generation courses
under-skilled and expensive for the company, especially if they are designed for new-generation professionals in a new-
can’t see the true finish line (read: bottom line.) generation marketplace, accessed by new-generation data.
• STR Global, through its highly regarded SHARE center,
Not everyone can do a marathon, but everyone can walk or roll. provides university programs access to worldwide ongoing
And a coordinated overview from the high ground is more effective data, sample reports, index and metrics online training
than wandering point-to-point for information. Good news. modules, and research collaboration, all in the interest of
The marathon is no longer necessary and a high ground view is bringing real-life into the classroom and developing work-
ready analysts. Strengthening its education initiative, STR management, marketing, and sales for them. These new students
contributes vast resources in providing complimentary understand different interests and they know how to team them.
“Certification in Hotel Analytics” to over 200 hospitality They are team-oriented by nature and by the new teaching systems
professors around the globe. of universities.
• Building on STR contributions, companies like REDglobal
provide the next step by contributing world-class, real-to-life The bridge works equally well for experienced professionals who
business simulations to universities. These provide upper want to build fresh analytic muscle and take a new look from
level students the analytic discipline of putting metrics and higher ground.
indexes to work in real markets, doing real business, and
seeing true business results. Their hotel and food & beverage • Professional education programs, both online and live, from
revenue management simulations reach some 7,000 students schools like Cornell are now balancing important theory with
a year in over 40 countries and in eight languages. superb research, and strong industry based content.
• Industry members of university advisory committees are • HSMAI has added to their well-known online foundational
increasingly insistent on practical based courses in analytics certifications program. Professionals can now join a
and revenue management. networking and learning initiative with a keynote one-day live
• Capstone, Asset Management, and Strategic Management program of cutting edge knowledge and best practices for
courses in both undergraduate and graduate programs are revenue managers.
requiring business analytics in final course presentations. • Witness the increased allocation of corporate training
• Universities are hiring “professors of practice” into the faculty. budgets to business acumen competence.
• Students no longer see data analytics and revenue • Hotel companies are partnering with simulation companies
management as have-to-do requirements. Their new profile is to provide business analytics and business acumen skills to
“highly engaging and rewarding careers”. all operating managers. Revenue is a DNA element of culture.
In my view the high point of the bridge is that these students not The need for stronger analytic skills, combined the ability to
only grasp the data and analytics, they also know how to connect connect data with business results, has been circling for too long.
the dots to the downstream impact on P&L, cash flow, balance The solution is happening and reinforcements are on the way.
sheet, management contracts, and owner returns; a complete ■
package of business acumen know-how. And, there is a bonus. You
won’t need to spend time busting down the walls between revenue
www.hotel-yearbook.com 81
CHANGE MANAGEMENT
Managing change is hard. And thanks to the fact that technology evolves and improves so rapidly, IT managers can find
themselves in the middle of large, complex change projects much more frequently than their colleagues working in other
areas of a hotel group. Colin Abercrombie, a Dubai-based coach specializing in such projects, reminds us that managing
the human side of change is vital to a project’s success – and this means managing the emotions of those who have to lead it.
A very senior IT professional was talking to me recently about My experience of coaching senior executives for many years
the challenges of managing IT projects. “Best case scenario” he has enabled me to come face to face with all three of the above
said, “is we make people miserable. Worst case, our project fails emotional reactions, as well as with many more. Frequently,
because of adoption challenges.” This brief truism reaches to individuals embrace some change initiatives whole heartedly
the very heart of the problem: projects failing because of a lack and yet resist others. Clearly, something causes them to decide
of ownership. how they are going to respond to any given change initiative,
and this ultimately determines whether they will lead, support,
IT professionals are tasked with dragging often reluctant quietly ignore, undermine, or even, in extreme cases, sabotage
businesses into the “information age” and although their the initiative.
innovations are begrudgingly welcomed when they work, the
pain of going through the change process is dreaded and at A particularly insightful model
times bitterly resented. In my experience, the Michigan State University Extension –
“Change Process Model” is particularly insightful, as it considers
A simple search on the Internet will reveal a myriad of different change from an emotional perspective. It considers five key
change models. Diagrams of John Kotter’s 8-step process, Kurt factors that lead either to a prolonged and painful transition
Lewin’s “Unfreeze, Change, Freeze” model, and Prosci’s ADKAR or to a faster, smoother result. These are categorized as Vision,
(“Awareness, Desire, Knowledge, Ability, Re-enforcement”) Plan, Resources, Skills and Incentive. Getting these five factors
model abound. And while the Kübler-Ross Change Curve, right helps to secure the emotional “buy in” to the project by
Bridges’ Transition Model and Roger’s Technology Adoption those who are involved in, or affected by, the initiative.
Curve are all relevant observations of the emotions that
people live through, they don’t give us guidance on how to Establishing and communicating a clear Vision or sense of
manage them. Everybody, it seems, is an expert – and yet I feel purpose is key to the success of any project. If all of the business
that nobody gets it quite right, as every project is different, stakeholders, solution developers and IT project management
the people involved in them are different, and therefore the have absolute clarity on what the project aims to deliver, then
dynamics are different. they are more likely to “buy into it” emotionally. If the Vision
has not been established, or if it is unfocused and blurred, then
For me, the success of any project depends on how the human those that are affected will become confused. They will most
side of change is managed: the emotions, not the mechanics. likely not understand the need for the change, will not own it
We all have our own unique approach and attitude towards emotionally, and will therefore tend to resist it.
change, and our own internal software pre-disposes our
emotional reactions. Some people detest change and want If this confusion is at the top of an organization, passive
things to stay the same forever; others prefer a gradual, natural resistance at lower levels is likely to increase. Senior managers
and safe evolutionary process that allows the alterations to can be expert at quietly undermining initiatives by not “owning”
happen almost unnoticed over a period of time. A series of small them or supporting them visibly.
software upgrades, if you will. Yet others want each change to
be a new, revolutionary, life-changing experience. They love to Communication and execution of the Plan is the next area of
throw themselves in, embracing the challenge passionately, focus. Without a realistic project plan, control over the project
and then they are surprised and disappointed that their own is lost. Deadlines pass or are continuously pushed further back,
euphoria is not mirrored by others. and timelines slide until eventually the initiative dies due to
inertia. Another proven way to kill off a project is to “plan it to successful transition. If there is a clear and tangible benefit to
death”. both the organization and the individuals within it, then all of
those who are affected by the change are more likely to want it
Project plans always change, and it is therefore neither feasible to succeed. This provides the Incentive. If this benefit is not clear
nor possible to plan for every contingency. Getting as much and relevant, or has been exaggerated in an “overpromise and
in place as we can to get started, and then adopting a Richard under-deliver” way, then motivation is eroded and apathy takes
Branson-like approach of “Screw it, let’s do it” seems to have over. If there is no motivation – why bother?
more success in my experience than years and years of fine
tuning, and not executing, a plan. Leadership is the key
Getting the above five factors right will go a long way to enhancing
The creation and communication of a pragmatic and the likelihood of success. The real “difference that makes the
fluid project plan which is then followed up diligently will difference” lies with leadership. Even if every box is ticked and an
keep a change initiative moving forwards. There are now organization is undertaking a global change initiative, different
numerous online tools that can be used to help virtual project business units have differing levels of success.
management teams to communicate and progress.
In the hospitality industry, with a typical global structure
Having the necessary Resources to fund and man any project consisting of head office, regional teams and individual
is vital, as without them the project stalls and frustration levels business units, each hotel takes its lead from the GM. The GM
skyrocket. We have all walked past half-finished building sites in turn takes his or her lead from the head of the region, who
in cities all over the world where the work has stopped due to takes direction from head office. If the regional people are not
a lack of resources – finance usually. Provided the finance is “on board”, then the GM and the hotel team are also likely to be
available, resource provision within the IT sector falls into three disengaged, leading to “adoption challenges”.
main areas: the IT project team, the vendor that is providing the
solution, and the business that will be using it. Even with lots of internal marketing and global and regional
project “ownership”, not every GM is going to be equally
All three must select the right people with the requisite Skills committed. Hotel General Managers who really “own” their
to enable the project to proceed. Any real or imagined lack of projects are much more likely to achieve a positive outcome
resources (time, money, people, tools, etc.) will magnify frustration than those who are more skeptical.
levels; tensions will flare, and the level of misery will rise.
Getting as many GMs as possible on board is key to success.
But not only do they need the Resources, they need to have The next step is for them to appoint and support a dedicated,
the right ones. If the people tasked with leading, managing and committed, and fully empowered project leader within their
executing the project do not have the ability or the skill set to do hotel to drive the project to a success conclusion.
so, they become very anxious. This fear spreads, people leave,
and the project gets delayed. Simply put, unhappy frightened Managing the human side of change is really about managing
people do not perform as well as happy confident ones. the emotions of those who have to lead it. As Dr Wayne Dyer so
eloquently put it: “Change the way you look at things, and the
The final factor in securing the “emotional buy in” to the Vision things you look at change”.
is the expected outcome that will eventually be derived from a ■
www.hotel-yearbook.com 83
INNOVATION HUB
An exciting project is underway at the Dubai-based Emirates Academy of Hospitality Management, as a digital innovation
hub is set up on campus to give technology vendors an opportunity to showcase new concepts and test ideas and
applications. Sanjay Nadkarni, the school’s Director of Research & Innovation, walks us through the project.
Traditionally, the hospitality industry is not known to be at ideas and concepts between the two. Indeed, this attribute
the forefront of adopting cutting edge technologies. IT in this differentiates EAHM from its peer academic institutions.
industry is typically characterized by legacy platforms and a
fragmented landscape. In an increasingly digitized world, this In its quest for contributing to digital innovation in line with
zeitgeist is unsustainable in the long run. Major hospitality the overall direction the UAE economy is taking, EAHM, with
chains, albeit slowly, are beginning to acknowledge this zeitgeist active support from Jumeirah’s IT Group, has reached out to
and are leveraging their corporate muscles to mitigate this technology vendors to be a part of this story. The expressions of
situation. The recent launch of Marriott’s innovation incubator interest on the part of the vendors has been overwhelming as
the MBeta, touted to be the world’s first hotel in “live beta”, is a the benefits of such an exercise for the stakeholders are all too
case in point. The Emirates Academy of Hospitality Management obvious.
(EAHM), as a strategic business unit of the Jumeirah Group, has
also been taking steps in this direction, albeit with a different Without having to leave the campus, the students at EAHM get
focus, by engaging with hospitality tech vendors to set up a a peek at cutting edge technology in action to complement
digital innovation hub on campus. classroom lectures and workshops conducted by faculty and
domain specialists. They also have the opportunity to engage
The primary goal of this exercise is to benefit all stakeholders, in user experience (Ux) testing of the platforms and devices as
namely the Academy’s students, Jumeirah, and the wider part of EAHM’s research activities, and provide feedback to the
hospitality industry, including vendors, by showcasing trending vendors.
innovations in an integrated environment. In our industry, it is
not uncommon for practitioners to view academic institutions The IT specialists and decision makers from Jumeirah and
as ivory towers far displaced from the reality and rough and the wider hotel industry are able to preview in action and test
tumble of the operations. Thus, academic output, including these latest innovative offerings from vendors over prolonged
research, tends to exist in isolated silos largely disconnected periods in an integrated “live ecosystem”, in contrast to isolated
from developments and trends that the industry as a whole demonstrations on premises or at industry exhibition booths
experiences. The unique position of EAHM as an academic that otherwise is the norm.
entity embedded within a luxury hospitality chain provides
an opportunity to reduce this chasm between academe and The technology vendors have a two pronged benefit in that
industry through seamless cross-pollination of knowledge, (i) they are able to conduct showarounds for potential clients
on an “on-demand” basis practically throughout the year, the active contribution and participation in the design and
instead of being confined to static displays and demonstrations delivery of Digital and Information Technology related courses
during exhibitions and trade shows, and (ii) they are able to get offered to students in the final year of the Bachelor of Business
valuable user experience feedback through research conducted Administration (BBA) program at EAHM.
by faculty and students.
Once fully operational, the Innovation Hub is expected to play
The protocols for engagement in the Innovation Hub project a catalyst to a virtuous cycle of exchange of actionable ideas
stipulate that the platforms or gadgets to be “exhibited” should and insights between the industry stakeholders and thus
have a demonstrable innovation value. Towards this end, the contributing to the overall innovation quotient of the Dubai
technology should be in beta phase or at the very least, be economy.
novel to the GCC region, if not globally. The typical turnaround ■
time or lifecycle of the platform in the Innovation Hub is
expected to be around 6 months, or till such time the product
comes “on stream” in the market. The ownership of the asset
rests solely with the vendor at all times. No two platforms in
direct competition will be simultaneously displayed, though
substitutes will be allowed.
The entire campus serves as the venue for this “live” laboratory.
The devices and platforms are deployed at appropriate
locations to optimize usage, data capture and visibility. At the
time of writing, the implementation roadmap for this project
is approaching its final stage and some vendors have already
commenced deployment on the campus premises, including
the library and the recreation area. A dedicated studio is now
in the works to simulate a hotel room environment that will
play home to guest-facing in-room technologies. Another
positive spin-off of this engagement with the vendors is
Study
www.hotel-yearbook.com
Hospitality Business 85
TECHNOLOGY CONSULTANTS
Ted Horner has almost 30 year’s experience as an IT consultant in the hotel industry. We asked him for advice on how a
company can get the most out of working with a consultant. Here are his eminently reasonable guidelines.
In 1989 Ted Horner established E Horner & Associates Pty Ltd, a consulting practice specializing in technology consulting to the hospitality
industry, and he is now widely respected as Australia’s leading consultant in this area. In 2002, he was a founding member of HTNG (Hotel
Technology Next Generation), a not for profit body which was established in the US to promote open systems integrations between vendors in the
industry. Today he is an Executive Advisor to HTNG. In 2004, Ted was the first non-US person to be elected to the HITEC Technology Hall of Fame
for his contribution to the advancement of technology in the hospitality industry. In 2014, he was elected to the International Board of Directors
of Hotel Technology Financial Professionals (HFTP), who run the largest hotel technology exhibition/conference in the world (HITEC). He has
completed consulting assignments in the following countries over the last 25 years in Singapore, Indonesia, Sri Lanka, USA, Malaysia, Dubai,
Papua New Guinea, and many others.
In the hotel room, guests face a dizzying number of different touch points where they come into contact with technology.
And in terms of how easy these human-tech interfaces are to find, then understand, and ultimately use, nearly all of them
can be said to have room for improvement. Hong Kong-based Fraser Hickox takes us on a tour of the guest room, sharing
his observations and insights.
A lady entering the guest room does not admire the light
switch, but rather seeks a means to appreciate the texture and
aesthetics which often represent calm and well-being, the light
switch providing access to the source of calm light which can
affect the way she feels and the stay.
www.hotel-yearbook.com 89
GUEST FACING TECHNOLOGY
language and genre popular among the Chinese particularly. External of the room, savings are being realized through the
These will also provide for digital signage to be displayed in use of fiber optics to carry the television, telephony, WiFi, room
both horizontal and vertical perspectives. controls, CCTV, security, public area AV, and other services
substantially reducing the containment costs and installation
We are encouraging the manufacturers to consider a number of but also giving back areas normally required for the IDF
issues associated with the televisions but have also addressed installation on each floor.
these in the event the manufacturers are slow in meeting this
need. These include: Public area audio is generally fairly flat but the use of resonation
will provide a warmer sound that can almost be felt. The value
• Constant audio levels particularly for YouTube to maintain a of this is that if a full frequency response is provided the audio
consistent audio level; levels can be set lower.
• USB signaling so we are able to detect when the TV is in active
standby to operate a screen, a curtain, to switch a light or Stating all this, a clean and comfortable room and enthusiastic
operate a curtain; staff mitigate all deficiencies.
• Bathroom speaker controls so the audio level in the ■
bathroom will reset when the TV is switched to active
standby;
• Better audio quality, the downfiring speakers on most
televisions are lacking particularly when encased in a frame
and need to be improved.
2017
JANUARY MAY
JANC International Consumer Electronics Show (CES) MAY Digital Travel Summit
5 January 5- 8, 2017 - Las Vegas - NV, United States 8 May 8-10, 2017 - Lake Las Vegas - NV, United States
MAR CH OCTOBER
MAR ITB Berlin 2017 OCT HFTP Annual Convention 2017
8 March 8-12, 2017 - Berlin, Germany 25 October 25-27, 2017 - Orlando - FL, United States
APRIL
APR International Hotel Technology Forum (IHTF) 2017 NOV HOSPACE 2017
5 April 5- 7, 2017 - Paris, France TBA November 2017, London, United Kingdom
APR HT-NEXT
10 April 10-13, 2017 - Orlando - FL, United States
www.hotel-yearbook.com 91
ROBOTICS
Robots taking over certain roles in the hospitality industry is not a question of “if”, writes David Sjolander of HTNG, but of
“how” and “when”. But they will interfere with the human interaction we foster with guests, many hoteliers argue. Then
the logical entry point will be in back-of-house functions – but they won’t stop there.
Robots are nothing new. The term was coined in the 1920s,
and the first functional robots appeared shortly thereafter.
Widely deployed to perform functions previously carried out
by humans in industries from manufacturing to aerospace and
law enforcement, they are now commonplace. Robots can be
less expensive and more accurate than humans, and they are
often used to perform functions that are dirty, dangerous, or
repetitive.
own recipes, order on their phone, and watch their drink being a personal assistant à la Siri or Alexa than a robot. No matter
shaken, not stirred through the wonders of technology. For what you call her, Connie is still an interesting new product to
many guests, this will be more engaging than explaining their watch.
special request to a busy bartender in a noisy room. And Makr
Shakr will never over-pour, give out free drinks, or try to date As an industry, we are just now engaging with robots. There
your guests. are many challenges ahead for robotic pioneers in the
hospitality industry. As a labor intensive industry with many
Not all hotel robots will be seen or interact with guests. staff performing repetitive, physical work, it will take time
Maidbot’s first robot is designed to clean the guestroom floor to figure out where in hotels robots belong and where they
while the housekeeper is cleaning the bathroom. The back of don’t. However, don’t be surprised if, before long, your soup
the house seems ripe for automation because there will be no is cooked by a robotic chef, your room is cleaned by a robotic
argument about reducing guest contact. The other complaint room cleaner, and your triple half-caf vanilla no whip mocha is
often heard is about taking away jobs; however, these jobs are brewed by a robotic barista…in a green apron, of course.
often difficult to fill, have high turnover rates, and are prone to ■
injuries. Regardless, if there is a better, faster, and/or cheaper
way to get the work done, it will happen.
As Chief Operating Officer of HTNG, David Sjolander is responsible for driving the operational execution of HTNG’s mission. David is a lifelong
hotelier with deep background in hotel technology, distribution and operations. He has held senior executive positions with several industry
suppliers, such as Pegasus, TravelClick and Fidelio, as well as leading hotel chains Carlson Hospitality and Hyatt. David holds a bachelor’s degree
in Hotel and Restaurant Management from the University of Denver and a MBA from Golden Gate University in San Francisco. He also serves on the
Executive Advisory Board of the Fritz Knobel School of Hospitality Management at the University of Denver.
www.hotel-yearbook.com 93
TECHNOLOGY DRIVING M&A
Hospitality industry
expansion is being fueled
by alternatives
by Prakash Shukla i
The hospitality industry is undergoing seismic changes with consolidation and disruption. Prakash Shukla believes
the industry is at a crossroads of significant disruptive changes, being driven by new business models and technology.
He outlines the macro environment driving the industry, some recent transactions and then possible opportunities
particularly in hospitality space. Clearly, before asset allocation, one needs to have deep domain expertise, he believes.
It is only then that one can identify opportunities where new processes, models, technologies can be used to access new
markets, inculcate efficiencies, or create a complete new paradigm shifts.
The travel and tourism industry represents roughly $8 trillion There are various entities funding travel start-ups, including
(10%) in global GDP. This segment of the global economy prominent angel investors, accelerators such as Y Combinator,
incorporates a variety of companies that specialize in specific public company funds such as Amadeus Ventures, private
industry segments, but just five sectors – food service, cruise equity firms such as Blackstone. Venture capital firms active in
lines, lodging, gaming, and airlines – account for the majority travel include Sequoia, Battery, Kleiner Perkins Accel Partners,
of this activity, and represent more than $850 billion in annual etc. Most however are horizontal players and are looking for
revenues in the US alone. It is also a significant employer, innovative products across industries.
accounting for roughly 277 million jobs. Looking in the rearview
mirror, it is apparent that there is a direct correlation between Recent exits in the travel space include:
innovations in technology and the growth of hospitality
industry. • Concur Technologies (SAP, $8.3 billion)
• Micros Systems (Oracle, $4.6 billion),
The role of venture capital in hospitality, travel and tourism • OpenTable (Priceline Group, $2.6 billion),
• TravelClick (Thoma Bravo, $930 million)
Market expansion has been fueled by alternative investment • Kayak (Priceline Group, $2.1 billion)
vehicles that fall into following catagories: • Trivago (Expedia, $632 million for a majority stake)
• ITA Software (Google, $700 million) in 2011.
• Angel investments: Team and an idea
• Early stage seed capital: Team, idea and maybe an MVP TripAdvisor is among the most acquisitive companies in travel,
• Venture capital: Team, idea, am MVP, traction and huge having acquired 29 brands since 2006. In 2014, TripAdvisor
scalable market acquired four companies, including Viator for $200 million, as
• Growth PE: Post revenue valuation based on multiples well as European restaurant reservations site Lafourchette,
• Traditional PE: Post revenue, valuation based on multiples VacationHomeRentals and Tripbod for another $152 million in
exit usually a listing or to another strategic cash.
www.hotel-yearbook.com 95
HOTEL OF THE FUTURE
If the 20th century was an era of conventional hotel design, the beginning of the 21st century has seen the arrival of new forms
of hotel design. The growth in urban hotels, boutique hotels, resort hotels, and other permutations of the typical hotel model
has yielded a great variety of hotel designs around the world. However, as architect James Law of the Hong Kong-based firm
James Law Cybertecture writes, what may set the 21st Century era hotel design from its predecessors is the rapid innovation
in everything. Raised design-consciousness and the rapid adoption of technology will yield a new generation of hotels that will
be systemically different from before. “They will be different,” he says, “because the people who stay in them will stay there for
new reasons, with new personalities, and with new lifestyles that never even existed before.”
In this article I hope to identify several key drivers which may hugely
affect how hotels of the future be designed, built and operated.
www.hotel-yearbook.com 97
HOTEL OF THE FUTURE
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