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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

BEACON & PROXIMITY TECHNOLOGY


GUEST WIFI

INTERNET OF THINGS PRIVACY


IoT DEVICES

HOTEL OF THE FUTURE


CEO VIEW OF TECHNOLOGY
ISBN 9782970089681
9000

www.hotel-yearbook.com
This e-publication may be ordered online | € 19.50

9 782970 089681
More than meets the eye
More than meets the eye

Mobile Access compatible


Mobile Access compatible
Online capability (wireless)
Online capability (wireless)
RFID reader with improved
reading distance
RFID reader with improved
reading distance
New stylish reader design
New stylish reader design
Minimalistic design by having
electronics inside the door*
Minimalistic design by having
electronics inside the door*
Works with most door materials
Works with most door materials

When it comes to smart security, less is more. With the new VingCard Essence, you get more advanced technology
in a clean, minimalistic design that blends with any hotel decor. And now the industry’s most uniquely beautiful
When it comeslocking
and functional to smartsystem
security, less issmarter.
is even more. With the new
Available withVingCard
wireless Essence, you get more
online capabilities, advanced
VingCard technology
Essence is now
in a clean,
also minimalistic
available with ASSAdesign
ABLOYthat blends with
Hospitality MobileanyAccess,
hotel decor.
poweredAndbynow theSeos
secure industry’s most uniquely
technology. beautiful
This revolutionary
and functional
solution allowslocking
guestssystem is even
to bypass smarter.
the front Available
desk, withsmartphone
using their wireless online
or capabilities, VingCard
watch as a secure Essence
digital key. is now
also available with ASSA ABLOY Hospitality Mobile Access, powered by secure Seos technology. This revolutionary
solution
Learn more: allows guests to bypass the front desk, using their smartphone or watch as a secure digital key.
www.assaabloyhospitality.com/essence.

Learn more: www.assaabloyhospitality.com/essence.


*US patent number 8047030

*US patent number 8047030


WELCOME

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

BEACON & PROXIMITY TECHNOLOGY Dear readers,


GUEST WIFI

INTERNET OF THINGS PRIVACY


IoT DEVICES

HOTEL OF THE FUTURE


CEO VIEW OF TECHNOLOGY

Welcome to The Hotel Yearbook 2017 – Technology. We are very proud to present,
ISBN 9782970089681
90000 >

www.hotel-yearbook.com
This e-publication may be ordered online | € 19.50

9 782970 089681

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.

The views and opinions expressed in this publication


are those of the individual authors and not necessarily
those of the publisher or publication partners.

© 2016 Wade & Company SA

Woody Wade | Publisher Henri Roelings | Publisher

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
ISBN 9782970089681
90000 >

www.hotel-yearbook.com
This e-publication may be ordered online | € 19.50

9 782970 089681

WOODY WADE
WELCOME HENRI ROELINGS 5 Welcome

FOREWORD FRANK WOLFE 7 A word from Frank Wolfe, CEO of HFTP

FOREWORD FLOOR BLEEKER 7 A word from Floor Bleeker,


our Guest Editor-in-Chief

VIEW FROM THE TOP BILL WALSHE 8 A CEO’s perspective on technology

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

THE CLOUD: LEGAL ISSUES JOBY BERETTA 18 Cloud computing agreements:


Five things to look out for

"HOTEL OS" NICK PRICE 20 Not your father's service bus

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

THE IT TEAM BRENDA O'NEIL 28 So much more than “fixers”

INTERNET OF THINGS SUMAN PAL 30 How IoT technology is re-imagining


the guest experience

IOT AND SECURITY ALEXANDER DÖRSAM 34 Why hack a thermostat in a hotel room?

SECURITY: A PRACTICAL DILEEP SREEDHARAN 36 Building an adaptive security program


GUIDE for the hotel industry

REVENUE OPTIMIZATION SHERRY MAREK 40 Total hotel revenue management? Scratch that!
Call it revenue optimization!

PERSONALIZATION KRISTIAN VALK 44 Boosting direct hotel bookings with


personalization as the solution

ANALYTICS PAUL VAN MEERENDONK 46 Ride the wave: The analytics tsunami is upon us

UPDATE FROM HFTP FRANK WOLFE 48 Advancing on many fronts

PROPERTY MANAGEMENT JOS SCHAAP 50 Technology pressures on today’s property


SYSTEMS management systems

HOTEL Yearbook 2017 special edition on TECHNOLOGY


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
ISBN 9782970089681
90000 >

www.hotel-yearbook.com
This e-publication may be ordered online | € 19.50

9 782970 089681

APPS ROGER EL KHOURY 52 Hotel apps: What’s next?

INNOVATION OLAF KOCH 54 Boosting innovation in the HoReCa business

START-UPS JENS LAPINSKI 57 What to do when being an astronaut is not


an option any more

Jagger
bluep th
® ® ®

START-UPS tsenso
resment
MONITORING
simplicity for SOLUTIONS
everyone
58 Hospitality TECH Startups
TM

‰  
    

MENTORSHIPS IAN MILLAR 68 My approach to revolutionizing


the hospitality industry

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

HTNG IN 2017 MONIKA NERGER 74 Hotel Technology Next Generation:


The way forward

HOUSEKEEPING ERIC ROGERS 76 The business of housekeeping: Is technology in


housekeeping an option or a prerequisite?

VISUAL CONTENT GUY TRIGALLEZ 78 Realistic visions on the virtual world of hospitality

ANALYTICS PETER STARKS 80 Bridge on the River Data: Reinforcements are on


the way

CHANGE MANAGEMENT COLIN ABERCROMBIE 82 The human side of change

INNOVATION HUB SANJAY NADKARNI 84 Innovation Hub @ EAHM: Bringing research and
educational benefits to hospitality stakeholders

TECHNOLOGY CONSULTANTS TED HORNER 86 How to deal with consultants effectively:


A view from the other side

GUEST FACING TECHNOLOGY FRASER HICKOX 88 All around the room

ROBOTICS DAVID SJOLANDER 92 As the bartender buzzed and whirred,


the martini was shaken, not stirred.

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

HOTEL Yearbook 2016 special edition on Talent Development


First-ever search engine
focused solely on resources
for the global hospitality industry.

Curated content only


Pineapplesearch.com aggregates curated industry
content from multiple sources into a single search
platform, including articles, white papers, webinars
and more. In addition, the site has an indexed
industry directory.

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Pineapplesearch.com is an open platform ready for
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start searching at www.pineapplesearch.com

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FOREWORD

A word from Frank Wolfe,


CEO of HFTP
Collaboration and creativity are often the roots of innovation. is through publications like this that the hospitality innovators
We have seen our industry transform and evolve when teams of tomorrow are able to gain insight into today’s exciting
of creative and talented individuals have joined forces. As developments and advances.
part of its core purpose, Hospitality Financial and Technology
Professionals (HFTP®) actively supports such collaborations HFTP is committed to investing in the future of hospitality
so that ideas can build and innovations can continue. We technology with programs such as HFTP’s Entrepreneur 20X
understand that it is crucial to bring great minds together and pitch competition, which you can learn more about in this
that is exactly what The Hotel Yearbook does, and we are proud issue. The Hotel Yearbook shares HFTP’s commitment and
to partner with them again in 2017. passion for nurturing future innovators and they have featured
several of the upcoming leaders of our industry in the following
The following articles are composed by some of the most submissions. It is a great pleasure to continue the wonderful
respected experts in hospitality technology. They are all prime relationship that HFTP has with The Hotel Yearbook because it
examples of innovation through collaboration. A willingness is through collaboration that creative minds can achieve grand
to share ideas and discoveries in The Hotel Yearbook is a endeavors.
testament to their dedication and passion for our industry. It

A word from Floor Bleeker,


our Guest Editor-in-Chief
It was a great honor to be asked to be this year’s guest editor of IT a run for their money, but are adding tremendous value at the
the Hotel Yearbook’s special edition on Technology. same time.

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.

8 HOTEL Yearbook 2017 special edition on TECHNOLOGY


It should be as natural as the air we breathe. Most importantly, technology is a great tool for enhancing the guest experience,
technology should never be the reason why we fail to deliver provided:
against a consumer’s expectation, be it “on property” or “above
property”. • It consistently works
• It is not too complex for guests to operate
Technology’s role in revenue generation has yet to be realized in • It has value and appeal across multiple generations of
an optimal fashion. In recognition of the increasing convergence consumer
in traditional sales, marketing, revenue and digital disciplines,
the Viceroy IT function reports into the Commercial Team. We As we look to the future leadership of our hospitality, I have no
must absolutely ensure the voice of IT in shaping how we go to doubt that we will see a new breed of CEOs potentially born
market, manage consumer engagement and delight our guests. from some of the leading technology brands of our time. Now
Early adoption is encouraged where there is demonstrable value that will be interesting.
to our consumer. ■
Our collective success is of course pegged to the efforts and
commitment of key industry providers. In putting forth such a
statement, I am perhaps revealing our Achilles’ heel and legacy A 20-year veteran to the luxury hospitality industry, Bill Walshe
challenge. We look to industry providers for progress and speed provides Viceroy Hotel Group with a truly global perspective,
– and ultimately, for competitive advantage. We must share bringing extensive senior management experience with leading
accountability for success down the line to guest engagement international hospitality companies, including Jumeirah Group,
as opposed to a “subscriber relationship” only concerned with The Doyle Collection and Kempinski Hotels and Resorts. As the CEO
their respective micro contribution in the end-to-end process of of the Doyle Collection, Bill led the brand through its reinvention
hospitality. into a modern luxury urban hotel group that includes eleven hotels
in the USA and Europe. Prior to The Doyle Collection, he served as
In summary, our industry should be careful not to discount Chief Marketing Officer for Dubai based Jumeirah Group at a time of
technological safety in favor of innovation. As a facilitator, tremendous growth for the international luxury hospitality group.

www.hotel-yearbook.com 9
SPONSORED CONTENT: DISRUPTION

Big data and big trends mean


big opportunity for revenue
managers in 2017
by Tammy Farley i
Looking to 2017, Rainmaker’s Tammy Farley explores some of the more significant and current disruptive trends that will
affect the hotel industry, and what savvy revenue managers will need to be taking from, and doing with, the big data they are
gathering about each segment of their market, in order to make it actionable.

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

10 HOTEL Yearbook 2017 special edition on TECHNOLOGY


the large chains and play the OTA game effectively to their competition for traditional hotels, and has many hoteliers
own advantage. This means going beyond traditional revenue and revenue managers asking: what is the impact and how
management practices and ideals, bringing together diverse do we respond? While the answer to this varies widely, based
market intelligence to make the most informed decisions, and on location and the type of hotel, it’s important to first assess
provide that direct, one-on-one atmosphere that maintains how much alternative accommodations have penetrated a
the repeat, loyalty and group business these properties particular market and how they are accomplishing this. Rate
need to stay ahead. Additionally, clear cut goals and a direct shopping plays a key role here, and effective rate shopping
understanding of what success will look like for their hotel in tools must give revenue managers visibility into alternative
the new landscape, along with in-depth analysis of the average accommodations and shifting distribution strategies.
length of stay, booking windows and pace data, will put
revenue managers in the position to master big data and make When it comes to these alternative accommodations, revenue
it actionable. managers need to do more than simply rate shop, they
must also supply shop. This matters specifically because a
The impact of the “sharing economy” and alternative larger supply of accommodations from Airbnb in a hotel’s
accommodations particular area will have a direct effect on that hotel’s rates
In continuing to figure out and cater to the individual needs and performance. Revenue managers need comprehensive
of each guest segment, alternative accommodations, such as intel and insights that paint a complete picture of pricing,
Airbnb, lifestyle brands and localized hotel chain properties, occupancy and forward-looking demand forecasting. Once
have seen unprecedented success because they’re not only they have this, it’s important to use those specific data sets to
cost efficient, but often come equipped with homey touches pinpoint where the demand is coming from and the impact on
and personalization that make guests feel comfortable during performance, so they can adequately evaluate and implement
their stay. With flowers and a bottle of wine on the table, a proper strategy to gain that market share back or retain it.
or a special brand of almond milk in the refrigerator, these
accommodations typically go above and beyond what hotels The growth of group and how to leverage it
have traditionally included in their base rates. A recent study from PricewaterhouseCoopers found that
the meetings industry directly spends an average of $280
The rise of Airbnb, lifestyle brands, localized properties billion each year. Out of this number, $39 billion is spent on
and other alternative lodging options has proven to be stiff accommodations, which translates to room revenue. ↓

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.

About The Rainmaker Group


Headquartered in Alpharetta, Georgia, Rainmaker is the premier
provider of profit optimization and demand-cycle solutions to the
hospitality and multifamily housing industries. Since its founding
in 1998, the company has focused solely on delivering the highest
revenue returns possible through the development and cultivation
of a suite of products and consulting services designed to streamline
operational efficiencies, enhance revenue optimization processes,
improve lead performance and generate greater demand.
Recognized as one of the top privately held companies in the United
States, Rainmaker has been named to Inc. 5000’s Fastest Growing
Privately Held Companies for the last five years and was named
to the Atlanta Business Chronicle’s List of the 100 Fastest Growing
Companies in Atlanta.

uu www.LetItRain.com

12 HOTEL Yearbook 2017 special edition on TECHNOLOGY


your hospitality revenue
management partner
letitrain.com

Increase revenues by 5 – 10% with Boost group revenues by 4 – 12% and


industry-leading forecast accuracy conversions by 6 – 14% with lightning
and pricing science. fast, optimal group pricing.

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.

Many operators still are shackled to enterprise management


systems that require housing on their property. The capital
investment needed for on-premise hardware and software
alone can be exorbitant and doesn’t even factor the time,

14 HOTEL Yearbook 2017 special edition on TECHNOLOGY


SUNDAR SWAMINATHAN PETER AGEL

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.

Defend against commoditization Engage the Millennial employee


According to Merriam-Webster, a commodity is a mass- If they’re not already, millennials soon will represent the rank-and-
produced unspecialized product. In other words, it is exactly file of your staff. And the fate of your hotel will rest in their hands.
what a hotel experience shouldn’t be.
It’s critical to recruit the best among them, retain them and
As much as hoteliers tout individual guest service and loyalty empower them. But if your hotel is saddled with obsolete
programs, the truth is most don’t treat each guest uniquely, technology, odds are, you won’t. That was one of the key
failing to tailor stays based on personal preferences. Far from it, findings of Millennials and Hospitality: The Redefinition of
many operators struggle to even recognize valued guests, and Service, a major Oracle Hospitality study that surveyed more
typically, just clump them together in tiers based on the points than 9,000 Millennials in eight countries: Australia, Brazil,
they’ve accumulated through so-called “loyalty” initiatives. ↓

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. ■

About Oracle Hospitality


Oracle Hospitality, formerly MICROS, provides leading applications, services and hardware for the hospitality industry. The company’s solutions,
which include systems for point-of-sale, property management, reservations, distribution, sales and catering, kitchen management, mobility,
loyalty, and reporting, are utilized in restaurants, bars, hotels, casinos, stadiums, theme parks, universities, hospitals, and cruise lines around the
world. Leveraging 35 years of industry expertise, Oracle Hospitality provides Cloud and on-premise solutions that allow the hospitality industry to
deliver innovation and exceptional guest experiences while reducing the cost and complexity of IT. .

uu www.oracle.com

16 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Complete
Hospitality
Cloud
The Integrated Cloud for Hotels & Casinos

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

18 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Joby Beretta, is the Founder and Executive Director of The Bench
FZE, an innovative legal services provider offering cost-effective
legal services, legal recruitment and lawyers on demand.
Established in the United Arab Emirates, The Bench responds to the
demand for a boutique law firm specializing in both the hospitality
and technology sectors. The deep bench of lawyers have “Big Law”
training but “New Law” mindsets and are recognized year after year
by Who’s Who Legal, Legal 500 and Chambers.

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.

Although many may perceive these clauses as purely legal


issues, the commercial impact can be substantial and therefore
worthy of detailed consideration by the hotel management
team. At the end of the day, you need to achieve a balance of
risks equitable for both parties considering the specifics of your
cloud project.

www.hotel-yearbook.com 19
HOTEL OS - SERVICE BUS ARCHITECTURE

Not your father’s


service bus
by Nick Price i

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?

If you went to a hospitality technology conference and started


talking about “service bus” to anyone but a very few super techie
individuals, until recently you would most likely have been met
with blank stares and a confused “a what?” in response. But that’s
now starting to change, and the concepts of service bus, and the
opportunities afforded by the technology, are beginning to creep
into mainstream consciousness.

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.

So, enterprise service buses have been around for a long


time. They are most certainly not new, so why are they now
becoming relevant? Conceived as a fundamental element of
Service Oriented Architecture (SOA), for years service buses and applications that they were developing. And by small-scale,
the loosely-coupled application architectures that they were I include as a reference point familiar to all hoteliers such
supposed to enable were confined to the periphery of application applications as the on-premise Property Management System.
development. There were many reasons for this, but mostly
because the cost and complexity of developing SOA applications But then came cloud and Software as a Service (SaaS). The
was simply too high, so most application developers continued operational scale at which modern hyper-scale cloud applications
to develop with on-premise point-to-point integration patterns, can operate, and the expected rapidity of feature development,
which for the most part worked well enough for the small-scale has again focused attention on modern application development

20 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Hotel OS: Service Bus Architecture
GDS OTA OTA OTA

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).

22 HOTEL Yearbook 2017 special edition on TECHNOLOGY


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SPONSORED CONTENT: PAYMENT SYSTEMS

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

24 HOTEL Yearbook 2017 special edition on TECHNOLOGY


About Worldpay
Worldpay is a leading payments company with global reach. As
a specialist in payments for the travel sector, Worldpay supports
airlines, online travel agencies, travel marketplaces and service
providers such as hotel chains, car rental companies, rail, coach,
ferry and cruise operators. Worldpay manages the complex
payments landscape for its customers, helping them to accept the
widest range of payment types globally. Using their network and
technology, Worldpay processes payments across 146 countries,
in 126 currencies and helps its customers to accept more than 300
different payment types. Worldpay provides an end-to-end service
including acquiring, treasury, gateway, alternative payments
and risk management, all via a single integration to Worldpay,
making global payments simple for many of the world’s leading
organizations.

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

Taking the guest experience to the


next level with mobile access
by Markus Boberg i

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

26 HOTEL Yearbook 2017 special edition on TECHNOLOGY


solution capable of seamlessly integrating with existing hotel
guest apps, while also providing a straightforward path to
implementation for those lacking their own. For those fortunate
to already have their own mobile application, up-to-date mobile
access technology will be able to merge with backend systems
by simply using a software development kit and onboarding
services. Using this option, hotels can provide guests with
greater value in downloading their mobile apps, and increase the
chances of them interacting with other amenities or promotions.

Alternately, those hotels needing to implement a mobile access


app solution from the ground up are today just as able to take
advantage of digital key technology by leveraging a stand-
alone platform. Quick and easy to implement, a stand-alone
app is ideal for those properties that simply want to provide
their guests with the option of skipping the front desk, without
having concern themselves with unnecessary and often complex
software programming.

Finally, for those hoteliers wanting to pursue a middle ground


where their property does not currently have its own in-house
app, but would like to offer more than access control, today’s
market offers a variety of options from which to choose. In
choosing to work with an established provider, hoteliers can
take advantage of certified third party applications that can
provide additional services such as direct booking or amenity
upgrade features. When comparing mobile solutions, hoteliers
Often on par with concerns over security is affordability and the considering a third party app should consequently take note of
practicality of implementing a solution. Here as well, mobile a provider’s list of certified partners and their range of offerings,
access innovation is working to ensure that its advantages are ensuring their ability to find and implement a platform that is
obtainable by virtually any hotelier regardless of budget. Any ideally suited to their needs.
industry-leading security access provider should be able to
supply solutions that are “future-proof”, and allow hoteliers the Mobile access’ ongoing expansion and adoption rate in markets
option of upgrading their offerings in stages, either as technology across the world is nothing short of impressive, given its
becomes available or as financial circumstances permit. For relatively brief existence within the hospitality industry. Yet at the
example, a hotelier who does not find mobile access to be same time, such a feat is hardly surprising due to the universal
feasible at the time of upgrading to RFID functionality, but may consumer demand for services that are compatible with their
wish to consider it at a later date, should not have to incur the mobile-oriented lifestyles. The speed at which mobile access’
expense of once again replacing all components. By partnering popularity grows has seen the new technology develop into
with a reputable provider, a probable necessity might only be a platform that is able to meet any unique need or expense
the addition of a small BLE board to each door, which causes concern. Now obtainable by more hotels and resorts than ever
minimal disruption in the process and sidesteps additional costs. before, hoteliers are taking notice of its vital value in maintaining
their competiveness, and in ensuring guest satisfaction and their
In keeping with a digital key solution’s responsibility of continued business.
adapting to a hotel’s pre-existing door lock infrastructure, the ■
accompanying mobile app should be able to accommodate
the specific needs of each hotelier. With some properties having
embraced mobile technology more than others, today’s leading
mobile access platforms must be diverse enough to offer a

About ASSA ABLOY Hospitality


ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end‑user needs for security, safety and convenience. Since its formation in
1994, ASSA ABLOY has grown from a regional company into an international group with about 46,000 employees, operations in more than 70 countries and
sales of SEK 68 billion. In the fast-growing electromechanical security segment, the Group has a leading position in areas such as access control, identification
technology, entrance automation and hotel security.

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.

So the IT system is changing? Again? And why exactly? Faced


with a substantial Capex request, a system upgrade or team
members pulled out for training on a new interface, many senior
managers and busy operational employees may not feel so
sympathetic to the “improvement” brought to them by their IT
function. Successful implementation depends ultimately on
successful adoption. But your users have their own KPIs for the
year and their own demands on their time and energies.

When tech becomes perceived as another hurdle to delivering


a great guest experience now, the IT team has effectively
increased its own level of challenge. How can IT really deliver
on its promises to the business if it does not communicate
effectively with end users, bring them on board, share the
possibilities and listen to what those end users have to say?

Brenda O’Neill helps companies communicate more successfully


with their employees by working with clients to develop workable
internal communication strategies. She has spent over 30 years
in communication and was responsible for setting up the Internal
Communications Department for Jumeirah Group, a Dubai-based
luxury hospitality brand with a workforce of 11,000. She now runs her
own consultancy, working with major local entities to deliver internal
communication projects and build communication competence.

28 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Communicating a roll-out solvers, excited by the possibilities, motivated rather than
If IT only speaks to me when there is a problem or a change, intimidated by new technology. But in most cases, the people
doesn’t it make sense that the function will be perceived as you are relying on to maximize the ROI on your new investment
primarily a fixer or a disruptor? have a different profile. They are in F&B because they love
F&B. They want to be in the restaurant, not on their computer.
One of the most effective ways of ensuring a successful roll-out The result is familiar: A busy operational employee frustrated
for a specific project and a high level of adoption is to continually because they are suddenly presented with an unexpected
and proactively work to create a shared understanding of the upgrade feels that “IT just don’t get it”. And the IT guy can’t
strategic role of IT, outside of a specific project. This means understand just how long it takes a team member to get to
investing time and resources for communicating foundation grips with a perfectly straightforward new interface….
messages:
So before you start, get your team out of the IT echo chamber
• What is the “big picture” role of IT in ensuring business success? and fight against “confirmation bias”. When you are looking for
• What are your current strategic goals? How to they support input from non-IT employees, don’t head exclusively for the
wider organizational goals? most tech-savvy. They are more likely to share your ambitions
• What tech changes are on the horizon and why are these and tell you what you want to hear. It is only going to be part of
changes important to the business? the story.
• What is the role of day-to-day “hygiene” (back ups, upgrades,
security, appropriate use of technology) in keeping the 2. Formulate the essence of your message for each of your
business running? audiences. For some projects, for example, you may need to
There are numerous opportunities for the IT function to own ensure support from a senior finance colleague. They will have
and communicate these messages. specific concerns and will respond to very different ideas from,
• Do all seniors have easy access to an up-to-date one pager that for example, a concierge who is dealing with guests every day.
summarizes your direction of travel? Is it jargon free and does it As usual, it will be about “what’s in it for me”! If you have taken
present a good business case for your claims on their time and the time to really understand your audience, finding these key
budgets? messages can be reasonably straightforward. Testing messages
• Do operational leaders have the information that will help informally with members of your target groups can help you
them explain to their teams in easy and comprehensible terms fine-tune them. Once they are in place, you need to make sure
just why their technology works the way it does? all your team are on message and stick to the script.
• Are you present in a positive way at company orientation and
in employee guidance – or are new team members just given a 3. Choose your channel. So many people start the
list of rules and a helpline number? communication process at the wrong end – with “put up a
• Are you able to be physically (or virtually) present to build poster”, “tell them at the shift briefing” or “send an e-mail”.
positive working relationships? Are you recruiting team None of these channels are necessarily the wrong ones – but
members who take communication seriously? Are you ensuring neither are they necessarily the best. Choose your channel
that even a junior administrator can explain in everyday terms after you have formulated your message – the right choice
how a task contributes to business success? will be much clearer. It is also easier to enlist the support of
• Do you invest in proactive, user-friendly training on systems, or other functions: Marketing, Human Resources and Learning &
expect users to work it out themselves? Development may have lots of ideas and channels you have
never thought of that will enable you to reach your audience in
Developing an effective communication program requires an engaging and timely way.
commitment, and all too often is perceived as outside the
core competencies of the IT function. However, if you want to Any network engineer understands that “you are only as strong
shift perceptions of IT to its ever-growing strategic importance, as your weakest link”! In many cases, communication with the
communication has to have a senior “owner” within IT and internal stakeholders is this weakest link in the IT system. Great
become an integral part of annual planning. If this groundwork at problem solving, fantastic at finding new opportunities to use
has been done well, a specific roll-out becomes a much more technology to support the business, but frankly not so good at
manageable proposition. bringing everybody else along. There are plenty of excuses out
there. “We are IT - communication isn’t our job!”, “There is too
Communicating a specific project much everyday work to do!” Unfortunately, not communicating
When you are planning the communication campaign for any effectively with employees can represent a massive hidden cost
project, follow these three important steps: in terms of lowered ROI. This is especially true when substantial
investments in IT are misunderstood and under-utilized by the
1. First consider the audience - who am I communicating to? business.
Unfortunately, when we are communicating, we tend to believe
that the majority of people are “just like us”. We routinely get The stakes are high in a fast-moving and competitive market and
other people wrong and the result is mutual frustration. Picture unless we build communication into IT project planning from the
your stereotypical IT team member, whether CIO or junior inception, delivering on the amazing promises of new technology
administrator. One thing is for certain: They are highly likely to may prove a challenge.
be an early adopter, ahead of the bell curve. They are problem ■
www.hotel-yearbook.com 29
SPONSORED CONTENT: INTERNET OF THINGS

How IoT technology is


re-imagining the guest
experience
by Suman Pal i
By 2020, billions of devices will be connected to the Internet of Things (IoT), providing huge improvements in efficiencies and
cost savings, writes Suman Pal, Principal Product Manager at Agilysys. In the hospitality landscape, the applications are lim-
itless – especially those that enhance the guest experience.

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.

30 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Guest security considerations
As with virtually everything that was once new to hospitality
technology, the IoT also brings security and privacy issues. Data
and personal information confidentiality, authentication and
authorization, and secure communication all must be addressed
in advance, as part of a well-rounded deployment plan. IoT
security should move toward perceiving threats versus reacting
to attacks. The move toward greater autonomy for objects
will bring the security of technologies and processes, and the
privacy of guests into sharper focus, and even perhaps become a
differentiating attribute across the hospitality industry.

Applications are practically limitless


Adding to the value of IoT is data aggregation, processing Once security vulnerabilities are identified and addressed, the
and analysis, which is faster, easier, less expensive and more applications for the IoT are nearly unlimited. IoT is already here
comprehensive than ever before. Combined with improvements with many everyday items – such as thermostats, water meters
in data security, development and adoption of IoT systems will and alarm systems – becoming “smart”. In fact, according to a
continue to grow. recent International Data Corporation (IDC) Spending Guide,
worldwide spending on the IoT will grow from $698.6 billion in
The role of IoT technology and guest data 2015 to nearly $1.3 trillion in 2019, indicating that the application
Data collection happens in one of two ways: explicitly, when staff of IoT is steadily growing.
asks if the guest prefers red wine or white wine, for example; or,
implicitly, when the hotel’s CRM or POS automatically recognizes For hotels and resorts, IoT systems are quickly shaping the next
a repeat pattern of red wine ordering and stores that preference phase of the guest experience evolution, from devices that
data. The more automated the process of data collection, the enable keyless entry to industrial grade sensors for measuring
more likely you are not only to obtain more information but also light, color, sound, motion and pressure.
to obtain more accurate information.
IoT applications are almost limitless. Imagine a casino using
So how can hotels move toward increased implicit data eyeball-tracking devices that can distinguish between a passing
collection and automation? Through IoT technologies. IoT- glance and a 5-second gaze. The auto industry is already piloting
enabled devices offer data all day long – temperature, power this technology, and applications in hospitality are not far
consumption, presence of guests and more. There will be behind. Or, consider the combination of pressure and motion
endless possibilities of what well-equipped hotels can do with sensors that detect when guests leave the room, enabling
all the data, provided they have the right systems in place to housekeepers to schedule cleaning accordingly. If you can
capture the data from IoT devices. IoT-enabled devices, and the imagine a scenario, chances are IoT technologies will soon
resulting data collected, will help drive custom promotions or enable it.
upsell opportunities. ↓

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

32 HOTEL Yearbook 2017 special edition on TECHNOLOGY


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TRANSFORMING GAMING BY BUILDING


LASTING CONNECTIONS Copyright ©2016 Agilysys, Inc.
IOT AND SECURITY

Why hack a thermostat


in a hotel room?
by Alexander Mohammed Dörsam i

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.

The IoT is the network of physical objects or “things” that can


collect and exchange data with each other and the Internet.
Examples are all around us, from parking sensors in the mall and
carts on the golf course, to almost everything in the car and the
Apple watch. It is expected that 50 billion ‘’things” will be connected
to the Internet by 2020, so it’s big and here to stay. In the hospitality
industry we are seeing the first adoptions of IoT, while hotels have
for years achieved energy savings and managed their buildings
by using building automation, lighting control systems and guest
room management technologies.

One of the biggest risks and concerns in intelligent buildings and


IoT is security, but the problem is that building automation typically
doesn’t sit within the classic domains of IT security. Why would
anyone hack a thermostat? The core focus of hotel IT security
teams revolves around payment security, guest data and networks
in general.

Hotels are vulnerable


Yet I would like to call attention to the vulnerability of buildings –
including hotels – that use products based on the KNX protocol,
which has been adopted by more than 400 manufacturers of
building automation products globally. KNX is the association that
administers the KNX standard and provides the backend software
ETS, necessary to configure and control the KNX devices from a
server. The KNX protocol originated back in the 1990s, and ever
since it has been adopted far beyond its original application in
private homes.

34 HOTEL Yearbook 2017 special edition on TECHNOLOGY


The security flaw affects any KNX device, including light switches, 2. I removed the thermostat from the wall to gain access to
thermostats and even door locks, in any environment where the the KNX bus cable, read out the KNX commands being
technology is installed and physically accessible. The vulnerability transmitted without encryption (so-called “sniffing”), and
makes it possible to alter selected devices connected by KNX and to installed the hidden device behind the thermostat.
remotely control them. Can you imagine that someone could take 3. I checked-out of the hotel and immediately began controlling
control of a hotel’s guest room management system and make all the that room remotely – as well as other selected rooms (but it
lights in a hotel go on and off continuously or heat the rooms up to could have been the entire hotel).
35°C? A 100% check-out rate within hours would be guaranteed.
What was I able to do? I could remotely switch the lights of that
Since its discovery, the issue has been widely debated at security room, or any other room in the hotel, on and off at random, make
conferences and specialized industry forums, but it’s yet to be them blink, switch the AC on and off and change the temperature.
resolved. Not only does this vulnerability put thousands of existing
buildings, such as hotels, hospitals and airports at risk globally, but A senior global IT representative from the hotel chain where the
manufacturers and installers are still selling and installing KNX as if live hack took place said, “We were shocked to see that the hotel’s
nothing has happened. room management system could be hacked in just eight minutes.
We are now undertaking a global inventory and audit of our KNX-
At Antago, we started working on this issue in 2013, but it was only based systems to understand what steps we have to take to resolve
a year later, after a hack at a luxury hotel in China due to insecure this issue.”
WiFi, that the issue first received public attention. Since then, this
has evolved into a hardware hack and today, access to just one Within days of the first hack we were invited by two other hotels in
light switch or thermostat in any room or public area, is sufficient to the UAE to demonstrate the vulnerability through a live hack, both
gain control over an entire building. of which were successful in just under eight minutes.

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.

The changing technology landscape in the hotel industry


introduces new threats and attack vectors, and hoteliers need
to take a different approach to managing their cybersecurity
programs. A hotel cybersecurity program must address security
threats in all the three areas of the technology stack - Information
Technology (IT), Guest Technology (GT) and Operational
Technology (OT).

Key challenges

IT Security focuses on protecting IT Technologies


Traditionally, IT security teams allocate resources only to manage
the security of IT systems such as Property Management Systems
(PMS), Point of Sale (POS) systems, booking portals, customer
relationship management (CRM) systems, and others; what about
an organization’s critical Room Management System (RMS), IPTV,
Door Lock System, Building Management System, CCTV or IPTV,
etc., which has a direct impact on a guest’s stay experience?
Imagine if someone accesses a guest’s personal laptop over the
hotel’s WiFi network and leaks sensitive data, or someone turns
on the camera of the smart TV and starts recording, or if someone
manages to take control of the temperature, lighting, or DND
settings of the room. Such actions will have a serious impact on
the hotel’s ability to provide exceptional service – a brand promise
every hotelier is striving to provide. Failure to address the security
of these systems means hoteliers would have to deal with issues of
privacy and reputation if they were exposed.

36 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Converged networking infrastructure Lack of security monitoring
New technologies are being introduced within the hotel, such as It is important to understand that you may host a hacker in the
door lock access using smartphones, sensors to monitor energy hotel room, and all technology access points are available to
utilization and lighting systems, location-aware marketing, the hacker. If you don’t have any capability to monitor access
etc. Integration of cloud and mobility components will further violations, you may endanger the security and privacy of all
increase the risk of exposure, as they create new attack vectors. guests staying at the hotel.

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.

38 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Capability no. 3: Detection Capability no. 4: Response
Detective capabilities are designed to discover attacks on the Response capabilities define actions that can take place to contain
network. The key goal behind this category is to reduce time for the impact of the attack once it’s detected.
threat detection and therefore prevent potential damages from
becoming actual damages. a) Incident response plan – Establish an incident response plan
that clearly defines what to do when an incident occurs, with
a) Monitor security events – Traditional IT systems have the specific roles and responsibilities of the members of the team.
capability to forward logs to a Security Incident and Event For serious cyber security incidents that can lead to a crisis
Monitoring (SIEM) system. However most of the guest facing situation, such as a data breach, an additional cyber security
systems do not support any log forwarding options, which crisis management playbook can be created to guide senior
will limit their ability to detect unusual activities. One way management on how to deal with the situation.
you can approach this issue is by using endpoint security
protection, which can apply a whitelisting model to enable b) Implement security orchestration to rapidly deploy policy
only approved services and trusted connection. The logs changes to security policy enforcement points, such as
from the endpoint security protection can then be sent to the firewalls, intrusion prevention systems, (IPS) or endpoint
security monitoring system. security protection software.

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

Total hotel revenue


management? Scratch that!
Call it revenue optimization!
by Sherry Marek i

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.

What is revenue optimization? Total revenue optimization is


essentially the application of revenue management techniques to
ensure the maximum profitability in all departments.

Twenty-five years ago, the primary focus was to control market


segments, booking sources and channels, restricting price, length
of stay and creating better forecasts. Today, the advanced data
analysis systems provide much more granular breakdown of data
sets, capturing customer behavior, patterns and interests. As the
revenue team reviews opportunities to improve profit throughout
the property, they need knowledge of operational situations as
well as the ability to research, brainstorm and learn from peers
at other properties. They need to partner with the sales team to
ensure that their sales process conforms to the goals and be able
to create and communicate effectively with colleagues.

Involving the team


In addition to traditional selling by the reservation team, many
colleagues in the organization can be incentivized to track
and sell additional revenues. Upon check-in, the guest may be
interested in upgrading to a club room or book a restaurant
reservation. Are rooms unsold because an unexpected number of
walk-ins arrived? Make sure many colleagues or other department
managers can participate in cleaning a room and understand
housekeeping standards for rooms, so the property does not
end up with with 3 rooms unsold at 10 pm because the system
marked them dirty from a room change from a few hours earlier.
Define the customer internet infrastructure and ensure that the

40 HOTEL Yearbook 2017 special edition on TECHNOLOGY


capital is available for the IT group to install and support this
expected guest amenity. If the marketing strategy involved
welcoming a government rate or crew to the property, have
Datavisi nwww.DatavisionTech.com
a property-wide meeting to explain the strategy on how the
bottom line profitability will improve with these lower paying
guests (yes, perhaps smaller tips) for days when the rooms
would otherwise sit empty. simple spreadsheets can be maintained to track the KPIs and
ensure the tasks are on track, both from a timeline standpoint
Many restaurants utilize standard KPIs of Average Check. Some and from that of yielding greater profits.
are using newer metrics to track revenue per square foot for
the restaurant, or revenue per chair/seat. Review the peaks and There is more guest data available today than we had 20 or 30
valleys in each department’s business. Understand how to yield years go. The key is to capture customer data for future use and
better at the spa, golf course or restaurant during the slower ensure technology is set up at the property to capture the key
hours so you can fill the midweek spa appointments or the 3 data points needed today. For example, when properties initially
PM golf tee time or the 5 PM restaurant seat. Would discounted built web sites, they often included the link to a web service
rates fill these voids, yet still create profit? Do the restaurants for booking the actual room nights that is interfaced with their
offer incentives to sell wine and desserts? Does the team selling PMS. But they didn’t include a final landing page back on the
catering understand the costs of the meals they are selling? If a property website, thus losing the ability to easily track booking
special meal is priced too low, this will affect the profitability of conversions. There are multiple theories on the number of views
the banqueting department. Agreement between departments or looks on a website before it is booked, so it is important
should be reached prior to agreeing to an RFP or promotion. to understand accurate website bookings conversion ratios.
Landing pages are also linked to specific marketing campaigns to
Reducing costs in revenue optimization enhance the booking process and determine the success of ads.
It’s not enough to “tighten the belt” when the economy is in Different landing pages recognize factors for driving conversions
a downturn or when a major event such as SARS, 9/11 or the for different customer segments. A property that frequently has
2008 economic crisis hits. Daily, many report on the RevPAR small family groups (but too small to be a group in the sales
(Revenue Per Available Room), TRevPAR (Total Revenue booking engine), wants an easy way to book 5 to 6 rooms and
Per Available Room) or at month end, with all expenses and update changes. Tracking room rates and social sentiment of
revenues reconciled, report on GOPPAR (Gross Operating Profit competitors, weather, flight capacities, local events, regrets, and
Per Available Room). other data sets leads to a more accurate market view, thus more
strategic pricing for the property.
Some additional goals for reducing expenses could be found in
labor, breakage and energy costs. Most properties today have Customer Relationship Management (CRM) and Business
established labor standards for each position for specific work Intelligence (BI) software provide a wealth of data and
tasks. In Housekeeping, cleaning a room for a stayover guest understanding of customers: purchase history, social media
may be different than for a checkout guest. Cleaning a standard comments, and interests (in and outside of the properties).
king has a different Minutes Per Room Labor Standard than a There are big data companies that can scan a list of people,
1 bedroom suite. Reduce laundry loads by gently encouraging finding their social media accounts on Twitter and Instagram,
guests to reuse their towels. If the program is not successful, their LinkedIn profile, etc. and compile a list of interests. This
check the wording with peers at other properties. If worded may help a property sell packages for the local sports events or
well, this saves both on daily laundry costs and overall life of delight repeat guests with unique gifts. In addition to knowing
the towels and linens. The Association for Linen Management where the guest is spending money, it is beneficial to know their
documented hotels saving up to $6.50 per occupied room with tendencies and requirements. CRM systems need to track the
such programs. Starting in the 80s, hotels added monitors for lifetime value of a customer in addition to their communication
energy consumption in virtually every major point to understand preferences – text vs. e-mail, etc. BI and CRM data sets need to
and control energy cost savings. A 10% reduction in energy costs be comprehensive: customer comment card scores, competitor
is equal to increasing the ADR by 2.5% in some properties. occupancy, Google Analytics, e-mail exchanges, SMS text
messages to/from the front desk, interaction with the spa team,
The use of data Twitter exchanges, Facebook comments, etc. The full guest
How to manage all these data points? No man is an island, and experience should be available in one source to understand
the same is true for managing total revenue optimization. The guests and their interests.
revenue optimization team consists of many people sharing
key data to ensure that decision makers are working from Today’s customer is often more business savvy in revenue
consistent data sets. The team needs the disciplines of analysis, management techniques, since pricing optimization is discussed
communication, collaboration, and operational knowledge to in many industries today besides airlines and hotels. Customers
implement new KPIs. With or without an automated practice, ↓

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.

Rinse and repeat (i.e. measure and review)


There is a familiar saying: How do you eat an elephant? The
answer: one bite at a time. If a revenue manager is the only one
reviewing data and squinting into the computer screen late at
night, it is time to share the wealth of data with other department
heads in Sales, F&B, and Front Office; involve Finance and IT to
help set up tracking or better connectivity between systems that
show the trends; and involve department heads who can offer
insight into the current operations and how they can be adjusted
to increase revenue. In the beginning of the RM cycle, many
speculated that revenue management was a blend of art and
science. Many revenue managers grew to understand that bad
weather on the weekend caused more short term cancellations.

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

42 HOTEL Yearbook 2017 special edition on TECHNOLOGY


SPONSORED CONTENT: PERSONALIZATION

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

44 HOTEL Yearbook 2017 special edition on TECHNOLOGY


About Hotelchamp
Hotelchamp helps hotels to obtain more direct bookings through
improved customer engagement and personalized communication.
The company’s smart technology solutions are dedicated to
generate more direct bookings for hotels and strengthening
relationships between hotels and their guests. With an extended
package of smart personalization and segmentation techniques,
a team of conversion specialists creates unique customer journeys
for every individual website visitor. This technology can be added to
the hotel website and the booking engine with a single line of code.
Based in Amsterdam, the hotel technology now works with hotels in
more than 20 countries worldwide.

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.

Instead of a static website, hotels should explore solutions


for dynamic content that is based on the needs of the guest
to influence decision making. The famous theory of Professor

www.hotel-yearbook.com 45
SPONSORED CONTENT ANALYTICS

Ride the wave:


The analytics tsunami is
upon us
by Paul van Meerendonk i

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.

I speak a lot at industry events about the power of today’s


sophisticated analytics. With many unique challenges facing
the industry today – notably around an increasingly competitive
distribution landscape – hotels are looking for the best ways to
account and solve for the complexity in the market.

With new entrants (such as Airbnb and Google) and growing


powerhouses (such as Expedia and Booking.com) posing a
potential problem for hotel direct business, discussions have
been taking shape around how to tackle these mounting
revenue management and distribution challenges. The
emergence of important concepts like big data, machine
learning and business intelligence are landing at the forefront
of many conversations, but they can all mean different things
to different people. What they all have in common, however, is
they are all components of the sophisticated analytics available
in today’s world.

The analytics tsunami is here, and it’s engulfing revenue


management with no signs of stopping – nor should it. Analytics
uses data mining, machine learning and statistics to churn out
optimal pricing and inventory decisions for hotels. And 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. This is what will
set hotels apart from their competitors: everyone has access to the
data, but creating meaningful action out of that data is the key.

46 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Analytics help to move beyond the normal revenue costs to maintain a new industry role. External resources
management processes. They start harnessing data and and third parties that can provide analytics as a service are
forecasting capabilities to explore, predict and optimize revenue also available. Dedicated support services for your analytical
results. Today’s analytics can explore why patterns and trends technology and processes will ensure you can perform at your
are happening so hotels can predict whether they can expect maximum potential.
similar, or different, results moving forward – and this is where
analytics becomes really exciting. By determining why specific These three components are equally important and, in order
results are emerging – and if you can expect them to continue to leverage the power of analytics, hotels must address their
– you can start to optimize them. This happens when you take strategy for technology, processes and people – and how each
action to get the best effects and deliver revenue performance. piece impacts the other. A hotel that has a well thought out
As a result, you get truly prescriptive analytics that not only strategy on managing their data is certainly building a strong
predict what will happen, but how and why. Hotels then defense against their competition and ultimately, a better
develop strategies that allow them to anticipate the impact of offense for stealing market share. Accounting for each of these
those strategies on their business. components will ensure the most optimal revenue results –
helping you confidently ride the analytics tsunami and avoid
There are many aspects of analytics that play a role in drowning in today’s sea of big data and distribution.
delivering optimal results: High performance forecasting ■
capabilities provide a dynamic selection of hundreds of
forecasting algorithms and models to give the best possible
results; granular data and decisions can be provided for
multiple hotels by departments, segments, room types, day
parts and rate codes; predictive analytical tools allow you to
understand the impacts of changing your strategy; advanced
pricing and inventory controls maximize revenue opportunities;
and expanded data sources such as reputation, competitive
performance, rate shopping, travel intent and demand
intelligence can be integrated into your decision outputs.

To take advantage of these approaches and ride the


analytics wave, there are three key components to take into
consideration:

• Technology: Do you have a best-in-class infrastructure


and the right tools available? The benefits of sophisticated
analytical technology provide a solid foundation from
which to build a performance strategy. It is important that
technology leverage those sophisticated analytics and apply
them in an automated fashion to keep hoteliers focused on
the strategic while the system can deploy the tactical.

• Processes: Optimal processes should not only take


advantage of the analytics outputs, but almost as About IDeaS
importantly, the inputs. To make analytics work effectively With more than one million rooms priced daily on its advanced systems,
for your organization, the company culture needs to be IDeaS Revenue Solutions leads the industry with the latest revenue
geared towards a common goal of data integrity and effective management software solutions and advisory services. Powered by
implementation of analytical decisions. If an organization is SAS® and more than 25 years of experience, IDeaS proudly supports
focusing on optimizing profit they must begin to understand more than 7,000 clients in 94 countries and is relentless about providing
and track costs in order to support those business goals. hoteliers more insightful ways to manage the data behind hotel pricing.
IDeaS empowers its clients to build and maintain revenue management
• People: Who is going to apply sophisticated analytics in cultures—from single entities to world-renowned estates—by focusing
your organization? Increasingly, the role of a data scientist is on a simple promise: Driving Better Revenue. IDeaS has the knowledge,
becoming an essential component of an effective revenue expertise and maturity to build upon proven revenue management
management strategy. In-house resources are becoming principles with next-generation analytics for more user-friendly,
more commonplace in the larger organizations. Cross- insightful and profitable revenue opportunities—not just for rooms, but
departmental data scientists can apply their skills where across the entire hotel enterprise.
needed at the right times, while balancing the overhead uu www.ideas.com

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.

HFTP uniquely understands our industry segment and assist


our stakeholders in finding solutions more efficiently than any
other organization because of the expertise of our volunteers
and their dedication. Our commitment to our members and
our industry has been the driving force of HFTP since its
inception in 1952. As the industry evolves, we’ve remained on
the cutting edge so that our members are prepared for whatever
occupational obstacles they may face.

We know our members are busy professionals so it is crucial


that we are strategic in how we deliver information. Resources
such as The Hotel Yearbook are wonderful for compiling
outstanding content in one convenient package. This is very
much the approach HFTP takes in its new slate of information
sites: HITEC Bytes, HFTP Club Bytes and HFTP Finance Bytes.
These sites are constantly being updated with the latest news professionals not only a depth of information but also a chance
and information in their respective fields. Another site, HFTP to earn continuing education points. These incredible resources
News, has a similar approach, but with news and reports are free for our members and remain available in our archive for
from the association and its research centers. These sites viewing at a later date.
join PineappleSearch – the hospitality-specific search site, as
incredibly extensive yet equally specific tools for compiling These items are truly just a sample of the resources that we
hospitality news. provide our industry. Our conferences, events and even online
community (Community@HFTP) are designed to bring industry
We were excited to report last year that we were on track to leaders together so they can share their experiences. They
expand HITEC® (Hospitality Industry Technology Exposition and provide an amazing support system to one another that allows
Conference), and we are even more excited to report that in everyone to improve. This is exactly the approach that HFTP
2017, two new editions of HITEC will become a reality. In March has when it comes to working together with other hospitality
2017, HITEC Amsterdam will bring the conference to Europe for groups. HFTP aims to grow and support the hospitality industry
the first time. Fall 2017 will see the debut of HITEC Dubai which and that goal is far more realistic when you have exceptional
HFTP is co-producing with Naseba. These conferences will allies. Please enjoy the following information from one of HFTP’s
join the traditional North American edition which takes place exceptional allies, The Hotel Yearbook.
at the end of June in Toronto. HFTP will continue its popular ■
Annual Convention in Orlando for 2017 and several regional
conferences and chapter events are on the schedule as well.

Sometimes it isn’t possible to travel to one of the many


events HFTP offers, and we understand that. The educational
offerings do not stop at our conferences, they continue in the
form of ProLinks webinars. These presentations focus on the
latest happenings in hospitality and they provide industry

48 HOTEL Yearbook 2017 special edition on TECHNOLOGY


SPONSORED CONTENT: PROPERTY MANAGEMENT SYSTEMS

Technology pressures on today’s


property management systems
by Jos Schaap i

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.

Property management systems are considered to be the heart of


a hotel. They keep it beating and ensure that the operations of
the hotel are optimized and running smoothly. Some people have
referred to them as glorified cash registers, but they are so much
more. The PMS does indeed help hotels manage their revenues,
but it also connects a myriad of systems to ensure that all facets of
a guest’s stay are recorded and ultimately measured. It connects
to back office platforms, guest rapid response systems, restaurant
and gift shop systems, phone systems, hotel’s central reservation
platform, door locks… the list goes on and on.

However, times are changing at lightning speed, and the pressure


on the property management system to deliver and connect to
new and innovative platforms is becoming chaotic. Emerging
technologies, guest demands, and business needs require the
property management system to be flexible, open and most
importantly, geared towards guest service. Gone are the days
when having a great product or a competitive price was enough
to succeed in the marketplace. Service differentiation is now
among the highest priorities within the hotel landscape. Every
day a new entrant is touting the virtues of engagement with
guests and letting guests choose the type of interaction they
want using whatever device they happen to be using at any
moment. The most prevalent of course being smartphones and
tablets. Mobile devices are expected to unlock the door, send
and receive messages between hotel operators and the guest,
deliver promotions and upsell products to the guest – oh, and still
function as their phone and camera.

Guest engagement has gone from being just an industry buzzword


to profoundly changing the way that hotels interact with and serve

50 HOTEL Yearbook 2016 special edition on Talent Development


their guests. However, it goes far beyond enabling guests to check As technology-driven change accelerates, hotels need to
in using their mobile device and sending them messages. Primarily, untether their employees from their current antiquated systems.
hotels are focused on delivering service and driving revenues. These We live in a new world where advances in connectivity and
two things go hand in hand, so operators need to fully understand technology have essentially freed us from “being chained to our
what their brand’s mobility strategy is and how their hotel is going desks” and offices. So why, as an industry focused on hospitality,
to be able to provide what the guest wants at every touch point, do we still insist our front line employees work in such an
without becoming intrusive and alienating them in the process. antiquated, restrictive fashion?

In the past few years, we have seen


HOTEL GUESTS: ENGAGEMENT AND SPENDING BY GENERATION Software as a Service PMS solutions
In the hospitality industry, about one in five customers on average are fully engaged. This percentage is that are transforming the way the
relatively consistent across generations. But when it comes to spending, engaging guests in Generation industry functions. Hotels no longer
X offers a stronger potential return on investment, as they outspend all other generations on average. require a front desk computer to track,
measure, monitor and account for
Average spent at the hotel visited most every aspect of a guest’s stay. These
Generation % fully engaged
frequently in the past 12 months cloud-based solutions run on tablets,
smartphones and empower hotel
Millennials 20% $351
employees to deliver exceptional
Generation X 22% $538 face-to-face service. They also enable
employees to create a relationship with
Baby Boomers 25% $468
the guest and maybe, just maybe, sell
Traditionalists 26% $471 them more services or products that
will enhance their stay. Not only can
Copyright © 2014 Gallup, Inc. All rights reserved.
this mobility empower front desk staff,
but other departments within the hotel
can now, using a tablet or smartphone,
With all of these new requirements, apps or web native truly connect and engage with the guest when the opportunity
solutions, the industry faces a challenging issue – and it is all presents itself.
about “face time”. In most cases, front desk staff greet the guest,
and then redirect their attention to the screen of the property With travelers seeking personalized interactions, it is important
management system to locate the guest information and folio, for hotels to connect with them in a way that goes way deeper
make sure the data is correct, check them in and then encode than the usual hotel-guest relationship. Continued advances
their room key. For most of this time, the front desk agent is in mobile, data and the Internet of Things create additional
disconnected from the guest. The converse applies to the guest. possibilities for the new cloud-based PMS to impact the
They are likely distracted, always looking at their phone to check evolution of hotel service and operations. And, even though
in on social media, so their friends know they have arrived, or we may concentrate on new technologies shaping the future
sending out a tweet. They may even be receiving a location- of hospitality, if you really think about it, all of these elements
based push notification from the hotel about specials in the are only important in how they help us to enhance guests’
restaurant or guiding them to a fantastic spa deal. experiences with our brands.

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 –

52 HOTEL Yearbook 2017 special edition on TECHNOLOGY


About Neorcha
Enabling hotels to deliver best-in-class customer service, Neorcha’s
mobile solutions seamlessly integrate with hotel systems and can
be fully customized. Neorcha’s leading technology solutions include
the myHotel App, myCheck-in and myDining App. All hotels can
benefit from improved guest services and higher guest satisfaction,
therefore increasing guest loyalty. Neorcha works closely with client
representatives to understand specific operational and business
needs in order to tailor solutions and deliver efficient and cost-
effective outcomes that revolutionise the end-to-end customer
experience.

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

Boosting innovation in the


HoReCa business
by Olaf Koch i

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.

The HoReCa sector is one of the largest and oldest industries


of the world. For literally thousands of years, passionate
people have created businesses, which are based on culinary
competence, personal service and memorable experience. The
sector is built on tradition, and in fact many businesses have
been in family ownership over many generations. The very
large number of entrepreneurs who drive this sector is a great
foundation for the future.

It is remarkable, though, that the sector has experienced


little modernization. Beside the introduction of new kitchen
equipment and utilities, the value chain has hardly been
adapted. That is true for almost every part of the business, from
supply chain to customer interaction to administration. Most
of the work still is manual and analog. The operating system in
many ways is the brain, a pencil, and piece of paper.

By comparison, other industries like automotive, transport,


consumer goods, and financial services have been optimized
over decades. Their introduction of new methodologies and
systems has accelerated the flow of goods, massively improved
efficiency and quality, and enhanced their productivity. This has
created trillions of value.

This raises the question: Why did such modernization not reach
the broader HoReCa sector? There are various answers to this
question.

54 HOTEL Yearbook 2017 special edition on TECHNOLOGY


First of all, technology was very expensive. It was simply In this context, we have started to explore digital opportunities
not attractive to consider the acquisition of a sophisticated three years ago. At that time we raised two questions:
system which required significant investment in hardware and
software. Today, this has massively changed. Technology costs • Can digital solutions really create substantial value?
have come down to a fraction of what they used to be, with • And are there enough of them available?
smartphones being as powerful as high performance PCs ten
years ago. We quickly identified a quite large number of solutions, which
can substantially improve the business of our clients. They
Secondly, only very few technology companies considered range from online reservation, ePOS solutions, reputation
the HoReCa market to be attractive. Therefore, only a small management, quality control through to HR and payroll
number of solutions were available. Nowadays, this is also tools. We also identified the need for substantial business
completely different. A significant number of solutions are development to make these solutions solid and reliable
emerging that can help HoReCa entrepreneurs to improve their for our customers. In order to achieve that, we teamed
businesses. up with Techstars, a US-based company which has been
professionalizing business building for more than ten years.
Thirdly, the HoReCa market is very fragmented and therefore Together we conduct programs which are perfectly tailored to
difficult to reach. A community of literally millions of turn a great idea into a solid business.
entrepreneurs cannot be reached with standard sales force
approaches. However, a key challenge remains in all this, namely: how to
reach customers. We at METRO are absolutely committed to
In summary: The preconditions for modernization have playing this role. Our unique international presence and coverage
improved massively, but there are still significant hurdles to make for a perfect platform to introduce, roll out and scale new
overcome. solutions into a wide number of HoReCa businesses. In line with
our strategy to contribute to the success of our customers, we will
For us at METRO, it is of utmost importance to make a undertake significant efforts to turn this potential into reality. By
contribution to our clients. We aim to be the champion of doing this, we will make a contribution to our customers, we will
independent business and as such, we always seek new ways make a contribution to the innovators, and finally we will make a
to support our customers in optimizing their business. This contribution to the HoReCa sector.
includes locally tailored assortment, value added services,
advisory and training as well as solutions. Our ambition is to We are convinced that a great future lies ahead for the HoReCa
build lasting relationships and to become an active member industry and we are glad to be part of it and to play a vital role.
and contributor to the HoReCa sector. ■

About METRO Accelerator for Hospitality


The METRO Accelerator for Hospitality powered by Techstars is a
highly selective mentorship program for technology-first startups
across the entire value chain of hospitality and food. Each year the
METRO Accelerator invests in ten companies who gather in Berlin for
13 weeks to grow, accelerate and scale their business concepts with
unprecedented access to resources from the METRO and Techstars’
network.
• An offer of €120,000 worth of investment
• Access to METRO’s experts and leadership
• Mentorship from key METRO and Techstars executives and
leaders, other hospitality and food tech industry leaders, venture
capitalists and experienced entrepreneurs
• A free dedicated working space in the heart of Berlin for the
duration of the program
• A high stakes Demo Day at the conclusion of the program where
each startup group presents its product and solution to hundreds
of investors
• The opportunity to become a lifelong member of the METRO and
Techstars alumni network

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

What to do when being an


astronaut is not an option any more
by Jens Lapinski i

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

The number 1 software


solution to increase your
restaurant’s profitability

The simple, Wi-Fi based


customer recognition and
relationship tool.
Apparier matches your restaurant’s customers’ personal Cheerfy is the on-premise customer engagement solution
preferences with your passion for food, hospitality and for high-end hotels. Cheerfy boosts hotels’ knowledge
your finest experiences, transacted at a premium and about their customers, enabling highly personalized
in advance of the customer visit, all year round – vastly interactions that drive loyalty and increase revenues. By
increasing your restaurant’s profitability. Our solution, integrating hotels’ existing Wi-Fi network and their CRM/
adopted by your restaurant, works seamlessly across all of PMSs, Cheerfy identifies customers as they walk into the
your existing customer touch points by simply converting hotel, or an area within the hotel. This gives hotels the
a customer’s personal preference to sit at the best table at unique chance to automatically engage guests with highly
the best time on the best day and pay a premium – and in personalized messages. Even more, by notifying hotel
advance of his visit. Eradicate no-shows from your highest employees of the arrival of VIP customers, they can treat
occupancy times and improve the efficiency of your back them to a greater personal experience and make them feel
and front of house by knowing in advance your customers special! Cheerfy key advantages are:
and their selected menu or experience. Apparier is re- • No user application required by guests
defining reservations, by facilitating the restaurant’s desire • No manual check-in required by guests
to improve the full customer experience, and in doing so, • No additional hardware is necessary
driving substantial improvements in profitability.

www.apparier.com www.cheerfy.com
HOSPITALITY TECH STARTUPS

hyre eliminates the need


for staffing agencies by
directly connecting event
The world’s biggest organizers with trained
reception desk event staff personnel..

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

Reputize is the leading


reputation management
platform which creates The innovative tool
internal big data for for HR management in
hotels. hospitality

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

Smunch - the best lunch


program for companies

tsenso’s “fresh index”:


Gapless monitoring for
best food quality
Smunch is the best lunch program for companies. It tsenso is an award winning, reliable and easy-to-use
lets companies have fantastic food for employees, right solution for gapless temperature monitoring, from farm
in the office, without the huge investments in kitchens to fork. The fully digital quality assurance system enables
and canteens. Smunch takes care of everything, from verifying and proving the freshness of various goods. To
planning to delivery, so the teams enjoy the food together. ensure the quality of foods with minimal efforts, tsenso
The employees love the food because it comes from an combines a range of sensoric devices with a simple yet
awesome new restaurant each day. These restaurants elegant monitoring software. The different types of sensors
receive large orders in advance that can generate up to have a measuring range from -40°C to 105° C and are
€1,000 per day. Since Smunch delivers across a large part tailored to a distinctive use case scenario. The measured
of the city, it is free advertising for the restaurants and data is sent to all devices running the tsenso smartphone
helps them reach new customers. The food is carefully app or, for stationary use, the tsenso cloud application. A
curated by Smunch nutrition experts, in partnership with real-time calculated “fresh index” allows the user to check
the restaurants, to offer their best items. The food is the quality and safety of all sensitive products at a glance
nutritionally balanced and care is taken to offer options for and the monitoring software can be paired with third-party
the usual dietary constraints. Smunch is a fantastic perk to sensors to expand the range of application even further.
keep employees healthy and motivated. The restaurants
get to use their kitchen to generate revenue where it was
lying empty before.

www.smunch.co www.tsenso.com
HOSPITALITY TECH STARTUPS

Find and book beauty and


wellness professionals
Last minute hotels near you

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

Research for life Branded for you

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

 
    

We help you connect to


Swipe, swipe, match! your guest!
hocaboo is a smart, international hospitality recruiting UbiQ Global Solutions specializes in developing
tool. It connects tomorrow’s workforce, enabling local technologies which help hotels connect to their customers!
and global job migration. Candidates find the jobs they The Qikinn© application suite is designed to be able to
want, and recruiters the candidates they need. A match engage the guest during the different touch points in the
is key and your opportunity to directly chat and interact guest life cycle, from booking to check-in and after check-
with hotels or candidates. Hotels publish job offers for free out! The Qikinn© solutions help hotels connect to their
and pay only for matching candidates. Candidates can guests, deliver a unique guest experience and earn guest
download the hocaboo app for Apple or Android devices recognition and loyalty in a single platform! From mobile
and swipe through the most intriguing job offers. phone check-in and check-out, paperless front desks to
a personal guest portal, the Qikinn© applications suite
enables hotels to achieve higher business operational
efficiency, build guest loyalty, increase revenues and save
on commissions paid to OTAs.

www.hocaboo.com www.ubiqglobal.com
METRO ACCELERATOR

HIGHLY SELECTIVE PROGRAM


FOR DIGITAL AND TECHNOLOGY
STARTUPS ACROSS THE ENTIRE
VALUE CHAIN OF HOSPITALITY
METRO supports innovative minds with a technology
startup program for the hospitality sector

www.metroaccelerator.com
Follow
us on
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

Ian Millar is a Senior Lecturer of hospitality technology at the Ecole


hôtelière de Lausanne and is a frequent presenter at international
IT conferences. He was a member of the Board of Directors of HFTP
and also served as a member of the HFTP Executive Committee. Ian
also serves at an advisory level to various hospitality technology
companies and served as a Member of the Hotel Industry Expert
Panel for the Singapore Tourism Board.

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.

I believe that mentorship programs will not only increase


the overall experience for everybody involved, but, more
importantly, they will introduce sustainable improvement
SPONSORED CONTENT: GUEST VALUE

Guest value: the limiting


factor to digitization in
hospitality
by Pierre Boettner i

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?

With technologically powered digitization in our industry, we


all witnessed a digital shift. Not only enhancing and supporting
traditional methods, we also enabled new types of interactions
and embraced creative solutions. And our business is all about
guest interactions!

In the early days, digitization at hotels was tackling central


handling of inventory, rather than using a paper based guest
book. Later, we saw the rise of electronic distribution, selling
rooms via GDS, OTA and direct to guests via IBEs. With online
price transparency, proper revenue management became ever
more important, allowing better optimization of availability,
price and revenue. Guest segmentation, a core aspect of
revenue management, was soon supported by CRM systems
that allowed digitally storing and distributing information about
guests, their preferences and value, and allowing more targeted
communications.

With the triumphal success of mobile technologies, we see


the continued evolution of CRM into Customer Experience
Management, defined in a recently published study as “the
discipline of tracking, overseeing and organizing every interaction
between a customer and the brand”, as being the next frontier of
digitization.

70 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Using mobile technologies, today’s guests can access the and choose their room on a floor plan, while it is unclear if the
controls of their room’s air conditioning, TV and lights; they may quiet room and the connector they booked will be fulfilled. We
order room service, spa treatments, tours and activities around may even learn that some suite upgrades are not appreciated,
the hotel; interact with hotel staff to handle maintenance issues; if an important room feature is lost in the process. We will
or request wakeup calls. We allow guests to check in online, pick almost certainly learn that checking in online and not finding
a room from a list or a floor plan, teasing to bypass lines at the the room ready at time of arrival defeats the purpose. But most
front desk and to open the room door with their mobile device. importantly, all too often we simply fail to learn.

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

The end of the PBX


as we know it
by David Maayani i

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

72 HOTEL Yearbook 2017 special edition on TECHNOLOGY


David Maayani is an industry-recognized authority and technology
expert in voice and video communications and is widely known
within hospitality IT circles for providing innovative and cost-
effective solutions to the marketplace. As Chief Technology Officer
for multiple companies specializing in Voice over IP and Video on
Demand, David developed and deployed global solutions for major
brands and markets including Hilton, Jumeirah, Starwood, Crowne
Plaza, Virgin Hotels and implemented solutions for 5 star properties
including Mandarin Oriental- Columbia Circle, the W Hotels in Ft.
Lauderdale, San Diego and Chicago and Jumeirah Essex- New
York. As CTO of GrayMatter™ Networks, David continues to lead
the hospitality industry in delivering technical, cost-effective voice,
unified communications, and SD-WAN solutions and is supported
by a dedicated team of developers and support specialists within
Septrivium focused on exceeding customer expectations in the
telecommunications marketplace.

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: The way forward
by Monika Nerger i

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.

Industry Consolidation technology conferences into one, rebranded “HT-NEXT”. This


One of the most significant changes during this time has been event unites two industry leading events, Hotel Technology
the steady downward pressure on Rooms EBITDA, leading to Forum and HTNG North America, into one immersive
an increased pace of consolidation in our industry in search networking and educational event for hotel executives and
of revenue growth. This consolidation applies not only to the solution providers. In parallel, HTNG and HFTP (Hospitality
hotel brands themselves, but equally to the suppliers in the Financial and Technology Professionals) have begun to work
hospitality industry, competing with a shrinking market that has more closely together, and recently announced the co-location
historically been fragmented. To add to this complexity, the shift of the HTNG Insight Summit Europe with the premier of HITEC
to the cloud requires a completely different financial model, Amsterdam in 2017.
and many small and mid-size vendors to the hospitality industry
have struggled with the investments required to support SaaS, There are many reasons to work more closely together as
due to the need to scale up before real profits can be realized. industry associations, and some of them deal more specifically
with the complexity hoteliers face in the current marketplace.
This rapid pace of consolidation and change has led to
partnerships and relationships that will ultimately serve the Security and cyberattacks
hospitality industry well. In keeping with these changes, the Cyberattacks continue to be a vexing problem for businesses
associations which serve our industry need to apply fresh and for the hospitality industry at large, and we need to find
thinking to support a new market and ecosystem of hotels better ways to communicate with each other and work together
and suppliers. HTNG has done just that, beginning with a to bolster our defenses. HTNG has established a CISO (Chief
fundamental appreciation that aligning our efforts with other Information Security Officer) Forum, which enables security
associations will simplify and amplify our ability to serve the professionals to meet and to discuss security issues, threats,
marketplace better. best practices and security research. This is unique in the
industry, and an area that we believe will continue to evolve
In 2016, HTNG announced its first such alliance with HTF – in the next several years, particularly as IoT and other digital
Hotel Technology Forum – to merge the two North American technologies demand a greater focus on security.

74 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Monika Nerger, is Global Chief Information Officer for Mandarin
Oriental Hotel Group, overseeing all aspects of the group’s global
technology. Mandarin Oriental Hotel Group is the Award-winning
owner and operator of some of the most luxurious hotels, resorts
and residences located in prime destinations around the world.
Prior to joining Mandarin Oriental, Monika worked internationally
with Pan Pacific Hotels, KPMG Consulting, and Royal Caribbean
Cruise Lines. She holds an MBA from the University of Miami as well
as an undergraduate degree in Computer Science, and is a member
of Beta Gamma Sigma. Monika is currently a Board member and
Vice President of HTNG (Hotel Technology Next Generation), and
sits on the Advisory Board of CHTA (China Hospitality Technology
Alliance).

Payment systems Looking ahead


If one area has grown tremendously in complexity in the past As we think about the next 10 years for HTNG, beyond the
few years, it is the world of payments. From EMV to Point-to- obvious need to incorporate emerging technologies such as
Point Encryption, to mobile payments, WeChat Pay, AliPay, Virtual and Augmented Reality, IoT and more, the opportunity
Apple Pay and more, understanding the complexities and we face is really one of developing a more collaborative and
technologies which support new forms of payment is a top informed group of CMOs, CDOs, CIOs and hoteliers. There
priority for the hospitality industry. HTNG has a Payments has never been a better time for us to reimagine how we can
Workgroup established to focus on secure payment frameworks. work together, support our vendors and partners, introduce
Undoubtedly payment solutions will be further disrupted by innovation and enable a community supportive of both startups
new forms of digital payment including Blockchain. and established providers to better serve our guests.

Digital transformation
Not unique to our industry, but foundational to the success of
hospitality, the swift move to digital solutions to engage with
our customers more directly and personally is well underway.
This will have different repercussions and interpretations, but
working together we can find solutions destined to serve the guest
experience in new and compelling ways, many of which are yet
to be imagined. Operating in both legacy and digital spaces, as
any CIO will share with you, is massively complex! Finding ways to
align business strategy with a pace of change unlike anything we
have experienced before will require new frameworks and ways of
thinking about technology. HTNG has initiated a CRM Workgroup
to further this dialogue and better understand the underlying
technologies and programmatic requirements to support this.

www.hotel-yearbook.com 75
SPONSORED CONTENT: TECHNOLOGY IN HOUSEKEEPING

The business of housekeeping: Is


technology in housekeeping an
option or a prerequisite?
by Eric Rogers i

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.

Let’s take the business of hotels back to basics. When we’re


looking to book a hotel today, most of us expect the world’s most
sought-after hotel guest room amenity, which is complimentary
WiFi. But let’s be honest, would you rather have WiFi than a clean
room? Probably not, and you’re not alone.

According to LateRooms, 90 percent of travelers avoid booking


hotels labeled as “dirty” in online reviews. In a study by
Hospitality and Catering News, 70 percent of hotel guests said
that cleanliness and hygiene are the most important factors
for a hotel, and if cleanliness standards fell below the expected
standard required by guests, 44 percent of customers would
simply never go back. Needless to say, housekeeping means
business: if your rooms are not clean, your marketing is in vain.

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.

With growing pressure to reduce cost and maximize profitability


in today’s competitive environment, hoteliers are increasingly
looking to achieve greater operational efficiencies while providing
a more and more personalized experience for guests, which can
be achieved through back-of-house automation. In addition,
many hotels are looking to enhance and communicate their
green credentials to their guests which can be done through

76 HOTEL Yearbook 2017 special edition on TECHNOLOGY


reducing the use of finite resources, including paper, while Sooner rather than later, hoteliers won’t be asking the question
enhancing the operational efficiency of a hotel. Did you know whether to invest in housekeeping automation, but rather what
that through housekeeping automation, a typical five-star hotel system to use. When choosing a technology solution for any of
with 300 rooms can save 1.5 tons of paper annually? That’s 35 your back-of-house operations, including housekeeping, it is
beautiful, green trees every year. critically important to ensure the system seamlessly integrates
with your Property Management System (PMS) and other hotel
Having said that, hospitality is first and foremost a people operating systems. Once deployed, your hotel will undoubtedly
business, and staff turnover is not only costly, but can adversely be reaping the benefits of housekeeping automation really
impact productivity and efficiency as well. Technology can be quickly and hoteliers should benefit from:
used to make back-of-house departments such as housekeeping
far more interesting to work in, which helps to attract and retain • Enhanced guest satisfaction through quicker cleaned room
good staff. In turn, well-trained and motivated employees are turnaround
better equipped to provide good customer service, and through • The ability to view the most up-to-date information from
efficiencies achieved by technology, will have more time to your PMS (e.g. cleaning status, room status and inventory
deliver a personalized experience for guests. With automation etc.)
comes data, which can be used to reward staff based on ability • Savings in manpower, time, paper and energy for cost
and productivity in a very fair and transparent way. Conversely, optimization
analysis of the data may identify training needs, helping hoteliers • Smoother lost & found operations
to focus their attention on areas that need improvement, hence • Optimized communication within the housekeeping
working smarter and more efficiently. department and between operational divisions in the hotel
• Improved staff retention through better motivation,
Mitigating mistakes productivity and feedback and reward mechanisms
With a few hundred rooms to clean every day, there’s lots of • Greener operations and significant savings in paper (and
room for things to go wrong. While we can’t avoid mistakes, we trees!)
can mitigate them. Housekeeping automation not only reduces • Real-time room/public area cleaning assignments among
human error, it also lessens the number of staff needed on any the team without manual contacts and paper trail
given shift and gives housekeeping supervisors more time on the • Automated reports with accurate real-time data
floor to interact with guests as the smaller, often mundane, tasks • Less human error through manual processes
are being automated. Take the example of a 236-room hotel in • Improved housekeeping roster management
Macau with 69 room attendants in housekeeping. Through the • More accurate inventory forecasts for manpower, linen, guest
automation of their housekeeping operations they were able room amenities and mini-bar items
to save a staggering 90 percent of time spent on reporting lost ■
& found items, 83 percent on minibar and room status posting,
40 percent on room allocation and 100 percent on informing
check-out rooms. We all know time is money, and these time
savings can either help to reduce departmental costs or allow
for housekeeping staff to spend more time with the guest to
personalize and enrich their experience in the hotel.

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

Realistic visions on the


virtual world of hospitality
by Guy-Georges Trigallez i

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.

When sharing my vision on virtual reality, I always like to keep it


real.

Even though I make a living of virtual reality productions, I’m not


the kind of guy to sell them to you, no matter what. Currently,
there’s a hype surrounding virtual reality that’s reminiscent of
the app days, when many businesses launched mobile apps
just for the sake of it. Most of them have learned that new
technology should always be treated as a means to an end.

Meanwhile, I believe that, when embraced with the right


business strategy and with the end user in mind, virtual reality
holds enormous potential to help businesses grow, especially
those in the hospitality industry.

As more and more people start talking about virtual reality, it is


often confused with other immersive technologies. Here’s the
difference, in descending order of virtuality:

• Virtual reality is a realistic and immersive simulation of


a 3D environment, created using interactive software and
hardware, and controlled by movement of the body.

• Augmented reality is an enhanced environment as viewed


on a screen, produced by overlaying computer-generated
images, sounds, or other data on a real-world environment.

• 360° videos are video recordings where a view in every


direction is recorded at the same time, shot using a collection
of cameras. During playback the viewer has control of the
viewing direction.

78 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Each of these technologies has different applications and Furthermore, immersive technology can give potential
advantages which lie beyond the scope of this article. I want customers a more realistic sample of the real thing, while
to focus on what they have in common: They can offer a more drawing them further into a sales funnel. We’ve all seen the
immersive experience to the viewer and make visual content 360° videos that hotels are showing on their website. Now
more interactive. imagine walking through these rooms as if you were really there,
discovering the whirlpool, hearing the waves of the sea and
I’ve noticed that some hospitality business owners find it a seeing how beautiful the view is like from every window. As you
scary idea to offer potential customers an immersive experience progress through the simulation, you get rewarded with more
before they have even booked. They are concerned that if it’s points for the hotel’s loyalty program.
done well enough, potential customers wouldn’t want to pay for
the real thing anymore. But time and again, I have learned that Finally, your guests can use these technologies to share their
virtual experiences can never be a substitute for the real thing. trip with their friends and family. Major hotel chains are already
In fact, when presented at the right moment, they can serve as a experimenting with immersive postcards, enabling guests to
trigger for the real experience. feature in their own 360° video and send it to the folks at home.
To them, it’s really like being there, together. It’s when immersive
When it comes to marketing, the hospitality industry is a unique experiences become more personalized and social, that they
position. It has to sell a future experience in a faraway place. yield a more emotional response and reach their full potential.
As consumers grow more media-savvy, it is becoming harder
to sell such an experience through good-looking photos. This Creatively, the possibilities in virtual reality are as endless as our
is why these new technologies should be of special interest to collective imagination. They’re only limited by ever-advancing
the hospitality industry: they can help future experiences come technology. Sometimes it is hard to grasp where technology will
alive in a more engaging way, as if the customer is really there take us, and visionaries are often ridiculed. Take for example the
already. technologies portrayed in the Back To The Future trilogy. While
they seemed nonsensically futuristic at the time, now many of
Immersive technologies open up unprecedented opportunities them have become a commonplace reality: The electric car, the
for the marketing of hospitality services. First of all, they can hover board, video conferencing and fingerprint identification.
help establish brand identities in a way that photography never The businesses that embraced these technologies at the right
could. Imagine an immersive experience in the Mövenpick. Now time with the right mind emerged as industry leaders.
compare it, in your mind, with a multi-sensory trip to the Hard
Rock Cafe. By adding interactions and music to the visuals, The same goes for virtual reality. The future is already here. And
depicting what your brand stands for becomes much more if you know what you want, you can go beyond the gimmick and
outspoken and memorable. It can even position the brand in make history.
more creative spaces. What would the Hard Rock Café look ■
like on Mars? Impossible in real life, yet it could be a credible
experience in virtual reality.

As a kid, Guy-Georges Trigallez was already fascinated by the


moving image and knew many movies by heart. Today he is a digital
marketing professional with a passion for digital imagery, combined
with the latest technologies. His company No Dutch No Glory is
based in Amsterdam and built on a team of talented creatives and
developers. They are always searching for the ultimate design of
meaningful visual experiences, giving people something they have
never experienced before.

www.hotel-yearbook.com 79
ANALYTICS

Bridge on the River Data:


Reinforcements are on
the way
by Peter Starks i

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-

80 HOTEL Yearbook 2017 special edition on TECHNOLOGY


As a past Director for Marriott Hotels, a Regional Director for the
United Nations Tourism Office, an Advisory Board Member for
Universities; and as CEO of a leading training company, Peter
Starks brings a broad-based perspective to his work as educator-
at-large. His experience in living and working in over 40 countries
provides an international perspective. A graduate of the Cornell
School of Hotel Administration, he also holds MBA and MS degrees
from Webster University, Switzerland. Peter is an elected member
of the Institute of Hospitality, UK, and the International Society of
Hospitality Consultants.

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

The human side of change


by Colin Abercrombie i

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

82 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Colin Abercrombie, Managing Director of Dubai-based
Abercrombie Training and Consultancy, is a very experienced
executive coach and a passionate and entertaining facilitator. Colin
has extensive experience working at all levels within national and
multi-national organizations throughout the Middle East, Europe
and Asia. He holds a Master’s degree in Applied Coaching, is a
Certified Practitioner and Master Practitioner of NLP, Time Line
Therapy and Hypnosis, is an ICF certified Professional Coach and
one of the only MBIT coaches in the Middle East.

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

Innovation Hub @ EAHM:


Bringing research and
educational benefits to
hospitality stakeholders
by Sanjay Nadkarni i

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

84 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Sanjay Nadkarni (Ph.D.) is the Director of Research & Innovation
at the Emirates Academy of Hospitality Management. His current
interest is in the convergence space of digital and data analytics
in hospitality and tourism. His portfolio comprises academic and
applied research, advisory and consultancy assignments for
corporate, government and multilateral agencies, in addition to
his pedagogic practice which includes Visiting Professorships at
Ecole hôtelière de Lausanne (Switzerland) and Institute of Systems
Science, National University of Singapore (Singapore).

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

How to deal with


consultants effectively:
A view from the other side
by Ted Horner i

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.

I know that everyone out there sees these articles written by


consultants and says to him or herself, “That’s nice – but how
does that apply to me?”

All hotels/resorts reach a point at some time when they are


aware that they could be doing things better or differently. One
or several areas of the operation are not achieving their goals or
are not functioning as efficiently as they might, and are unable to
offer or formulate an effective remedy. This is where the timely
employment of a consultant can reap measurable returns.

Another example is when a new hotel is being built and the


owner or operator wishes to explore what technology options
are out there in the market. Experienced hotel IT consultants are
perfect for these types of assignments and can also assist their
clients in determining best-of-breed solutions depending on
size and type of hotel.

The list of potential problem areas, or areas where research is


required, is relatively endless and can include any number of
operational, technical and customer service areas. A consultant
allows you to hire a level of expertise that you might otherwise
not be able to afford.

But lest you think that this is self-serving – allow me to provide


the view from the other side; what makes a “consultant-client”

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.

86 HOTEL Yearbook 2017 special edition on TECHNOLOGY


relationship work for the benefit of both. A good consultant- Commit to the agenda. A good consultant will furnish you with
client relationship is a professional marriage. A consultant an itinerary prior to the visit and it is up to you to ensure that the
wants to provide value to the client but recognizes that it staff involved has cleared their calendars to give the consultant
requires a bit of work on both sides. Let me share with you how their focus and attention. A consultant’s time is very expensive
to maximize a consulting relationship: to waste. A staff member who is feeling threatened or defensive
will often avoid spending the required time with the consultant.
The chemistry thing. Once you have identified one or more While a good consultant will try to put their fears to rest (unless
consultants who may be qualified to assist you in your problem they are the problem), it is up to you to make it clear to the staff
area, have a telephone conversation with each. As in any that the consultant is there to identify and support solutions,
relationship, chemistry is an issue. You know if this is person not to threaten or find fault. However, as the saying goes, if you
has a style that will complement and mesh with yours and are not part of the solution, you are part of the problem.
that of the people in your organization. Not every client and
consultant has the chemistry required to get the job done, no Communicate, communicate, and communicate. As in
matter how qualified the consultant. Ask for references and any good relationship, success depends upon the level of
examples of how they successfully assisted other clients in communication between the parties involved. Make sure that
similar situations. the staff provides the reports the consultant requests. A good
consultant will begin their itinerary with a meeting with the key
Analyze the issue. Most consultants are willing to do this for contact(s) and conclude with the same. Read and share with
expenses or a minimal fee. A good consultant is set of “fresh the staff the report that the consultant furnishes after each visit
eyes” – someone who can give you an objective opinion of and discuss on the phone.
the elements of the situation and recommendations for a
resolution. However, resist the urge to “shoot the messenger” A good consultant is not someone who is “between jobs” or
if their analysis does not exactly agree with your perception. unemployable. Most have held positions of responsibility and
Some clients simply want an echo of the conclusion they have produced results for their employers. That is how they developed
already drawn, to validate their own opinion. This is fine as long their expertise. They are doing what they do for various reasons
as you are willing to pay for it. and not looking for a job. A good consultant has usually been
offered numerous jobs by clients but prefers to do consulting for
Define the objectives. What are the goals and the benchmarks? the challenge, variety and flexibility that it affords.
All too often a client is ambivalent about what the objectives are
in terms of observable outcomes. Good consultants are consummate “hole pluggers” and
problem fixers that can generate many times their fees in
Define the parameters of the consultation. Define the fee additional revenue, provided that you, the client, know how to
structure, billable expenses and the duration of the consultation use them effectively.
with renewal options, if applicable. Discuss the reporting
arrangement and agree upon when the bill is to be paid. In In conclusion, please let me pass on some rules that have
many cases, the consultant is a small business operator and served me well for the last 27 years as an IT consultant to hotels:
invoices left unpaid for over thirty days puts him or her in a bind
and gets your account poorly served. Ted’s consulting rules
1. UFI UFI (You f*** it, you fix it.)
Commit to implementation of the recommendations. The 2. Pioneers get the arrows; settlers get the land. If you are
single most frustrating thing to a consultant is a client with going to be first, make sure you have contractual guarantees
whom the chemistry is right, the terms of contract are clear in place to cover you in the event of failure.
but the client does not implement or support the agreed upon 3. If it is not in writing, it does not exist.
action plans and recommendations. The consultant has no 4. The devil is in the details, so make sure you read your fee
authority to enforce the performance of the action plans except proposals, contracts etc. And more importantly, understand
the authority and express support that you give them. In those it all, and if you do not, ask questions or seek advice.
situations where everyone loves the recommendations and 5. Just because you have it in writing, do not assume it will
action plans but there is no support for their implementation, happen automatically.
the consultant invariably gets the blame for poor results. It’s 6. No one vendor can do everything, despite what they may say.
your money – use it wisely. 7. Your power as a buyer is at its greatest prior to signing the
contract.
Agree to disagree on occasion. A good consultant is there to 8. Before signing off on anything, do ensure you analyze total
stimulate you and provide another opinion. Commit to having cost of ownership (TCO), not just the up-front cost costs,
discussions. If everything you were doing in the past was so over the life of the contract.
good, how did you get into this situation in the first place? If you 9. Don’t underestimate the power of referencing/checking
keep on doing what you are doing you will keep on getting what with your peers to validate vendor claims – and take your
you’ve gotten. A disagreement on an issue doesn’t mean that time to do this properly
you are wrong. Back your ego out of it and be willing to listen to 10. Good luck.
a dissenting opinion. At least agree to think about it. ■
www.hotel-yearbook.com 87
GUEST FACING TECHNOLOGY

All around the room


by Fraser Hickox i

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.

True technology is much more subtle and impacts the guest


in many discreet ways. It is no longer just the light switch but
rather the way the guest addresses this function, the tactility,
and the anticipated response to meet a current need.

We are today surrounded by all manner of technology and


no longer amazed by the obvious, however if it performs a
complimentary function that aids the integration of a number
of functions, it is appreciated. We need to consider the total
impact.

We need to turn away from specific functions, but consider all


as a choreographed activity, subconsciously undertaken by the
guest and delivered by a discreet guest centric control.

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.

88 HOTEL Yearbook 2017 special edition on TECHNOLOGY


The room is more than a place to stay, but rather an experience, guest. In general, controls should be simple and minimal and
which if unique or at least interesting is taken away by the guest clearly signed. All backlighting should extinguish in darkness
in memory when they leave. but illuminate if the guest moves their hand in close proximity
and extinguish if no function is selected.
Orthodox or traditional sophistication is bland, however a small
simple and unexpected surprise is better rewarded particularly The bedside panel could contain an alarm clock suitable for the
when it has a story. We are creating a fantasy for many, not guest use, but centrally locked so the time is always correct and
measured by raw technology but the sum of the contributions globally adjusted for daylight saving time when appropriate.
of all disciplines. A discreet clock could be considered for the bathroom to
be backlit only in the highest lighting level or otherwise
When madam awakes and moves to the bathroom, she looks extinguished.
at herself in the vanity mirror, where a warm, even reflection
is rewarded with acceptance, harsh downlights highlighting Other switches should be located where the guest would seek
blemishes and wrinkles is a negative start for the day often with them, for example the curtain controls, apart from being made
dire consequences for her companion. available at the bedside, should also be located behind the
drape where the guest would normally seek a draw cord.
Guest room lighting need not be complex, but rather
complimentary providing for various spirit changes throughout Above all, controls and their operation should remain simple
the day, with warm lighting in the morning, to subdued lighting and elegant in execution.
in the evening and while this is a guest moderated feature, it
should be a simple function selected by a toggled scene switch. The RCU controlling all these features would have the ability
to also control a number of features including the signaling
We need to recognize the needs of all sectors of the community of a guest room condition to the Housekeeping scheduler,
and all technology should remain within their understanding. including if the guest is in the room, a DND or a make Up Room
The detection of the guest waking in a darkened room to travel request, signal room service if a tray or service trolley has
to the bathroom should be discreetly detected and a low level been left outside of the room and engineering air conditioning
light path provided to the bathroom, particularly for those parameters as well performing BMS functions.
suffering from depth perception issues but only when the room
is darkened. Telephones although no longer used by guests are required
in the guest rooms and in some location bathrooms (for code
Providing for guests who are unable to relax is a need to reduce requirements). These should be inexpensive and compact.
their brain wave frequency from an active 16 hz to a near Theta
condition of 10 hz using defined slow linear dimming lights over Telephone charging provisions are appreciated by the guest,
four seconds to facilitate them reaching the rested state. The who often forget to carry the appropriate cables, The use of
use of down lights above the pillow often required by an interior a charging panel will enable any IOS or Android phone to be
designer should be eliminated in all situations. charged using in built cables and connectors and provides up to
1.5 amps suitable for tablets.
Bathroom lighting requires a selected condition suitable for
applying make up but also to provide for low level lighting that Television for hospitality is undergoing radical change away
would be more appropriate for relaxation while bathing. from the traditional Video On Demand services removing the
need for all the accompanying plant and equipment, to various
In some instances lighting may wish to be adjusted On Line Service (transmitted in different languages) in addition
automatically as a TV is switched, or the provision of a single to the traditional service providers. This is further facilitated
light condition to enable an activity or reading without through the use of the latest hospitality televisions that now
disturbing a sleeping spouse. also provide for the pairing of guest carried devices and audio
delivered via Bluetooth. In time this will grow further providing
In all circumstances “Off” should be off when switched from the for different language and ethnic genres.
bed, there should never be a condition where after switching the
lights off a single fitting remains on requiring the guest to switch The next generation of servers will enable the hotel to remotely
it off and subsequently heightening their brain activity. The control the channel map and create landing pages for one day
same applies to all TV LED’s, smoke detectors (on a managed promotions but eliminating the need for the previous embraced
network) and back lighting service providers. It will also enable specific groups of rooms
to be addressed for conference delegates, a tour group or even
The use of tablet based controls has been employed by some a wedding partner with a ticker being addressed to specific
hotels, which initially were popular with guests but with their rooms. This will become much more dynamic but also provide
common daily use in business, they are no longer perceived a for other services including YouTube which will be selected by
novelty but rather a tool which in many cases is carried by the ↓

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.

Fraser Hickox emerged from a career


in broadcast engineering and aviation
into the hospitality industry 37 years ago,
a transition he has never regretted. His
hospitality career in the main has been
with the famed Peninsula Hotel Group
for whom he established a research lab
made up of bright young Chinese engineers with whom he created
many new concepts which were located in Peninsula Hotels around
the world and often measured as benchmarks by others. Seeking to
broaden his interests, he is now working with a number of companies
wanting to enhance their guest facing experience. Fraser holds degrees
in Electronics Science and Radio Physics and was awarded the HFTP
Hall of Fame recognition in 2008 and the Personalité de l’Annee –
Internationale Hotellerie in Paris.

90 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Upcoming
Technology Events

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

JAN Agilysys Inspire 2017 MAY Phocuswright Europe 2017


23 January 23-25, 2017 - Las Vegas - NV, United States 16 May 16-18, 2017 - Amsterdam, The Netherlands

JAN 2017 HTNG Middle East Conference JUN


24 January 24-26, 2017 - Dubai, United Arab Emirates JUN HITEC Toronto
26 June 26-29, 2017 - Toronto, Canada
FEBRUARY
FEB Travel Technology Europe 2017
22 February 22-23, 2017 - London, United Kingdom

FEB Smart Travel Data Summit N.America 2017


22 February 22 - January 23, 2017 - Atlanta - GA, United States
JULY
FEB Phocuswright India 2017 JUL HTNG Asia-Pacific Conference 2017
28 February 28 - March 2, 2017 - Gurgaon, India. 25 July 25-27, 2017 - Singapore

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

MAR HITEC AMSTERDAM NOVEMBER


28 March 28-30, 2017 - Amsterdam, The Netherlands NOV World Travel Market 2017 (WTM)
6 November 6- 8, 2017 - London, United Kingdom

NOV HITEC Dubai


7 November 7- 9, 2017 - Dubai, United Arab Emirates

MAR HTNG Insight Summit Europe


28 March 28-30, 2017 - Amsterdam, The Netherlands

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

APR EyeforTravel San Francisco Summit


24 April 24-25, 2017 - San Francisco - CA, United States Events are brought to you by www.hospitalitynet.org

www.hotel-yearbook.com 91
ROBOTICS

As the bartender buzzed


and whirred, the martini
was shaken, not stirred.
by David Sjolander i

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.

New use cases emerge daily. Case in point, currently in


development is a robotic co-pilot for commercial aircraft.
As pervasive as robots are in many industries, the question
remains whether there is a place for them in hospitality, an
industry that prides itself on human interaction. Perhaps it is
not so much a question of whether robots will find a home in
hospitality, but more a matter of how and when.

A common objection from hoteliers is that we can’t let


technology get in the way of human interaction with our
guests. Tell that to the delighted guest who opens her door to
greet Relay, the delivery robot from Savioke. Guests were so
enthralled by it that the company’s engineers had to re-program
Relay to stay at the room longer. When was the last time you
wanted your room service waiter to stay longer?

Clever engineering at Savioke makes you feel like you have


made a new friend after being served by Relay. And then
there’s Makr Shakr, a robotic bartender from Italy. Watching
Makr Shakr mixing drinks (and occasionally dancing) behind
the bar is always a good time, but guests can also create their

92 HOTEL Yearbook 2017 special edition on TECHNOLOGY


Makr Shakr

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.

Another recent introduction is Connie, the robotic concierge at


Hilton from IBM and Wayblazer. Connie sits on the front desk,
responding to natural speech from guests to answer questions,
provide sightseeing recommendations and make dining
suggestions. But is Connie a robot? She (it?) automates a task
typically done by humans, but so does a sheet folding machine
and a dishwasher. Are they robots? Connie might be more of

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.

94 HOTEL Yearbook 2017 special edition on TECHNOLOGY


That comes on top of six acquisitions – TinyPost, Jetsetter,
CruiseWise, Niumba, GateGuru, and Oyster.com – the cash
portion of which was a mere $31 million when the transactions
occurred in 2013. That cash portion, though, which was
disclosed by TripAdvisor in financial filings, doesn’t necessarily
reflect the total cost of the acquisitions.

Vacation rental leader HomeAway is another avid acquirer,


and it has tacked on approximately 22 businesses since its
founding in 2005. In 2013, HomeAway acquired Travelmob of
Singapore, Bookabach in New Zealand, and, by far the most
expensive of the trio, the Stayz Group of Australia, for $198
million. HomeAway also acquired Glad to Have You, a property Prakash Shukla is a seasoned professional with over 25 years of
management app, for $16.8 million in 2014, according to a general management, finance, technology and entrepreneurial
financial filing. experience. Prakash is a managing partner with Solarex LLC (family
office). Before that he was a partner with HGM Asset Management
Conclusion (PE fund) and was a 2013 Advanced Leadership Fellow at Harvard
Overall the industry has seen significant advancement due University. He served as Senior Vice President and CIO of TAJ
to innovations in technology. Broadly two types of “new” Group of Hotels from 1999-2012. With a background in some of the
opportunities have emerged: industry’s most venerable corporations – Unisys/Sperry and IBM
Research Labs – Prakash has innovated and provided solutions for
• Support and services for the industry by making existing numerous corporations and financial institutions such as Morgan
processes more efficient. This includes all of the systems that Stanley, Goldman Sachs, Citigroup, Paine Webber and Solomon
make hotel operations work more efficiently: everything from Smith Barney. In addition, he was an early investor and/or board
discovery, reservations, fullfillment, billing etc. member of Speech&Software Technologies (a Tata promoted
• Completely new models that disrupt the industry. These are company), TravelGuru, a Sequoia funded India centric travel portal
typically at an intersection of business model innovation and sold to Travelocity. Early investor in Transerv, base of the pyramid
technology. Classic examples are airBNB, Priceline ec. payment solution provider. Prakash also formulated and launched
base of pyramid hotel chain Ginger Hotels (100% subsidiary of
Certainly most startups fall into the first category, and many the Taj ) in consultation with CK Prahalad. Launched MangoTree
have created an interesting profitable niche. However, it is the PE fund seeded by the Tata Group. Served on HTNG board and is
latter category where maximum value is created. The challenge now Advisory Board Member. Prakash was inducted into HFTP
in opportunity identification requires deep domain expertise Technology Hall of Fame for his contributions to hospitality industry.
and the ability to identify new constructs, which may not exist. He also served on Microsoft Hospitality Advisory Board.

www.hotel-yearbook.com 95
HOTEL OF THE FUTURE

Envisaging the hotel


of the future
by James Law i

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.

A new meaning of “hotel”


The meaning of hotel has always reflected the society that it
existed in. From hotels for vacations to hotels for business,
hotels have been there to be the rentable and temporary
locations for people to stay or to host activities. However, we
know the fundamental ways people live, work and play are
changing. No longer tied to traditional entities, new age people
work dynamically as nomads via the Internet; new age people
live on the go in a life that is like a journey; and they all play to
relax with games and activities such as online communities that
no longer are predicated on physical locations alone.

And in a world of increasing costs, the price for the permanent


home for each person is reaching a level where much of the
urbanized middle and lower class is being pushed to rent rather
than to own property. If they are to rent, then their homes are
very much like hotels in themselves due to the non-permanence
of ownership. Given the pace of change, and the availability
of new online platforms for finding accommodation such as
Airbnb, any property can be a hotel room. The hotel may no this hardware and software will continue to merge, unleashing
longer be just a collection of fixed hotel room spaces linked new possibilities. For example, it may soon be possible for
together in a physical structure, but instead a virtual network of the theme of a hotel to change with the seasons, and yet be
rentable spaces. It may not be too far-fetched to extrapolate this reflected directly in the architecture of the building. Large LED
trend to one where many of the world’s population may literally walls are already beginning to be smart walls able to change
be living in hotel rooms or apartments in order to balance their color, content and impression affecting any space. Perhaps
transient lives as well as the difficult affordability issues. The entire hotel lobbies will be able to adapt with the seasons, time
transient form of using space – the mobility of people’s lives and needs of the hotel by changing their look digitally, able to
– leads to new meanings for hotels. Perhaps hotels become be upgraded to the needs of new spatial impressions.
nomadic residences, where the stay is longer than a few days
but shorter than the average rental periods of 2-3 years. If this Imagine that the view from any hotel room can be tuned to the
is the case, hotels may need to be designed differently to cater whim of the visitor. Using virtual reality or augmented reality,
to this kind of transience. They need to be both permanent yet a room in Dubai can see a live view of London, or any other
impermanent, fixed yet flexible, scalable both to grow and to location on earth that has a live feed via the internet.
downsize. These attributes are necessary to make hotels able to
adapt to the needs of the new society. Not only will the visual spectrum be unleashed by the merging
of hardware and software, but physical space may also break
Hardware merge software its permanence. Soon, hotel rooms will be able to change
More than ever, the hotel experience is recognized as the configurations and size with animatronic systems that can move
synthesis of hardware and software: the hardware being the walls and furniture to the specific needs of the user. This is a
location and hotel built structure, and the software being the whole new level of customization that allows every customer to
service and events that happen within the hotel. I believe that have his ideal space when he stays in a hotel room of the future.

www.hotel-yearbook.com 97
HOTEL OF THE FUTURE

Mobility and portability permanence, the future hotel will be adaptable


Hotels have mainly been built in and changing.
conventional ways, where large super
structures contain hundreds of rooms Land, sea, air… space?”
and associated facilities. This form of I believe the new century will see human
construction has proven to be wasteful, civilization take massive steps forward. For
inflexible and outdated. Pouring concrete, centuries, humans have predominantly lived on
floor to floor, takes time and uses an land, travelled on the oceans, flown in the skies.
immense amount of resources, time and Now, it is the time for us to take the next leap,
energy. In fact the whole of the building and go into space. The technology is available,
industry uses more energy than any other and the trends are pointing to the possibility
sector in the world. However, another that this will be affordable for the masses in
form of construction can be interpreted as the not too distant future. So why do hotels
“manufacturing” and there is a beginning only have to be on land? Massive ocean liners
of a major shift to “manufacture” buildings are already hotels on the seas. I postulate that
rather than to build them from scratch. This there will soon be hotels in the sky, made of hotel
affords high quality, lower costs and shorter rooms that can fly. They will move you from place to
amounts of time to achieve the construction of hotels. place, an airborne living experience just like a bird, affording
a freedom above the clouds, and not bound by terrestrial
An interesting offshoot of this move to manufactured
architecture is the potential for hotels to become portable.
Imagine that hotels in the future may not have to stay in the
same place until they become obsolete, or if their business
runs out. A hotel may be able to deploy its infrastructure if
it is portable, moving it from location to location in order to
best modulate the success of the business in ever-changing
customer needs and economic situations. The mobile
population that is linked through telecommunication, Internet
and a transient lifestyle will not feel alien to such an idea.
Imagine a hotel that can spring up at a place of great natural obstacles and geographies. Literally you can live in “heaven”,
beauty, yet move on, after a designated time, in order not to experiencing our world on a level not yet achieved. And then,
destroy the environment. Image a hotel able to grow bigger as beyond this, hotels will certainly head into space, an infinite
it operates because there is demand, because it is built out of realm of possibilities beyond our rather small planet. Perhaps
mobile “pods” that can be plugged in to add more capacity. hotels will first be in orbit around our planet, then they will be
built on the moon, then on Mars and beyond. Driven by man’s
The mobility and portability of hotels will yield opportunities innate sense of inquisitiveness, his urge to experience beyond
to customize hotels to be extremely iconic and unique pieces himself will continue, and this will be reflected certainly in the
of architecture. They can reflect the unique needs of the most ambitious hotels of the future.
place, as well as the whim of the user. No longer confined to ■

James Law is the founder of international


architecture and technology design firm
James Law Cybertecture; smart cities
company Cybertecture X; smart health
company Cybertecture H; design education
institution Cybertecture Academy, and NGO
Cybertecture For Humanity.
James is a Young Global Leader of the World Economic Forum; a
Council Member of World Economic Forum Global Agenda Council on
Design & Innovation; Board Member of the Hong Kong Design Centre,
Board Adviser of the Hong Kong Designers Association, and Member
of Hong Kong Trade Development Council Real Estate Advisory
Board, and frequent TED speaker.

98 HOTEL Yearbook 2017 special edition on TECHNOLOGY


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Next special edition on TECHNOLOGY

HYB Special Edition - TECHNOLOGY 2018


This edition will be available in November 2017

WWW.HOTEL-YEARBOOK.COM

Upcoming editions in the Hotel Yearbook family


HYB Special Edition – Digital Marketing 2017
This special edition is being published in partnership with ESSEC and supported by Hospitality
Sales & Marketing Association International Foundation (HSMAI). Authors will include some of the
industry’s best known thinkers and doers in various fields of digital marketing such as reputation
management, big data, CRM, revenue management, search engine optimization, social media and
channel management.
• This edition will be available from 15 December 2016

HYB Special Edition – Sustainable Hospitality 2017


Looking in depth at the many challenges facing the hotel industry as it strives to improve its
environmental footprint, this special edition will be published in partnership with IUBH School of
Business and Management in Bad Honnef, Germany. Its authors will explore ideas, solutions and
strategies for developing future hotels – and managing them operationally – in a sustainable way.
• This edition will be available from 18 June 2017

Hotel Yearbook: Dubai 2027


This focused edition will look at a single hotel market – Dubai – a decade in the future. This is the
first time that the Hotel Yearbook will concentrate on just one destination in depth, and look so far
out into its future. High-level contributors will address the forces driving change in this dynamic
market, and develop scenarios for its potential future.
• This edition will be available in October 2017

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