Hotel Technology

1. Hotel Technology Chapter Thirteen PowerPoints developed by Bharath M. Josiam, Ph. D. Professor, Hospitality Management University of North Texas, Denton, TX, USA And Edited by Gary K. Vallen, Ed. D. Professor, School of Hotel and Restaurant Management Northern Arizona University, Flagstaff, AZ, USA

2. Objectives of Chapter 13 The Property Management System (PMS) Issues in Technology Adoption Changing role of the hotel telephone department Electronic Locking Systems (ELS) Energy Management Systems (EMS) Fire Safety Systems

3. Objectives of Chapter 13 Minibars Inroom Safes Communication Systems Telephones Internet Smartphones and Apps Inroom Entertainment Systems Standardization: HITIS and Beyond

4. Technology in the Hotel Property Management Systems (PMS) Need to manage all aspects of hotel operations in a seamless manner Integrate Phone, Lock/Key (ELS), Point of Sale (POS), Energy Management (EMS), Call Accounting Systems (CAS), and FO billing systems Communications Architecture Uniform connectivity All systems need to “talk” to each other Have common Graphical User Interface(GUI) to facilitate training and reduce errors; Example: Windows

5. Integrated Property Management Systems Standardization is the key issue Standardization within the property and across the chain Single-vendor turnkey installation is the answer Communications Architecture Benefits of Standard Chain-Wide PMS Ensures that all revenues are reported accurately Browse data at property, regional , national, and international levels Display like room inventory screens and last room availability to Central Reservation Offices Create central databases for warehousing such programs as Guest History, Frequent Guest/Flyer Programs, corporate activity, group activity, and travel agent accounts All the above enable better-informed and faster management decisions

6. Technology in the Hotel Prior to any Investment in New Technology Consider issues of: Degradation How long with this technology last? How soon will you have to replace or upgrade at considerable expense Synergy Will this technology only do one job or will it deliver multiple benefits. Example: The newest technology in LED light bulbs will not only reduce energy costs, it will also reduce labor costs of replacing the bulbs. Cost-benefit relationship (Exhibit 13-3) Will costs of acquiring and installing this new technology be greater than the short and long-term benefits? Matching technology to guest expectations Does this make the guest experience better? Does it improve efficiency and accuracy in delivery of guest services? Does it improve guest security? Does it make guests say “WOW!!!”

7. Technology in the Room Locking Systems Traditional Mechanical Locks OK for home use with one user, but problematic in hotels Lock needs to be changed, every time key is “lost”, to prevent person from re-entering the room with that key Changing locks is an expensive and time-consuming proposition Newest mechanical locks can be changed more easily/faster Newest locks are substantially cheaper than electronic locks Mechanical locks not dependent on computers or electricity

8. Technology in the Room Locking Systems (Continue) Electronic Locking Systems (ELS) (Exhibits 13-7, 13-9, & 13-10) ELS Identification Database Tracks which key was used to open the room at what time Distribution Control Master Keys can be programmed to be date or time sensitive “New” key issued for each guest, or if original is lost Less keys in circulation as a result Other Hard Ware considerations Need to have strong doors, peepholes, deadbolts etc., in addition to good keys! Key Cards - Cards are made of plastic with magnetic stripes (Exhibit 13-8) Re-usable, and very inexpensive – costs about 10 cents a card. Automatically expire on time and date of check-out Temporary, one-time-use cards can be issued to pre-view room or for maintenance calls. Can be encoded for use in dining rooms or other facilities to give restricted access

9. Technology in the Room Locking Systems (Continued) Memory Cards Can store data such as 1000+ lock codes Can be used as a Master Key by mangers Smart Cards Capable of processing and storing information Can be used as electronic wallet Costs about US$10 each. Bio-metric ELS Uses guest iris-scan or fingerprint scan to lock/unlock Concerns about privacy and safety have deterred use RFID ELS (Exhibit 13-11) Uses Radio Frequency Identification chips – contactless! No need to fumble for key! Just wave it in front of door – even with suitcase of packages! Can also be used as electronic wallet

10. Technology in the Hotel Smart Phone Applications As smartphones are being used by millions of people worldwide, more applications (Apps) being developed for hotel industry Guestroom Lock Applications – Use your smartphone as a key Other Applications Reservations sent to smartphone – can be used to check-in quickly Scanning barcode on smartphone does away with using paper for check-in Smartphone check-in message can be used to “upsell” guests Smartphone messages can be sent to guests with coupons and promotions of in-hotel bars, restaurants, spa etc., Proximity-based apps can send messages and coupons to guests automatically, as they walk near the hotel or restaurant Hotel chain apps can locate and make reservation in nearest hotel or any hotel in the chain Smartphone apps can be used as electronic wallet – with “tap to pay” apps

11. Technology in the Room Energy Management and Climate Control (Exhibits 13-14 &13-15) After labor, energy is the second largest operating expense for a hotel! Packaged Terminal Air Conditioners (PTAC) Enables guest to set the temperature in their own room Relatively simple to maintain and repair Can be replaced for one room at a time at low cost Network-Controlled Energy Management Systems (EMS) A system that automatically regulates energy use in the room when the guest is absent Key Cards – Guest has to insert key card in a slot by the door to activate energy. When key card is removed from slot, energy automatically cuts off Problem: Also cuts off phone charger, coffee maker that guest wants to use! Motion Detection Systems – Activates energy only when motion is detected Problem: Can turn off in the middle of the night, if guest is a stationery sleeper! Guest wakes up sweating, as A/C is off! Body Heat Detection Systems – Activates energy, only when body heat is detected “True” Detection Systems – Combines motion-detection with body heat detection PMS Linked Systems – Linked to PMS, so energy switches on when guest checks-In and switches off automatically when guest checks-Out.

12. Technology in the Room Fire-Safety Systems (Exhibits 13-17 & 13-18) Fire-Suppression Sprinkler Systems Sprinklers are triggered automatically if there is a fire Pinpoints source of fire and suppresses it immediately Networked Fire-Safety Systems Pinpoints source of fire, informs FO Triggers sprinklers automatically Notifies Fire Department automatically Releases all locks, enabling escape Adjusts HVAC systems to contain fire, vent smoke etc Notifies guests automatically by phone, alarm etc Overrides elevators and returns them to ground floor

13. Technology in the Room Minibars (Exhibits 13-19 &13-20) Traditional In-Room Minibars/Vending systems Used for both food/drinks and other amenities Provides revenue for hotel Reduces demand on Room Service Provides services for guests Semi-automated Systems Signals if and when the guest opens the minibar Only need to enter room if the guests opens minibar Saves labor cost - Only 1 in 4 guests use in-room minibar Microprocessor-Based Automated Systems Reports usage of minibar items instantly Automated in-room minibars with electronic interfaces provide for : better control Instant direct billing to guest folio through PMS Easier and less labor intensive re-stocking

14. Technology in the Room In-Room Safes Reduces theft by employees and others Reduces demand on FO time, effort, paper work Reduces legal costs and liability of hotel Categories of In-Room Safes Credit Card Access Benefits: No need for separate keys, as guests can use own credit cards Problems: Guests concerned about the security of personal credit card PIN-Based Entry (Exhibit 13-22) Benefits: Guests input their own PIN numbers - no need for keys or cards Problems: Guests may forget PIN numbers Biometric Safes (Exhibit 13-23) Benefits: Guests use finger-prints/other biometrics - no need for keys/cards Problems: Guests concerned about the security of biometric information

15. Communication Systems History of Hotel Telephone Service Historical Billing Procedures Phone system was a “regulated monopoly” Only one phone company AT&T (Ma Bell) in USA No competition Long Distance Billing Telephone company paid hotel a 15% commission for long distance calls originating from the hotel HOBIC = Hotel Outward Bound Information Center AT&T phone system for hotels

16. Communication Systems Internet Access Dial-up Access Slower first-generation wired technology for in-room internet access, but still preferred by many guests High Speed Hard-Wired Access Much faster access when guests plug-in with ethernet cable Expensive to install in each room, but good option for new construction High Speed with Wireless Access (Wi-Fi) Provides wireless access to internet throughout hotel Most convenient for hotel and guests Cheapest to install, as no in-room wiring is needed Individual access can become slow due to “bandwidth” issues Tiered Bandwidth Free Wi-Fi for basic use – enough for most people Charge guests more if they need faster access/more bandwidth Cloud Computing Guests access the “cloud” for their personal use on multiple devices Cloud – Computer servers where huge amounts of data can be stored and accessed

17. Communication Systems Future of Hotel Telephones Voice-Over-Internet Protocol (VOIP) (Exhibit 13-25) Phone calls are routed over the internet Examples: Services like Vonage, SKYPE etc., Literally reduce variable long-distance and Internet access costs to zero Wake-Up Systems Manual Wake-up Systems Labor consuming and prone to errors However, many guests still prefer this Semi-automatic Systems Guest requests call manually, but wake-up is automatically programmed Fully Automated and Interactive Guest programs wake-up call through phone or TV Wake-up itself is automatic over phone or TV Less labor involved Accuracy is improved Voice Mail Expensive to set up but convenient for guests and reduces labor cost

18. Other Technologies Inroom Entertainment Systems Provides TV, Cable, Pay-per-view Movies, Video games, Express Check-out, Menus for ordering room service Bills automatically to guest folio Property-by-property Custom Programming Video On Demand (VOD) All videos are stored on hotel based server Properties can program server to block or release videos for free or paid access Central programming of server reduces labor costs Streaming on Demand Guests stream video through personal accounts on Hulu, Netflix, and YouTube etc., Hotels need to provide lots of bandwidth to accommodate mass of video streaming Costs of bandwidth are high Hotels face technical problems of providing bandwidth and access

19. Other Technologies At the Desk Standardization: From HITIS and Beyond Main problem in technology – different technologies developed, sold, and installed by different vendors – problem of interface Various organizations are working to bring together hotels, vendors, technology specialists, manufacturers and consultants HITIS: Hospitality Industry Technology Integration Standards OTA: Open Travel Alliance – develop technology standards to connect all aspects of travel industry seamlessly HTNG: Hotel Technology Next Generation

20. Objectives of Chapter 13 The Property Management System (PMS) Issues in Technology Adoption Changing role of the hotel telephone department Electronic Locking Systems (ELS) Energy Management Systems (EMS) Fire Safety Systems

21. Objectives of Chapter 13 Minibars Inroom Safes Communication Systems Telephones Internet Smartphones and Apps Inroom Entertainment Systems Standardization: HITIS and Beyond