Systems Interoperability: Taming the Interface Beast

1. Systems Interoperability:Taming the Interface Beast HITEC 2005 Los Angeles, California Douglas Rice HTNG Executive Director 20 June 2005

2. Key Topics • Why is it so hard to get hotel systems to work together? • What are the consequences if we don’t? • What’s happening to fix the problem? • How well is it working?

3. Why Is Interoperability So Hard? • The technical problem is complex • Buying decisions are uncoordinated • Every vendor focuses on only a small part of the hotel’s technology puzzle • The solution requires skill levels not practical for hotels to deploy

4. Why Is Interoperability So Hard? • How many technology-based systems in a hotel like this? • Midmarket US full service, 200-room hotel • One restaurant • Suburban location near major highway • Major brand franchisee • Average technology sophistication • No sales/catering system

5. Why Is Interoperability So Hard? • This typical, uncomplicated hotel had: • 67 Systems & Major Modules • Excluding 9 module duplications • 45 Different Vendors • Including franchisor-dictated CRS, PMS, yield, frequency, video-on-demand, and a few other systems • 11 Custom Interfaces • 35 Systems Not Interfaced At All • 48 Onsite Systems, 19 Hosted Elsewhere

6. Why Is Interoperability So Hard? Building Controls Access Control Closed Circuit TV Elevator Control Energy Management Fire Detection HVAC Monitoring Security Alarms Sprinkler Distribution Central Reservations Channel Control System Competitive Monitoring Content Management Merchant Websites (3) Web Booking Engine Yield Management Accounting & Control Accounts Payable Accounts Receivable Asset Tracking Budget Planning Electronic Payment Financial Reporting General Ledger Payroll Purchasing Travel Agent Comms. Food & Beverage Appliance Shutoff Kitchen Management Materials Management Point of Sale Temperature Monitoring Carrier Services Cable Broadcast Off-Air TV Broadcast Operator Services Telephone/Data Satellite Broadcast

7. Why Is Interoperability So Hard? Front Desk/Lobby ATM Frequency Program Front Desk/PMS Keycard Encoders Payphones Guestroom Systems ADA Audio Signal ADA Visual Signal Clock Radio Internet Access Occupancy Detection Safe Telephone Handset Television Set Video on Demand Telephony Answer Detection Auto Attendant Call Accounting Call Sequencer E911 PABX Paging Voice Mail Wireless Devices Miscellaneous Benefit Administration Customer Survey E-mail Preventive Maintenance Sales Tracking Spreadsheet Time & Attendance Word Processing

8. Why Is Interoperability So Hard? • The technical problem is complex • Easily 25-50 systems in even a simple hotel • Different technical platforms • Redundant functionality across systems – rarely resolved the same way • Virtually no two hotels have exactly the same integration needs • Tools for resolving this exist -- but require high levels of sophistication in development, deployment, and operations

9. Why Is Interoperability So Hard? • Uncoordinated buying decisions • Owner, manager, franchisor influences on different systems • Conflicting technical strategies – or none at all • Many decisions at hotel level made without knowledge of integration issues • One-off purchases • Little infrastructure funding • Out of the box, systems won’t interface at all, or vendor-provided interfaces don’t meet the need

10. Why Is Interoperability So Hard? • Common lament: “Vendors don’t understand us”

11. Why Is Interoperability So Hard? Avaya Cisco NEC Nortel Siemens Distribution Telephony Amadeus Cendant Pegasus Sabre Hotel Operations Entertainment Point of Sale InfoGenesis Micros Par Comcast LG LodgeNet OnCommand Philips BuildingControls Companies were selected from among dominant players solely to make the point of the slide. It’s not intended as an endorsement; there are many other great vendors too! Honeywell Samsung Siemens

12. Why Is Interoperability So Hard? • Most interoperability can only be implemented at the individual hotel • But the solution requires skill levels not practical for hotels to deploy • This is not a recipe for success!

13. Consequences of Historical Approach • Systems are very difficult to support • They aren’t keeping pace with industry needs • Guest room technology is antiquated vs. what guests have at home • Information about guests isn’t provided to staff where it can be used to impact service • Wired buildings don’t react intelligently to guest or staff actions or needs • Migration to IP networks – which many industries are already reaping major benefits from – is painful and expensive • New systems don’t meet expectations, but fail at their boundaries

14. This isn’t a new problem. • If there was an easy solution, someone would have found it by now.

15. What’s Happening to Fix The Problem? • Standards (OTA, oBIX, ITU-T, GSA …) • Good, but often not enough • Consolidation • Isn’t happening fast, and can only go so far • The industry need customers and vendors working together • Hotels defining the problems they most need solved • Vendors designing common approaches, and implementing solutions • and….hotels buying those solutions from the vendors! • Vendors from different product spaces can work together to create solution sets • Basic interoperability, plus proprietary enhancements

16. What’s Happening to Fix The Problem • Solution Sets vs. Standards • Easier to achieve – don’t need consensus, or lots of investment in a theory • Immediate commercial benefit to hotels & vendors • Successful implementations can gain traction with other vendors quickly, through both customer and vendor actions • Potential downside: no guarantee you get to just one standard

17. What’s Happening to Fix The Problem HTNG: 200+ hotels and vendors • More than one-third are involved in three active workgroups • Open specifications, but also supports proprietary extensions • Compliance certification where needed • Organic adoption model • Work with existing standards where available

18. What’s Happening to Fix The Problem • Three active workgroups today • Web services for hotel systems • Distribution • In-room technology • Several more in the pipeline

19. Is it Working? • Last year we heard senior vendor executives talking about the benefits of working together • This year’s panel will take the hotelier’s point of view

20. Connecting Hospitality www.htng.org