Problems Overseas
Two thorny, less talked about issues are electronic data interfaces and public infrastructure vulnerabilities.
By Staff -- HOTELS Magazine, 10/1/1999
The clock is ticking louder because it is getting very late
in the process of preparing for unexpected problems that can
effect you and your guests come January 1, 2000. Y2K-related
malfunctions undoubtedly will be felt by just about every hotel
and resort operator in the world. The only meaningful question
is who will be best prepared.
Until recently, most of the world's focus has been on the
relatively simple technical problem of fixing as many business
computer systems as possible. This, however, has obscured two
equally important Y2K issues that are less well-known and far
less frequently discussed. These two thorny issues are electronic
data interfaces and public infrastructure vulnerabilities.
Electronic data interfaces exist when one computer system
has to exchange business information with another system such
as a hotel's reservation database. A computer system anywhere
in a series of interdependencies that is not Y2K compliant
can cause big problems, resulting in the hotel's recently fixed
or newly purchased computers either crashing or suffering slow
data-corruption. This could cause extended downtime expenses,
lost records, lost revenues and even litigation.
Public infrastructure vulnerabilities involve the anticipated
sporadic, but probable, loss of electric power, telecommunications
capabilities, safe drinking water supplies and fossil fuel
energy availability. These vital resources will be problematic
in early 2000 because of the incredible number of embedded
microprocessors involved. Embedded microprocessors are hard
to find and labor intensive to replace.
Action Plan
The international hospitality industry must develop and implement
business contingency plans to cope with the probability of
public infrastructure failures affecting their overseas properties.
The three biggest Y2K-related business problems for international
hotels and resorts will be preventing injuries to guests, keeping
properties habitable for guests and communicating between overseas
properties and headquarters.
Prevent injuries to guests. Microprocessors control security
and alarm systems. For properties that haven't already identified
which of these microprocessors are Y2K-compliant and which
are not, there is not enough time left to do that job and to
fix those that aren't. The prudent course of action, unless
you are absolutely sure of your facts, is to replace them all.
Keep properties habitable for guests. HVAC, elevators, laundry,
kitchen, pool filtration and similar systems are also microprocessor
controlled. These amenities are in jeopardy of being lost without
prompt and potentially expensive corrective actions. But, even
if they are replaced, an electric power loss will render them
useless. Even if you believe these systems are Y2K compliant,
it is incumbent upon management to draw up complete contingency
plans to address all areas of potential dysfunction.
Communicating between overseas properties and headquarters.
Even assuming all internal management information systems in
overseas properties are functioning correctly, communications
from over 80% of the world will be problematic. Most overseas
municipal telephone switches through which telephone, fax,
e-mail and other communications (which are not exclusively
satellite-based) must travel are not now Y2K compliant and
are not scheduled to be fixed in time. A World Bank study released
in January 1999 showed that of 139 non-highly industrialized
countries surveyed only 54 had a national Y2K program in place,
and even of those that claimed a national program, only nine
had actually started any work.
All of this leads to an inescapable conclusion: if international
hotel and resort operations want to keep their guests safe
and happy, and keep their global lines of communication open,
a lot of hard thinking will have to go into developing ways
to assure those goals in the face of these two little-discussed
Y2K problems. That hard thinking needs to be embodied in a
business contingency plan founded on the best-available intelligence
about overseas Year 2000 preparedness and an imaginative but
tough-minded analysis of the worst-case scenarios that might
result.
Hamilton & Scripps LLP and founding chairman of the Pacific
Rim Advisory Council.
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