Simply Secure

TNew systems receive accolades, even as their users opt out of exploiting their full potential.

By Joan Marsan, Technology Editor -- HOTELS Magazine, 4/1/2000

Manufacturers of security systems have been working

to offer hotels increasingly integrated, sophisticated systems. The

key to a guest’s

door can act as their charge card, can activate the heating or air conditioning,

and can even store customer information. Conversely, guests may use

their credit cards as keys. While all of these options promise greater

convenience for the guest, and hoteliers exercising the options praise

the convenience and cost-savings the systems ultimately offer, many

hoteliers fear possible inconveniences these new technologies could

impose. They opt out of exploiting a system’s full potential,

instead sticking with the door lock’s simpler, straightforward

capabilities.

The Hong Kong and Shanghai Hotels group, with

properties such as the Peninsula Hong Kong, is renowned for its research

and development of new technology. The newest Peninsula hotel, the

Peninsula Bangkok, has received accolades in Andrew Harpers’ Hideaway Report, Conde Nast

Traveler and Travel & Leisure. A cutting edge hotel, the Peninsula

Bangkok uses the Ilco Unican Millenium 9000 system with

Marlok keys, a set-up that interfaces with the PMS and hard-wires each

room to a central computer. The Marlok key is an entry device designed

to look like a metal key (similar to what guests would use to enter

their homes), but includes a magnetic strip. The Peninsula places extreme

importance on installing high-level technology that promotes comfort

by mimicking in appearance the familiar devices guests use in their

own homes.

“We looked at linking this with energy management but decided

against it as we need to keep the guest room cool for the duration of

the guest’s stay,” says Fraser Hickox, group general manager,

research and technology. Many hotels have installed security systems

capable of interacting with energy management solutions, but like the

Peninsula Bangkok they don’t exercise the interfacing capability.

In practice, Hickox feels, the feature might be impractical for some

properties. Still, there’s plenty of reason to select high-powered

systems with extreme flexibility. Hard-wiring allows

the hotel an unbeatable degree of remote access to a guestroom and information

about it. Staff can tell, without having to travel to the room and query

the individual lock, who has been in a room and when. Uploads and adjustments

to data and access can be performed from a remote location.

Remote Control

The ability to provide remote access to a lock’s memory attracted

Marc Golberg, property access supervisor of the Atlantis Hotel & Casino,

Reno Nevada, to the Access-Plus system by Security Innovations. Without

the ability to update door locks from his desktop, Golberg would have

to walk a 983-room property, uploading information at each door, if

an Atlantis security officer lost a key card. Standalone locks require

individual, isolated updates, whereas networked locking systems allow

system administrators to update all networked locks with a single command.

If every lock on a property is programmed to accept a certain card,

as might be the case with a security officer’s keycard, every

lock would have to be separately reprogrammed if the

system incorporated standalone locks. With a networked system, a single

command from a central site is all that is required to update every

lock.

Ease of administration is just one feature Golberg appreciates in the

centrally-controlled system. Guest convenience also increases with the

Access-Plus system. Many systems control access by programming a card

to allow entry to the room during a pre-specified length of stay. If

the guest chooses to extend their stay, the card still will expire at

the originally ordained termination date. With the Access-Plus system,

however, the lock, rather than the card, determines whether access will

be permitted. The lock can be updated automatically with information

from the PMS when the guest informs the hotel of his or her intent to

stay longer. A card-based system would require the inconvenience of

a visit to the front desk by the guest for an update of the keycard.

Theft Prevention

Powerful central control helps hotels such as

the Atlantis efficiently handle a persistent and disturbing problem:

employee theft. The Atlantis employs about 2,200 people at any given

time, and about 50 staff members pass through its doors each day.

When a theft is linked to an employee, tracking individuals’ movements

through the hotel becomes extremely important. The ability to assess

room entries and exits in a single query, rather than traveling from

door-to-door, aids security staff as they attempt to handle thefts

in the most efficient manner possible.

The Atlantis system also notes when doors have been left ajar, relieving

the hotel of liability in cases where the guest is at fault. The system

records when the door last was opened, who last opened it and how long

the door was left ajar, clarifying who was responsible for the security

lapse. Additionally, if a guest evacuates the room without closing the

door firmly, and it remains open, the security system will alert staff

members so they can shut the door, averting potential problems.

Keys To Cash

While the Atlantis exploits the security features

of the Access-Plus system to the fullest, Golberg opted out of exercising

the system’s

ability to interface with the MICROS PMS to charge guest purchases throughout

the property to the room keycard. In order to make certain the keycard

customers were using the cards to make purchases that were truly theirs,

they would have to provide identification. “Then you’ve

already lost your security,” Golberg says. “Then you’ve

linked a name to a room number. You’ve given away your guest’s

identity and location.”

Golberg notes that there have been few security

problems with paper ID cards allowing guests to charge on-property

purchases to their rooms. But he remains reluctant to charge purchases

to the room via room key. Markus Felbermayer, owner of the 70-room

Vitalzentrum Felbermayer, Gaschurn, Austria, expresses no such reservations.

He uses a Häfele security

system linked to a Scitech PMS to allow guests to charge

property-wide purchases via keycard. The US$43,000 system will pay

off within four years, Felbermayer says. The previous magnetic stripe

system was in operation for 10 years.

Felbermayer selected the sophisticated smart card

system, which uses Legic transponders, to link a 150-square-kilometer

property. At the Vitalzentrum Felbermayer, smart keycards allow guests

entry into their rooms, act as charge cards at the property’s five shops and spa,

and function as lift passes for the 24 ski lifts at the surrounding

resort. The convenience the cards provide guests with is unbeatable,

Felbermayer says. The property benefits from the reduction of manual

entry of transactions into the system. Charges post instantly and the

hotel is able to collect on a greater percentage of purchases. And because

the purchasing information posts through the PMS, the hotel is able

to save the data as part of the guest’s profile, opening up the

possibility of using the customer information to develop

one-to-one marketing programs.

The more sophisticated systems are more expensive, Golberg and Felbermayer

agree. Golberg notes that a standalone system would cost US$200 per

door to install, whereas the wiring required for a centralized system

brings installation costs up to US$450 to US$500 per door.

Smart cards cost almost US$3 a piece, while magnetic

cards cost between US$1.50 and US$2. The benefits, though, make the

systems worthwhile, Golberg says. “Already, in terms of employee theft, we’re

saving about US$1,000 a week,” he says. And Felbermayer notes, “The

systems will be cheaper when other hotels start using them.”

Tech Briefs

From Dissatisfaction to Dollars

“Technology has led to a cultural transformation,” says Richard

Hayduk, vice president, resident manager, The Breakers, Palm Beach, Florida.

The property’s Team Hears Every Opportunity (THEO) guest complaint

system has allowed The Breakers to achieve a 98% guest

return factor, to recover more than US$2 million in revenues lost had

guests remained dissatisfied, and to create a proactive staff environment.

The THEO logging system evolved from The Breakers’ loss prevention

system and cost the hotel nothing to create, says Hayduk. The process

for logging complaints is an offshoot of an empowered team environment.

When an alert staff member recognizes a guest’s complaint, the

staff person dials THEO on an in-house extension and

leaves a voice message detailing the problem. A THEO dispatcher opens

the case and immediately contacts the manager of the relevant department.

The manager then contacts the guest directly and amends the problem.

As a follow-up, the manager calls THEO, explains how the issue was resolved

and closes the case.

Since THEO’s inception, The Breakers has won multiple service

awards. The staff has adjusted check-in procedures and improved in-room

amenity offerings. Guest satisfaction ratings increased to 9.9 on a

scale of 10. “Service is now information,” Hayduk says,

and in a self-nourishing cycle, The Breakers uses information

to improve service and feed the bottom line.

Online Yield Management

Within five years, industry experts estimate

25% of all hotel bookings will occur online. By the decade’s

end, the figure will have reached 50%. As yield management systems

(YMSs) become known and accepted tools for growing revenues, the need

for systems handling the demands of the e-commerce environment increases.

YMS developers such as IDeaS, TIMS and Talus are releasing product

updates to meet this challenge.

Using a model created for chains with a high rate of transient business

and rapidly changing daily occupancy outlooks, such as Red Roof Inns

and La Quinta, Talus Solutions, Atlanta, developed a Dynamic Pricing

product that gathers data throughout the day and reacts to real-time,

online environments.

A companion product, Target Pricing, determines the level of aggressiveness

appropriate for bidding processes with individual or

corporate clients. Target Pricing piloted in the airline industry, with

SAS adding a 3% revenue increase above the standard 4% YMS increase.

Promotions Pricing helps marketers determine the appropriate

incentive offers for specific regions and demographics.

Ford Motor Company used the product to reduce promotional expenditures

by 10% while increasing total sales.

Supplyline

• Hotel Information Systems, Irvine, California,

  launched Paragon+, a property management system (PMS) add-on

  offering Web access, an enhanced interface and improved

  navigation and support for multiple deployment platforms...

• The Monterey Peninsula Inns, Pacific Grove,

  California, installed the Maestro Enterprise suite of PMS,

  sales & catering

  and back-office products by Northwind, Markham,

  Ontario...

• SecurFone America Inc., San Diego, changed its name

  to The Ixata Group Inc...

• Wyndham International, Dallas, awarded a contract

  for the development and implementation of an online

  procurement system to GoCo-op, Inc., Maitland, Florida...

• The Grand Wailea,

  Maui, installed wireless phones by Nextel, Kirkland,

  Washington, throughout its cabanas, giving guests

  instant access to roomservice and staff throughout the property...

• Twelve Chinese

  hotels, including the Beijing Continental Grand Hotel

  and the Regency Hotel, Shantou, selected Beltsville,

  Maryland-based MICROS Systems Inc.’s hotelBANK...

• Starwood Hotels & Resorts

  Worldwide, Phoenix, Arizona, chose the Delphi Consultants

  Inc., Dallas, SAP Human Resources solution for

  its hotels...

• Bass Hotels & Resorts,

  Atlanta, allied with London-based lastminute.com,

  providing development funding for the Internet distribution

  channel...

• Ramada Franchise Systems, Plano, Texas, selected the

  WYNTRAC system by WizCom, Parsippany, New Jersey,

  to automate its meetings and conventions business.

Netline

Regional Reviews Former editor of the now-defunct

Asian Hotelier, Steve Shellum, launched Hotel Asia Pacific (www.hotelasiapacific.com.hk)

with a January 2000 “Ready for the Odyssey” edition. The online

version offers synopses of articles available in the current issue,

access to all archived materials and updates on news items. The site

prizes functionality over glitz, and it excels at providing coverage

of its region. As does the print publication, Hotel Asia Pacific online

offers an in-depth look at the region and promises to chart Asia-Pacific’s

progress as it recovers from the economic slump of the

last decade.

Business Comfort Hotel Corporation (www.bch-ag.com),

providers of management, marketing and development services to the

European hotel industry, launched a Web site offering customers and

the professional community access to an online discussion forum, a

job market, an Internet auction house and an online booking facility.

While clearly designed to promote the company’s services, the

site also promises to release business data on its members, offering

benchmark figures for the region. The site demonstrates a sensitivity

to the unique concerns of European hotels.

Join The Club Hotel chain Web site redesigns increasingly

include club-member accounts. Intended to help hotels gather greater

quantities of more usable customer information, the members-only access

attracts frequent travelers. Bass Hotels & Resorts launched the

Priority Club Web site (www.priorityclub.com) in the spring of 1999,

and the site immediately began attracting about 10,000 new members

per month. The site allows members to make reservations, check point

accumulation, amend point discrepancies, check past account activity

and review rewards opportunities.

The November redesign of the Westin site (www.westin.com) incorporated

adjustments to the Starwood Preferred Guest section,

which allows members of its frequent stay program to review point accumulations.

Simpler navigation, meeting facilities search results, hot deals available

exclusively to online guests and extended slideshow photography rounded

out the redesign.

Brian Pratt Talks Technology

Brian Pratt, vice president, e-business, Starwood

Hotels & Resorts

Worldwide

Q: How has your focus, and Starwood’s, shifted

with your change from vice president, interactive marketing/corporate

marketing to vice president, e-business?

A: The shift to vice president, e-business, shows

Starwood’s

foresight regarding the tremendous growth that will take

place in e-business outside of the United States.

Q: What Web marketing strategies have been most or least successful

in recent years?

A: Our least successful strategy has been advertising or banners on

the Web. Our most successful strategy has been to partner with travel-related

Web sites where the partner is paid for performance and not on a CPM

or advertising model.

Q: What Web marketing strategies do you predict

will be most important and fruitful in coming years?

A: E-mail, e-mail, e-mail. Hotels will be using e-mail in many ways.

We feel the first way is for them to start asking for e-mail addresses

upon check-in. This will allow hotels to market via e-mail to customers

based upon their full hotel stay. It will allow them to market at little

cost since they will not be required to purchase lists.

This will be the most powerful means of communicating with customers

only when the e-mails contain information they can use. The best way

to e-mail offers customers can use is to base offers upon their actual

past stays.

Q: What Internet trends

will affect hotel Web sites’ viability and profitability?

A: The recent partnerships by the airlines have dictated what we as

hotel suppliers must do, which is to replicate their

partnerships. Branded Web sites like our www.sheraton.com, www.westin.com,

www.whotels.com, www.fourpoints.com and www.theluxurycollection.com

will always contribute a large percentage of our Web bookings, but today

we are working to build business-to-business versions of these

Web sites.

The business-to-business sites are a must as they

allow our existing corporate customers, wholesalers and travel agencies

to book via their own Intranets (which, as you know, are right on

the customers’ desktops)

and guarantee them their negotiated rates and last room

inventory (where appropriate).

The business-to-business sites will substantially outgrow the consumer

sites.

Q: What are the keys to developing relationships with the on-line consumer?

A: Brands that consumers trust are key. So is follow-up with the customers

both pre-arrival and post to get their input regarding the brick-and-mortar

experience. Another key is tailoring the Web experience to react to

their stay.

Q: What have been the unexpected benefits to hotels, and to Starwood

in particular, of the growth in acceptance and use of the Internet?

A: Customer knowledge—the information we can and do learn from

our customers via the Web—and the quality of the information is

much higher, as via the Web the customer inputs their

own address and personal information.