Rori's HRIM 450 blog

Managing Hospitality Information Systems
Spring 2008

Monday, May 5, 2008

OPENING EYES TO OPEN DOORS: Key at Nine Zero Hotel Is an Iris Scan
Curt Harler
Hospitality Technology

Article Summary:

This article is about iris scan technology used to access hotel rooms. The Hotel Nine Zero, Located in Boston, Ma. has installed these door lock systems in some of their most valuable suits with great success. Each system costs about $1000 each but Hotel Nine Zero says it has paid for itself after publicity and cost of replacement batteries needed for the traditional key card locks are considered. They also would have opted to install these systems in every suite if they would have realized the extent of their success with iris scans.

A scan takes 2 minutes and is said to be more accurate then fingerprint scanning and identification. Guests are checked-in by a private concierge who takes them through the scanning process. Private staff and security of the guest can also be scanned allowing additional people access to the room. They also make it possible to put a complete lock on access to the room which even includes hotel staff.

Iris scans are also used to identify staff. They use iris scan locks at their employee entrance for additional security.

Reflection:

I think that this is a very important type of technology that has a definite long term future in the hospitality industry. I believe biometrics in general have a very important future in this industry. The article explained that iris scans are more accurate than fingerprint scans which is something that I had not known before. This was the purpose they decided to use an iris scan rather than a fingerprint identification system, but admit that soon a system that scans both eyes and fingerprints will be available for a similar price.

When I read about this technology I always think of the movie where they scan Arnold Schwarzenegger’s eyes and make a copy of him who takes over his life. Although I am sure that type of technology is far from practicable, I still find these scans may be interpreted as invasive.

Harler, C. (2008, April 29). "OPENING EYES TO OPEN DOORS: Key at Nine Zero Hotel Is an Iris Scan." Hospitality Technology .Retrieved March 4, 2008, from http://www.htmagazine.com/ME2/dirmod.asp?sid=&nm=&type=MultiPublishing&mod=PublishingTitles&mid=3E19674330734FF1BBDA3D67B50C82F1&tier=4&id=75D57CDB40E84DC59EE6C20622A66ED0

Sunday, April 20, 2008

Leading Analyst on 2008 POS Trends

Leading Analyst on 2008 POS Trends
William Atkinson
Hospitality Technology


Article Summary:
This article talks about some predictions from Lee Holman, lead retail analyst for IHL Group, concerning the future of POS. He predicts application and advancement of POS systems will continue to grow and have a significant impact on the industry. “Retail-hardened products,” or equipment that can withstand the daily abuse of our fast-paced industry, is expected to continue to grow in popularity. Environmental issues are also a top concern, and the manufacturers of these types of products are taking this into consideration while they are developing new products.

POS is also making Customer Relation Management (CRM) much easier. An example is given describing the use of POS at an upscale restaurant. Holman describes a scenario where a couple drives up to a restaurant and the valet relays their arrival to the host, who prepares the couples favorite table and lets the server know to begin to prepare their favorite drinks.

Wireless is another feature that is expected to continue to grow in popularity especially with the application of table-side payment options. Although there is currently not very many establishments who have made the transition to wireless POS, there is a lot of interest from both customers and managers/owners.

Another trend that is becoming popular is POS systems that allow a company to run both their foodservice operations and retail sales off that same system. This trend is particularly important to restaurants that have significant retail sales like Cracker Barrel, Starbucks, and Hard Rock Café.

In reference to type of system, Holman thinks Windows-type systems are going to continue to become more popular. These type of systems are familiar to most people and will help to lower costs associated with high employee turnover.

Holman also believes that there will continue to be a growth in the use of POS for employee scheduling and attendance records. Biometrics to ensure accuracy and prevent falsification is also of interest, but has not yet become popular at very many establishments.

Reflection:
I found the section on “retail-hardened products” most interesting and I would be interested in learning more about how they are planning to make these products in a way that will not harm the environment. I am amazed that a product that can hold up to such harsh daily treatment can also be made with environmentally friendly materials.

I also found the section on combining retail and foodservice systems interesting because it is a topic I had not thought much about, but is very important. I am sure that combining POS systems like that will help make data analysis and training of employees to be able to work in multiple departments much easier.
One thing that Holman stated was that he believes that there will be a boost in adding schedule and attendance/time functions into POS systems. I don’t really think that is a trend because I thought most POS systems originated with those type of functions.

Bibliography:

Atkinson, William. (2008 April 1) “Leading Analyst on 2008 POS Trends.” Hospitality Technology. Retrieved on April 20, 2008 from http://www.htmagazine.com/ME2/dirmod.asp?sid=&nm=&type=MultiPublishing&mod=PublishingTitles&mid=3E19674330734FF1BBDA3D67
B50C82F1&tier=4&id=F7D9449607B04454AB0B427519CE38D2

Saturday, March 29, 2008

Work Smarter
By Julie Ritzer Ross
Hospitality Technology


Article Summary:

This article talks about ways companies in the hospitality industry have begun to implement tools and software to collect and analyze data in order to improve customer relationship management (CRM). In order to be able to collect and analyze this data, sophisticated software needs to be chosen, implemented and used properly. This is a very competitive industry and to be successful companies need to really understand what customers want and be able to deliver that to the customer.

Ruby Tuesday’s has noticed a 4% increase in sales since they started to using Micros Systems to analyze customer information and gives management feedback on ordering patterns and more specific information on individuals in their loyalty program. They take this information and develop targeted marketing plans.

The Peabody Orlando in Orlando, Florida, uses UniFocus to assist with customer complaint management. Their program can identify patterns in customer complaints and management can then fix these problems before more customers are affected.

Aptech Computer Systems has assisted Konover Hotel Corp., in West Hartford, Ct. with managing labor and inventory issues in their 19 hotels located across the country. They benefit from receiving real-time information so fast action can be taken in necessary.

The article also warns that companies need to be cautious when choosing and implementing a new data analysis program. Many companies end up collecting too much information and neglect to analize it properly, which then makes the entire program useless.

Reflection:

It was interesting to read about the how Ruby Tuesday has used Micros to collect and analyze data. I have used Micros in a few establishments and none of them used the system to collect and analyze customer information, just employee and sales information. Since so many restaurants use programs like Micros, they must already have the basic equipment in order to implement similar programs like Ruby Tuesday’s has done without too much additional cost.

The rest of the article talked about other programs hotels and restaurant use to control costs and improve customer service, but most of this information was familiar to me already.



Bibliography

Ross, Julie Ritzer. (2008, March 10). "Work Smarter". Hospitality Technology. Retrieved March 27, 2008, from http://www.htmagazine.com/ME2/dirmod.asp?sid=&nm=&type=MultiPublishing&mod=PublishingTitles&mid=3E19674330734FF1BBDA3D67B50C82F1&tier=4&id=74B1A8318B8240C5AC3CEC5F73863CE9.

Monday, March 10, 2008

Top POS Software Trends
By Viki Powers
Hospitality Technology


Article Summary:

In response to fast paced lifestyles and the current growth in tech-savvy clientele, many quick-service and fast casual restaurants are experimenting with Point-of-Sale (POS) innovations in order to better serve their customers. This article identifies some real applications of POS systems in the restaurant/quick-service industry with potential of becoming the next essential industry tool.

Pei Wei Asian Diner, a branch of P.F. Chang’s China Bistro implemented a new addition to their current POS system that helps to manage to-go business more accurately and efficiently. This technology was developed by Radiant Systems and has the capabilities to very accurately forecast preparation time for to-go orders based on number of staff in the kitchen, volume of orders at the particular time, and the time it takes to cook the meal. This new system also now allows Pei Wei’s to keep record of customers and their past orders. To-go orders make up 20% of Pei Wei’s business, so it was critical not to overlook the development of this department as many restaurants do.

Taco Bueno has implemented Xpient’s Intelligent Restaurant Information System (IRIS) POS application. This allows headquarters to compile and relay data to all individual Taco Bueno locations every 15 minutes from a remote location using .NET technology.

A McDonalds in Boulder, Colorado, along with 250 other local shops and restaurants, have implemented text message payment options to all their customers. Customers simply set up an account and text a code to Mocapay when ready to make a purchase, and Mocapay texts you back a code to give to the cashier. You get a receipt and are on your way. This is similar to a credit card transaction, but benefits the merchant by eliminating fees associated with credit card transactions.

Self-service payment options have successfully controlled DiSalvo’s Pizza and Italian Restaurant’s problem with long lines to pay bills. They have added SoftPay kiosk’s to their 5 restaurants in Florida which allows customers to bring a “self-pay card,” instead of a traditional check, to a SoftPay kiosk and then complete payment transaction personally.

Reflection:

I am sure that POS applications have only begun to develop and will continue to make an impact on the restaurant industry for many years in some form or another, but I am not sure if all the examples described in this article will catch on. I think the POS applications that increase efficiency and speed of service are here for good. Of all the POS applications listed in this article I see the self-service payment kiosks as having the most significant potential. Not only does this technology speed things up for the patron on the run, but it also may eliminate personal identity and credit card security concerns that come when you hand your credit card to a server to complete your payment transaction. There is really nothing more than ethics that stops servers from copying a customer’s credit card number and using it to make fraudulent purchases. The SoftPay kiosk will also end the fairly common practice of servers altering tip amounts on credit card receipts. The SoftPay system allows customers to electronically submit tip amount and payment total so no alterations can be made.

I also liked the way Pei Wei’s has begun using their already existing POS system to enhance their to-go services. In a busy restaurant it is very difficult to predict wait times for to-go orders accurately because there is so much activity taking place at the same time. In my experience, restaurants usually have a standard wait-time estimation that is given to customers no matter what was ordered or the current capabilities of the kitchen. Pei Wei’s system that can accurately predict when food is ready will improve food quality and increase customer satisfaction.

I don’t see the text payment systems catching on as the latest trend. Although it is an interesting and effective way to pay for things, I don’t see any advantage over using a credit or debit card. The article mentioned the benefits for merchants lowering credit card fee costs, but unless these savings are passed on to the consumer, I don’t think the majority of people will choose to adopt this payment method because they are satisfied with their current method of transactions.

Saturday, March 1, 2008

Personalized Video Content and New Technology Take In-Room Televisions to a New Level of Entertainment
By Nicole Marie Richardson
Hospitality Technology

Article Summary:


The hospitality industry is always looking for opportunities to increase customer satisfaction and revenue, and in-room television systems are becoming a very popular method of accomplishing both goals. In the past, in-room television has provided a steady, but fairly low amount of revenue within hotels. With the development of new technology the ordinary TV can now offer much more for guests and also be used in cooperation with other departments within the hotel to generate revenue, increase efficiency, and improve customer satisfaction.

High-definition TVs, LCD’s and plasmas are increasingly becoming standards for most hotel chains. Guests are beginning to expect these types of technology rather than see them as amenities. “Technology is actually ahead of the curve in this industry. There is so much that can be done to please the customer; it’s just a matter of the hotelier selecting the right mix of hardware and services…” Hotels are now able to offer their guests much more than just state-of-the-art entertainment options through their televisions, but can also offer (and charge) guests amenities such as full internet access, hook-ups for guests personal peripherals like IPods or digital cameras, room service ordering options, and personalized hotel-to-guest communication, all through one centralized unit.

To stay ahead of the curve a hotel must leave a lasting impression and stand-out among competition. Personalization is a popular way hotels can increase customer loyalty. Data management systems along with customer relationship management (CRM) now provide the technology that allows hotels to take this customer information and use it to enhance each guests individual experience. In-room TV’s are one way hotels can use guest information to personalize a stay and can offer personalized greetings, channel settings based on guests preferences (or spoken language), and can also be used by hotels for personalized marketing.

The following is a list of providers of this type of technology that were named in this article:

  • Extenway (www.exten way.com)
  • NxTV (www.nxtv.com)
  • LodgeNet (www.lodgenet.com)
  • OnCommand (www.oncommand.com)
  • InfoValue SuiteTV (www.info value.com)
  • Tangerine Global’s (www.tangerine global.com)
(Richardson, 2007)


Reflection:

This technology is very interesting and I am sure it will continue to develop over time and be integrated into many more properties. I like that so much can be accomplished through one central location and the mess of multiple wires and small technical devises can be minimized. I can imagine a future were anything a guest desires can be done by remote control from any location in the room and easily accomplished with the visual assistance of your television. I would love to wake up, and without getting out of bed, open the curtains, or turn on your choice of lights if it is cloudy. Next I would order breakfast from room-service, again with a few clicks of my televisions remote control, and finally signal that the server may enter after checking their identity on my televisions virtual peep hole.

The application of data management and CRM is truly the future of our industry. I think the ability to track customer behavior and customize treatment according to past requests and behaviors will change what people consider first-class service. Knowing what the guest wants without solicitation will leave a lasting impression and also increases efficiency if less time is wasted by hotel staff running simple errands.


Richardson, Nicole Marie. (2007 May) Personalized Video Content and New Technology Take In-Room Televisions to a New Level of Entertainment. Hospitality Technology. Retrieved on 1 March 2008 from http://www.htmagazine.com/HT/archive/0507/0507_02.html