Managing Hospitality Information Systems
Spring 2008

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