Sunday, March 25, 2007

"RFID Door Locking Systems: Cool Technology but Is It Worth the Price?

Rock, J. (13 March 2007). RFID Door Locking Systems: cool technology but is it worth the price? Hospitality Upgrade, Spring 2007. Retrieved March 22, 2007 from http://www.hospitalityupgrade.com/_files/File_Articles/HUspr07_Rock_RFIDDookLocks.pdf.

Summary:

Jeremy Rock’s article examines new electronic door locking systems that use RFID technology; he cites the benefits of using such technology and popular door locking applications. Electronic door locking systems have become one of the areas of greatest attention in hotel design. These new systems provide a more aesthetically-pleasing style, which is very appropriate for upscale and luxury hotels and resorts. While this technology has existed for many years, it has not been adopted by most of the industry.

Many hotels in Europe have installed RFID locking systems and have improved operational efficiency and enhanced guest offerings through its implementation. A few theme parks in the United States with connected resorts installed this technology for its versatile nature. Recently, Great Wolf Resorts invested in RFID technology, and many other hotels and resorts are now considering installation as the understanding of the benefits received are realized. RFID locking systems could provide a hotel or resort to gain a competitive advantage over other resorts or hotels.

RFID locking systems come in many forms and provide hotel or resort operators many benefits. Popular locking systems include: biometric systems, which utilize a retinal scan or thumb print, smartcard technology, electronic keys encoded with a security chip, Vanguard Elsie’s Signature series, which allows guests to access their guestrooms via cell phone, Suffolk’s Quantum RFID solution, and other products designed by other well-known lock companies such as MIWA, Hazel, and Salt Systems. Each of these forms provides hotels with a different application of the technology and provides associated benefits. A fail proof system has yet to be developed, author Jeremy Rock cited problems with each of these forms of technology. The major electronic lock companies continue to create new products utilizing this technology, striving to create a streamlined, efficient version in the most aesthetically-pleasing and guest friendly design.

RFID locking systems provide many advantages/benefits to both the hotel and the guest. From the guest’s perspective, the primary advantage is the ease of use. Especially with resorts, the number of items a guest must carry at all times is greatly reduced; a wristband, card, or key farb with RFID technology can grant a guest access to the guestroom, resort facilities, and allow them the ability to pay for purchases. The hotel/resort will also experience benefits stemming from this guest advantage.

For the hotel or resort, RFID technology provides information about guests and their behaviors; guests can be physically tracked and their purchasing behavior monitored. While this raises some questions about privacy, operationally, a hotel or resort can benefit. Staffing may be more accurate based on the number of guests in the hotel, or turn-down service completed at the appropriate time. Mr. Rock cites nine main advantages, these are as follows:

1.) Low Battery Notification
2.) Maintenance (less prone to malfunctions and easier to service)
3.) Key farbs and other devices (marketing potential)
4.) Wristbands for Waterparks
5.) Electronic Wallet/Cashless Purchases
6.) Unmanned Hotels
7.) Cellular Phone Integration
8.) Track Administrative Staff
9.) Ease of Use (No Magnetic Swipe Malfunctions)[1]

While there are many benefits enjoyed, the disadvantages must also be noted. The implementation and installation of these systems can be quite costly and may be more expensive to maintain than traditional locking systems. Additionally, there are downsides to each of the individual forms with operation and ethical perceptions. Hoteliers and resort operators must consider the uniqueness of their property and determine if RFID locking systems would be an appropriate technology to utilize.

RFID technology will continue to be adopted by hotels and resorts in the future. It provides benefits for both the operator and the guest, and if selected correctly can provide a unique competitive advantage to an upscale resort or hotel.

Reflection:

I found Mr. Rock’s article quite interesting as I am aware of this technology but not necessarily very familiar with its applications or implementation. I think this will be a trend to watch as it increases in popularity and use among hotels and resorts. The benefits provided can allow a hotel to gain a unique competitive advantage; cost savings may result and the quality of the guest experience may increase as well as the efficiency of operations increases. Hotels must select the best application for their property, carefully considering the strengths and weakness of each of the individual applications.

One of the greatest areas of interest for me in this article is the ethical issues that are raised in installing technology that tracks guests, or requires a fingerprint or rental scan. These technologies may be perceived by some guest to be too invasive of their privacy while on vacation; thus, the competitive advantage that hotels believed that would be achieved may actually detract guests from booking. This could potentially lead to industry-wide standards on the practices and procedures for RFID use to protect the guest’s integrity and the anonymity of the guest while traveling.
The functionality of the technology has the potential to solve a few issues of hotel management. After working at a hotel for three years, I have seen many times the frustration that results from an incorrectly coded keycard, or one that has been demagnetized, lost, etc. Charges from food and beverage outlets or gift shops have been posted inaccurately, resulting in unhappy guests. The RFID technology can be used to combat these problems in an efficient, streamline manner. Additionally, the design element of the electronic door locking system may be enhanced.

RFID door locking technology, while expensive, may be an appropriate solution or investment for some hotels or resorts. After a careful cost-benefit analysis is completed, a successful implementation can provide a hotel with many benefits and more satisfied guests.
[1] Rock, J. (13 March 2007). RFID Door Locking Systems: cool technology but is it worth the price? Hospitality Upgrade, Spring 2007. Retrieved March 22, 2007 from http://www.hospitalityupgrade.com/_files/File_Articles/HUspr07_Rock_RFIDDookLocks.pdf.

Thursday, March 8, 2007

"Single-Screen Booking Engines: The Times Are Changing"

Farrell, S. (26 October 2006). Single-screen booking engines: the times are changing. Hospitality Upgrade. Retrieved March 7, 2007 from http://www.hospitalityupgrade.com/_files/File_Articles/HUFall06Farrell_SingleScreenBookingEngines_Fall06.pdf.


Summary:

The article “Single-Screen Booking Engines: The Times Are Changing” by Scott Farrell describes an area of focus and potential increase in hospitality, the use of single-screen booking engines. These booking engines, as the name suggests, use only one screen instead of the typical multi-screen process currently used by most hospitality companies. Using the more advanced Web 2.0, hoteliers are offered a competitive advantage in using this more dynamic, interactive platform because guests are offered a more personalized shopping experience, thus stimulating buying.

Single-screen approaches utilize Flash interactive technology. This technology is now becoming standard in Internet-enabled personal computers; about 98 percent of these computers have Flash Player installed. The installation of Flash allows for single-screen booking engines. According to Forrester Research, Flash Technology converts shoppers into buys 50% more often than the older, HTML, multi-step approach[1]. The single-step approach, which is currently used by Ikea, Timberland, and Williams and Sonoma, is preferred by customers and follows a more intuitive model of searching.

For hoteliers, single-screen booking engines can “enhance online merchandizing, give control to the customer, and improve guest satisfaction,” all of which assist in creating a more profitable company and build repeat customers.

Some doubt the merits of the single-screen booking engine and maintain the traditional multi-step booking engine remains superior. One of the most common misconstructions of single-screen technology is the limitations that are created; there are no limitations that affect performance. The advantages of the single-step booking engine transform the booking experience and are far more advantageous than their multi-step counterparts.

A single-step booking engine allows for a faster download than the multi-step approach. There is no waiting time, thus reducing the frustrations that may develop while shoppers wait for slowly loading websites.

The definition of the traveler and the behaviors he or she exhibits has changed dramatically in recent years. Travelers have less time and have become increasingly more proficient in using the Internet; they want dynamic results produced in real time. Single-screen booking engines provide shoppers with the interactive, engaging search experience they seek. Hotels that utilize this technology enjoy increased looker to booker conversion rates, revenues generated, and guest satisfaction.

Reflection:

This article presents a hospitality IT trend that will only increase in the future; the use of single-screen booking engines utilizes technology that will continue to become more advanced and widely used. I found this article very interesting because it included concepts we have learned in class about Web 2.0 as well as covered material presented in another class about the same topic.

Single-screen booking engines have been designed with today’s traveler in mind; the increase of Internet travel has shifted the power from the supplier to the consumer. The adaptation of these new technologies to create the single-screen approach illustrates this control the traveler has. Demands for fast results in an engaging, interactive setting were made, and the hospitality industry responded.

Hoteliers must embrace this new technology and determine the best way to transform their website to better reflect industry standards and guest preferences. Single-screen booking engines can be applied for hotels of all sizes and in all locations; this new approach will soon become a standard. Currently, use of the single-booking approach is viewed as a competitive advantage due to the lack of mainstream adoption. Hoteliers must constantly search for new, innovative ways to expand on this technology to maintain a competitive advantage in the marketplace.

It is very interesting to see the effect single-screen booking engines can have on shopper conversion rates. With such low industry standards for conversion, hoteliers should embrace this technology because of the many benefits received. Guests will be more satisfied before their initial visit to the property. The benefits and rewards the hotel receives outweigh any potential costs of implementation.

It will also be interesting to see if other areas of the hospitality industry utilize this technology and apply it to their respective needs. The use of single-screen booking applications by restaurants may be a future trend for that part of the industry.

Single-screen booking engines have the potential to change the hotel website, which will directly affect the profitability of the hotel. Utilization and application of Web 2.0 and Flash technology will allow hoteliers to provide travelers with websites that match their unique needs and preferences.

[1] Farrell, S. (26 October 2006). Single-screen booking engines: the times are changing. Hospitality Upgrade. Retrieved March 7, 2007 from http://www.hospitalityupgrade.com/_files/File_Articles/HUFall06Farrell_SingleScreenBookingEngines_Fall06.pdf.