FCS BuZZ Quarterly Newsletter, Volume 4, January 2012
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Tips & Forward Thinking
TOP Hotel Technology Trends in 2012
By Ted Horner, E Horner & Associates Pty Limited
1. The iPad Revolution
This device, in my opinion, is going to redefine the future of how guests are going to use technology in hotels, particularly in their guestroom. Consider these points:
● It is the fastest selling consumer electronic device in history with Gartner Group
predicting that Apple will sell 100 million units by 2012
● It is the first video-centric guest internet device
● It has a very simple GUI ( Guest User Interface ) and new users, both young and old,
are able to use it almost immediately with little, or no training
● It is already placing huge demands on Hotel Wi-Fi systems, consuming much more
bandwidth and data than in the past, with people doing emails etc...
NB .While I have focused on the iPad, we cannot forget other tablet devices that are also gaining market share namely the Samsung Galaxy, plus the new Kindle Fire, and of course other smart phones that use the Android operating system from Google.
What does this mean for hoteliers?
a) Many hotel Wi-Fi systems are suffering from a lack of available bandwidth and as a result, are becoming overloaded as guests wish to download their own content. The result of this is that many guests are complaining about poor download experience and are using sites, such as Trip Advisor, to express their negative opinions.
b) Guests want the same technology experience they have at home or in their office, and if they have a bad experience, they may not return to that hotel.
c) With the increasing demand for more bandwidth and the subsequent costs to provide this, it is going to be difficult for hotels to offer anything other than a limited free Wi-Fi, to be used mainly for emails.
d) iPads that are made available to guests for use in their rooms, opens up a world of new opportunities for hotels to deploy more applications in guestrooms to handle the following services and operations:
● Room service ordering (one Five Star Hotel has seen a 13% increase in room service
revenue since offering guests the option of ordering room service on the iPad as
compared to ordering over the phone)
● Concierge services
● Room facilities such as lights, air conditioning, TV, curtains etc. to be accessed and
controlled by one simple device
● Another advantage of offering in room iPads is the elimination of the printed guest
compendiums as these can all be accessed via the iPad. The GM of one of the hotels
that I visited believes he will save $30,000 - $40,000 annually in printing costs,
as compendiums need to be constantly updated.
e) With the above application now available on iPad, what does this mean to hoteliers when upgrading their guestrooms?
f) As Wi-Fi becomes the dominant platform for guests to access their applications, what does the future hold for the historic requirement for multiple Cat 6 cabling to each room?
g) Many guests are bringing their own content on the iPad and are happy to watch it on the iPad screen so does that mean less watching of traditional TV; do hoteliers need to install expensive IPTV systems at all?
I recently came across this statement which I think sums up the current situation:
“Customers will arrive at your hotel and will want what they want when they want it and the key for hotels is providing them with the infrastructure and the bandwidth to achieve this.”
If this is indeed what guests want then how can hotelier’s monetise the investment they make in new wireless access points, increased bandwidth etc. – The answer I believe is to offer tiered bandwidth where guests are offered a range of fees directly related to the amount of bandwidth they require. In other words, the bigger the pipe a guest wants, the more they should pay.
In summary, the iPad has changed the way customers are using technology on the road and while this creates a great challenge for hotels, it is now up to the industry to embrace this device so guests can have the same download experience they have at home.
2. Mobility 
Mobile devices are now part of our everyday life and for many travellers, they are now replacing the laptop, PC, telephone, kiosk and boarding pass, as part of the booking process. A guest’s handheld device is now an integral part of the entire journey, not just from pre-trip planning and booking, but throughout the actual trip itself.
According to a recent survey that identifies traveller’s attitudes to mobile services, emerging mobile technologies will revolutionize each stage of the travel experience in the future:
1. Pre-trip (i.e. plan, book and board)
2. At the airport (i.e. lost bags, seating and disruption)
3. On-board (i.e. enhanced services)
4. At the destination (i.e. explore, connect and share experiences) and
5. Post-trip (i.e. social media for immediate feedback).
These trends will become increasingly important and the challenge will be how hotels and other service providers will meet the expectations of the always connected traveller. Are the smart phone applications that guests can access going to replace the traditional check in experience or the need to use a magnetic card to gain access to a guestroom? Does this now allow hotels to develop new on-demand revenue generating opportunities? In the future, how will this change the relationship between the guest and the hotel?
3. Cloud Computing
There has been a lot of talk about this subject and I believe 2012 will be when this technology takes off as a number of PMS vendors release their cloud versions providing hotels with the ability to access their major software applications on a web browser. Cloud computing offers many benefits to hotels, including a more cost effective way to deploy technology without the requirement for a large up-front capital expenditure and the need for a lot of hardware residing on the premise. Furthermore, hotels that adopt this technology will have the opportunity to enter into Service Level Assurance (SLA) agreements with the vendors offering this service whereby if the pre-determined service levels are not met, then the contract can either be cancelled at short notice or financial penalties may apply.
4. Social Media
The reach of social media is growing substantially and hotels are using it now more than ever to engage with both new and existing customers. Facebook has created enormous changes in social networks and with the release of their latest version it is now possible to use Facebook as a booking channel. Recent research from PhocusWright reveals that 66% of travellers are on Facebook but more importantly, referrals from Facebook are more likely to convert into bookings than referrals from travel review sites.
Hotels need to harness the power of social media in order to stay ahead of their competitors.
5. Hosted PABX
For many hotels one of the largest capital expenditure has been the PABX. In the past revenue from guest phone calls justified this large capital outlay but the advent of mobile phones and the cost of making calls from a hotel guest room, have left hotels reeling from the costs associated with providing and maintaining this service.
Hosted PABX systems provide many benefits not the least of which is that a new PABX requires minimal upfront costs and a monthly subscription based fee which can be based on the preceding month’s occupancy. There are still some challenges in putting this model together but for the first time it offers an alternative to hotel owners who have a very old PABX which has passed it use by date.
6. Energy Management (EMS)
With the cost of electricity continuing to rise, hotels have to start looking seriously at more sophisticated systems that can help manage electricity consumption.
Hotels that have invested in sensor based occupancy systems or those where the door lock systems are integrated to the PMS have shown dramatic reductions in energy bills. This is achieved when a person leaves a room the EMS via an occupancy sensor can detect that no one is in the room and then automatically lowers the air conditioning to a designated set back position and also turns all the lights off.
The ROI on these system has shown pay back on the investment can be between 2 and 3 years, and may even be less if hotels qualify for the government rebates available.
7. Lighting
Another major contributor to excessive power bills is the type of lighting that is installed in hotels. With replacement of lights to LED and Halogen globes, hotels can save up to 30% and enjoy light fixtures which have a long life of up to 12,000 hours. While the costs of these lights are more expensive in the first instance, their shelf life and the energy savings they generate more than compensate for the initial costs.
