Guest Service Innovation through RFID

Hanebeck, Hanns-Christian L. (2007). Guest Service Innovation through RFID. Hospitality Upgrade Magazine. 11/11/07.

http://www.hospitalityupgrade.com/_files/File_Articles/HUFall07_GuestServiceInnovationRFID_Hanebeck.pdf

Due to the business travel and our ever changing global economy, hotels have become second homes to well-educated Americans who expect a lot from guest services at hotels. It makes a hotel absolutely need competitive advantage and the ability to differentiate from the competition in order to be the chosen “second home” to the guest. This article explains a technology that is not new by any means; it was used in WWII by British bombers called Radio Frequency Identification (RFID). This technology is currently used by Wal-Mart and the U.S. Department of Defense, who have used this to mandate their inbound shipments. The RFID tags that are attached to the pallets or cases can be read automatically using this technology. It then alleviates manual, labor intensive settlement of incoming packages. It is mainly used however because the inventory that is in stock can be seen at all times. It allows Wal-Mart or the Department of Defense to see how many units of each thing they have at any given time. Therefore by seeing how it works for these major companies, one cannot help but wonder how it can be implemented into the hospitality industry. It would be used by allowing the guest to book their reservation online, using a PIN or ID number to activate their “RFID-enabled loyalty cards”, and avoiding any interaction with the front desk at check-in. They would simply wave their loyalty card across the locking system, be checked in and literally in their room all in the same moment. The card would also, with the guest’s consent, be able to track what they do while at the hotel property in order to help the hotel ultimately customize their stay in the future. The card would also work as their ticket to surrounding attractions or events as well. They would simply book the event through the web in their room, the phone, or concierge.

This technology seems so advanced to the point where I cannot even picture it happening in the near future, but that is not the case. The German premier soccer league and the Seattle Seahawks games already use this technology. These cards would not only be convenient and valuable to the customer but to the operator as well. When the cards were used at the concessions at the games, studies have shown that the sales rose by 18 to 20 percent. I believe that may be because the guest/spectator feels that they haven’t really purchased anything yet because it is all on one card so they are more willing to spend extra money on things once inside the facility. I do not know if I would want to use this technology when staying in a hotel, mostly because I like the interaction at the front desk. However, I do only stay in hotels on certain occasions, I am not a business traveler yet and do not know how it would feel to have that convenience at my finger tips. It would definitely come in handy if you are extremely tired from a red-eye flight and just want to get to your room as soon as possible and not have to interact with anyone else. It would definitely be a technology that should be catered to a hotel that has the most guests interested in this type of product, to really get the “bang for your buck!”

Self-Service Success

Carlin, Mary L. (2007). Self-Service Success. Hospitality Technology Magazine. 10/28/07.

http://www.htmagazine.com/HT/archive/1007/1007_03.html

Mary Carlin says, “According to the 2007 Hospitality Technology Self-Service study, there is a growing demand from consumers for self-service options in both lodging and food service.” However, in this article she claims that consumers are more ready to use kiosks than operators are to use them. Therefore this article lays out ten implementation strategies to help operators begin to take advantage of these self service kiosks.

The first strategy is 1. Have a strategic business plan, meaning make sure it is easy and accessible to everyone from consumers to front desk to management. With the increased throughput comes increased responsibility so make sure you know how to work the system as well as service the system. Darrin White recommends using as few vendors as possible to manage the project and work on all the kinks before going live to consumers. The ROI is difficult to assume due to the wide range that these kiosks can provide in terms of services and capabilities. 2. Capitalize on upselling, which means it is proven that kiosks increase the amount of upselling done, because with staff members in person guests are likely to become irritated and are less likely to say yes. 3. Train staff to encourage self-service, instead of letting the staff do the work let them teach the consumer/guest how to work the new technology. This shows a shift in job requirements and may help in the long run. 4. Include creative marketing and promotions, with kiosks people do not always know that this is a service you offer so make sure you advertise this feature. 5. Communicate with customers, the most successful implementations include “greeters” to introduce the new kiosks. This is important so that customers are not alienated by the kiosks but adopt the new form of technology. 6. Location, location, location, the kiosks should always be located where the check-in or ordering would normally be done. There should also be more than one to avoid guests thinking it is an ATM or waiting in lines. 7. Reward customer loyalty, provide memory of orders that have previously been taken by the swipe of a reward card or credit/debit card to speed the process and make the consumer feel valued. 8. Line busting, makes the ordering process a lot faster. 9. Killer applications, may include room selection and upgrades with floor plans. 10. Invest for the future, self service right now compliments hospitality staff but that is expected to change in the next five to ten years. Self service may dominate much of customer service.

I remember first seeing check-in kiosks for the first time in airports and I was always inhibited about using them because they were so new and not what I was used to. For a long time I just wanted to give all my information to the guest services agent, making sure it was done correctly and moving on to the gate. Now they make the programs almost the exact same as what the clerk is seeing on their computer screen behind the desk. This way the clerks are just there to help you if you run into difficulty. It is very nice to be able to swipe your credit card see all your information click on the flight and print the ticket and go! It makes for a very speedy process. My mother who is so scared of technology is opening up slowly to these new technologies, all it takes is a little coaching and she can go from there the next time around. For example she just sent an E-card to my brother’s E-mail for his birthday tonight. With these new advances all it takes is a little coaching and knowledge given to consumers to show them how much easier things can be with a little technology.

Plastic Never Looked So Good

Kasavana, Michael L. (2007). Plastic Never Looked So Good. Hospitality Upgrade Magazine, 118-128. 10/14/2007.

http://www.hospitalityupgrade.com/_files/File_Articles/HUspr07_Kasavana_GiftCardTechnology.pdf

This article talked all about the use and technology of gift cards. The industry has increased sales in gift cards in the past couple years and is predicted that it will only continue growing. Most people claim to get at least one gift card a year. As some might say it is or can be looked to as impersonal many say they would rather receive a gift card as a gift. There are many ways the gift certificate has advanced from what it used to be. The magnetic stripe saves retailers and hospitality operations time and money. The old paper gift certificates required bookkeeping and manual authorization. Now gift cards are saved and redeemed by computers and can even be dealt with online. When a consumer receives a gift card they can check the balance online and also some stores allow you to purchase online. There are two card types, open looped and closed looped networks. The open looped are ones like MasterCard, Visa, and American Express. This means they can be used in many different locations. Closed looped are restricted to certain restaurants or stores only. Breakage is the key term used to explain the gift cards that are never redeemed. When a gift card is purchased it is not counted as revenue to the establishment but as a liability until the card is redeemed. The breakage funds are given to the gift card processor not the retailer. Next upspending is when someone buys more than the gift card amount causing them to have to pay the extra amount in cash. Technology is advancing with POS based on premise, ASP online, off premise at places like drug stores, and self service kiosk outside of restaurants or stores that can distribute cards even after the store is closed. Security to prevent gift card fraud/theft is also advancing with things like password protection and scratch off security codes on cards.

I enjoy receiving gift cards for presents, especially from that aunt that gives you red leopard print pleather pants for Christmas and oversized wool sweaters from 1980. The ability to pick the gift you want is more than accommodating to this day and age. However, I do feel as though gift cards do seem impersonal for the most part, because it is easy for someone to just run into a store and go right to the check out line and pay for a gift card, boom shopping is done! They are convenient and that is the point. Some gift cards do however offer a customization feature that allows you to add the name of the recipient like on American Express gift/debit cards and Wal-Mart with the ability to upload a picture to the card to make it more personalized. Where I work they just updated to the plastic electronic gift cards and they have a completely separate system that we use to activate and redeem the gift cards but I guess the advancement will come little by little. The security features will also continue to advance, especially since they have already started. Places like drug stores where you can purchase gift cards to all kinds of places and they can only be activated when scanned at the register. From paper to plastic, technology always amazes me, what will they think of next?!

Speed vs. Service

Schmidt, Bradley (2007). Speed vs. Service. Hospitality Technology Magazine. 9/28/2007.

http://www.htmagazine.com/HT/archive/0707/toc_jul07.shtml#

The article I read came from the Hospitality Technology magazine. The article discussed the importance of speed as well as service in a fast casual restaurant. The article showed how both things can be achieved with a good Point Of Sales system. In a fast casual restaurant it can be like a quick service restaurant with the speed element of the food but it has more menu choices as well as a “white table cloth” environment having a wait staff. Many quick service restaurants also want to incorporate a take out window, online ordering and curbside to go ordering. The IT director for Forklift Brands, Jennifer Martinez, predicts that curbside to go is going to be a big part of fast casual restaurants in the next few years. With all these things offered at a restaurant for the convenience of their customers to pick and choose where they want to eat the food from a certain restaurant, it can become difficult with the old fashioned paper ticketing system. In the article they discussed how the kitchen display system implemented into the kitchen saved the restaurant 10-20 seconds per ticket. They also discussed how expediting could be much easy and could manipulate the screens so that only a few orders could be seen at the time so the staff does not become overwhelmed. These POS systems are starting to become very critical in fast casual restaurants as well as all restaurants for great workflow from the front of the house to the back of the house.

I liked this article because I have worked in the same seasonal restaurant for the past three summers. I love it there, it’s called Curtin’s Wharf and it is part of a boating marina. The atmosphere is fantastic, the customers are fun, and the food is delicious. The only thing that really started to get to me this past summer was how behind in technology the restaurant has become. There is no computer POS system, everything is written on a ticket and given directly to the bar or kitchen in person. This does cause service to be a lot slower than if it was all linked together through a computer system. One of the points in the article discussed how the POS system is also designed to time an order that was called in to go so that it stays out of the kitchen for a certain amount of time until just the right time for the order to come out hot fresh and ready when the person comes to pick up the meal. This was a major thing at my restaurant that caused a problem. When people would call in to go orders either the ticket would not go into the kitchen in a correctly timed fashion or the food would come out cold and soggy most of the time. My manager/owner of the wharf thinks that because it is seasonal it would be silly to implement a computer system. She claimed it would be too costly and not as easy to take care of as shed like. Do not get me wrong I enjoyed every chance I got to walk into the kitchen and say hello to my boys on the line or have a chat with the bartenders while they make my pina colada. However, I tried to convince her that she needed to update her technology to stay alive in the business. I may have gotten through to her but maybe someday I could be the manager there and make some changes of my own!

See-and-Touch The Future

Poe, Toni. (2007). See-and-Touch The Future. Hospitality Upgrade Magazine, 182.
9/16/2007.

http://www.hospitalityupgrade.com/_files/File_Articles/HUSum07_SeeandTouchtheFuture_Poe.pdf

This article described the new technologies in a hotel guest room. It discussed the different kind of things general managers should be looking for. The author describes it as, "The clearer the crystal ball, the better the organization's ability to anticipate guest needs and have the right resources to meet those needs." However, we all know there is no crystal ball but there is several technologies that help us "predict the future." The main issue in the article is the personalized nature the guest are beginning to expect as they travel. In the article it describes the homes where people walk in and the temperature adjusts to their liking and the shade from the sun is blocked out just to their liking. The goal is to make regular hotel stays for business travelers that specific. For example, personalization could even extend to display pictures of the families as an art in the room. It also describes how technology needs to continue to advance for the business traveler. One example the article gave was the RoundTable (tm) which as a 360 degree camera to help with video conferences. It also talks about the "smart" camera that will change direction and focus on whomever is talking at the moment. The article wanted to stress the fact that it is so important to enhance the guests experience to keep them coming back for more. By upgrading technologies needed by the business traveler and creating all the comforts usually needed of home for the leisure guests is extremely important. One important term used was the adhere to the daily lives of guests.

Reflection:

I definitely agree with this article about how important it is to keep ahead of the changing technologies and preferences of your guests. It also however depends on the hotel. For example the hotel I am currently working in is called the Inn at Montchanin Village. This Inn is marketed to the older traveler who are just looking for a nice intimate place to stay and get away. They are not in need of the new wireless internet and automatic changing temperature of the thermostat. That kind of guest would almost prefer not to be confused by all that extra stuff. In contrast to other hotels where they would benefit very much so by these new and intricate technologies. I think by discussing the fact that it should model the daily lives of the guests is a very excellent way to put it. When a guest is staying at a hotel especially for business travel they need use of lap tops, internet, cell phones, and conference room technology. If you could not do those things why would you stay with that hotel. By enhancing the guests experience by the time they use the kiosk at check-in to the fingerprint unlock at their room and the quick and easy paperless check out it makes all the difference. Technologies will continue to advance and staying updated will definitely keep your hotel on the map for business and leisure travelers everywhere.