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!”
4 comments:
This technology is great for the frequent traveler. As many business travelers are constantly going from one hotel to another, I'm sure that many would rather be able to activate their own check in and head straight to their room. This technology will increase guest loyalty and spending which is great for the property. I think it would be great to have one card for all activities and spending; one stop shopping!
I think that this technology is a great idea. It would be frustrating for someone who is always on the road to have to spend that time at the front desk when it can all be avoided. I think that most frequent travelers would appreciate the few minutes of time that they could spend resting after a long flight. This technology can also affect them in the long run, when their stays at certain hotels become more specific to their needs. If you always purchase a certain item they could already have it placed in your room to save even more time. It was also a great point that revenues rose at stadiums. I know that I always loose track of what I spend on my debit card rather than using cash. People have more troubling making the connection that they are spending money because it is not immediate. This is beneficial to each company because their revenues are affected in a positive way.
Radio Frequency Identification seems like a technology that really simplifies inventory tasks. It is currently being used by Wal-mart and the department of defense who use it to mandate their incoming shipments. It significantly decreases the cost of manual labor because everything is electronic and it makes it much faster. It allows whoever is using it to see how many units they have of a particular product at any given time. When it comes to hotels, a guest can use this technology to completely eliminate the check in process. A guest can use a loyalty card and by using a pin or ID number they can check in before they even get to the hotel. Then by using that card they can get into their room or use it around the hotel to purchase different things. They will then be charged to their folios. This is an incredible technology that I feel should be used more in the hospitality industry than it is.
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