NOVEMBER 13 - DECEMBER 6, 2004
TOP O' THE NEWS
- ISHC identifies Top Ten Issues facing the hospitality industry
- Microsoft announces Smarter Hospitality initiative
The International Society of Hospitality Consultants has issued its annual list of the Top Ten Global Issues and Challenges in the Hospitality Industry. In the final voting after a series of roundtable discussions at the recent ISHC Annual Conference in London, the membership identified the following eleven (there was a tie for number ten) issues:
1. Global Uncertainty - terror attacks, geopolitical relations, government travel restrictions and exchange rate fluctuations continue to make it difficult to manage and to forecast confidently.
2. Human Resources - increasing demand requires increased staffing while the labor pool is shrinking. The industry must see unions as allies, spend more on recruitment and training and keep politicians educated on the industry impact of economic and immigration policy.
3. Branding Issues - continued brand proliferation leads to more commoditization, increased brand competition leads to amenity creep and diverging owner/brand interests, and instilling authenticity of local culture into brand standards remains a challenge.
4. Financial Viability - confident capital investment is betting on a strong recovery but isn't always based on realistic projections/analyses. Unmet expectations could damage credibility.
5. Technology - the industry must align technology investment with business objectives, address aging and inadequate infrastructure at both the corporate and the property levels, and utilize technology more effectively in marketing to guests, training employees, yield management, and meeting customer requirements.
6. Customer Issues - loss of control over customers' choices through their use of the Internet, homogenization of the hotel product, increased corporate oversight limiting choice, changing demographics and changing expectations from more sophisticated and better educated guests.
7. Operating Cost Creep - escalating expenses, both "non-controllable" (utilities, insurance, government regulation) and controllable (payroll, staffing, brand requirements, amenity creep).
8. Supply Issues - competition from alternatives (time-share, fractional ownership, etc.), "under-demolished" obsolete properties and, in the US, the use of public funds to develop hotels and resorts.
9. Safety and Security - the threat of terrorist attack remains a major concern; operators must make every effort to protect their guests while encouraging tourism.
10. (Tie) Distribution Channel Management - price integrity across all distribution channels, not just electronic ones; shrinking lead times mandate access to real time inventory through better technology, and distribution channel management transitions to a focus on the most profitable customer considering all revenue streams.
10. (Tie) Airlines in the 21st Century - with several carriers in bankruptcy and/or severe financial distress airlines will be forced to reevaluate route structures, lift capacity and pricing on certain routes, representing challenges for some hotels/markets and opportunities for others.
More details at www.ishc.org.
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Microsoft has made a welcome return to specifically encouraging hospitality systems vendors in announcing its Smarter Hospitality initiative, based on several Microsoft platforms including .NET. Microsoft's focus falls into three groups: Smarter Guests (more personalized customer experience through in-room systems, enhanced amenities and information resources), Smarter Service (CRM, wireless communications and fast access to information for hotel employees) and Smarter Operations (collaborative management tools shared among geographically dispersed hotels).
No specific projects were announced, but over 25 companies announced support for the initiative, including Ameranth, BlueCube, Eatec, Epicor, Experticity, HyperActive Technologies, InfoGenesis, Infosys Technologies, Intel, IntelliGauge, Intervoice, KoolConnect Technologies, MenuLink Computer Solutions, Meridian Systems, MP2 Solutions, NCR, Newmarket International, ontap4u, ProClarity, QSR Automations, Radiant Systems, Sysrepublic, ThinkNet, Timelox, Unisys and Wincor Nixdorf.
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PEOPLE ON THE MOVE
- Ken Brown joins VingCard Elsafe as Senior Vice President, Marketing and Sales
Ken Brown has joined VingCard Elsafe as Senior Vice President, Marketing and Sales. Mr. Brown comes from Electronic Data Systems (EDS) where he most recently served as Managing Director of business development for EDS' Central U.S. region, and had also served as VP of Global Sales.
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PROPERTY MANAGEMENT SYSTEMS
- Visual One receives orders from three competing resorts in Brainerd, Minnesota
- Fantasy Springs Resort Casino implementing MICROS' OPERA Enterprise Solution
- Windsor Hoteis installs centralized MICROS' OPERA suite for seven hotels in Rio de Janeiro
- Hospitality Solutions International (HSI) division releases Version 4.6 of Jaguar PMS
- MSI introduces WinPM+Sales Driver, integrating contact-management tools with WinPM
- Radisson enhances online check-in with wake-up call times and airport shuttle booking
Visual One has received orders from three competing resorts in Brainerd, Minnesota: the Grand View Lodge Resort, Maddens On Gull Lake Resort, and Cragun's Resort and Hotel on Gull Lake. Systems modules to be installed at the sites include property management, sales & catering, restaurant POS, retail POS, spa reservations, golf course management, condominium accounting, activity scheduler and dining reservations. (www.grandviewlodge.com, www.maddens.com, www.craguns.com, www.visualonesystems.com)
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Fantasy Springs Resort Casino, operated by the Cabazon Band of Mission Indians near Indio, CA, is implementing MICROS' OPERA Enterprise Solution. The casino itself opened in 1990, and installed MICROS' 9700 POS for its retail sites late last year. The 250 room gaming resort will open in December, and will implement OPERA's property management, sales and catering, quality management, customer information and web booking modules.
Windsor Hoteis has installed a multi-property version of MICROS' OPERA Property Management, Web Services and Sales and Catering systems for its seven hotels in Rio de Janeiro, with a total of 1250 rooms. Windsor has used MICROS's Fidelio V6 PMS since 1995, and plans to expand to 10 hotels with 2500 rooms in the next 18 months.
MICROS' Hospitality Solutions International (HSI) division has released Version 4.6 of its Jaguar PMS, which includes a major revision to the Cobra Sales and Catering integration as well as reporting enhancements, Visa CISP compliance and other improvements.
(www.fantasyspringsresort.com, www.windsorhoteis.com, www.hsi-solutions.com, www.micros.com)
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Multi-Systems Inc. (MSI) introduced its WinPM+Sales Driver application, which integrates contact-management tools with the WinPM property-management system and is targeted at limited service properties. WinPM+Sales Driver provides over 20 reports to track productivity, recognize booking trends and top accounts, and compare potential business to booking pace, budget and groups in-house. (www.msisolutions.com)
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Radisson has enhanced its "Express Yourself" online guest check-in system to allow guests to specify an automated wake-up call time and request airport shuttle transportation. (www.radisson.com)
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RESERVATIONS
- Hilton receives more bookings from brand websites than from 800 number call centers
- Internet Merchandising Systems releases version 2.5 of IMS Voyager and IMS Tour Desk
- Best Western signs new multi-year agreement with Cendant Travel Distribution Services
- Vantis announces Package Select online booking engine for hotel websites
- Expedia and Hotels.com launch direct connect inventory management from CRSs
- Electrobug announces Rate Change and Rate Parity Control products
- Accovia releases PMS Integrator for Selling System Platform and Logitours Classic
- Truition to use hobooBox to link hotel CRSs to eBay, Amazon.com
- Pegasus signs Russell Hotel Reservations, Ventura s.p.a. and Expovision for electronic distribution services
Hilton Hotels Corp announced that bookings on its proprietary brand websites during October 2004 exceeded call center bookings from 800 numbers for the first time. The sites overall reported more than 972,000 room nights compared with approximately 863,000 room nights booked from 800 numbers through Hiltons 16 call centers worldwide. (www.hilton.com)
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Internet Merchandising Systems (IMS) released version 2.5 of its hotel reservation and tour booking software, IMS Voyager and IMS Tour Desk. Enhancements include an Option Generator that allows users to create priced options assigned to rooms/tours or categories and have them be customer selectable. Other new features include minimum number of days for room booking, the choice of a drop down menu or standard list to display hotel rooms or tours, a currency converter and an option to have Customer Service Agents booking for telephone customers. (www.imscart.com)
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Best Western has signed a new multi-year agreement with Cendant Travel Distribution Services for its full suite of distribution products and services, including exposure to Cendant TDS' various distribution channels such as CheapTickets and Lodging.com. Cendant TDS is also working with Best Western to automate the online reservation process for net rate bookings. (www.bestwestern.com, www.cendant.com)
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Vantis announced its new Package Select online booking engine for hotel websites, which allows shoppers to choose from a variety of add-on services such as event tickets and in-room dining when booking hotel reservations online. Package Select can display individual prices for each added service or bundled pricing. (www.vantiscorp.com)
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Expedia and Hotels.com have launched the second phase of implementation for their direct connect technology, enabling hoteliers to manage their room inventory on Expedia.com directly from the hotel's central reservation systems (CRS) instead of having to manually update the Expedia extranet. The first phase, released earlier this year, automated the delivery of bookings to hotel CRSs and PMSs. Hyatt Hotels will be the first partner for the two-way direct connectivity, scheduled for completion by the end of November.
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London-based Electrobug has announced two new products, Rate Change and Rate Parity Control. Rate Change lets hotels change rates and allocations on multiple extranets through one interface. When integrated with Electrobug's Rate Check product, hotels can rebalance their third party channel rates against their brand web site or GDS with the click of one button. Rate Parity Control allows hotel groups to bring rates into line with a corporate policy. (www.electrobug.com)
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Accovia has released a Property Management System Integrator for its Selling System Platform and Logitours Classic. The PMS Integrator, a Web Services application based on XML technology and OTA specifications, supports inbound XML messages from the PMS to book, modify, cancel and update hotel room inventory and existing bookings inside the package management system. Corresponding outbound messages notify the hotel PMS to block or release a room. (www.accovia.com)
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Truition will integrate Hotel Booking Solutions' hobooBox with its AMP (Auction and Marketplace Platform) to link online marketplaces such as eBay and Amazon.com with hotel operators' CRS and PMS systems. (www.truition.com, www.hotelbookingsolutions.com)
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Pegasus Solutions has signed three new customers for its electronic distribution service: Russell Hotel Reservations (a corporate hotel booking agency with offices throughout the U.K.), Ventura s.p.a. (based in Milan, with four other locations in Italy; its primary shareholder is ACI, the Automobile Club Italia) and Expovision (based in Falls Church, Virginia and specializes in group bookings and convention housing). (www.pegs.com)
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MARKETING / MANAGEMENT
- Blizzard Internet Marketing offers Tracker ROI Edition to evaluate highest quality site visitors
Blizzard Internet Marketing has partnered with several Internet booking engines to offer enhanced website tracking services via its Blizzard Tracker ROI Edition, a real-time website statistics service which includes campaign tracking and conversion tracking. This indicates which referrers, campaigns, and phrases deliver the highest quality visitors by showing the dollar amounts of the resulting bookings. Internet booking engines that currently offer full support for Blizzard Tracker include Availability Online, SuperINN , Rental Network, DORS, and FastBooking. (www.blizzardinternet.com)
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REVENUE MANAGEMENT
- Sonesta selects IDeaS v5 ASP-based system for Royal Sonesta Hotel in Boston
- Amadeus acquires further 35% of Optims, takes control with 65% ownership
- ATA Hotels implements City.Optims for three Milan based hotels
Sonesta International Hotels Corporation has selected IDeaS Revenue Optimization v5 ASP-based system for installation at its Royal Sonesta Hotel in Boston, and is considering extending its use to other properties in the chain. (www.sonesta.com, www.ideas.com)
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Amadeus is acquiring a further 35% of Optims on top of the 30% it already owns. Subject to regulatory approval, Amadeus will launch a tender offer for the remaining Optims shares.
ATA Hotels, Italy's 8th largest hotel group with most of its properties franchised with Golden Tulip, has implemented City.Optims multi property centralized revenue management for three of its Milan based hotels.
(www.atahotels.it, www.optims.com)
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SALES & CATERING, MEETING PLANNING
- Radisson launches online meeting services suite on its Web site
- HSI includes tighter integration of Cobra Sales and Catering with Version 4.6 of Jaguar PMS
Radisson has launched an online meeting services suite on its Web site, powered by PlanSoft, to let event and meeting planners search Radisson's inventory of group facilities and services and submit electronic RFPs to Radisson hotels fitting their event criteria. The suite includes links to local convention and visitors bureaus, convention centers and various meeting-related suppliers. Other Carlson brands will offer the service on their Web sites next year. (www.radisson.com)
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MICROS' Hospitality Solutions International (HSI) division has released Version 4.6 of its Jaguar PMS, which includes a major revision to the Cobra Sales and Catering integration as well as reporting enhancements, Visa CISP compliance and other improvements. (www.hsi-solutions.com)
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F&B/POINT OF SALE
- Fairmont installs MICROS' 9700 Hospitality Management System (HMS) at Banff Springs
Fairmont Hotels and Resorts has installed MICROS' 9700 Hospitality Management System (HMS) with NetVupoint at The Fairmont Banff Springs in Alberta, Canada, interfaced with the MICROS OPERA property management system currently installed. The MICROS 9700 HMS was installed on the existing IBM 4695 terminals used by the previous POS software. (www.fairmont.com, www.micros.com)
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GUEST SERVICES
- Sheraton World Resort installs Teledex' ExpressNet AirLink in all guestrooms and common areas
- Teledex ExpressNet AirLink wins Editors' Choice Award for Best New Technology Product at IHM&RS
- LodgeNet offers eBay University training program on pay-per-view in-room video
- Golden Tree Communications signs 1,035th hotel for high-speed internet access services
The Sheraton World Resort in Orlando, Florida is installing Teledex' ExpressNet AirLink high-speed Internet access (HSIA) solution to provide simultaneous wireless and wired high-speed Internet access to over 1,100 guestrooms as well as meeting rooms and common areas. ExpressNet AirLink provides both a wireless access point and wireless bridge in a "slice" module installed to the bottom of a Teledex guestroom phone.
ExpressNet AirLink won the Editors' Choice Award for Best New Technology Product at the 2004 International Hotel/Motel and Restaurant Show.
(www.sheratonworld.com, www.teledex.com)
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LodgeNet has added an eBay University training program to its pay-per-view in-room video programs, letting hotel guests learn how to buy and sell on eBay. (www.lodgenet.com)
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Golden Tree Communications has signed its 1,035th hotel for high-speed internet access services (HSIA), which it claims as the highest number of sites in the United States for installations of guest and meeting rooms with its high-speed internet services. After a record first quarter with 249 new hotel additions, Golden Tree Communications' 1000th property was the Courtyard Louisville NE, KY. (www.goldentreecom.com)
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