DECEMBER 13, 2004 - JANUARY 4, 2005
TOP O' THE NEWS
Despite continuing global uncertainties the industry as a whole had a pretty good year, and that was reflected in some steady business for the systems vendors. Despite persistent wars, travel didn't seem to be affected by too much other than the airlines' ongoing financial fragility and the ever-increasing security-search hassles. Are we getting hardened to all this, or just resigned to it? The impact of the devastating year-end tsunami has still to be known. Early reports are that much tourism infrastructure survived intact, and the governments affected will undoubtedly do all they can to rebuild the rest quickly to provide jobs and restore the revenue flow. Hopefully they'll also rebuild the fishing-based economies of the non-tourist areas just as quickly, for similar reasons. Nothing can replace the mind-numbing loss of life, but the survivors need hope as well as material aid.
On a more mundane level, in 2004...
- Channel distribution management continued to be a key factor, but hoteliers regained some balance in their relationships with Internet marketers, especially the merchant model vendors. While they also gained better tools to track and manage the channels, more still remains to be done in terms of integration with the CRSs and PMSs. Many PMS vendors announced the development of direct links to the GDSs and the larger IDSs (Expedia, hotels.com), and these are likely to become a standard feature.
- Internet booking continued to grow rapidly, more than doubling during the year. Activity was split pretty much equally between independent comparison sites and the hotel chains' own-brand sites as the latter gained strength through guaranteed lower prices or frequent-guest points. Dynamic packaging of hotels, cars and flights is becoming more common, and on-line booking of guest activities is sure to follow.
- System integration made real strides. Unprecedented vendor cooperation under the HTNG umbrella produced impressive multi-system integration at HITEC, and the strong, multi-vendor/multi-hotelier interest in subsequent HTNG workgroups (on CRS integration and guestroom technology) bodes well for the future. Resorts in particular continued to push for more fully-integrated solutions.
- Vendor consolidation seemed unusually high, especially in the reservations arena. Following Pegasus' acquisition of Unirez at the end of 2003, this year SynXis merged with hubX and was then purchased by Sabre, Optims acquired central reservations system provider HDS and was in turn taken over by Amadeus, Priceline bought Travelweb from its hotel-chain founders, TravelClick invested in MaximRMS, Amadeus took over Opodo, VIP International merged with Lexington and Cendant acquired Orbitz. In other areas, Agilysys acquired IAD, Best bought AccPac, PAR Technology purchased SMS, NTT DoCoMo acquired inter-touch, and in the closing days of the year Warburg Pincus took over InfoGenesis.
- Centrally-hosted systems continued to be an attractive option to many operators. Suburban rolled out a hosted version of Northwind's Maestro to 65 extended stay properties, both Visual One and MSI announced Web-hosted PMSs, and centralized revenue managed systems from IDeaS and Optims saw a steady stream of orders.
- Wireless HSIA continued its meteoric adoption rate, with ever more hotel chains adopting it as a brand standard, usually on a free-to-guest basis. It's not clear how much longer the hold-outs can still charge for the service, especially as they don't seem to provide any significantly better quality, speed or reliability in the connection.
- Self-service kiosks finally began to gain some traction, with both Hilton and Sheraton announcing multi-property roll-outs.
- Steady interest continued in better analytical tools, especially in centralized multi-property reporting and extracting better knowledge from data. Many PMS, POS and S&C vendors now include Business Intelligence modules and analysis cubes, and more multi-property groups installed centralized data-gathering and reporting systems.
- We heard much noise about the benefits of VoIP telephony but saw few implementations except at very high end or showcase properties. 2005 could see more general adoption as VoIPs flexibility and potential for powerful integration with other systems begin to outweigh the higher cost of the phones.
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PEOPLE ON THE MOVE
- Terry Cunningham takes over from Karl Willig as President and CEO of InfoGenesis
- Bernard Ellis joins IDeaS as Managing Director for the Americas
- Don Moore joins Guest-Tek Interactive to oversee global sales and marketing
- Jan Tissera promoted to President of TravelCLICK International
Terry Cunningham has taken over from Karl Willig as President and CEO of InfoGenesis, following Warburg Pincus' purchase of the company. Mr. Willig, who founded InfoGenesis nineteen years ago, has retired. Mr. Cunningham has extensive experience in the software industry, having founded Crystal Decisions in 1984, and later serving as President of Seagate Software and President of Veritas Software.
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Bernard Ellis has joined IDeaS as Managing Director for the Americas. Mr. Ellis has served the last five years with SynXis, most recently Senior Vice President of Strategic Accounts and Channels for SynXis. He had earlier spent eight years with Micros-Fidelio, rising to Senior Account Executive, Major Accounts.
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Don Moore has joined Guest-Tek Interactive to oversee its global sales and marketing efforts. Mr. Moore has worked for various technology companies serving the hospitality market for over 20 years, including RCA, Williams Communications, Nortel Networks, Elastic Networks, and most recently with Paradyne.
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Jan Tissera has been promoted to President of TravelCLICK International, a newly created position based in Barcelona, Spain overseeing the company's non-USA operations. Previously, Mr. Tissera was TravelCLICK's vice president of international sales; prior to joining TravelCLICK in 1996, he held a number of positions at Hyatt International in worldwide hotel reservations, global distribution, consortia marketing, revenue and rate management, guest recognition programs, as well as hotel room operations.
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PROPERTY MANAGEMENT SYSTEMS
- MGM Mirage to implement multi-property OPERA for all five Las Vegas properties
- Shell Vacations Club adopts OPERA Enterprise Solution as brand standard
- Central Hotels and Resorts to install multi-property centralized HIS Enterprise Solutions
- Kor Hotel Group to implement fifth HIS' epitome PMS
- Falor selects HIS' epitome PMS for all nine of its condo-hotels
- England's Woodbury Park orders complete Visual One product suite
MGM Mirage announced plans to implement MICROS's OPERA Enterprise Solution in a multi-property environment covering five of its Las Vegas properties including MGM Grand, The Mirage, Treasure Island, New York-New York and Bellagio, and at Beau Rivage, its property in Biloxi, Mississippi. Modules to be implemented include the OPERA Property Management System (PMS), OPERA Reservation System (ORS), OPERA Gaming, OPERA Revenue Management System (RMS), and OPERA Activity Scheduler.
Shell Vacations Club has adopted MICROS' OPERA Enterprise Solution as a brand standard, to be installed in all corporate locations in the US and recommended to all future Shell Vacations Club franchisees. Shell currently operates 17 resorts in six states and Canada.
(www.mgmmirage.com, www.shellvacationsclub.com, www.micros.com)
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Thailand's Central Hotels and Resorts group is implementing a multi-property centralized implementation of HIS' Internet-based epitome Enterprise Solutions. Systems to be installed are the epitome Property Management System (PMS) together with the Internet-native epitome Enterprise applications suite of Channel Management, Central Information (CIS), Management Console, Central Reservations (CRS), Web Portal for B2B and B2C deployment and Business Intelligence (BI). Central Hotels and Resorts owns and manages the activities of ten hotels in Thailand including some under the Sofitel and Novotel flags. The project is being managed by HIS-MSC, a joint-venture company of Hotel Information Systems (HIS) Asia Pte Ltd and Metro Systems Corporation (MSC) Public Company Ltd.
Kor Hotel Group will implement HIS' epitome PMS (including the condo management module) at its newest property, Hotel Blake, on Printers Row in Chicago. Kor already uses HIS systems at five of its non-condo properties.
Falor has selected HIS' epitome PMS for all nine of its condo-hotels, beginning with the Mayfair Hotel in Miami and followed by Printers Row Hotel in Chicago.
(korhotelgroup.com, www.falorcompanies.com, www.hotelinfosys.com)
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Woodbury Park has ordered Visual One's product suite for its operation in Devon, England, and will install the Front Office, Sales and Catering, Point of Sale, Golf, Spa, Web Bookings, Activity Scheduler, Club Management and Accounting modules.
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RESERVATIONS
- Fairmont and Delta implementing MICROS' OPERA Reservations System
- WestCoast receives IT Project of the Year Edge Award from Hospitality Technology magazine
- Savannah Suites, Select Franchising sign with InnLink for electronic reservation services
- Coast Casinos first chain to install direct connect Expedia interface, with HIS epitome for iSeries
- Three hotel chains in Asia Pacific extend relationship with Pegasus Solutions
- Internet Merchandising Systems releases Version 2.5 of Voyager reservation software
- Expedia adds three new booking features to Web site
- InterActiveCorp to split travel sites out into separate company under Expedia name
- Sabre Holdings Corp acquires SynXis
- Cendant acquires Gullivers Travel Associates and OctopusTravel.com
- Choice signs multi-year distribution and services agreement with Cendant TDS
- Jolly Hotels signs agreement with Cendant TDS for reservation services for 40+ hotels
Fairmont Hotels & Resorts and Delta Hotels have ordered MICROS' OPERA Reservations System; implementation is underway with cutover scheduled for 1Q05. The system will be used by approximately 300 Fairmont/Delta reservation agents in 2 call center facilities in New Brunswick, Canada. Fairmont continues to roll out the OPERA Property Management System to its hotels.
WestCoast Hospitality has received an IT Project of the Year Edge Award from Hospitality Technology magazine, recognizing the joint efforts of WestCoast and MICROS Systems in deploying WestCoast's new central reservation system. WestCoast became the launch customer for the MICROS Opera Reservation System in 2003.
(www.fairmont.com, www.westcoasthotels.com, www.micros.com)
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Savannah Suites has signed with InnLink for electronic reservation services for its 11 extended-stay hotels in four states and a new hotel under construction. Savannah, owned and operated by Atlanta-based Guest House Inn Corp., will use InnLink's Internet booking engine, iLINK, for its website and its eLINK connectivity to travel agents and travel websites.
Select Franchising, Inc. also signed with InnLink for electronic reservation services, using iLINK, eLINK and RESmatrix, InnLink's graphical, Internet-based inventory, rate, revenue, and data management tool.
(www.savannahsuites.com, www.selectinn.com, www.innlink.com)
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Coast Casinos became the first hotel chain to install a direct connect interface with Expedia, into its HIS epitome for iSeries (Paragon) PMS, streamlining the reservations process for more than 30,000 bookings made annually on Expedia across the four Coast Casinos properties in Las Vegas. HIS was the first third-party PMS vendor to develop and roll-out Expedia's direct connect interface; Coast Casinos will shortly add a notification system for Hotels.com bookings. (www.coastcasinos.com, www.hotelinfosys.com)
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Three hotel chains in the Asia Pacific region have extended their relationship with Pegasus Solutions for private label reservations-related services: Marco Polo Hotel Group, Meritus Hotels & Resorts, and Taj Hotels Resorts and Palaces, representing a total of 76 hotels. Marco Polo has been a Pegasus customer since 1998, Meritus since 2001 and Taj since 1995. (www.marcopolohotels.com, www.hotels.meritus-hotels.com, www.tajhotels.com, www.pegs.com)
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Internet Merchandising Systems released Version 2.5 of its Voyager Multi-Hotel/Property Reservation Software and associated MultiLinx license modules, designed for multi-property destination websites. New features include a minimum number of days for room booking, a choice of drop down menu or standard list to display hotel rooms/tours, a currency converter and the option to have Customer Service Agents book for telephone customers. (www.imscart.com)
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Expedia has added three new booking features, to allow travelers to select and prioritize hotels based on the amenities they offer, review online "traveler opinions" for insight from customers who have stayed at that hotel, and book from a selection of over 2,000 destination activities, attractions, and services. Travelers can choose from 13 hotel services and amenities, including high-speed Internet access, swimming pools, free parking, pets accepted, and more.
IAC/InterActiveCorp's board of directors approved a plan to separate the corporation into two publicly traded companies: an online travel agency under the Expedia name, and an electronic retailer retaining the IAC name. Expedia will include the domestic and international operations of Expedia.com, Hotels.com, Hotwire and the group's other travel sites, although interestingly Citysearch stays under the IAC name. IAC/InterActive now has about 40 separate businesses under its umbrella. The company is expected to go public by the second quarter of 2005.
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Sabre Holdings Corp is acquiring SynXis in a deal expected to close in 1Q05. SynXis currently provides reservation services to about 6,000 properties; after closing, SynXis and its subsidiaries SynXis International Holdings, B.V. and HubX, Inc., will continue to operate under the SynXis brand. (www.synxis.com, www.sabre-holdings.com)
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Cendant has continued its expansion by acquiring Gullivers Travel Associates and its online arm OctopusTravel.com. The $1.1 billion deal comes shortly after the purchase of ebookers and the acquisition of Ramada International.
Choice Hotels International has signed a multi-year distribution and services agreement with Cendant Travel Distribution Services, providing Choice properties with access to Cendant TDS' full suite of distribution products and services and adding more than 2,000 Choice Hotel properties to Cendant TDS' selection of merchant hotel rates.
European operator Jolly Hotels signed an agreement with Cendant TDS for access to Cendant's Voyager 5.0 central reservation system, operated by its TRUST International subsidiary, for its 40+ hotels throughout Europe.
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MARKETING / MANAGEMENT
- Cornell offers study on maximizing value of IT projects
A new Cornell study offers guidelines on maximizing the value of Information Technology. The report (Making IT Matter: A Manager's Guide to Creating and Sustaining Competitive Advantage with Information Systems, by Cornell Professor Gabriele Piccoli), offers a model to help strategists plan, implement and upgrade information technology solutions. In particular, it differentiates between information technology and information systems, and between strategic and tactical projects, and offers a model to evaluate whether an IT project will bring a sustainable advantage. (http://www.hotelschool.cornell.edu/chr/research/abstract/makingITmatter.pdf)
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F&B/POINT OF SALE
- InfoGenesis acquired by private investment firm Warburg Pincus
- InfoGenesis attains Gold Certified status in Microsoft Partner Program
InfoGenesis has been acquired by private investment firm Warburg Pincus, in a deal that closed on December 29th, 2004. Karl Willig, former CEO and founder of the company nineteen years ago, retired from InfoGenesis; Terry Cunningham is the new President and CEO.
InfoGenesis announced it has attained Gold Certified status in the Microsoft Partner Program with competencies in Business Intelligence Solutions and Microsoft Advanced Infrastructure Solutions.
(www.warburgpincus.com, www.infogenesis.com)
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SPA/GOLF/LEISURE
- Nirvana Technology releases BookNow! online activity booking service for hotel websites
Nirvana Technology has released its BookNow! online activity booking service for hotel websites, and plans to release a retail POS module in the first quarter of 2005. The web based system can be used for complex services such as spa as well as simpler activities like racquet sports, classes, group tours, child care and multi-session seminars; its Web Services layer should allow rapid integration to property management, central reservation, electronic distribution and point of sale systems. Nirvana has exclusive distribution rights in the hospitality industry for the BookNow! system, developed by Xpiron for the health club, fitness and spa industries. It was founded by the three founders of resort software vendor Rio Systems (Brian Cunningham, David Phelps and Vinay Patel), and is chaired by industry veteran Dave Berkus. (www.findingnirvana.com)
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GUEST SERVICES
- Loews' Don CeSar Beach Resort installs GoConcierge
- Pacifica Hotel Company rolling out free wireless HSIA at all 23 California properties
- Lodging Development Company orders HSIA from ITG for its Holiday Inn Express properties
- CeME and Hsyndicate launch quarterly In-Room Technology IQ reports
- HTNG In-Room Technology Workgroup forms 3 teams, targets deliverables for HITEC 2005
- Nickelodeon Family Suites by Holiday Inn to install interactive television services from ABS
- Hotel del Coronado implements LodgeNet's digital interactive TV system and HSIA
- Park Hyatt Chicago implementing GuestWare guest-response/CRM software
Loews' Don CeSar Beach Resort has installed GoConcierge's Web-based concierge operations system. Three concierges and one guest host use GoConcierge's online Guest Task Calendar to organize guest tasks and communicate with one another. (www.doncesar.com, www.goconcierge.net/home)
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Pacifica Hotel Company is rolling out free-to-guest wireless high-speed Internet access from San Diego-based SkyRiver Communications at all of its 23 California properties. (www.pacificahotels.com)
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Lodging Development Company, Inc. has ordered high-speed Internet access from PA-based InfOstructure Technology Group for its Holiday Inn Express properties, starting with the new Holiday Inn Express in West Mifflin, PA. ITG is installing a wired network to all hotel guest and meeting rooms and wireless HSIA for the hotel's lobby and breakfast areas. (www.ITGNetworks.com)
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CeME (Center for Marketing Effectiveness) and Hsyndicate are developing In-Room Technology IQ, a quarterly series of research studies on common industry perceptions. The first study featured results from separate surveys of guests and hoteliers on wired v. wireless high-speed Internet access in the guest room. Key findings included that 79% of hoteliers believe that most HSIA solutions will be wireless in the next 3-5 years and half of their guests regularly ask for wireless access in the guest room, 63% of hoteliers perceive wireless as cheaper than wired, but guests are dramatically more likely to experience a slow or inconsistent connection using a wireless solution, and 50% of both frequent and occasional travelers would be willing to pay more for extra features they perceive as valuable, such as more bandwidth, better security, greater coverage or printing services. (www.cemeinfo.com)
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The HTNG In-Room Technology Workgroup has formed three working teams and targeted initial deliverables for demonstration at HITEC 2005 next June, including the so called "Triple Play" of telephony, entertainment systems and guest Internet access deployed on a common network infrastructure. The three workgroups cover Infrastructure (based around a converged wired and wireless IP network), Application and Device Integration (looking at both fixed devices in the room, such as entertainment systems, telephones, etc., and devices carried by the guest, such as notebook computers, mobile phones, etc.), and a Future-Looking Team (formed for better understanding of the hotel guest of the future, and the technologies of the future, to avoid spending money on dead-end or low-return technologies). (www.htng.org)
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Nickelodeon Family Suites by Holiday Inn has contracted with Advanced Business Solutions (ABS), using nSTREAMS technology, for in-room video on demand, scheduled movies, Internet on the TV, high speed Internet, guest services and other interactive television services. The first Nickelodeon hotel is scheduled to open in spring 2005 in Orlando, Florida. (www.nickhotel.com, www.nstreams.com, www.absincorporated.org)
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The 688-room Hotel del Coronado has implemented LodgeNet's digital interactive TV system along with wired and wireless HSIA throughout the property. LodgeNet installed wireless HSIA in the original wood-framed section of the hotel, with wired connections over the existing phone lines for the rooms in the newer tower section, constructed of reinforced concrete. (www.hoteldel.com, www.lodgenet.com)
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The 200-room Park Hyatt Chicago is implementing GuestWare customer relationship management (CRM) software in its new centralized guest communication center. Guests' service calls to the center will be logged into GuestWare and transmitted to one of the five pager-equipped duty staff (including an engineer, resident manager, manager on duty and guest response runners). (www.parkchicago.hyatt.com, www.guestware.com)
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BACK OFFICE
- Mintek Mobile Data Solutions releases Lodging Asset Management Suite
Mintek Mobile Data Solutions has released its Lodging Asset Management Suite, comprising WinTrack Asset Director, WinTrack PM, WinTrack Maintenance Portal and WinTrack Alerts on a mobile platform in a centrally-hosted, ASP-model architecture. The Web-based WinTrack Asset Director tracks thousands of assets at multiple properties, to help capital expenditure (CAPEX) planning, enhance short and long term strategic planning, and reduce the labor costs associated with the gathering of information for product recalls. (www.mintek.com)
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ENGINEERING
- Amelia Island Plantation installing O*ZONELite air purification system in all rooms
The Amelia Island (Fla.) Plantation is installing O*ZONELite's air purification system in its 249 rooms. (www.aipfl.com, www.ozonelite.com)
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