DECEMBER 7, 2005 - JANUARY 10, 2006
TOP O' THE NEWS
Once again guestroom technology was the focus of many of the year’s news stories, with several brands claiming to offer “the latest, most technically focused guestrooms.” While this often meant “a flat-panel TV display and Internet access,” there was actually much more going on than that. Responding to the increasing number of guests who carry their own portable entertainment devices, Hilton rolled out new alarm clock/radios with MP3 player docks to all 250,000 guestrooms, and Marriott plans to install 50,000 flat-panel displays with guest-device connectivity over the next four years. VoIP phones began to appear, as did more guestroom workstations, but there was no clear indication over which devices would predominate. Improving integration between all guestroom systems became HTNG’s hottest workgroup.
Wireless high-speed Internet access was still a hot topic (and is now a brand standard for many chains), but as an adjunct to wired access, not a replacement, as strong demand persisted for the extra security and reliability of wired access. Internet access became more pervasive in our lives; 44% of all Internet users report having accessed the Internet wirelessly, but more of them from mobile phones or PDAs than from wireless laptops.
Internet booking continued strong growth, with hotel own-brand sites as popular as third party agents. The phenomenal rise of Google and other search and meta-search engines meant that paid-position ads became an even more critical part of marketing, along with the use of search engine optimization (SEO) to increase visibility in the organic (unpaid) results which are more likely to gather click-throughs. Channel distribution management was still vital, with more use being made of peer-group rate-checking software.
Vendor consolidation continued apace:
- Sabre closed its acquisition of SynXis (now RedX), TravelClick acquired Vantis, and Pegasus was acquired by investment group Prides Capital Partners in December.
- RoomLinX bought SuiteSpeed and later merged with Digital Internet Services, Guest-Tek bought Maginet and VoIP telephone systems vendor Sigpro, and KoolConnect acquired Australian provider Entertainment Media & Telecom.
- Warburg Pincus completed its purchase of InfoGenesis and then acquired kiosk vendor e-Touch, MICROS bought messaging vendor JTECH, Squirrel bought rights to Lochinvar’s loyalty marketing software, Springer-Miller’s parent PAR Technologies bought PixelPoint, Radiant Systems bought MenuLink, and Golden Gate Capital bought Geac with the intention of splitting its POS lines off into a separate company.
Heading in the other direction:
- after acquiring nearly 40 companies Interactive Corp split itself in two, spinning off Expedia, Hotels.com and Hotwire under the Expedia brand.
- TravelHero spun off its GolfHero division into a separate company.
- MAI issued a reverse stock split and took itself and its HIS subsidiary private.
Interest in centrally-hosted systems grew strongly. Most PMS vendors offered one; several reported that 50% of their prospects ask about it, though adoption was significantly lower. AltiusPAR launched a new hosted-only CRS/S&C/RMS/BI system with no PMS module.
Progress on systems integration was steady as many hotel IT managers said it’s still their number one concern. HTNG demonstrated working CRS/PMS/RMS/guestroom tech integration at HITEC, formed a casino/gaming SIG and added a Systems Architecture workgroup; OTA and APEX coordinated their efforts to standardize data interchange between the travel and meetings/conventions/exhibitions industries. Hyatt linked its PMS to Passkey for group booking integration, and both Delphi and Daylight linked to StarCite for group lead handling. CRSs/PMSs began to introduce direct GDS/IDS interfaces; Choice launched direct seamless interfaces with all four GDSs and developed a direct link to Expedia/Hotels.com, Hyatt did the same with Travelocity.
Self-service check-in/out kiosks went mainstream, with Embassy Suites, Hyatt and Fairmont committing to installing them in all their properties. Holiday Inn tested a MICROS/NCR unit at its Gwinnett Center hotel, and Expedia launched its Expedia!fun activity booking kiosk for hotel lobbies.
On the marketing front there was a strong move to centrally-hosted image libraries for reservations/destination marketing support. Leonardo consolidated its video library with those of Northstar and ICE Portal and was adopted as SynXis’, Pegasus’ and Carlson’s video provider; ICE Portal landed Starwood’s and Trisept Solutions’ business, VRX Studios snagged Priceline, Groople, HotelsbyCity.com and Virtuoso, VFM Interactive was adopted by Worldspan, Accor North America, Sol Meliá and Best Western, and Vantis launched its own Viz-it library.
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PROPERTY MANAGEMENT SYSTEMS
- ARAMARK implements SMS|World Internet booking at Lake Powell
- Hilton releases eCheck-in Internet pre-registration functionality for all 2,300 properties
- Ramesys re-brands as RedSky IT
ARAMARK Parks and Resorts has implemented PAR Springer Miller’s SMS|World Internet booking module for its SMS|Host Hospitality Management system at the Lake Powell Resorts & Marinas’ Web site. (www.aramarkparks.com, www.lakepowell.com, www.springermiller.com)
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Hilton Hotels Corp has released its eCheck-in Internet pre-registration functionality for Gold and Diamond VIP members of its Hilton HHonors guest reward program. Having been tested at 157 properties, eCheck-in will be rolled out to all 2,300 properties by January 2006. (www.hilton.com)
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Ramesys is re-branding itself as RedSky IT, covering its hospitality and travel, retail and construction businesses; its education business has been sold. (www.us.ramesys.com)
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RESERVATIONS
- Pegasus Solutions sold to equity group led by Prides Capital Partners
- 24% fewer travel agencies in Canada, but overall staffing up 11%
- ARAMARK chooses SMS|Enterprise for reservations management/Internet bookings
- Hilton approves Hotwire.com and Priceline.com as opaque distributors
- Pelican pulls Booking Engine, CRS and Call Center systems into single product concept
- TravelCLICK reports continued hotel business growth in 3Q05
- Carton House (Dublin) and Island Hotel Newport Beach choose TravelCLICK’s iHotelier CRS
- Deer Valley Resort in Park City, Utah, signs with Inntopia
- Opodo upgrades hotel content offerings
Pegasus Solutions has executed a definitive merger agreement with an equity group led by Prides Capital Partners, LLC, and including two entities affiliated with Prides, Tudor Investment Corporation and Belfer Management. The transaction is valued at approximately $275 million, and is expected to close in the first half of 2006. (www.pridescapital.com, www.pegs.com)
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Travel agencies in Canada have increased their overall staffing even as the number of physical locations has dropped, according to the Canadian Tourism Research Institute. Employment in retail travel agencies has risen by 11% since 1999 while the number of agency locations has declined 24%. The largest growth areas are part-time and home-based agents. The research also said more Canadians plan to use travel agent services this year, 67% versus 60% last year, in part to more Canadians planning Mexican/Caribbean trips rather than going to the US.
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ARAMARK Parks and Resorts has chosen PAR Springer Miller’s SMS|Enterprise to automate reservations management and Internet bookings for its 15 National Park and resorts properties. It had earlier installed the SMS|Host PMS at its Lake Powell property. (www.aramarkparks.com, www.lakepowell.com, www.springermiller.com)
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Hilton Hotels Corp will list selected rooms inventory with Hotwire.com and Priceline.com, which it has approved as online opaque distributors. (ww.hilton.com, www.hotwire.com, www.priceline.com)
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Pelican Hotel Reservation System has pulled its Booking Engine, Central Reservation and Call Center Reservation systems into a single product concept for reservation management. (www.pelicansystem.com)
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TravelCLICK's eMonitor reports that hotel business continued to grow during the third quarter of 2005; worldwide electronic hotel revenue from the Global Distribution Systems (GDS) and key Internet sites combined was up 9.4% over the same period last year, with room nights from the electronic channels up 2.2%. Travel agent bookings remain the dominant source of GDS and Pegasus hotel e-business, representing 80.3% of total room nights booked, with an average room rate 32.6% higher than the average for room nights booked via the Internet.
The 160-room Carton House, Dublin, has signed with TravelCLICK’s iHotelier Central Reservation System (CRS) for website reservations and GDS connectivity.
The Island Hotel Newport Beach has dropped its brand affiliation and implemented TravelCLICK’s iHotelier Central Reservation System (CRS) for website reservations. The 295-room property includes a spa, two restaurants and over 30,000 square feet of meeting space.
(www.carton.ie, www.theislandhotel.com, www.travelclick.net)
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Deer Valley Resort in Park City, Utah, has contracted for Sterling Valley Systems’ Inntopia Internet reservation system. The agreement also covers use of the Deer Valley-operated system for the DESTINATION: Sundance Film Festival. (www.deervalley.com, www.destinationsff.com, www.inntopia.com)
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Online agency Opodo has announced a series of changes to its hotel content, including allowing hoteliers to choose between retail, enhanced retail, merchant or wholesale rate models for different date periods. Opodo will offer the hotel inventory of its parent GDS Amadeus, increasing the number of properties listed from 45,000 to 65,000, and will increase the number of images accompanying hotel descriptions to nine. Rooms will be clearly identified as doubles or twins, and each of Opodo’s European sites will have hotel descriptions in the home market’s language. (www.opodo.com)
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MARKETING / MANAGEMENT
- Leading Hotels of the World endorses Blue Square Studios for Web-based applications
- PKF’s UK branch upgrading monthly statistics system to The Bench platform
- Serenata releases @mail product for Micros-Fidelio Opera PMS
- Serenata appoints Proffid Caribbean, Proffid Nederland and Protel as distributors
- Millennium & Copthorne appoints VRX Studios as Online Content Provider for 88 hotels
- Kimpton signs with iPost for e-mail marketing services, integrated with Pegasus
The Leading Hotels of the World has endorsed Blue Square Studios as a member of its Leading Service Provider Network, in its role as a developer of Web-based hospitality business applications. (www.lhw.com, www.bluesqstudios.com)
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PKF’s UK branch is upgrading its monthly statistics system to The Bench platform, allowing subscribers to track midweek/weekend occupancy/rates and benchmark their performance seven days a week. PKF will also introduce an enhanced monthly bulletin in early 2006, analyzing the performance statistics of 1,200 hotels for daily average occupancy, room rate and rooms yield. (www.thebench.com, www.pkf.com)
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Serenata has released its @mail product for the Micros-Fidelio Opera PMS; launch client was the Four Seasons Hotel Hampshire, in Great Britain. Serenata @mail enables hotels to send HTML-based e-mails directly from their PMS and Sales applications; the new version features a web-based user interface that serves as a front-end email solution for any software sending profile data and documents to a printer.
Serenata has appointed Proffid Caribbean, in the Netherlands Antilles, as its distributor for Aruba, Bonaire, Curacao, and St. Martin, Proffid Nederland for Benelux (Belgium, The Netherlands, and Luxembourg), and Protel Ltd., in Istanbul, for Turkey and Northern Cyprus.
(www.micros.com, www.proffid.com, www.proffid.nl, www.protel.com.tr, www.serenata.com)
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Millennium & Copthorne has appointed VRX Studios as the Online Content Provider for its 88 hotels in 16 countries. VRX will create and provide 360-degree virtual tours, still images and three-dimensional interactive maps of each hotels façade. (www.millenniumhotels.com, www.vrxstudios.com)
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Kimpton Hotel and Restaurant Group has signed with iPost for e-mail marketing services. iPost has integrated its service with Pegasus’ CRS, taking data from each Kimpton hotel reservation and sending confirmation e-mails to the guest with personalized messages promoting Kimpton’s loyalty program and cross-selling its restaurants and other Kimpton hotel properties. (www.kimptonhotels.com, www.ipost.com, www.pegs.com)
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REVENUE MANAGEMENT
- Best Western designates EasyRMS as Preferred Vendor for web based Revenue Management
- Crown Towers and Crown Promenade, Australia’s largest casino, install City.Optims RMS
- Balladins Hotels Group in France chooses Optims for 140 hotels
- Carnus Systems releases ASP-based Forecaster software for restaurants and hotels
- Rydges deploys IDeaS V5i ASP at key properties throughout Australia and New Zealand
- IDeaS integrates eRevMax’s RTShopper data into Revenue Optimization Pricing and Channel Management
- Hilton International deploys its first ASP versions of IDeaS, in Cologne and Budapest
Best Western International has entered into a Preferred Vendor agreement with EasyRMS for web based Revenue Management Solutions, and will promote it exclusively to its 4,100+ properties. (www.bestwestern.com, www.easyrms.com)
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The 482-room Crown Towers and 465-room Crown Promenade Hotels in Melbourne, forming Australia’s largest casino, have installed the City.Optims Revenue Management System. The property also includes conferencing and banqueting facilities, a spa, gymnasiums, tennis courts, indoor-heated swimming pools, over 40 restaurants and bars, retail stores, a 14-screen cinema, an interactive entertainment arcade and The Palms, a cabaret-style theatre venue.
The Balladins Hotels Group in France has chosen Optims’ management solution for its 140 hotels. The FrontRes solution will be connected to the group’s call center, Balladins Booking, using a two-way interface.
(www.crowntowers.com.au, www.crownpromenade.com.au, www.balladins.com, www.optims.com)
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Carnus Systems has released its ASP-based Forecaster software for restaurants and hotels, focused primarily on providing labor forecasts for weekly, 30 day, 60 day and 90 day periods. Forecaster Hotel includes a rooms predictor, cover predictor and labor predictor, while Forecaster Restaurant focuses on restaurant covers and labor. Launch client for the product is the 338-room Pan Pacific Hotel San Francisco, which has contracted for Forecaster Restaurant services after a trial implementation. (http://sanfrancisco.panpacific.com, www.carnussystems.com)
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Rydges Hotels and Resorts has deployed IDeaS V5i ASP Revenue Optimization solution at key properties throughout Australia and New Zealand after pilot tests at several properties.
IDeaS has integrated eRevMax’s RTShopper data into IDeaS Revenue Optimization Pricing and Channel Management functionality. Hoteliers can view the competitive rate offering across multiple channels and use the data to adjust their pricing strategy.
Hilton International has deployed IDeaS Revenue Optimization system for its properties in Cologne and Budapest, the first Hilton properties to use the ASP version of IDeaS product.
(www.ratetiger.com, www.hilton.com, www.ideas.com)
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SALES & CATERING, MEETING PLANNING
- Lanyon announces performance milestones, including processing its one millionth RFP in 2005
Lanyon announced several performance milestones in 2005:
- it processed its one millionth RFP in 2005, through its Content Control Center/RFPpublisher products,
- it added 7,500 properties to its PropertyVault in 2005, for a total of 30,000 hotels using Lanyon to manage their content.
- hotel companies representing over 120 hotel brands used Content Control Center / RFPpublisher to process over 450,000 RFP bids in 2005.
- the use of the NBTA standard format enabled hotel companies to process RFPs for 650 of the Fortune Global 1,000.
- corporate bids represented approximately 63% of all bids processed.
(www.lanyon.com)
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F&B/POINT OF SALE
- Carnus Systems releases ASP-based Forecaster software for restaurants and hotels
- Islands Restaurants selects HSI Profit Series for more than 50 restaurants
- Eliance Restaurants chooses InfoGenesis’ POS for seven UK restaurants
Carnus Systems has released its ASP-based Forecaster software for restaurants and hotels, focused primarily on providing labor forecasts for weekly, 30 day, 60 day and 90 day periods. Forecaster Hotel includes a rooms predictor, cover predictor and labor predictor, while Forecaster Restaurant focuses on restaurant covers and labor. Launch client for the product is the 338-room Pan Pacific Hotel San Francisco, which has contracted for Forecaster Restaurant services after a trial implementation. (http://sanfrancisco.panpacific.com, www.carnussystems.com)
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Islands Restaurants has selected MICROS’ Hospitality Solutions International (HSI) Profit Series as the standard POS system for its more than 50 restaurants in Southern California and Phoenix, Arizona. (www.islandsrestaurants.com, www.hsi-solutions.com)
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London-based Eliance Restaurants has selected InfoGenesis’ POS for its seven restaurants in the United Kingdom, through InfoGenesis’ UK-based reseller, Triangle, which will perform all installations using IBM SurePOS 500 touch screen terminals and Symbol wireless handheld terminals. Eliance operates dining and quick-serve food concession outlets at tourist attractions such as the Tower of London, National Gallery, Edinburgh Airport, and Sadler’s Wells Royal Ballet. (www.eliancerestaurants.co.uk, www.infogenesis.com)
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GUEST SERVICES
- Tharaldson becomes StayOnline’s first Premier Solutions Partner
- StayOnline to use Merlot Communications’ technology to offer wired HSIA
- Telkonet acquires Microwave Satellite Technologies
- TheO Studio releases portfolio of ambient video for guestroom/public flat panel displays
- RoomLinX to incorporate ElevenOS network management into wireless HSIA
- Windsor Capital Group names StayOnline preferred wireless HSIA provider
- National Hotel in Miami Beach installs Gold Key Solutions’ Concierge Assistant
- Radisson Seven Seas Cruises upgrades high tech facilities on four ships
- BelAir Networks names Winncom Technologies as distributor for wireless mesh networks
- Dometic releases dual compartment refreshment center and guest refrigerator
- PricewaterhouseCoopers analysis highlights guest amenities
- Starwood confirms LodgeNet as sole preferred provider for interactive television services
- Lions Gate Films authorizes LodgeNet to distribute high-definition first-run Lions Gate titles
Tharaldson Communications, Inc. (TCI) has become StayOnline’s first Premier Solutions Partner, authorized to offer StayOnline’s managed network services to its 1,800+ telecommunications customers. TCI was launched in 1997 from the lodging industry experience of its parent company, Tharaldson Property Development, which owns 350+ properties. StayOnline currently has installations in over 600 hotels across 30 lodging brands.
StayOnline will use Merlot Communications’ technology to offer wired high-speed Internet access over ordinary telephone wiring, complementing its existing wireless HSIA services.
(www.hotelphones.com, www.merlotcom.com, www.stayonline.net)
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Telkonet has acquired Microwave Satellite Technologies (MST), a full-service national Internet Service Provider (ISP) that also sells and services VSAT and business television networks. Telkonet will now offer HDTV, VoIP telephony and Internet access services to expand its existing Manhattan operations throughout New York then to other cities. (www.telkonet.com).
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TheO Studio has announced a portfolio of ambient video art works for guestroom and public area flat panel displays. (www.theostudio.com)
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RoomLinX has partnered with Eleven Wireless to incorporate the ElevenOS network management software into RoomLinX high-speed wireless Internet connectivity installations. ElevenOS will allow hotels to view usage and revenue reports, delegate administrative tasks and set up group access accounts. (www.elevenwireless.com, www.roomlinx.com)
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The Windsor Capital Group (WCG) has named StayOnline its preferred wireless High-Speed Internet Access (HSIA) provider for its 26 hotels across North America. The service is already installed at four WCG properties, including Courtyard by Marriotts in Modesto, Vacaville and Santa Rosa, California, and at the Port Hueneme Country Inn & Suites in California, and will installed at 14 WCG Embassy Suites properties. (www.wcghotels.com, www.stayonline.net)
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The 150-room National Hotel in Miami Beach, Florida, has installed Gold Key Solutions’ Concierge Assistant application to automate its guest service operation. (www.nationalhotel.com, www.goldkeysolutions.com)
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Radisson Seven Seas Cruises announced upgraded high tech facilities for the Seven Seas Voyager, Seven Seas Mariner, Seven Seas Navigator and the Paul Gauguin. Enhancements cover upgraded internet access, digital satellite feed TV, wi-fi hotspots, shipboard cell phone service and other online capabilities. Radisson claims that its guests can use their own cell phones from any of its vessels anywhere in the world, and can also pre-reserve restaurant tables and pre-register any special requests with a butler. (www.rssc.com)
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BelAir Networks has named Winncom Technologies as a distributor for its wireless mesh networks. Current installations number over 100, worldwide. (www.winncom.com)
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Dometic Corp has released a dual compartment refreshment center and guest refrigerator. The single-door unit includes an area reserved for guest use, plus a separate, lockable refreshment center compartment. The unit incorporates Fuzzy Logic II, an upgraded version of Dometic's energy-regulating software, which regularly runs a self-diagnostic program for peak efficiency and performance. (www.dometicusa.com)
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A recent PricewaterhouseCoopers analysis of guest amenities at hotels across the country highlighted innovations from increased choices of checkout methods to higher quality bath amenities and in-room exercise equipment. The survey identified the following, many of which are new to the industry or to certain price levels:
* Irons and ironing boards at limited service hotels
* Wireless high speed internet access at no charge
* Flat screen televisions
* Choice of traditional bedding or duvets
* Top sheets
* Bottled water at “reasonable” prices
* 24-hour business center services
* Triple draping window treatments
* Kiosks and in-room check out options
* Enhanced quality bath amenities such as status branded items and larger soap bars
* Cordless telephones
* More premium branding of food, beverage and other consumables
* Quality sound system (radio and CD player)
* Delivery of faxes to guest rooms
* Easy-to-use clock radios
* In-room exercise equipment (treadmill, exercise bike, stair climbers)
* Solutions to the problem of food and beverage items being kept too warm in the cabinet next to the refrigerator (due to the heat from the refrigerator unit)
* Enhanced lighting (greater lumens and make-up lights) in bathrooms
* Less “clutter’ of advertising and other materials
* More intuitive controls for lights, in-room entertainment
* Areas for guests to cluster and meet
(www.pwc.com)
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Starwood Hotels & Resorts Worldwide has confirmed LodgeNet Entertainment Corp as its sole preferred provider for interactive television services for its Sheraton, Four Points by Sheraton, W and Westin brands located in the United States, Canada, Puerto Rico and the U.S. Virgin Islands, a total of 380 properties. LodgeNet currently serves approximately half of these. LodgeNet will install its sigNETure HDTV system along with on-demand and linear content sourced or produced by Starwood.
Lions Gate Films has authorized LodgeNet to distribute high-definition versions of first-run Lions Gate titles over its sigNETure HDTV systems. These films will have been recently released in theaters but not yet made available for consumer purchase or rental in HD resolution.
(www.starwoodhotels.com, www.lgf.com, www.lodgenet.com)
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INVENTORY/PURCHASING
- Adaco software now controls over $2 billion “annual spend”
With the addition of the Sheraton Amsterdam, Adaco Services has installed its procurement software in over 500 hotel properties in 52 countries, with an “annual spend” passing through the applications that has now passed the $2 billion mark. (www.adacoservices.com)
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SECURITY
- Comet Video names Winncom as distributor for low bandwidth, wireless video products
Comet Video Technologies has named Winncom Technologies as a distributor for its low bandwidth, wireless video transmission and networking products. Winncom is a value-added distributor of wireless broadband, voice over Internet protocol (VOIP), virtual private network (VPN) and other traditional and wireless products and services in the security and surveillance market. Comet products transmit live streaming video through bandwidths lower than 9 kbps, and can transmit CCTV video directly through the cellular telephone network, wired or wireless LAN/WANs, broadband or dial-up internet, POTS telephone lines, satellite telephones and low bandwidth satellite IP modems; users can view the video on their smart phone, PDA or PC. (www.winncom.com)
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