POS: Emerging Technologies
Point of Sale (POS) technology is evolving quickly and hoteliers are constantly trying to keep up-to-date with market developments — a fact that is perhaps testament to how important POS is to the lifeblood of a profitable hotel.
But why has POS become so important? Perhaps it boils down to the region’s focus on performance data to increase revenue — something which POS is naturally very good at.
POS has become the primary conduit for data throughout the business. It connects the front of house to the back of house, it collects sales data from the physical world for analysis and also integrates seamlessly into the hotel’s many other software applications.
New technologies can only enhance these qualities, so suppliers are quick to incorporate new technologies into their POS systems as soon as they emerge in a bid to stay ahead of the competition.
“POS technology is evolving at a rate of knots,” said Intellect Data Systems regional vice president for operations, R. Chandrasekar.
“POS has quickly evolved from basic cash registers to PC-based billing systems, to touch screen interfaces and finally to PDA devices. The focus is now shifting towards empowering the customer through iPad-based interactive systems and kiosk-based self-service systems.”
Initially, POS facilitated a hotel’s operation, but more recently technology has advanced at such a rate that POS now actually informs the operation and has changed the way hoteliers perceive their business. This is particularly true for a hotel’s F&B operation, as Oliver Menzel from POS solution provider, Micros-Fidelio, suggests.
“I think that F&B in hotels was historically less important in terms of revenue,” he said. “But when new central POS solutions were introduced, better business intelligence suddenly became available.
It started with the big international food service operators, but now all hotel F&B revenue can be sliced and diced as never before. Hoteliers can now analyse the spend of individual guests to better understand and manage their F&B operations.”
More importantly, a good POS system is capable of improving the efficiency of the F&B operation and increasing the productivity of employees. If a system is fine-tuned to the specific needs of the organisation, then it can save time and minimise errors.
“A good POS system can improve the efficiency and the speed of communication between service, the kitchen and the bar during a busy F&B operation,” explained Grand Millennium Al Wahda general manager, Michael Sorgenfrey. “Furthermore, mobile, hand-held units can be used to save time by inputting the food order directly into the system while at the table.”
In Sorgenfrey’s example, POS can relieve some of the logistical burdens on staff and enable them to concentrate on food preparation or front of house customer service.
“A good POS system should let you focus on your customers, not your POS system,” explained Ròya International hospitality consultant, Turab Saleem. “It should be flexible, scalable, and modular for a customised solution that’s right for your business.
“On a practical level, high-tech applications of POS have already helped operators improve their bottom line because, as POS technology evolves, suppliers are integrating more and more key business operations into the system.
This includes workforce management, productivity monitoring, cost control, customer tracking, incentive payments and sales forecasting, among others. All in all, these features have been developed to enhance profitability.”
Power Shift
New POS technology is facilitating a fundamental shift in the modern guest experience, as control moves from the operator to the customer. Transactions can now occur anywhere in the hotel, leading Micros-Fidelio to re-term “Point of Sale” as “Point of Service”.
“In the future, I think that we will see POS systems become lighter and more mobile to facilitate this customer-centric experience,” said Dusit Thani Dubai general manager, James Wilson.
“This will foster a greater sense of customer interaction and guests will be involved in the data submission process. The POS software, therefore, needs to be simpler and also be navigated though expressive icons and images, for example.”
The advent of IP and wireless technology has rendered the traditional service counter redundant — and as POS technology begins to converge with the wireless internet enabled personal devices carried by many guests, orders and payments will soon be made virtually from any location.
“Already we’ve seen POS technology become more virtual with the introduction of handheld and wireless systems,” explained POS solution provider, Headstart, general manager, Sunil Kumar.
“But with broadband provision maturing, we see our own solution, Maitre’D, evolving into more of a web-based application where hoteliers will be able to operate from multiple locations using handheld devices like the iPad.”
The development of web-based POS systems is likely to reduce the need for staff-operated terminals. Guests could order room service from their SmartPhone, access menu translations in F&B outlets and order hotel services to be waiting for them upon their return from a day trip.
“You need to look to the future and meet the requirements of tomorrow’s market when selecting a new POS system,” explained RWN Trading marketing director, Carol Prince. “Of course, technology never stands still for very long, but our POS solution, smartPOS, utilises wireless technology and cloud-based control, so that it can be used in any of the hotel’s guest facing areas.”
RFID Technology
Another technology that is likely to revolutionise POS systems is the introduction of Radio Frequency Identification (RFID) to facilitate cashless payments. This technology is likely to simplify the POS interface even further.
RFID technology enables encrypted devices like SmartPhones, loyalty cards or hotel key cards to be used instead of cash or credit cards. The transaction is contactless: guests simply wave their device over the sensor and their account will be charged.
“I think we are likely to see RFID-enabled POS systems linked to guest key cards,” explained Taj Palace Hotel Dubai, general manager, Andreas Mueller.
“Each key card will be embedded with a microchip that will allow hotels to personalise the entire guest experience from check-in to check-out; from dining in the restaurant to relaxing in the spa — in fact, anywhere where a POS transaction would take place.”
The Pitfalls of Emerging Technologies
POS technology is an exciting and fast-moving area, but hoteliers should remain cautious about investing significant funds into any emerging technology.
A thorough financial assessment will soon reveal whether a new POS system could streamline your operations and free up valuable resources in other areas of the hotel.
“Technology is the means to an end; it is not an end in itself,” remarked Chandrasekar.
“When it comes to newer technologies, it seems that every company wants to push it down the customers’ throat, but it has been observed that newer technologies have higher acquisition costs and they also take a longer time to achieve their return on investment.
“It is therefore prudent to fully understand the TCO and ROI before deciding to invest in any new POS technology.”
With a plethora of new developments in POS technology expected in the next few years, hoteliers may also feel the pressure to upgrade their existing provision.
For some brands reaching out to the iPhone generation, such an investment may be more than justified, but operators should closely examine their motivations and understand their business requirements in advance.
Hoteliers should also be mindful that, due to the pervasive nature of POS technology in a hotel context, an upgrade could trigger a number of unexpected costs, as Radisson Blu Hotel, Dubai Deira Creek’s director of IT, Asif Minhas concluded.
“When it comes to upgrading POS technology, hoteliers should closely examine what additional functionality and features the upgrade will contribute. Is the existing hardware compatible with the upgrade? Can the historical data be easily migrated?
Have the staff training needs been identified and planned for for the upgraded system? Will it achieve its predicted ROI, either financially or operationally?
In the current economic climate, it’s important to identify whether the proposed POS upgrade is nothing more that a handful of new features or an absolute necessity.
On the Market
FortuneNEXT R&B
FortuneNEXT R&B is highly configurable, yet robust. With a proven 100% application uptime, the system comes with an integrated loyalty and rewards management system, and can also be configured for multi-mode operation on the keyboard, the touch screen and PDAs.
Intellect Data Systems FZ LLC
Tel: +971 4 391 0108/9
Email: rcs@idsfortune.com
Web: www.idsfortune.com
Micros-Fidelio
Micros POS is one of the most versatile and well-used POS systems in the region. It offers centralisation for food and beverage management in hotel chains and can be used in individual properties or in regional operating offices. Durable, state-of-the art hardware and installation is also available.
Micros products are distributed by Key Information Technology in the Middle East.
Tel: +971 4 398 9999 (ext 300)
Email: saleshsd@kit.ae
Web: www.kit.ae
smartPOS
This POS system is 100% mobile, and powered by a cloud-based control. With this system you can complete transactions at any location in your hotel.
RWN Trading LLC
Tel : +971 4 327 7746
Email: info@rwntrading.com
Web: www.rwntrading.com
Maitre’D
Maitre’D is hardware independent, allowing customers to select the hardware most suitable for their operation. Maitre’D can also integrate with other software in use at the hotel with ease.
Headstart
Tel: +971 4 367 0413
Email: sunilk@headstartglobal.com
Web: www.headstartglobal.com