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Hotelier Middle East Staff, November 3rd, 2008

This month Hotelier Middle East talks to IT managers from across the region to discover the latest trends and the challenges they are facing.

What are the main challenges you face as an IT manager in the hospitality sector?

Fraidy Pinto: Rapid advances in technology requires IT Managers to keep up with hotel applications and guest services technology. Today's IT Managers need to understand more about networks, security and policies than merely focusing on back-office applications like Property Management Systems (PMS) and Point of Sales Systems (POS).

 

"Today's it managers need to understand more about networks, security and policies than merely focusing on back-office applications."

The challenge is?to keep up with advances in technology, which in turn can also be looked upon as an opportunity to provide enhanced IT services to guests and hotel administration.

Khalid Omari: Day-to-day challenges in the hospitality IT sector include retaining trained and skilled staff. Jobs in the hospitality IT sector are affected by the seasonal tourism fluctuations and economy.

During the peak of the tourist season this industry requires high staff turnover, but then it could be a major financial drain during the off-season. The other major challenge is ensuring data security, which is common to the whole IT industry.
 
 

Mahmoud Kamal: I would have to say that one of the main challenges is in exceeding our guests' expectation of fast internet bandwidth.

Another challenge is in ensuring that your in-room technological facilities are updated as modern-day tech-savvy guests will be expecting more than just the bare minimum.

For a city hotel especially, they will come to expect items such as WiFi, iPod connectivity stations, flat-screen televisions, multi-function systems and touch-screen technology.

A third challenge we face is in ensuring that the latest anti-virus software and firewall systems are in place as there are always new threats and spyware programmes being generated daily.

Khodor Kazem: Although it seems that technology gets easier and easier to use every year, for lots of people technology is still an unknown entity and this creates a digital divide, especially between team members.

Another critical challenge to our business is how to protect our data from any number of internal and external threats. We have to ensure our data is protected as much as possible to make sure nothing can affect our operations.

And finally another issue is that of integration. As the business grows, it's absolutely essential that we ensure our business's data is integrated as much as possible. Our inventory, sales data and marketing information need to be linked together to best serve our customers and increase our profitability.

For example there are some people that are using Microsoft Excel to store critical facts and figures and some are using PDAs and Microsoft Outlook to store customer information, so integration between different applications is a key factor in this process.

What systems do you run, and how do these integrate between a property and corporate level of the business?

Pinto: Most of our hotels run Oracle based OPERA, which combines the functionality of PMS, sales, catering and accounts receivable,?therefore integration?is less of an issue.
 

 

For accounting we use iSCALA and Materials Control for inventory management. These implementations follow Rezidor standards, which ensure proper integration across applications and enable consolidation of data at the corporate level.

Omari: We use a Property Management System (by Micros-Fidelio), POS (Micros-Fidelio), Food & Beverage (Micros-Fidelio), Back Office (Micros-Fidelio), HR & Payroll, Telephone Management, Door Lock Security (Ving Card), Internet Billing System, Pay TV, Engineering Management System and a Guest Service Center. Around 95% of our business operations are running on these systems, which integrate with each other.

Kamal: Systems that we have in place include OPERA, Micros POS and SUN. In terms of integration for example, our central reservations system is connected to our corporate servers, while our corporate mail server uses the Microsoft Exchange Server.

 

"Guests are becoming increasingly demanding and expect hospitality it sector employees to be knowledgeable and up-to-date with the latest communications and wireless products."

In addition, with the global ICT helpdesk connected with our operations offices in Bangkok and Singapore, this halves the time required for problem-solving, at the same time allowing for the exchange of information.
 

 

Kazem: In our property we use Microsoft Outlook as our email editor and always the latest version of PMS programmes to ensure better accuracy of our financial issues - these systems integrate well for the corporate level of business.

For example most of our sales team have PDAs or smart phones and any information saved in their devices is synchronized with their Outlook mail. All our receipts are designed based on the standards on what information it contains, there is no ambiguity understanding the invoices and receipts.

How do you handle the training of technical and non-technical staff?


Pinto: At Rezidor, we encourage training of IT managers in the form of regular professional technical courses and reference material. Training of non-technical staff is regularly done by the IT manager.

Radisson SAS hotels for example have the concept of "IT Concierge" which consists of mainly non-technical staff handling HSIA (high speed internet access) related guest queries. This area is now solely handled by IT concierge staff members that are very confident in handling guest requirements.

Omari: Training of technical staff is a very challenging job. We have a very short duration in which the new hire has to be trained in our system to be productive.

Retaining this trained staff member is another challenge as many factors affect retention - the downward cycle of the tourism industry being the most important one.

Kamal: Aside from on-the-job training, our human resources department - together with the training department - conducts a regular training schedule for various systems including front-office and guestroom systems such as OPERA, Micros POS, and operation of IP telephones. Training for internal operational systems includes Check EAM and TempTrack.

Kazem: Training technical team members is easier than training non-technical employees, especially in our field, but it always needs better preparation because you can expect tougher and in depth questions.

With technically minded people we know their level of knowledge so we can increase the base of information we deliver and starting from zero is not necessary.

What technology implementations have you got planned for the future?

Pinto: Our main focus at Rezidor is aimed at providing easy-to-use technology so as to enhance guest experience in the rooms. For example we plan to deploy multi-media panels that guests can plug their devices into. This will allow them to use their MP3 players using the room's sound system and view or watch downloaded images and movies on the room's TV.

We are also working with our HSIA partners in creating a whole new experience while accessing internet in the form of background music and other new exciting features. Mood Music is another technology we have been aggressively implementing at our properties.
 

 

This allows hotels to create the "right" moods in the form of audio playlists that are tailored specifically to suit certain areas of the hotel at certain times of the day.

Omari: We have planned and are implementing wireless products and we keep at par with technology advances such as video on demand, interactive TV and in-room entertainment facilities.

Kamal: For the hotel tower, which is still in the pre-opening stage, we are planning the full implementation of an integrated room control system, in addition to the installation of high-definition televisions in all rooms and mirror televisions in the bathrooms of the suites, just to name a few features.

 

"The reason why we are slow to pick up these existing technologies is due largely to the lack of local vendors and equipment suppliers."

In the suites tower, IP telephones and wireless remote control of lights have already been installed. In the future we are planning the installation of a more advanced model, which will allow guests to control the room's climate, lighting, curtains, TV, and even the sound system.
 

 

Kazem: We plan to upgrade all our servers (hardware and operating systems) and deploy a new management system - OPERA from Fidelio - and install wireless internet connections right across the property, both indoor and outdoor.

What type of IT solutions are guests requesting now?

Pinto: While increasing numbers of business and leisure guests want to have hassle free internet in their room, tech-savvy travellers require more than mere bandwidth; they require connectivity between the hotel room sound and TV system to be integrated with their own mobile devices, such as MP3 players and iPods.

Omari: With the rapid growth and development in the IT sector, guests are becoming increasingly demanding and expect hospitality IT sector employees to be knowledgeable and up-to-date with the latest communications and wireless products. They also expect immediate assistance when they need it.

Kamal: High speed wireless internet connectivity, iPod docking stations, surround-sound systems and integrated entertainment systems are just some of the solutions that guests are requesting.

Kazem: Guests repeatedly request wireless internet connections in their rooms, to have online access to all hotel facilities and promotions from their rooms without calling and asking.

What do you do to ensure your property remains on the cutting edge of technology?

Pinto: At Rezidor we are constantly working with our partners to regularly upgrade guest?services like interactive TV and high speed internet access. A?concept like "EasyConnect" which is considered 'best in its class' provides easy and hassle free connection to the internet and this service - which is provided free of charge throughout Radisson SAS hotels - is based on years of collaboration with our partners.

Omari: To ensure that our property remains on the cutting edge of technology, we invest in our infrastructure and implement the latest technologies and products and continuously train our team to be at par with the latest developments in the industry.

On the other hand, we also audit our security policies and procedures and regularly perform vulnerability assessment to ensure data and systems security.

Kamal: It's all about staying connected and updated with the latest technological trends. I ensure that I'm kept in the loop by reading IT magazines and websites, and attending seminars and workshops for networking opportunities. In addition, we receive regular updates and information from our corporate IT personnel.

Kazem: To ensure a cutting edge technological level in our property, training sessions for our team members are conducted on a regular basis and we keep ourselves updated on the latest products in the market - hardware and software. Also daily IT news and research reports are sent to us through emails via member sign-in in most and IT solution companies.
 

 

What future trends do you see emerging in the industry? What are you doing to stay on top of these trends?

Pinto: Based on current trends, our hotels are seeing increasing usage of online bookings and this is expected to grow significantly in the future. By the end of the year, inventory of all our hotels rooms will be accessible real-time for online bookings.

We also foresee huge growth in the demand for bandwidth and an increase in applications running over IP based networks. Guests will want to go beyond merely checking emails, they will want to download music and movies from the internet.

They will require full access to their digital life in the hotel room. While we offer HSIA free of charge we still provide a high level of service ensuring fast, hassle free and secure connection to the internet. We constantly upgrade our bandwidth keeping in mind the increasing demand.

Omari: The future is in secured wireless communications, ease-of-use of secured web based products and information at fingertips. I regularly attend conferences and participate in networking events to keep myself updated with the latest in the industry. Also I attend training that allows me to implement the technology more efficiently.

Kamal: If you compare the Middle East to other parts of the world, we are lacking behind in our technological implementations. Hotels in Japan for example, have already fully embraced the concept of automated rooms with even bathroom facilities being automatic such that the guest hardly needs to do anything, except press a few buttons.
 

 

The reason why we are slow to pick up these existing technologies is due largely to the lack of local vendors and equipment suppliers, not to mention the high cost, maintenance and servicing involved with their installation.

In order to remain competitive, trends that are already in existence in other countries will eventually be adopted here. Hotels that do not innovate to keep up with the times, especially hotels that have been established here in this region for some time, will be left behind.

However, we also need to bear in mind that technology introduced to guestrooms needs to be guest-friendly and not too complicated.

Kazem: The future is putting control of the room's functions in the hands of the guest through IT. This would allow the guest to control everything including lighting, AC and IPTV.

There are lots of new "gadgets" available on the market, but what gadgets have you seen that really impress you?

Pinto: Microsoft's "surface" seem to be interesting, although one is yet to see the real benefits. [But] this device seems to hold a lot of promise.

Omari: IP telephony and IPTV are pretty impressive.

Kamal: Aside from the ones already mentioned, I'm really impressed by the new line-up of IP telephones which will allow for a full integration of all room controls.

Kazem: The gadget which was really impressive is the new Micros Fidelio system called OPERA; it is a bundled software, hardware and services solution that provides a straightforward, easy-to-understand approach with simple concepts. Included are all of the essential PMS functions, including front desk, housekeeping, cashiering and end-of-day processing.

OPERA also features reservation blocking capabilities, a central dashboard, top industry standard reports, plug-and-play standard property level interface options and internet bookings either through GDS or the hotel's website.

What could be done to make your department run more smoothly?

Omari: [We should] increase knowledge and exchange information between the IT team at corporate level; help the property's staff when they need help; and tasks should be done on time with professionalism.
 

 

We should also retain our trained and skilled manpower and continue checking and testing the backups.

Kamal: The IT department is probably one of the busiest in hotels! Aside from having to provide IT solutions for guests, we also have to assist in managing operations for back-of-house areas.

In order to ease the manpower strain, we implemented a STAR programme, whereby specially selected service associates - usually from reception or guest service centre - are groomed and trained in basic IT knowledge so that they may assist guests directly, thereby cutting down IT response time.

Kazem: Teamwork is the key to success in all departments and getting this right will provide better understanding and better communication between team members.

What percentage of your bookings come from online sources? What are you doing to increase this?

Pinto: 21% comes through our online booking system.
 

 

Omari: The online reservation share is 0.88% year-to-date. To increase the percentage we are planning to implement the two way interface between our PMS and the online reservation system and increase the package promotion over our website.

Kamal: At least a quarter of our bookings are from online sources. We are constantly exploring partnerships with new and existing online booking engines and agents. In addition, our new corporate website is currently being developed and we hope to launch it by the end of this year.

Kazem: The booking percentage from online sources is 4.6%. To increase it, we are trying to convince the website visitors about the high level of security which we deliver by protecting personal data. Notifications are visible in a very clear way throughout the booking process.

What do you see as the next big thing for IT in the hospitality industry?

Pinto: Web based technologies like Web 2.0 will be the next big thing for IT in hospitality. Blogs and social networking sites are already making a big impact on hotels in the form of guest feedback and hiring staff for example.

Such new technologies bring with it tremendous opportunities but also carry risks. Managing risks will be a key factor in successfully adapting to the technology of the future.

Omari: Micros Fidelio Kiosk machines, which are used for self check-in and are integrated with PMS. The guest can check-in alone without any assistance from the front office agents.

Kamal: The next big thing will be software improvements and enhancements to existing products. I believe the humble television will evolve into more than just an entertainment box. With videoconferencing becoming more popular, we have to consider the future possibility of VOIP-integrated televisions, replacing the telephone.

Kazem: Guestware recognition programmes that collect and store guest preferences is the next big thing as we see it. This clever software enable us to provide a better more personalised service to our guests no matter which of our hotels they stay in.