Wednesday, January 26, 2011

M2M Communications and Its Impact on Hospitality

Summary
This article describes a new trend now being used in the hospitality industry called M2M Communications or machine-machine communications. Since its arrival it has mostly been used in the healthcare and transportation industries but has recently been implemented into different areas of the hospitality industry. M2M communication takes information from devices like cameras, sensors, and meters and transmits it into software that interprets and responds to the information. In the hospitality industry it can be used in video surveillance to alert the security desk or local police department of an emergency. It can also be used in hotels and restaurants in point-of-sale applications like charging a meal to your room with your key card. A major way it is being used is to cut utility costs and moving properties toward being “green”. The M2M can help conserve water and energy by responding to when utilities need to be used and when they can be turned off because of non-use. Finally, it is used for room automation to service guests but also cut down on energy use. For example, M2M communications will know when a guest enters their room when they swipe their key. The key swipe will be connected to the air conditioning unit and can turn on the air conditioning as soon as the guest enters the room. This process is convenient for the guest and will also save the energy that could be wasted by keeping the air on when a guest is out of the room.
Reflection
I think that this technology is extremely useful for the hospitality industry. It can be used to improve the service to guests and cut costs for the hotel or restaurant. Many hotel guests, I included, appreciate small things that make a trip more enjoyable. Things like a door opening automatically and being able to charge to the room without making individual payments throughout the trip save time for a guest. I think this technology also addresses another big trend we’ve been noticing across all industries. Going “green” is something that has become important to a lot of people. If a restaurant or hotel can advertise that it is using the M2M technology to conserve energy and the environment that could help attract customers who rank that as a major concern. If I were deciding between two hotels that had exactly the same ratings and prices I would choose the hotel that made a point to conserve the environment over one that did not. Going green means conserving energy, conserving energy means saving money. If the M2M communication became an industry wide requirement I think it would save a lot of businesses a lot of money. It seems to me that there are so many advantages to using M2M communication in a company. The initial costs could be high for installation but in my opinion the savings in the long run as well as the improvement it could offer in services to the customer could offer any business a competitive advantage.
Kumar, Ashok. “M2M Communications and Its Impact on Hospitality.” Hospitality Upgrade. Summer 2010. http://www.hospitalityupgrade.com/_magazine/magazine_Detail-ID-529-M2M-Communications-and-Its-Impact-on-Hospitality.asp

Tuesday, January 18, 2011

Investing in Technology for Competitive Advantage - The Challenge Facing the Hospitality Industry

Summary
This article explains the current technological situation in the hospitality industry as a whole, and more specifically the hotel industry. The hospitality industry has made improvements with their technology systems in the last 20 to 30 years, however there is still a lot of progress to be made. A major focus of this article was the lack of integration amongst all of the different information systems used in a hotel, for example. It seems to be a trend that hotels buy from the supplier with the best product for the best price instead of buying all of their systems from one supplier making it easier to integrate. One reason companies are less inclined to buy all their systems from one supplier is because no one company has found a total solution to the integration problem. Every vendor has their own specialty and are not making a big effort to solve this problem of integrating all systems required to run a hotel. Another reason there is slow progress in improving hotel technology is the lack of standardization in the industry. It is not required for hotels to update their technology therefore making improvements is a slow process. Companies realize to become more profitable they need to make changes, but because they are not required to do so some are slower to make the investment. With better technology comes better customer service. People need technology, especially when traveling. Hotel guests need things like wireless internet, fast and efficient check-in and check-out, and they also want everything running smoothly throughout their stay. All of these things require integration of systems and an overall improvement in technology in this industry.
Reflection
Before reading this article I had never put much thought into the kinds of technology it takes to run a hotel. I recognized the obvious ones such as reservation systems and wireless internet. It never occurred to me that they use property management systems and the technology involved with the financial and accounting side of business. This article brought to my attention the necessity to link all of these systems to make the business of the hotel run smoothly. I strongly agree that this is an issue that needs attention in order to improve how the hotel industry runs. I also think hotels should improve the technology available to guests. I have been too many hotels that do not offer wireless internet in guest rooms and some that do offer it charge extra. I know when I am looking to book a hotel that is something I look for. Another trend mentioned in this article was networking and using the Internet to reach potential guests. This is an excellent tool that should be used by all hotels. Almost everyone I know, I included, uses sites like Expedia and Travelocity to book trips. If a hotel is not included on a site like that I would never know about it. This is such a fast and easy way for hotels to get recognized by potential guests. Overall I thought this article made many valid arguments for the need to improve technology in the hospitality industry. After reading it I know that when I am traveling I will start to recognize which hotels are making improvements and which are standing still when it comes to technology.
Cline, Roger S. "Investing in Technology for Competitive Advantage - The Challenge Facing the Hospitality Industry." Hotel Online. Fall 1996.http://www.hotel-online.com/Trends/Andersen/Investing_in_Technology.html