Leveraging Technology to Improve Efficiency in the Hospitality Sector

The Indian hospitality industry is on a growth spree. According to research by World Travel and Tourism Council (WTTC), Indian tourism demand is expected to grow at 8.8% from 2007-2016 and revenue from foreigners travelling to India is expected to increase to US$ 424 billion by 20151. Yet, against these growth figures, is the reality of the economic downturn. Can the hospitality industry leverage technology to enhance operational efficiency, tide through the trough and ride the crest when the economy rallies, is the question everyone is asking. Increasing occupancy at the right rates is a priority for all hoteliers, and high fixed costs and technology investments may seem a logical target for tightening their belts. In reality, technology investments that improve operational efficiency, reduce labor costs and increase customer service capabilities are some of the best business moves the hospitality sector can take. One way to avoid commoditization of services and distinguish oneself from competition is to improve customer-facing technologies, especially those that enhance customer experience and improve operational efficiency. Here are some ways the hospitality sector is specifically leveraging technology. Increasing Room Bookings with Central Reservation System/ Global Distribution System/ Internet Distribution System A recent survey by TIA1 suggests 8 out of 10 travellers plan their trip online; of these, 80% book online. The arrival of players like Google Hotel Finder and Yahoo! Travel in the travel space gives those planning their trip online a larger choice. This also compels hotels to adopt a GDS or IDS, keep distribution channels synchronized and ensure consistent rates and room availability is displayed across multiple channels of booking. Through an ERP based Property Management System (PMS) hotels can use a CRS, GDS or IDS to view customer information in real-time and customize service offerings, as against merely selling rooms.
http://hospitalityindia.com/hospitality-industry-in-india.htm

Benefits of Hospitality Technology Defining strategic hotel business priorities Identification of business drivers and enterprise value chain Align business objectives Improve control over processes Improve guest experience Reduce staffing requirement Faster delivery of services Guest loyalty Cost saving Maintenance of market leadership

Fortune Central Reservation System (CRS)

Fortune CRS easily interfaces with a Property Management System application and is designed for call center based reservation operations. Fortune CRS is a great option for all hotel chains and properties where reservations are made through Web CRS. With Fortune CRS, all reservations are instantly transferred to a PMS, making real-time reservations online.

1|Page

Integrated ERP based PMS To differentiate its services from competition, a hotel must provide guests with a consistent and seamless experience across points of service. Lack of an integrated ERP based PMS means a hotel is unable to view enterprise-wide reports, and has to access inconsistent operational data. A comprehensive ERP based PMS means that A hotel can ascertain the value of guests across points of service Information received through the PMS helps Management make informed decisions in a timely manner Thus technological trends in a hotel should be towards an integrated solution that provides actionable property-wide information. Staying Connected with Guests Staying connected with guests, means systematically tracking customer behavior and preference and utilizing this knowledge to enhance guest satisfaction and system-wide revenue. In todays competitive environment this is very critical to sustain revenue growth and profitability. Many hotels collect comprehensive qualitative data like guests preferences and dislikes, birthdays, spend patterns, stay patterns, and lock them away not siloed applications. This data is seldom available at point of service in a manner that a hotel guest gets a personalized experience and is wowed. To stay effectively connected to their guests, what hotels need is a high quality Customer Relationship Management (CRM) application that can be accessed enterprise-wide for real-time information on guests. Capitalizing on Technology for Customer Facing Devices Besides using technology for enhanced operational efficiency, another way to capitalize on technology is to adopt it for customer facing applications. In-room Technology Fortune Rewardz Fortune Rewardz is a highly configurable Loyalty & Rewards Management System that integrates seamlessly with Fortune Property Management System and Fortune R&B Software. It helps hotels develop loyalty schemes and records points for redemption. Fortune iAlert An application that allows hotels and restaurants to increase customer loyalty, Fortune iAlert automates efforts to connect with guests and provides greater visibility on guests and hotel functioning. An easy to install, easy to use application, Fortune iAlert categorizes messages under bookings, check-ins, complaints, room transfers and high bills. It also provides consolidated reports on messages sent & read.

In-room technology is becoming a key differentiator for hotels. Guests are accustomed to high speed internet, digital entertainment devices and Voice over Internet Protocol (VoIP), and expect the hotel to provide services that they access in their home and office. Many guests also choose to work from their hotel rooms and in-room technology like high speed internet is now basic.

2|Page

Use Of smart Devices Like Phones And Tablets Small, mobile, and connected on-the-go, smart phones have become the hospitality industrys new best friend. Motorola Solutions 2011 Hospitality Market Barometer study has found that 56% hospitality organizations planned to raise mobile investments to enhance customer experience, besides helping better equip their workforces and also improve operational efficiencies. Smart devices like mobiles can be used for sending reminder text messages to guests, greetings and even provide location-based deals. With a flood of smart gadgets and better connectivity prospects spurring the boom in application development, numerous restaurants have put their menu cards and a host of other applications as well on tablets. Technology Increases Margins While some hotels may be sceptical whether investing in technology can actually bring them return on investment, there are numerous hotels that have successfully leveraged technology both for integrating internal hotel functions and for customer facing devices while showing an impressive 15% to 25% return on investment. For example, informative reports and tools that Airways Hotel*, Papua New Guinea were able to access after the deployment of FortuneNEXT Enterprise helped them increase average room rates by 15%. In another example, Kokopo Village Resort*, Papua New Guinea was able to increase their margins on the F&B department by 18.5% again after the deployment of FortuneNEXT Enterprise. Conclusion Technology has the transformational abilities to improve operational efficiency, productivity and profit margins. No hospitality provider, large or growing can afford to ignore it. The key is to partner with a holistic ERP based PMS provider with deep domain expertise and experience implementing PMSs across segments and size to ensure you reap the maximum benefit. * To read the full case studies about how FortuneNEXT Enterprise helped Airways Hotel and Kokopo Village Resort, please visit our the Success Centre on our website www.idsnext.com

About IDS NEXT

IDS Softwares Pvt. Ltd. IDS NEXT, is a global leader in providing ERP and total technology solutions for the Hospitality and Leisure industries. With a track record that spans over 24 years, it has earned the trust of over 2800 customers globally with a strong presence in 40 countries across South Asia, Middle East, Asia Pacific and Africa. In India, the company is the premier leader in hospitality technology solutions and has the largest installed software with over 1700 installations. IDS solutions are also part of the curriculum of Indias premier hotel management schools creating the highest number of skilled users in the country. IDS NEXTs portfolio of capabilities include Strategic Consulting, Business Outcome Services, Custom Design and Development, Total Technology Solutions and a range of next generation software products that addresses the hospitality industry. IDS Networks Group, a division of IDS Softwares Pvt. Ltd., is a provider of turnkey, vendor-neutral IT Infrastructure and technology solutions across a wide technology spectrum including networks, software, communication, audio video, digital signage, POS and

3|Page

unified communication systems. IDS Networks Group maintains and manages IDS NEXT Fortune Suite of Products and allied IT related products under a single umbrella. This enables hotels to access a 360 degree view of their enterprise and leverage a single location for all their IT related requirements. For further information please visit http://idsnext.com/

4|Page