The future of hotel technology was laid down by the big chains at the HTNG 2010 North America Conference in Orlando earlier this month; their mandate called for a total overhaul in how lodging technology systems are developed and implemented.

Out: Property-based systems and copper wire;
In: Cloud computing, SaaS platforms and IP delivery.

NOT YOUR FATHER’S TECHNOLOGY
The HTNG (Hotel Technology Next Generation) annual conferences in the U.S., Asia and Europe are half tech-vendor think tank, half truth-or-dare debate between chain operators and system suppliers. This year, chain IT executives from Mandarin Oriental, InterContinental Hotels Group, Marriott and other companies told a ballroom packed with 250 vendor representatives that if they wanted to win business in the future they had to deliver virtual applications on SaaS (software as a service) cloud platforms, IP-converged network solutions and mobile-ready applications.

This approach requires a major development shift from vendors invested in property-based solutions and legacy guestroom technology delivery. “Not everyone will make the leap,” said Bill Peer, vice president and chief enterprise Architect at IHG.

 A number of factors could drive the shift in technology development:

•International chain expansion will comprise the vast majority of hotel growth in the foreseeable future. This requires chains to implement economical “deploy-anywhere” cloud computing solutions with international language capabilities.

•Guestroom technology has become unacceptably complex due to proliferation of guest-facing services for entertainment, environmental controls, telephony and Internet access. This must evolve to converged IP platforms that simplify compatibility, enable two-way communication and catch up with what guests have in their homes.

•Gen-Y guests are an emerging market that makes and executes booking decisions from mobile devices, not websites. Hotels must offer mobile-friendly online content; room and amenity booking must be mobile-enabled. Additionally, informative, entertaining digital lobby signage is required to engage and market to tech-dependent Gen-Y guests.

INTERNATIONAL EXPANSION=CLOUD COMPUTING
Nick Price, Mandarin Oriental’s CIO/CTO, bluntly told the standing-room vendor audience that cloud computing will soon be the only way to deploy property technology necessary for chain expansion in Asian markets and developing countries. He pointed to the seated vendors, “Virtual applications are the only way Mandarin Oriental will deploy systems beginning in 2011. Provide them if you want to do business with us.”

Price’s message mirrored an earlier ultimatum from IHG’s Peer: Why the cloud mandate? Cloud computing has clear dollars-and-cents benefits in an economy when every decision hinges on profitability:

1. Unassisted deployment. Cloud/SaaS platforms can support applications uniformly in multiple locations via the Internet. Properties only need a high-speed web connection and compatible PC workstations that enable staff to access the application. Benefits include faster deployment, lower operating costs, fewer servers and simplified network infrastructures.

2. Lower costs. Virtual application deployment lets operators make the flexible hardware decisions essential for international deployment. SaaS systems also save energy and cooling costs and lift the burden of data backups and system maintenance from property staff so individual hotels need fewer highly-paid IT staff.

3. Guest recognition and loyalty. Centrally-held property data enables chain-wide CRM and corporate business analysis. Guests who stay at multiple properties in the chain have their personal profile available to each hotel, which supports guest recognition and higher service standards.

IP INFRASTRUCTURE & CONVERGED NETWORKS
Another tech challenge flagged for improvement by operators at HTNG was the exploding proliferation of guestroom technologies. Many hotel rooms now provide interactive HD video-on-demand entertainment, environmental controls, telephony, interactive menus, wireless and wired Internet access, guest lighting, electronic locking, and other devices. In most properties these systems require separate coaxial cabling, servers and monitoring, creating a support nightmare.

The complexity of these systems and how they’re deployed was addressed by Nick Price and other HTNG members who directed in-room tech vendors to standardize on IP (Internet protocol) platforms.

IP converged network systems enable two-way communication for guest system, and they can share a single CAT 5 or CAT 6 digital cable connection, something that is impossible on legacy platforms.

WHAT ABOUT GEN Y
Gen-Yers (age 18-32) shared the spotlight during HTNG. We want them in our hotel rooms, and hope they do a good job when they work for us. Gen-Y consultant Jason Ryan Dorsey provided valuable insights on how operators can increase their Gen-Y business and gave employment tips for managers.

Here’s Dorsey’s view on how can operators can attract and please Gen-Y guests?

1. Make your hotel blog-worthy. Gen-Yers communicate digitally by texting and blogs. Meet them there.

2. Gen-Y guests are dependent on mobile devices. They work from their handhelds, not PCs, and communicate constantly. Build a mobile-friendly online presence, and they will come.

3. Give Gen-Y guests something valuable if they have to wait in line. Since they often have little patience (entitlement culture), provide a digital screen near the front desk that lists cool things to do near your hotel; better yet, display a link where they get the info on their handheld.

Here are his management tips on how to keep Gen-Y employees productive:

1. Most Gen-Yers need real-world experience so train them. Don’t assume they know what they’re doing, even if they say they do.

2. Gen-Ys usually know the first day on the job if they will stay, and they want to make a difference. Give them a stimulating experience day one, and offer to make them responsible for something important if they measure up.

3. Money is not as important as time to Gen-Y employees, so make their bonus extra days off, not cash.

One more thing; Gen-Ys don’t value promptness and frequently show up late. If you want to keep them on the job, be patient.

The HTNG 2011 North American members meeting will be held in San Diego on Feb. 28-Mar. 3.

Michael Squires is COO of Softscribe Inc., a digital marketing + PR firm. His name is synonymous in the hospitality industry with strategic selling. Reach out to him on twitter @MichaelSquires, via email at mbs@softscribeinc.com or sign up for the company’s business blog http://www.softscribeinc.com.