New Kid on the block - 45 Park Lane

Good Afternoon Mr. Ronson we've been expecting you - was the unexpected yet pleasant greeting I received from the Doorman of the newly opened 45 Park Lane as I told him my name while handing over my luggage upon arrival at the Hotel.

Opened just three days ago on September 1st, 45 Park Lane is the latest addition to the Dorchester Collection and is appropriately located on the adjacent block to the original Dorchester Hotel - in Park Lane, London.

I have fond memories of the Dorchester where I spent one summer working in their Pastry department, while still at College during my earlier years training to be a Chef. At a pinch, you could say I'm an ex employee.

Although check-in time is officially 3pm, my wife and I were anxious to get settled into our accommodations, and so took a chance at arriving a tad early. We were nicely surprised when the Receptionist said we could be roomed, and graciously escorted us to the 3rd floor, where our room 4533 - was located directly opposite the elevator - hmm I thought as we arrived at the door. However, just before leaving the Lobby, our Host explained that their signature restaurant "CUT" by Wolfgang Puck - whom we had just missed as he was there for the opening - was having his first foray into Europe with this establishment - and suggesting we give it a try. I told her that we'd been to his premiere restaurant - Spago in LA - thanks to some friends of ours, so likely we would give this one a miss. She also pointed out that just up the stairs was what promised to be London's latest hangout - their Lounge Bar.

Incidentally, all rooms are numbered 45xx where 45 is the hotel name, and the next two digits relate to the floor and room number.

Just as our Host was about to open the door, a Housekeeper popped her head round the corner and said that the cleaner had not quite finished, and that the room would be another few minutes, politely suggesting we go away and come back.

So, ushered back into the elevator we proceeded to the Lobby and entertained with some complimentary drinks. I must say this unfortunate incident was well handled, and honestly speaking, I preferred to wait for the room to be fully ready, rather than go in, and as I often do - find faults.

The surroundings in which we waited were very pleasant. The Lobby is nicely appointed and has several interesting art deco objects intermixed with very comfy Connolly leather chairs that gave-off a wonderful new luxury car smell.

After about 10 minutes, a Host approached us and further apologized for the delay - saying they have a few tech issues with the room and need about another 20 minutes to fix them. We agreed that would not be an issue - although my intrigued peaked as to what they could be.

Finally the time came to go to the room, and we were once again escorted - this time making it though the door into the spacious and luxurious surroundings.

One of the first things of note apart from the Welcome Fruit amenity complete with a banana and some figs, and a huge wall mounted B&O TV, was the temperature of the room - which I personally found to be uncomfortably hot. Incorrectly believing that could quickly be addressed later, we proceeded with the check-in process and small tour of the room facilities.

As part of the rooming process, pointed out to us were the three Alcatel-Lucent touch screen phones - one on each side of the bed and another on the desk, and how one would use these to basically control all of the tech functionality in the room - A/C, curtains, lights. This was going to be fun I thought. Then I was shown where the Teleadapt connectivity panel was (not the cables), plus the safe and hair dryer. Also pointed out was the mini-bar and Nespresso machine - at which point we were asked if we would like to have a coffee - I declined the offer.

We thanked the Host for her assistance and she left, saying she could be contacted by phone if required. The luggage arrived quickly, and finally we were on our own. It was now time to analyze the room.

First thing first, was to try and cool the room down - and by using the Touch phone which is interfaced to the Control4 Room Control system and Lutron Lighting system, I adjusted the required temp to 20c from where it was being unbelievably indicated as 59c.

Next on my mental to-do list, was to walk through the room exploring the different facilities, while taking photos as a permanent record.

The first discovery was a most pleasant one - the mineral water and fruit juices in the minibar were supplied with the hotel's compliments. However, the Coconut water - my real favorite, was not. It's a pity that that wooden door attached to the front cover of the mini-bar would not close properly after opening. Never mind I thought, the Housekeeper will discover this during turn down service and fix it.

Next was the surprise of finding of an unsecured inspection panel covering the Room Control System - the brains controlling the room. This was a fascinating discovery and the photos will show you just how much investment was made into this complex system. And it was at this juncture where I had to ask my wife to take a look at this discovery and see for her self what I had found - not just the open door, but also the builder's rubble on the floor and left over cable shielding and various miscellaneous pieces of rubbish. Although it's not the first time for me to find such a mess at a newly opened hotel, I was quite surprised as the room was otherwise very clean. After all, they had already been open for a few days before we checked-in, the room was cleaned after being handed back by the Contractors, and then I understand there was a 2-week simulation period where the room should have also been used - I think, as well as snagged/critiqued and cleaned - anyway, more on that later.

Next up was the bathroom - complete with double vanity, separate WC with mobile phone shelf, Shower and nice sized bathtub. Pity we were not to have enough time to enjoy all of the facilities. The (Electric Mirror) Bathroom TV was a nice touch and the mood lighting worked well. Absent from the Vanity area of the bathroom was a hook where I could hang my wash bag - so I was forced to suspend it from the illuminated shaving/makeup mirror - not really a great option - just more out of desperation.

Click here for photos

Thinking about working in the room, I then setup my notebook on the desk and connected it to the concealed power sockets - they did not work. I tried a couple of other devices, alas with same result, so I stretched my power cable to the connectivity panel embedded into the side unit under the TV - they worked. The power socket arrangement at the desk is interesting; there are two GB sockets, one US 125V socket and one European type connection. Oh yes, there is also a fax port. Do people still use fax?

For some reason I could not connect to the Wi-Fi - but was able to get online with the wired connection at the desk. So I just created my own Wi-Fi network by sharing the Ethernet connection from my MacBook Pro. The Hotel has a strange charging policy - 24hours = GBP19.50, but you can get a free 1-month connection with 192kbps (see screenshot), so I opted for the free one. No one explained the difference, or limitations. I was just happy to save the twenty quid.

The TV worked well - with quite a few FTG channels, and a fairly good selection of PPV movies and on-screen Internet - all of course chargeable through the iBahn etvi system.

It was now time to go out and meet some friends across town - so we went back to the Lobby and I reported three things at the Reception desk:

1. Temperature
2. Mini-bar door
3. Desk power

I don't recall the lady apologizing when I mentioned these, just saying they would send an engineer - and we left.

Returning around 11pm, we stopped off for a quick nightcap in the 1st floor bar, and then headed up to the room. I noticed some of the Executive Management was also there taking a late supper. My wife was treated to a comp sip of locally distilled Vodka, which the Barman explained was made just round the corner. Nice touch, and the almonds were delicious.

Arriving at the room door, I inserted the key in to the lock only to have it rejected, I tried again - same problem so I tried the 2nd one - no luck. So we headed back down to Reception for a new key - lucky our room was by the lift, and it was only three floors to Reception, which was also situated just by the Lift on the Ground Floor. The lady receptionist said I must have placed them near my mobile phone or credit cards - which I had not, but even if I had done so - they should not have become unusable and she should not have chastised me for doing so. Oddly, as she was just about to cut the new keys, she asked me for my room number, although it was clearly written on the key cardholder I gave her. I guess she was just flustered...

So, back to the room we went, this time escorted by another Host just to make sure we could get in, and all was good.

By this time the room felt a bit cooler, but still warm. The room had been serviced and a small plate of chocolates left for us. I don't eat chocolates but my wife said they were nice - so that's ok.

A single bottle of water and glass was placed on one side of the bed, yet there were two of us - I guess we were meant to share....

The mini-bar door had been fixed, but when we opened it to get a bottle of cool water - the same issue happened with the door - meaning there must be a design defect.

Power had been restored to the sockets at the desk, as well as and the illuminated vanity mirror built into the desk, so an engineer had definitely been to the room - but he had not closed the floor inspection panel by the desk. I later noticed that some of the rubbish materials left by the inspection cabinet had been removed - some that is, not all.

Getting into bed, and figuring out how to control the lights and other services was very difficult. Often the buttons were non-responsive when depressed, and when they did work - the response time for the actual function to take place, was fairly delayed. One time, the desk unit auto re-booted with the process taking about three minutes to complete as it cycled through the six-stage process.

One of the things I could not work out, was how to just switch on the desk lamp, and no other light - allowing me to work during the night, while not disturbing my wife. I also could not figure out easily how from a totally darkened room, how to just switch on a low light to get to the bathroom. I guess I should have just used the reading light affixed to the side of the bed.

During the night, there were several odd sounds in the room - like clicks and beeps, which we think were emanating from the Emergency Broadcast speaker - but could not be sure. We both heard it, and remarked about it after waking in the morning.

Still trying to cool the room down, I played with the wall mounted control panel, only to discover that although the day and month were correct, the year showed 1972. Looking at the phone, which should have had the same information, the date and time were correct - how bizarre!

The Nespresso machine worked well, although my wife could not have her usual Green Tea in bed since there was no Kettle. She had to settle for plain water.

Taking a shower was very pleasant - although a little unusual. The water pressure was good, and oversized amenities nice - excuse us, but we took the excess with us. But what we both noticed was the very soft water and how it was difficult to know if you had actually removed all the soap - ones skin just felt so smooth. I guess we are just used to hard water in Asia.

All good things must come to an end, and it was time to check out - so we headed downstairs. I asked my wife to take a seat again in the nice comfy leather chairs while I handled the formalities. During the checkout process there appeared to be some problem printing a copy of my folio, and while that was taking place, I was approached by a lady standing in front of the Reception counter who graciously, yet embarrassingly (for me) introduced herself as Marie-Laure Akdag - Hotel Manager.

Somehow I guessed this was who she must be, and frankly hoped she would not want to have to long discussion due to the preceding experience of what had happened upstairs. Anyway, when she asked if we had enjoyed our stay I simply replied, "It was interesting", and did not go into detail. Of course, she could not have asked if we'd stayed there before, but did inquire if we would be returning, to which I replied, "That may be a possibility..." and we left it at that.

Click here for photos

Date of stay - 3rd/4th September 2011
(c) Terence Ronson ISHC

Note: Due to various Government's controls of the Internet, some of the hyperlinks in this BLOG may not function.

The Cloud Is Fast Approaching - What This Means To You - The Hotelier

The Cloud Is Fast Approaching - What This Means To You - The Hotelier | By Terence Ronson ISHC

Staring out of the window from my air-conditioned room during this hot and sticky monsoon season, I glance across Hong Kong's magnificent harbor and witness an amazing spectacle. All I can see are clouds - clouds in shades of white, black and grey, moving in and dominating the landscape. This remarkable act of nature immediately brings to mind a shift taking place in the Hospitality industry. And I cannot help but wonder about the true implications of moving the Hospitality industry into The Cloud.

Will the Sun in all its magnificence and awesome power break through and shine - turning the clouds into beautiful white and friendly fluffy masses? Will the grey ones morph into something much more sinister - a doom and gloom of black, ready to unleash their hidden horrors of torrential rain, ear-shattering thunder claps and electrifying lightening bolts?

Without doubt, the latest trend to grip the global technology industry is The Cloud - you read about it, you hear about it - but in all honesty, do you, a Hotel Industry Executive, really understand it and the associated implications? Do YOU even care?

Let me demystify this subject - because it is in this Hospitality Industry Executive's point of view that YOU must absolutely care.

So what is The Cloud?
Simply put, if on a personal level you are using a web-based email service like Gmail, Hotmail or Yahoo, then you are already using The Cloud. If you perform web searches through Bing, Google, Wikipedia or Yahoo - you are using The Cloud. If you use applications like Google Apps or Office 365, you are using The Cloud. And if you shop via Amazon or iTunes, you are using The Cloud.

This means you access a service usually through a Web Browser (such as Internet Explorer, Safari or Firefox) - sometimes referred to as a 'Thin-Client' - a low-end computer with very little localized software needed to perform that task. Some of us can cast our minds back and see some kind of similarity to the bygone era days of Mini-computers where we used something called Dumb Terminals - those boxes with green or amber characters on black screens.

Today, chances are high that we might use an app on a Smartphone or Tablet that performs a similar function - also connecting via the Internet.

So let's try and understand more about The Cloud, and how it relates to YOU, the Hotelier
Traditionally, a Hotel has housed all of its technology on-property - in the building, or on campus. You may know this as the local Data Center - a.k.a. the Computer Room or Server Room.

This space, however large or small, has grown in importance, sophistication and size as well as cost and demand for it's day to day management. Energy consumption has also exponentially increased.

Hotels, depending on size and complexity, can have anywhere from 10 to 50+ systems to manage and maintain, an increasing cost burden to the business. Many predict, and I concur, that this burden will only worsen as we embrace more and more tech in our day-to-day existence.

Moving to The Cloud is supposed to help alleviate these problems - But how?
First, systems (that includes Applications and Data) will be moved off-property and housed in an external DC (Data Center). This is known as "above-property" - hence the association with The Cloud. This will quickly free up increasingly expensive manpower resources, much-needed physical space as well as reduce energy consumption and costs. I will explain more about the types of Cloud later in this BLOG.

Second, since these systems will be DC based, your connection to them will be via the fragility of the Internet - either through a public line or some form of private leased line like MPLS - the latter being more secure and robust, yet operationally more costly.

The DC will 'host' these systems in an environmentally controlled space, either one that is just for you, or more likely, in a shared environment - meaning that just not your business will operate from there. The applications and data may reside on your own (Computer) Servers, or on shared Servers using what is termed as 'virtualization' - meaning a single Server can be dissected to operate as though it were many Servers without any degradation to the QOS (Quality of Service) it provides.

These DCs are spaces - they could be entire buildings as in the case of whatApple has just constructed in preparation for their upcoming iCloud launch, or they could be whole floors in a building or just rooms.
Whatever shape or size they come in, they are supposed to be:

• Environmentally controlled - Temperature and Humidity
• Equipped with redundant and clean electrical supplies
• Equipped with redundant hardware for auto failover
• Designed with spare capacity for your future expansion to include cabling and raised flooring etc.
• Super energy efficient and therefore cost efficient
• Secure from physical and virtual attack
• Equipped with Fire protection services
• Manned with 7x24x365 on-site personnel to handle 'situations'
• Connected to the outside world via robust and failsafe connections

As an end user you may be privileged to know where the DC is located, or quite commonly, just advised of a general location such as the country or maybe a city. In the case of Public Clouds like I mentioned earlier such as Gmail, Amazon etc., you will only know they are in cyberspace and have no idea of a real physical location - this is because they may form part of a Cloud Federation orIntercloud - an interconnected group of Clouds (Data Centers) - cloaking their real physical location for additional security and resilience.

Is there just one type of Cloud?
No, in fact there are commonly three types of Cloud. For simplicity, let's relate these to the clouds and colors we all see in the sky.

1. White = Private Cloud
2. Grey = Hosted Cloud
3. Black = Public Cloud

What do these mean?


Private (White)
This is a dedicated Cloud that you, or your Company exclusively owns. It is in a fixed location - known to some, and managed/operated by your own people with your own dedicated hardware and software inside - controlling your own data.

Those systems will likely interact with data and systems outside of this Cloud and not just other BU's (Business Units) within your organization. Don't lose sight of the fact that this Cloud is the nerve center and potential sole repository for all your Company's business interactions - a single point of failure. Additional security could take place through co-location facilities - meaning a second or additional DC setup in another location to mirror (back-up) the main DC in the event of failure.

Hosted (Grey)
This is a physical location where your systems and data share space with others - hence my reasons for naming it 'grey' - neither black or white.
Likelihood is that you will have a dedicated Computer rack (space) where your equipment operates from, and this is physically secure, accessible only by authorized personnel - such as the hosting company or solution vendor (the company providing the service).
However, you may be renting shared capacity on the same system as other businesses (a virtualized environment), and the vendor will try and offer you peace of mind through some form of guarantee for the security of your data.

Public (Black)
This is a shared environment - a public service that you and numerous others access/use - like the names I previously mentioned. You don't know where it is - nor do you need to - all you know is that it exists and functions.

Why do we need the Cloud, and what does it have to offer?
Businesses constantly strive to increase efficiencies, streamline costs, have continuity in systems, while at the same time factor in growth requirements - and IT strategists believe that moving data processing off-property to The Cloud will help with all of these. To some extent, that's true.

One benefit of centralizing the enterprise with Cloud services is to simplify the process of increasing end users through something called elastic demand, and this, in theory, can give you extra processing capacity in a matter of minutes when you know or forecast that your business demands require it. A bit like extra Housekeeping staff if occupancy suddenly peaks and you outsource these services.

Also, when computing requirements escalate, the Cloud service providers can balance your processing needs by tapping into additional computing resources. Both of these help control costs.

Proponents of Cloud claim you have the ability to deploy company standards quickly and easily across the enterprise, thereby benefitting branding and marketing.

This means that as properties are acquired (flagged) they could simply plug n play into the Network with little fuss or hardship to the operation.

What about enhancing The Guest Experience?
I've read copious amounts of articles, attended many conference presentations and watched various Podcasts about potential benefits of The Cloud, yet none claim it will enhance the Guest Experience or help drive brand loyalty - even though many of these papers and presentations have been specifically Hospitality focused. Why?
All discussions heavily focus on the technology and cost benefits. As a Hotelier or Marketer; does it bother you that the Technologists and Finance people are driving this initiative and not the Front Line Business?

Sure, like many things - cost is a key driver - but is this a false economy especially as some of the associated costs will now be shifted away from [Owners] Capex to [Operator's] Opex?

Reflecting back - an indulgence
Before I did what I do now, some of you will know that I was involved in Hong Kong with a leading PMS provider - in a Business Development role. During my time with that company, in 1997 Asia went through a Financial Crisis and not only did people stop buying, but they also stopped talking about buying. Do you recall those dark and cloudy days?

Well, for a Salesperson, that's disastrous, and so in order to try and stimulate the market I dreamed up with a sales model (which today would be referred to asSaaS - Software as a Service), whereby we would charge users a transaction fee versus an upfront License fee and recurring annual fees.

The model would have a base monthly cost to get Users into the system, and then we (the Company) would charge a transaction fee based on Occupied Room nights - I exercised great imagination over the naming of this concept - finally calling it "PAYS" - Pay as you Sell.

It was a simple model - the Customer absorbed the hardware costs - although we could have arranged leasing via a major manufacturer, and then they (the Customer) paid a small upfront amount for getting into the system, which included implementation and training, and then they (the Customer) would be Live. A transaction fee could have been US$1 per occupied room night and billed monthly, or deducted from a credit balance, whichever was more suitable. Control for us to know what was sold, and in turn needed to be billed, was straightforward since we controlled the software, and could generate the billings, turning off the software if the Client failed to pay within a contractual time period.

Potentially, it was a WIN-WIN for both sides.

For the Customer - it meant reduced upfront costs, only really having to pay for what they used/sold - and the associated materialized revenue - a kind of demand-based billing system. If their business was good - so was ours, if it dipped, then we would be at one with them through that quiet period - as partners, but still assured of a monthly service fee to keep them on the system - and cover our basic costs.

For Hotels it was a paradigm shift. Moving some of the costs from Capex to Opex - much appreciated by Owners - and at the same time allowing them to better control the performance and related costs of their Operators - The Hotel Management Company.

For the Business - it would have allowed us to grow market share, show empathy with our clients, and be assured of a recurring revenue model over a long-term contract.

Sadly, it never got off the ground - Why?

Well, after making a detailed business case and presenting it to my Line Manager at the time, it was rejected on the basis that "we were not setup like a mobile phone company, and were more in the business of generating License fees, and not recurring revenue..."

You can only imagine how I felt then, and the grudge I still bear up until now at this shortsightedness. I actually think this decision was more personal in nature - being made on the basis of personal compensation for achieved targets. Not recognizing License fee revenue under the traditional model, would have meant a decrease in personal earnings - again, how grossly shortsighted was that?

Why do I raise this now?
Moving to The Cloud exhibits several similarities to the PAYS model I conceived back in 1997, and the business models some providers are now putting in place today.

In fact, because of The Cloud, many new tech terms have entered our daily vocabulary - and here are three more you should get to know:

1. SaaS - Software as a Service
2. IaaS - Infrastructure as a Service
3. PaaS - Platform as a Service

SaaS - Software as a Service
This removes the need to own software - you just pay for it as you use it - a kind of demand-based billing - a utility.

IaaS - Infrastructure as a Service
This is where you place your systems in to DC - and pay rental for the associated services.

PaaS - Platform as a Service
Mostly used by Developers - these are development systems for creating Applications.

Moving Forwards
Now you know these systems will be outside of your physical property and handled by others - potentially, you will surrender some direct day-to-day control over them, and you will likely be concerned over the following business issues:

• Data Security and Ownership
• Reliability and Availability of the system
• Day-to-Day Management of the system
• Costs for this service

Data Security and Ownership
Let's not fool ourselves - all systems and therefore by default - data, are vulnerable to attack. Being off-site does not necessarily change this critical fact and suitable precautions need to be put into place. There are as many experts out there to advise on this, as there are un-desirables lurking in the shadows waiting to pounce on your systems and steal the data, which includes the private transactional information of your clients.

Also to be considered are jurisdictional rules about data transfer cross-border (Data Protection Act) and local data privacy issues. Add to these concerns over ownership of the data - and (long-term) Hotel Management Contracts will have to be amended in order that this issue is fully transparent to all parties - Owner and Operator. Oh yes, don't also forget Incentive agreements based on amended Opex costs and ultimate profitability.

It's often a sticky issue that when a brand pulls out of a property - who actually owns the data held on the systems? This was an issue when systems were on-property, and now with them going off-property, the data may have to be extracted from a Central system, or cluster of systems, and repatriated in-house. Lawyers will love this conundrum and be more than happy to charge for their services.

Reliability and Availability
When you have your Systems (Computers) on-property you will have a natural sense of security that if something untoward happens, like a power failure, data corruption or hardware crash, your local IT Team can jump in and hopefully quickly, and painlessly fix it. With Cloud based systems - that particular feeling will be traded off to others to handle - and you are at their mercy. Likely, contrasting to your local trained and managed team - they will not be Hoteliers (in mindset) - but technicians without that unique embedded Hospitality service culture you so painfully try to embed into employees.

Sure, Data Centers/Hosting Companies will give you all the assurances in the world - but what do you do when a Guest is in the Lobby and you can't print a folio, or check them into a room or unlock various services because your Internet connection is down, or 'something' has happened at the Data Center.

I'm not so naive to know that similar circumstances can't happen even with on-property based systems, but a quick walk to the Computer Room will allow you to see at first hand with your very own eyes the people trying to fix the particular issue - rather than frustratingly deal with them over a phone line - wherever they may be (different time zone), and in whatever language they speak. Trust issues may ensue.
Business Continuity plans must be put into effect to mitigate these issues, when they occur. It's not a matter of if they will occur, because - it's just knowing that when they occur, that they can be dealt with swiftly and efficiently to allow you to continue your business and Guest Services in line with your Customer Service Guarantees.

Look very very carefully at the Terms and Conditions of your SLA (Service Level Agreement) - focus on the Service, Support and QOS (Quality of Service) these offer and compensation when they fail. Having a compensation of US$200 per hour that the system is not available is ludicrous, and more trouble to you than benefit, especially when running high occupancy, or when Guest Service and your business reputation is affected.
Not only do you need to concern yourself over the availability of the System in the Data Center (Cloud), but also how you connect to it - the Internet, and the relevant costs.

In some countries, the cost of Internet connectivity is prohibitive, and on top of that notoriously unreliable. If you have to spend many thousands of US$ per month just for this connection, then the value proposition does not make good business sense - even if Corporate mandates, since your bottom line and profitability - owner returns, will be severely affected. Perhaps that's why many of these Cloud based initiatives have sprung up from developed geographies (like USA and Europe) where Internet connectivity is both stable and affordable.

Consider also what can happen if there is a natural disaster, and Internet connectivity is lost such as an undersea cable gets cut, a Typhoon knocks out power, or your Local Government decides at a whim to turn-off the Internet. How will you operate then?

Day-to-Day Management
With systems now being off-property, the traditional model of system management will change to one that is handled by others. Likely you will downsize your local IT team, and hand-off this responsibility either to a Team managing the DC, your Corporate IT team (via a Help Desk), or directly to a vendor if they are operating a SaaS model.

Changes to the system like rates, menu prices, codes, users etc., will be processed via The Center and your request placed in a job queue along with others from your company. Prioritization will take place based on severity, with system faults escalating to the top of the queue, and others falling behind. A Server failure will always carry a higher priority than changing a menu price.

Possibly, there will be different teams to handle different types of requests, depending on how the Center is managed and how large is the enterprise and Team.

Some of these activities have been around for a while, and have seen the Operation fighting with IT over prioritization and alignment with service levels...

Costs
As mentioned earlier, Cloud based computing models will see a paradigm shift in the way these systems are paid for.

Under the traditional model, the Owner of your property will pay for all Hardware and Software, including Infrastructure (Capex). Service fees then fall under Opex.

Under the Cloud-centric model, the Owner still pays for on-property hardware and software, but this is now much reduced since the Servers and Applications will be off-property. Computer rooms are scaled down in size and complexity, as could be the network infrastructure.

But who pays for the DC? You will of course - the Business, and out of Opex. OUCH!

Since it's unlikely that the majority of Hotel Groups will build and setup their own DC's, they will opt for the Grey version - Hosted Models, defraying costs across the Enterprise using some kind of pro-rated financial model. This equation will be company specific, and I'm not even going to speculate as to how this be sliced and diced, but suffice to say - you will be paying for it - and it will be a Cost Center - appearing as a recurring expense somewhere on your Financial Statement.

Now YOU know a bit more about The Cloud, what type of Hotel Systems do we see moving to The Cloud?
Short answer: All, however, let's note some current favorites;

• PMS
• HR
• Sales and Catering
• Revenue Management and Optimization
• CRM
• Accounting to include Payroll
• Menu and Recipe Engineering
• Telephone (PABX)
• Telephone Call accounting and Voicemail
• ERP (Enterprise Resource Planning)
• IPTV to include content
• Service Tracking/Service Optimization
• Spa & Leisure
• Point of Sale
• Office Applications (such as Email and Microsoft Office)
• Access control
• Guest Internet access authentication

From a Vendor and Technologist perspective, virtually all Hotel based systems are destined to move to The Cloud.

What should be my Game Plan from here?
Firstly, you need to mitigate risk. A Hotel in its entirety is a mission-critical operation, and really cannot afford for any of the working parts to go down or fail. As a well oiled machine the fact that the sum of its parts make up the business as a whole - the Guest Experience, means that if one of the systems fail, much the same as could happen if they were on-property, you need to know how to efficiently function without it.

Being off-site, and having a single connection to all of them via the Internet, logically means that the likelihood of some kind of failure is increased - so a well thought through Business Continuity plan is essential.

Secondly, you need to understand that there will be a cost, financially and operationally. Expenses move from Capex to Opex and all concerned need to be aware of the ramifications.

Thirdly, know that support and system management is now out of your-day-to-day control, and some would argue placed into the hands of experts, who are more adept at managing and fixing those systems. Those experts will also take care of upgrades and system patching, which were often burdensome to the operation.

The train has left the station as far as moving to The Cloud is concerned. But I predict Hotels will not go 100% into The Cloud - some systems and services will be left on-property - this due to cost, security and practicality.
And to echo this thought - I recall hearing someone recently say, "The Cloud is for everyone - not for everything", and I agree with this wholeheartedly.

Do YOU?

What was your takeaway from HITEC 2011?

For those of your unfamiliar with HITEC, it is the leading hospitality technology show, which takes place annually in the US, and in recent years, has expanded to Europe and Asia via sibling events - EHTEC and AHTEC. And what I enjoy the most during these events is speculating what was the take away by the thousands of attendees and exhibitors of this event - or what we term ROI - for the  time and money spent in taking part in the show. For example, with all the variety of technologies on display, was it an eye opener? Were there rich pickings to be had from the numerous education and great keynote sessions?  Or did the show provide fantastic networking opportunities in casual meetings along the show aisles and rest areas, or the very well attended after-show social events (a.k.a. physical social networking ) or the very selective invites to intimate vendor briefings held on the quiet in hotel suites? Whatever the circumstances, when I make my annual pilgrimage to HITEC - and I've been doing so since early 2000 (not nearly as long as some of those regulars and Hall of Famers), I try to establish a personal connection each year to this event by identifying an underlying theme - a specific technology that is being heavily promoted by either a group of Exhibitors, or the many education sessions to help gain a better appreciation of trends in the market. HITEC ran for four days and was packed to the gills, presenting a number of opportunities to learn, explore, network and benefit from the attendees and vendors who came together in Austin, Texas (home of HFTP the Producers of HITEC) in order to show off their wares and generously share abundant amounts of product and industry knowledge. And unless you were sequestered in your hotel room sheltering from the sweltering Texas heat, or spent all day at the malls and all night enjoying the world famous music scene, then for sure, you must have learnt something about Hotel TECH. Without doubt, this year's HITEC had shown the industry is firmly in recovery mode, and appears to be as optimistic and buoyant about the future as it ever was. This sentiment was echoed by several Exhibitors and Attendees. I was also encouraged by the attendance from my neck of the woods - Asia - up over previous years.  Finally many Exhibitors have woken up to the potential of the region - so hopefully I will see some of them @AHTEC 2.0 .... Booths ranged from small to big and the after-show parties corroborated the fact that budgets were back from the doldrums and some I hear, even continued into the wee hours of the following morning. I was delighted that CIO's from many of the global hotel chains were in attendance, and only feedback from Exhibitors can conclusively prove if they were in buying or window-shopping mode. Regardless of that, it was great that they set time aside from their hectic schedules to attend, and on a purely personal level, excellent for me to have had the opportunity to catch up with some of them and participate in a few outstanding mind-sharing sessions. Like all trade shows, it's easy to get drawn and sucked into the glitz and sheer size of the big-boy stands that mostly take center stage or are strategically located by the entrance doors to attract the walk-in traffic. But IMHO, I think the real innovation comes from the small guys on the periphery. These are the people with the entrepreneurial spirit who have grown up from their kitchen tables, garages or college dorms and had the creativity and drive to deliver something new, and hopefully one day, when their product or service reaches the right level of adoption and maturity - springboard to 'something'  big and significant. This group have likely borrowed, scraped, burned the candle at both ends and risked all, to deliver 'something' new and innovative to the industry - and I seriously applaud them for their tenacity in trying to break into this space. These all too common scenarios are indicative of the thrilling tech world we now live in - and when you look at some of those mega successful companies, it's exactly the route they took when they first started out. I truly hope they got the kind of ROI they sought. So what was on show - what was new and exciting at HITEC - and was there an underlying theme? Ask twenty different people, and I'm sure you will get twenty different answers, but in my case - let me tell you what I thought. I would say there were six prominent technologies on display, or being promoted/discussed at the education/keynote sessions: 1.    Social Networking 2.    High Definition 3.    The Cloud 4.    Mobility 5.    Connectivity 6.    Security These items were conspicuous at HITEC - either as products or services, and became high-profile subjects for Keynotes and Education sessions. And when you read the HITEC related BLOGs and various news reports that have so far hit the trade media, you will note that in most cases, they have been separately highlighted. Therefore, as part of my observation, I believe there was an unintentional common denominator a simple link that glued all these together - The Internet.  Surprised? How did I arrive at this conclusion? Quite simple, really. All of the above - just like in our daily lives - touches the Internet in one-way or another. Social Networking totally revolves around the Internet - just look at Facebook, Twitter, BLOGs, Linkedin, TripAdvisor, Groupon and the OTAs. And the so-called Cloud could not have been formed without it let alone Managed, Hosted, Above-property, and hosted / location based services. Let's also not overlook the recent concept of Crowdsourcing.  Mobility for the most part requires Internet connectivity - even ubiquitous Wi-Fi can be loosely considered as the Internet especially since it's the mainstream transport mechanism to the internet along with the various G type networks (2,3,4), and as Guest's carry more and more (connected) devices and bring their own content - mostly derived from Internet services like iTunes, they then want to connect those devices to in-hotel services like the flat screen TV you have so kindly provisioned for them. They regularly by-pass Hotel provided PPV services to enjoy High Definition content derived from the Internet (where the industry continues to struggle over the Free or Fee based model) whether it's Netflix, Hulu, Slingbox or You Tube (the planets most popular source of video) - this even more so as SMART and Connected TVs become mainstream. And when it comes to making phone calls, they (the Guest) gladly circumvent your phone system and use more cost effective Cloud services like Skype. And to capitalize from the guest's expense of buying these devices and increase so-called guest convenience, some Hotels are trying to use these gizmos to open Guestroom doors by using Bluetooth or playing musical tones. The only remaining item from the list is likely to be the biggest - Security. This must be the greatest concern of CIO's and can often be felt as some temporarily change their titles to CISO's (Chief Information Security Officer) in order to deal with those issues - mostly brought about through Internet connectivity and the ensuing exposure to an ever increasing criminal element. I would even go as far as to speculate that this keeps them awake at night. I don't need to tell you that nearly everything we do (tech associated) relies on the Internet, and the (Hospitality) industry continues to grapple with ways at how best to come to terms with its sheer power and enormity. We constantly use the Internet in our daily personal lives - whether it's for information gathering, social networking, financial transactions, communicating and collaborating with friends and family, or getting multimedia content. It's a great part of it - and it isn't going away. And in our professional lives, the likelihood of survival without it is both infinitesimal and unthinkable. Want a comparison? It's like when Man first discovered the Solar System and sent out exploratory missions to see just how far and wide one could travel - and no one knew just how far you could go, and what it contained - dare I say the Internet is very similar? Everyday, we find different ways to use it, many for legitimate reasons, some nefarious. It's a real life Pandora's box, and now we've firmly opened it, we have to find acceptable ways to live with it, and maximize it's potential. We cannot put the lid back and so I often wonder if it has a use by date, or if there is a Big Bang waiting for us at the end... HITEC 2011 was a glimpse into the fascinating yet scary Cyberworld that awaits us all. Go Netizens! P.S. HITEC 2012 will take place in Baltimore, Maryland from June 25 - 28, at the Baltimore Convention Center (c) Terence Ronson ISHC

DO's and DON'Ts of Hotel Technology v3.0

Since we are firmly into the season of Hotel Technology Conferences and Exhibitions, I believe it's the perfect opportunity to update and re-issue our ever popular Do's and Don'ts of Hotel Technology.

Due to various advances in technology, and general adoption of certain platforms and practices, the list now includes over 100 reference items - almost double since V1.

Not all may apply to your particular business, but they should prove a good reminder as to how important this area is, and just how much it can negatively impact the customer experience and of course your bottom line, if implemented incorrectly.

DO...

1. Use digital signage instead of printed posters
2. Put some free bottles of water in the mini bar so that they are nice and cool
3. Check all the peep holes on guest room doors to make sure they are secure and the right way round
4. Mount irons on wall brackets in closets instead of placing them on the floor or shelves
5. Clearly display broadband charges, if your hotel has any
6. Make it easy to switch off all lights in the guestroom from the bed - especially the bathroom lights
7. Make it easy to plug in a hairdryer, shaver, or electric toothbrush in the bathroom
8. Make the lighting in the bathroom bright enough for doing makeup
9. Have an illuminated make-up mirror in the bathroom
10. Have power sockets easily available for guest-use in public areas, especially Lounges, Dining areas and Poolside - also have adaptors handy
11. Have an emergency torch/flashlight in the guest room
12. Offer free boarding pass printing in Business centers
13. Provide Apple computers in the business center, and not just Window's PC's
14. Have an Apple Notebook power adaptor available for a guest to borrow in case they accidentally forget theirs at home. same applies to iPhone/iPod and Blackberries
15. Use wireless mice at the Front Desk
16. Have a smartphone compliant version of your hotel datafile available for download on your website
17. Work with your system providers so that they produce eForms and not printed reports - especially Registration cards and Folios
18. Make sure excess power and data cables are neatly tied, or cut to the right length. If that is not possible - cover them somehow
19. Have a simple but easy to read digital clock in the bathroom
20. Encourage staff to bring laptops or Tablets to meetings and use them for note taking and not use paper pads
21. Have easily accessible power sockets in Meeting rooms as more and more people bring tech with them and need power
22. Have plenty of power sockets by the guestroom desk, or if not possible, place a small power bar in the desk drawer complete with adaptor
23. Have a CD/DVD/Blu-Ray lending library if you have such a player in the guestroom
24. Have your Concierge know where is the Apple Service Center and also other popular brands like IBM, DELL, Lenovo, Asus, Samsung and Blackberry
25. Have a person or system to monitor social networking sites for mentions about your hotel
26. Have competent front line staff on-property who can deal with Guest TECH queries - make sure they have the requisite social and interpersonal skills as well
27. Monitor what is written about your Hotel on Social networking sites like Trip Advisor
28. Have easily accessible empty power sockets at the LEFT and RIGHT side of the bed - for Guest use only - a USB power socket is a good addition
29. Realize that when you buy technology - you need a support agreement as well - and this often doubles the Tech cost over 5 years
30. Put a notice on your HSIA sign-up screen that your government may block access to certain websites and internet services if they apply to you. Have your IT People know how to workaround this if the Guest asks
31. Check your TV channel reception from time to time and make sure it's nice and clear
32. Make sure the electronic door lock on the guest room door closes quickly when the door shuts
33. Check the speed, noise and effectiveness of the aircon fan coil in the guest room
34. Print your IM address on your Business card like a Skype ID
35. Put an internet browsing station in the Staff Canteen for Staff to check email during breaks
36. Encourage your Guests to also perform a virtual Check-in to such sites as Facebook and Foursquare when they physically Check-in to your establishment
37. Get your technology vendors to update you twice a year on their roadmap
38. Add CCTV cameras inside your Data Center - one that is directed to the server racks and the other, to the entrance door
39. Remember that guest's trust their mobile phones to wake them up - more than they do your wake-up call service
40. Perform regular complete system backups and store them off-site
41. Consider placing a 'dock extender' cable into the cable pack that you may be placing in your rooms so that a Guest can connect an iPad to the iPod/iPhone dock you are providing
42. Have staff who do in-room check-in, offer to help guests connect their computer to the HSIA/Wi-Fi as well as make them an Espresso if you have such a machine in the room
43. Allow guest's to tailor make their fruit basket if you plan to give them one - not everyone likes green apples and pears - same goes for turndown amenity - not everyone wants or can eat chocolates
44. Offer ePostcards from your website
45. Have a shelf in the toilet cubicle where guest's can place their mobile phone/PDA and maybe a book
46. Work in your own guestroom from time to time and see how comfortable and practical it is - especially the height of the chair in relation to the desk
47. Use a bio-metric reader or PIN pad for staff entrance/egress that is linked to the Time and Attendance/Payroll System
48. Make sure the light inside the wardrobe does switch off when the door is closed
49. Consider [carefully] about moving some of your IT Services to the Cloud - make sure you fully understand the small print on the SLA (Service level Agreement) about 'uptime', 'data ownership' and 'migration' from property based systems
50. Make sure your room safe is bolted down to a floor or wall and cannot be easily removed
51. Monitor the TV volume in the guest room so that it can go down very low and not too high. Some guests like to leave the TV on all night but at a very low background volume
52. Have a very low nightlight in the bathroom/toilet
53. Deploy the very best cabling backbone you can
54. Allow Guests of Residential Conferences to use the same LOGIN ID and Password that they use in the Guestroom for access to the WI-FI in the Meeting Room - don't make them pay twice
55. Encourage Guests to communicate with your Hotel through popular Social Networking sites such as Facebook and Twitter
56. Have air-conditioning auto cut-off in the Guest room if balcony doors are left open
57. Consider using Motion/Presence detectors rather than key cards to control energy in-room
58. Check from time to time in-the-floor power sockets - the metal type which are supposed to lift up when the clip if flicked - most often they stick after a while having been covered with floor polish and dust
59. Talk to your HSIA/Wi-Fi provider about 'roaming agreements' and having pass-thru services to such membership services as Boingo and iPass
60. Consider having a secure place where Guests can deposit their valuables and gadgets at the poolside or beach if they want to take a dip
61. Have Wi-Fi at the poolside and Beach
62. Test your magnetic key cards to see if they de-magnetize when placed next to a mobile phone
63. Encourage Guest contact staff to attach VCF files in emails
64. Consider using QR codes on your printed materials
65. Put your Hotel onto Skype and encourage that as a method of communication with Guests
66. Recycle used laser toner cartridges
67. Think about installing a 3G mobile hotspot in the Airport Limo so the Guest can use the service to/from the airport
68. Have your IT team join such organizations as HFTP and HTNG so that they keep up to date with Hotel Technology - you should also sponsr them as well as have them attend various Conferences and Exhibitions

DO NOT...

1. Use Walkie Talkies in public areas without issuing staff with discreet ear pieces
2. Deploy connectivity aux or connectivity panels without having in-room cable kits
3. Put a bedside clock that makes a ticking sound
4. Charge for local phone calls unless you really have to
5. Make it difficult to use a mouse on the Guest Room desk by using one with a glass surface - put a mouse mat in the drawer
6. Automatically do dynamic currency conversion on credit card transactions - have the customer approve in advance
7. Charge exorbitant rates for printing in the business center
8. Issue replacement room keys without first seeing a valid photo ID
9. Allow staff to use thumb drives in work computers
10. Print reports - circulate PDF versions only
11. Send faxes when you can send PDFs with emails
12. Use worn out ribbons on printers - especially Point of Sale printers in F&B outlets
13. Assume your backup power generator will auto-start if there is a mains power failure. Test it
14. Print folios - email them
15. Use paper registration cards - use electronic ones
16. Install both wired and wireless internet in your Guest Rooms when doing a new installation. Just having Wi-Fi is acceptable by most people and will save you money
17. Assume all guests use an iPod, iPhone or iPad - believe it or not, there are other successful products in the marketplace
18. Put "last updated..." on your website if you don't do it frequently
19. Put the number of visitors to your website - no one really cares
20. Put a chair at the desk which is difficult to pull out or is uncomfortable to sit in - even if it looks nice
21. Just limit guests to connect two items to the Wi-Fi in the guestroom - often guests carry many more devices, especially if a couple are staying and with kids
22. Clutter the desk with collaterals and printed materials - make them digital and multi-lingual - e.g. in Chinese
23. Just believe that by putting loads of technology into your hotel that the guest experience will be enhanced or that the guest will appreciate it
24. Place a loudspeaker in the bathroom unless it has a volume control and the sound quality is good
25. Just rely on the technology to operate your business - it will fail and at the worst possible time. Make sure you have a contingency plan in place for ALL systems and test it periodically
26. Change any configuration on a guest's computer unless they ABSOLUTELY agree and you have a written record of the changes made
27. Have multiple phones in the Guest room unless your really need to
28. Allow iPods, MP3 players or similar devices in the workplace to be connected to your computers
29. Print anything - only have electronic versions of all your collaterals
30. Make it complicated for guests to use your technology - they may only stay one night and have no time to learn how to use all the gadgets
31. Overcharge for IDD calls - see if you can connect your PBX to a VOIN (Voice over Internet) service to reduce the calling costs
32. Lend guest's headsets in the gym unless they have been pre-sterilized
33. Allow social networking connections on workplace computers unless it's for work
34. Have water pipes inside your computer room or data center
35. Just have a single cooling source for your Data Center - have a backup
36. Have so many TV channels that it's difficult for the guest to quickly access what they really want to watch and make sure then it's re-switched on, it goes back to the last channel watched and only re-sets upon check-out
37. Put a CD/DVD/Blu-Ray player in the Guest room unless there is already a disc inside for the guest to quickly listen to or watch
38. Operate a 1-button Call Center unless the staff who take the call are full trained to handle ALL queries
39. Put a 4-in-1 copier/scanner/printer/fax machine in the guestroom with just 2 or 3 sheets of paper inside for the guest to print on - include at least 20 sheets
40. Use a cloud printing service to the in-room printer you are providing - some guests are bound by company confidentiality policies not to send data outside of their network and so cannot use such services, even if they are hosted by a reputable company - just add a USB cable
41. Have electronic curtains/drapes unless they can be opened/closed from the bed as well as via a wall switch
42. Put a hairdryer in the bathroom that is underpowered - and don't hide it
43. Put a reading lamp at the bed which is so powerful and direct that it can burn your Guest's forehead
44. Adjust the temperature in the Guestroom if the guest sets it at a certain level. Only reset it upon check-out.
45. Use Flash on your website unless you really have to - not all popular Smartphones or Tablets can handle Flash
46. Only put a keycard reader on one side of the elevator car if you have floor call buttons on both sides. And from time to time, check they both work
47. Install an LCD TV in such a away that the Guest cannot access the connectivity ports and by doing so, they can directly connect their own devices for playback
48. Create an app for your Hotel just for the sake of it - and all it does is make reservations. Let it be informative about your property and a guide to all the various services and amenities you provide. It will after all be be your Shop window in the palm of someone's hand and directly reflect your brand values.

(c) Terence Ronson ISHC