HOTEL BUSINESS REVIEW

May FOCUS: Hotel Wi-Fi

 
May, 2012

Hotel Wi-Fi : The Biggest Challenges

Wireless Internet is changing the way business gets done in the hotel industry. There's a tremendous demand for wireless access - for overnight guests and even for conferences and trade shows where video streaming, audio streaming and voice-over-IP are all competing for the same Internet pipe. It's not just for email and web surfing anymore. Wireless has also created new ways for hotels to connect with their guests to generate loyalty. Wi-Fi has become a standard amenity. It's becoming a determining factor on where guests choose to stay. But few guests would say they're happy with the current sign-up and security concerns of hotel Wi-Fi. With mobile media hitting the mainstream, hotels are eager to find affordable and non-disruptive solutions to meet guest demand for reliable, consistent in-building cellular coverage. The May Hotel Business Review will focus on these challenges, and will explore unique solutions hoteliers are doing to capitalize on hotel wi-fi.

This month's feature articles...

Bill Cune

Only a few years ago, hotels offered Wi-Fi as a differentiating perk to attract guests. Now as common as complimentary bars of soap and extra towels, hotel Wi-Fi leaves a lot to be desired, as guests frequently complain about slow data speeds and lack of coverage. As a result, more and more guests are turning to next-generation cellular services like 4G LTE to sate their demand for data, abandoning hotel Wi-Fi altogether. But hotels aren't built to support 4G, meaning that hoteliers are facing potentially substantial upgrades to infrastructure to meet the needs of guests, and won't see a dime in return from cellular carriers. But, is guest satisfaction worth the outlay? READ MORE

Ted  Horner

There are in my opinion 7 key technology trends that are going to impact on hotels in 2012. The iPad and its popularity as a consumer device is going to fundamentally change the in room guest technology experience. Mobile devices are now part of our everyday life and hotels need to ensure they have the technology for guests to access all there services The time for Cloud Computing whereby systems are hosted off premise has arrived. Social Media - how do hotels harness the power of it? With the fall in phones revenues hosted PBX is the future. Energy Management is increasingly important as the cost of power rises. Lighting and the choice of lights will impact on a hotels power bill. READ MORE

Jason Guest

Long gone are the days when wireless Internet was simply a perk for guests using Wi-Fi for email. Today streaming HD video, voice-over-IP (VoIP), wireless gaming consoles and more are competing for that same bandwidth pipe. This presents a tremendous opportunity for hotels to leverage themselves as the tech-savvy choice for the connected guest. Hotel management can leverage wireless, too, with mobile billing and other services to streamline processes. In this article Jason Guest, Account Manager, Aptilo Networks provides an overview of these next-gen services and discusses how to implement and manage a future-proofed network to support advanced services now and in the future. READ MORE

Terence Ronson

As mentioned in a previous article, prior to the birth of IOS (Apple's operating system), truthfully, we only scratched the surface and played around with implementing Wi-Fi in Hotels. But now, four years later with millions and millions of IOS devices in the hands of millions and millions of our loving guests, this has become the most disruptive of technologies in the modern era. That along with the creation of the smartphone and its Big Brother - the TAB - where there are sales predictions of 153 million units next year, and climbing to 232 million by 2016. This has set loose a tsunami of unparalleled demand - for a strangely invisible service! No wonder CIO's call Wi-Fi a four-letter word. For the sake of repeating myself, today's Hotel Wi-Fi network (and more critically tomorrow's) is one of the principal areas in which your hotel will be judged. READ MORE

Roger Crellin

Much to the chagrin of property owners, free WiFi has become a guest expectation rather than a perk. Since the free WiFi model was introduced, hotel operators have faced the rapid adoption of bandwidth-hungry mobile devices such as tablets and smartphones. Not only do guests expect free WiFi, but they also expect ease of use and constant connectivity, similar to what they experience at home. What was once a means to improve satisfaction and engender loyalty, free WiFi that underperforms can actually have the opposite effect, causing dissatisfaction and frustration with a property that doesn't provide a positive experience. READ MORE

Alan Lindquist

Hotels are overlooking the revenue opportunity of Wi-Fi. Yesterday's Wi-Fi was about minimum bandwidth for limited data devices. But today's companies need to book employee groups into hotels with sufficient bandwidth as access to data is now mission-critical. Hotels have an opportunity to charge these guests for premium speed offerings for added revenue. Additionally, current technology allows hotels to scale their bandwidth up when needed. Fast data speeds provide hotels with a compelling reason for groups to book at their hotel, and these groups are willing to pay a premium for this premium speed. Wi-Fi - it's the new revenue stream. READ MORE

Jeremy Rock

Wireless Internet is changing the way business gets done in the hotel industry. There's a tremendous demand for wireless access - for overnight guests and even for conferences and trade shows where video streaming, audio streaming and voice-over-IP are all competing for the same Internet pipe. It's not just for email and web surfing anymore. Wireless has also created new ways for hotels to connect with their guests to generate loyalty. Wi-Fi has become a standard amenity. It's becoming a determining factor on where guests choose to stay. But few guests would say they're happy with the current sign-up and security concerns of hotel Wi-Fi. With mobile media hitting the mainstream, hotels are eager to find affordable and non-disruptive solutions to meet guest demand for reliable, consistent in-building cellular coverage. READ MORE

Ian  Millar

For many months now the internet has not been one of the nicest places to exist. From the actions of anonymous, to the implementation of SOPA (Stop Online Piracy Acts) implemented by U.S representative Lamar S. Smith, the work of the movement Antisec, and even NASA admitted early this month that Hackers gained "full functional control" of key Nasa computers in 2011, which unsurprisingly came form Chinese IP addresses. Mr Martin of NASA outlined how the agency suffered "5,408 computer security incidents" between 2010 and 2011. READ MORE

Colby Goff

Over the last five years, the wireless data world experienced fundamental changes that shifted the focus of Wi-Fi network operators from a niche market of laptop users to a mainstream base of smartphone users. The proliferation of devices and the explosion of data intensive apps have placed increasing pressure on Wi-Fi networks to support the digital lifestyle of a larger audience. This market growth is accompanied by a rise in security exploits and an increase in requests for information from government agencies. The newest opportunity in this landscape - 3G/4G data offload - presents a revenue opportunity that offsets increased operating costs and capital improvements required. READ MORE

Craig Ziegler

Ten to fifteen years ago, the need for Wi-Fi connectivity in a hotel was based on the guests' needs for basic data and voice transfer. Today, multiple technologies are converging thus creating a major stress point on bandwidth allocation. Bandwidth that was once more than sufficient is no longer efficient. With the ever- increasing demand for bandwidth via guests' personal devices and desire for video transmission, hotels must analyze the metrics between costs and ROI. The debate now becomes… does the hotel offer it free of charge, thus "eating the cost for the increased demand", or do hotels create incremental revenue through various streams to help cover the cost increase in bandwidth to deliver this content? And, if the hotel wants to increase its revenue streams, in what unique ways can it be supplemented? READ MORE

David Heckaman

As you're reading this article Apple will have just released their 3rd generation of iPad tablets. This device will be offered, for the first time, with an option for mobile wireless utilizing 4G LTE service from the major North American cellular providers. The reason that this product release is so important is that it will be the first major product in a new wave of devices that may dramatically impact your ability to deliver the same level of service that the guest receives outside your building within the walls of your hotel. Later in 2012 the iPhone 5 will be released also with LTE and the impact will be hard to forecast. This is just the beginning... READ MORE

Larry  Mogelonsky

I recently stayed at one of Beverly Hills finest properties. Nothing could be finer. The service levels were exceptional and the decor flawless. At six hundred bucks a night for their standard type room (their lowest price), you would expect a high degree of perfection. So, what do you think the WiFi performance would be like? The answer: two-tier. Management's approach in acquiescing to the free WiFi demand is to offer a low-level complimentary service and real WiFi at $19.95 per day. Certainly the free WiFI offered enough bandwidth to undertake text email, but any web site was rendered in slow motion. Upon reflection, I felt this compromise to be inconsistent with 5-star/5-diamond service level. If the true test of service is anticipating guest needs and ensuring that these needs are fulfilled, this stop-gap effort leaves a negative impression. READ MORE

Peter Engel

In addition to enabling guests with fast and easy access to Wi-Fi, hoteliers are now using this same technology to improve how they provide other services to these same customers. Emerging wireless technology solutions can enable hotels to improve staff communication and operational efficiency, leading to a boost in overall guest satisfaction. Through enhancing Wi-Fi access points and providing wireless technology devices to associates, hotels can improve the check-in process, decrease the time it takes to respond to customer requests and reduce staffing requirements, while obtaining operational data for performance measurement and continuous improvement. READ MORE

Vanessa  Horwell

If mobile devices are considered handheld cultural and technological battering rams, trampling steadfast beliefs governing communications, transactions and shopping, then hotels are modern castles. Sometimes criticized as being fortresses against change, there's growing signs from all industries that mobile is marching onward, helping cement a new kind of special relationship with the entire travel industry. Considering that hotels are often end destinations for such travel, hoteliers would be wise adopting mobile's message, learning from the past. Mobile is where guests are going and hotels need to be dialed in for continued success. READ MORE

Eric Rahe

The need for more meeting space seems counterintuitive. The ability to meet and connect outside of a defined venue grew exponentially while the supply of meeting space stagnated over the last three years. And yet, many conference centers, resorts, and hotels are reporting that they do not have the meeting space that event planners and the like need to host their meetings and conferences. Creating non-traditional meeting space and location may be one of the most promising opportunities in developing or renovating meeting and conference space. But first, we must understand how consumers are redefining value in terms of meeting venues. Architect Eric M. Rahe, AIA, LEED AP, explores these issues and offers some best practices for meeting the demand for meeting space. READ MORE

Jane Segerberg

How would you rate your spa's service Mojo? Often it is expected that the spa, by its own nature, will organically produce high service levels. However, the intricate guest journey through the spa begs for a better focus on service expectations. Does your spa's service Mojo exemplify the Spa Industry? Is it on the cutting edge of caring for guests so that they can completely and totally relax and feel cared for? READ MORE

Marc Glasser

Helpful interviewing and information gathering techniques can be vital to inquiries of significance to organizational, individual or other concerns. This article discusses information relating to successful interviewing and information gathering as well as challenges that could detract from attaining important information. Article information can be helpful, encompassing the spectrum of casual conversations to formal investigations; however, before conducting workplace interviews consult appropriate organizational representatives. Further, after reading this article, even if one is uncomfortable conducting interviews, the information provided will help in assessing the qualifications and techniques of those being considered to conduct interviews and gather information. READ MORE

Ryan Bifulco

Everyone wants to be famous these days. Maybe that explains the rise of reality TV shows. So don¹t you want your hotel to get in on the act and claim your 15 minutes of fame? One way to feature your property is with Digital PR or electronic public relations. Think of Digital PR just like you would regular PR except you are focusing on electronic media rather than print or TV coverage. So the goal is to get your hotel exposure in ezines, email newsletters, blogs and other online outlets rather than just the NY Times. READ MORE

Paul van Meerendonk

With the world economy better resembling a roller coaster ride, hoteliers need to have an effective pricing strategy to maximise profits, while riding out the ups and downs in the market. Currently transient demand in the US hotel sector is breaking all records, yet subsequent price increases are not keeping pace. Since April 2010 the increase in average daily rates has been growing at half the speed that it dramatically fell, when the full impact of the global financial crisis kicked in September 2008. The European economy is still in turmoil, with daily ups and downs, leaving the direction for the hotel industry hard to predict. If forecasting was easy, all weathermen would be rich. In these erratic and uncertain times, pricing decisions will have one of the biggest impacts on hotel profitability. It is more vital than ever that revenue managers understand industry best practice and the latest supporting technologies to ensure their hotel rooms and services are priced at the right rate regardless of periods of high or low demand. READ MORE

Marky Moore

Hotel owners may look to strategies designed to increase bookings, revamped marketing campaigns or cutting expenses in order to grow their business and see more profits. What many hotel owners don't realize is that undiscovered cash flow may exist within their own property, if they know how to find it. The application of a cost segregation study may significantly reduce the hotel owner's tax liability and provide needed cash flow for other business endeavors. READ MORE

Philip Farina

Luxury properties are wrought with upscale amenities from lavish architecture and furnishings designed to transform your world, exotic foods and ingredients to satisfy even the most squeamish and discerning palates, rare wines and cocktails procured specifically to take guests on a euphoric journey. Even what you smell, what is in the air, has been carefully selected to entice guests to embrace the full experience and pleasure of what the hotel has to offer. Yet with no expense being spared on providing these amenities; the security and safety for guests often falls short. READ MORE

Todd Walter

Reduced occupancies. Apprehensive associates. Concerned creditors. All hallmarks of turbulent economic times and issues that we have each been facing during the past year. As business leaders, we directly affect how well our organizations weather the storm through our interactions with the various constituent groups that we rely on, namely our associates, our guests, and our vendors/capital providers. In people-intensive industries like ours, communication and accountability are inevitably critical to our success, and never is this more important than in today's economic climate. READ MORE

Paolo Boni

Today's travelers are choosing hotels that inspire them and effectively articulate why their rooms and amenities are 'worth' the price. But hotel listings on travel sites are typically lackluster and undifferentiated with unclear value propositions. The challenge for hoteliers is this: successfully conveying their hotel's unique value on the sites travel shoppers use to research and compare hotels online. Hoteliers can capitalize on their presence on travel websites by applying online merchandising techniques and using visual content to their advantage. READ MORE

Nelson Migdal

From the looks of it, boutique hotels are popping up everywhere you look. This article addresses the pros and cons of the aftermath of the boutique boom and what lessons might be learned as we move through the current paralysis of the credit markets and the daily operational struggle to both preserve rate and maintain occupancy. This compelling article will assist owners and operators, alike as they carefully analyze this niche of the hotel industry, as well as give you a sense of what to look out for if you are considering owing, operating or investing in a boutique hotel. READ MORE

Gary Cardono

What are performance-based programs and what is right for your hotel? As we all know, utility costs - especially water - are rising faster than any other costs and most budgets already have built-in escalators of 5% - 10% to account for the predicted increase in utility rates. Following the method of performance contractors, hotel owners can now obtain loans based on the “value of future savings.” This strategy is gaining traction and is now being implemented with great regularity in the public sector. This article will look at the return for your hotel to implement a performance-based program. READ MORE

Michelle Millar

As hotels continue to add green services and practices to their operations, hotels guests are taking note. In fact, more than ever, travelers consider themselves environmentally conscious and are seeking hotel products that meet their personal values about protecting the environment. A hotel that provides green services to guests is in line with those same values. Green services may include linen re-use practices, eco-friendly activities, or extensive recycling policies, to name a few. Another growing part of that equation, however, is green amenities in the guest bathroom. Green amenities are now on the top of many hotels' green to-do list. READ MORE

Leslie Glover

To subcontract or to manage hotel spa operations in-house is a question that most hoteliers will ask themselves. Knowledgeable hoteliers realize that in order to be competitive their hotel must have a spa and offer spa services, but unfortunately many often look for the easy way out. For the most part, hoteliers do not fully understand spas or their management which in many cases leads to their choosing to subcontract. There are primarily two types of subcontracting for spas today. Both types will be identified and the positives and negatives outlined. READ MORE

Cindy Woudenberg

Establishing a powerful online presence is a must for every business today, especially in the hotel industry. Developing even the most incredible website is not enough to generate or increase your business. Using a well thought out link building strategy can provide the necessary visibility for your site by providing more places for searchers to find your hotel property across the web, and boosting your search engine rankings so your prospective customers find you. Relevancy is the key to establishing a good link building strategy and establishing positioning in the Internet. READ MORE

Hillary  Bressler

Since Google Earth launched, millions of Internet users have traveled the globe in search of everything from Mount Kilimanjaro to their childhood homes, all from the comfort of their own computers. But, this popular satellite-based application is far more than a way to pass the time at work. When integrated into a website, Google Earth is a powerful tool that can boost Search Engine Optimization (SEO) and support the overall marketing strategy. READ MORE

Judy Singer

It amazes me that spas have been "allowed" to be "lazy assets," but now, as a response to the challenging economy, there is a necessity and sense of urgency to focus on how spas can be profitable business ventures. Developers, investors, asset managers, hotel/resort operators and directors of finance are carefully examining every department within their lodging establishment with an eye on how to deliver the spa experience in an economically logical way so the spa is profitable. As a result of careful scrutiny and due diligence, we are seeing the creation and use of spa-specific business tools to help spas attain higher levels of financial performance and profitability. The following are the key components of my simplistic approach to spa revenue maximization... READ MORE

Kristi White

For years, making decisions in revenue management and, to some extent, hotel management has been ruled by gut instinct. Revenue managers and hotel operations executives frequently justify their rate setting decisions by saying, "I have a feel for the market" or "I know what the market will do." Yet when asked for a concrete example of how they knew this, they usually have no answer. Smooth economic times are behind us and while their return is inevitable, today we must navigate challenging waters. How can you make the move from instinct-driven to data-driven business decisions? Here is a proven a six-step process... READ MORE

Rob Kall

Online travel reviews are nothing new; they have existed in one way or another for over 10 years. Sites without user reviews may become less common over the next few years, as consumers rely more heavily on others' experiences before making a decision. So how can hoteliers take advantage of this growing trend to bring in more business to their property? Easy, include customer reviews directly on your site. This article explains and analyzes the pros and cons of posting consumers' reviews of your property on your own website. READ MORE

Bill  Kotrba

Is pricing in “nines” merely a 20th century pricing technique that has lost its relevance in the 21st century? The answer is like most things… it depends. One thing is certain though: the nice smooth supply/demand curves our economics teachers drew on whiteboards are nothing like real life. I recently met with executives at a large retailer and learned about price elasticity studies they have done in merchandising. The results are very interesting. It turns out price elasticity is not a nice smooth curve… it's lumpy. So how can hotels benefit from this insight? READ MORE

Julia Watson

For hoteliers, there are many variables to consider when trying to decide which is better - acquisition and renovation of an existing hotel or development of a new one? With so much to consider, it can be challenging to decipher which makes more financial sense. Objectively the end goal is to determine which will lead to profitability faster, but how is that determined? With the right plan of action to navigate the decision making process, the difficulty in reaching an educated decision can be greatly reduced. Regardless of your proposed project, there are a series of steps that can simplify the process when deciding to renovate or build. READ MORE

Michael Haynie, SR.

The only way to truly measure a guest's experience in a particular establishment is to record feedback. Allow easy access to comment cards, provide automated calls inquiring a guest's recent stay, and e-mail inquiries post check-out. Expanding on a guest's experience within your property is priceless. The feedback on any particular experience will not only help you to make any necessary changes but positive comments will help boost morale within. Knowledge is power; it also allows you to be proactive rather than reactive to whatever situation may arise. The ability to effectively and efficiently track, record comments will help to bring your establishment to the next level. READ MORE

Drew Rosser

Next Generation Technology: Trendy Term or Actual Practice? Well, it is a trendy term like most trendy marketing terms it is being used to sell something rather than to identify actual practice. Is there Next Generation technology development going on? Absolutely. However, you wont hear too much about it until it's being pushed out in user testing or Beta versions. Anything that is out there now isn't Next Generation it's Now. Make sure you do your due diligence when in the market for technology. Don't get sold on trendy titles. READ MORE

Bryan Green

Customer satisfaction in the hospitality environment can be formed impulsively and is heavily based around guest perception. It's not necessarily what you're truly doing that matters, but more what your guests think you're doing to provide them a high-quality experience. This isn't to imply negligence or deceit, but more to illuminate how the little things can make a big impression. These principles are transferable as they relate to the Fitness amenity. From a commitment to replenishing consumable items, to cost-effective upholstery upgrades, it doesn't take a major budget to keep guests satisfied with your fitness center. READ MORE

Gary Henkin

It is increasingly important to stay up with spa trends in today's highly competitive world. This article will discuss a few of the recent trends permeating the spa industry which reflect consumer expectations and demands. It is clear that concepts, design elements, menu development and pricing must be thought through carefully in order to attract a strong customer base. An emphasis on the importance of sustainability, preventive health, the use of creative promotional techniques and a focus on new spa consumers are but a few of the important trends in the spa business. To ensure that your spa is "cutting edge," stay up with those trends and your spa will prosper. READ MORE

Tom O'Rourke

When hotel owners come to me with questions about signing up for an app, one of their number one questions is “How will this drive revenue?” Hotel mobile applications present the opportunity for hoteliers to increase bookings through numerous functions, but the easiest to use and easiest way to track is through push notifications. READ MORE

Lonnie Giamela

Identifying risk factors in employee defection is critical to preserving the highest quality workforce. Highly valued employees can be poached if employee morale is down, turnover is high and if a hotel does not have a long-term strategic plan that is communicated to employees. An ideal workforce can be maintained through a series of steps including, but not limited to, compensation packages, non-monetary fringe benefits, inclusion of employees into operational decision-making and the offering of management and/or career advancement training. READ MORE

Sara Fedele

Which reasons make a destination worth visiting? Is there a correspondence between how tourists perceive a destination and how the Destination Management Organization (DMO) promotes it? The main purpose of this research is to identify the reasons that make a destination — in this case, the Republic of Malta — worth a visit from the tourists' perspective. The study aims on one side, at recognizing and analyzing the main arguments used by tourists — the demand side — when reporting on their experiences on a specific destination, and on the other side to compare the found arguments with those used by the DMO — the supply side — to promote itself. READ MORE

Jesse Boles

To determine whether or not your mystery shop program is working, ask: Is it based on relevant logic? Does it measure brand delivery? Are my results objective? Can I turn my data into a plan? Can I turn my plan into action? Jesse Boles of FreemanGroup explains how to get the answers to these questions and use your mystery shops to uncover what truly drives guests to return and recommend. Quality assurance inspections and guest comment surveys aren't enough. To measure guest service and brand delivery, you need a well-designed and well-implemented mystery shop program. READ MORE

Junvi Ola

Despite the explosive growth and popularity of social media usage in hospitality, it's the mighty good ol' email that remains one of the most powerful and influential direct marketing tools that a hotel can use. Emails allow hoteliers to engage customers in a personalized and interactive relationship that's mutually beneficial, increase conversions and sell more efficiently. But, to reap those benefits, your email actually needs to be opened and read FIRST. How do you win the right to be recognized and accepted into your customer's overflowing email box? Here are my 7 steadfast copywriting rules to make your hotel emails worth opening. READ MORE

Jeff Slye

Green-Oriented Travelers encompass corporate, group, and individual travelers, all of which are not only interested in 'green' hotels, but now actively seek out and spend money with hotels that have environmental programs. Despite the economic environment, data continues to emerge from 3rd party independent surveys, directly from customers and prospects, and from hotels themselves stating the 'green oriented' traveler market is growing and they are spending more and more money with 'green hotels.' This article will look at these trends, data sources, and case studies and the real business benefits by aligning with the green-oriented traveler. READ MORE

Janine Roberts

The hotel pantry has become a standard at many select service and extended stay brands. Marriott International's highly successful "The Market" and Hilton's well planned "Suite Shop" and "Pantry Pavilion" are not only guest favorites for their quality and convenience - but a revenue generator that adds dollars to a properties Sales Per Occupied Room. Unfortunately, some of the best GM's in the country admittedly know little about retail, so what should be a small gold mine for the hotel often becomes a hard to manage, unprofitable endeavor due to a few easy-to-correct, retail industry mistakes READ MORE

Coming up in March 1970...