Customer Value Beyond Gaming
6/1/2007
Bill Geoghegan
http://www.hospitalityupgrade.com/_magazine/magazine_Detail.asp?ID=111
One trend throughout the Las Vegas casino environment: non-gaming revenue has become a much larger part of the income of a resort. In 2003, non-gaming revenue actually surpassed gaming revenue in southern Nevada for the very first time since the numbers have been kept. This is important and has some serious implications for the gaming industry as a whole. Some casinos and resorts are beginning to see their gaming as a smaller percentage of their gross operating revenue.
Because casino and resort guests are beginning to spend more and more of their money outside of the gaming floors, new methods of information gathering are being devised to assess the value of casino players versus the non-casino players.
Some methods for doing this are as follows:
1. Ask for room key identification as part of the transaction settlement. This is the most straightforward way to go about collecting this information.
2. Another method involves granting points for purchases made throughout the resort. This method is probably the best method for capturing the information without significant cost to the resort/casino.
New methods are currently being developed to help the hospitality industry better gather the information that will tell them where their customer’s money is being spent. RFID tags on room keys are being researched as a possible technology for identifying guests spending habits. Once the data can be captured, determining the transaction’s value to the property in straightforward, but the challenge today is to find out exactly the best method in which to capture the guests’ spending pattern.
I think that it is only a matter of time before there is technology developed that will allow casinos and hotel properties to positively identify a guest's exact spending patters with ease. I think the real question is should guest’s privacy be thrown in the gutter for a few extra dollars. Many guests choose to play game anonymously and would be unhappy if their habits could be tracked easily through the properly without any say as to whether or not they care. Time will tell, but I think that money will be the deciding factor; that and technology available that will allow properties to implement and track guest's spending patterns.
Sunday, November 11, 2007
Sunday, October 28, 2007
Blog 4: Leading an Industry 2007 Hotel Visionary Award
This article was written for the 2007 Visionary Award in hospitality. There were three hotels that received different awards for their outstanding visions of what the hospitality industry should be like. The Mandarin Oriental won the award for exceeding guest expectations. The Mandarin Oriental hotel made sure that they were always trying to exceed the expectations of their guests. They would do this by capturing and storing information about their guests. Each guest had a profile that employees would look over and memorize so that they could personalize the experience for that guest as much as possible.
Ginn Resorts received the visionary award for Overall Technological Innovation. They have wireless Internet all over their property. They are currently testing wireless Internet on golf carts for a golf tournament that they will be hosting. Ginn Resorts offers a wide range of electronic amenities which includes such features as iPod docking stations, plasma televisions, video on demand, multiple DVD players, a Bose surround system, and an integrated remote control that even ties into the unit's lighting and can be managed centrally by the property in the event there's
a malfunction.
The third hotel visionary’s award handed out this year went to Hilton Hotels Corp. for excellence in business intelligence. Business intelligence are the applications and technologies that are used to gather, provide access to, and analyze data and information about company operations. Hilton has become and expert on gathering information on their guests and using that information to give power to their employees to better serve their guests. Says Bob Baker, Hilton's vice president of OnQ solutions, “We want to empower our team members to serve our guests. If we know about some of the things they like in their room so they don't have to ask for it every time, we can offer that."
I believe that it is a great thing to be rewarding forward thinking companies for their innovations. New ideas regarding guest satisfaction (i.e. wowing the guest and new technologies on the property) are one of the most important aspects of running a hospitality establishment and these companies are doing just that. Innovation is important in any industry, but especially so in the hospitality industry because people will always be traveling. People will always want their amenities and to become a strong competitor in any market place you have to please your customers. This is exactly what these three companies have done. If they continue to innovate and perform as they have been, then other companies are going to find themselves playing catch up in order to compete.
Link: http://www.htmagazine.com/HT/archive/0607/0607_01.html
Ginn Resorts received the visionary award for Overall Technological Innovation. They have wireless Internet all over their property. They are currently testing wireless Internet on golf carts for a golf tournament that they will be hosting. Ginn Resorts offers a wide range of electronic amenities which includes such features as iPod docking stations, plasma televisions, video on demand, multiple DVD players, a Bose surround system, and an integrated remote control that even ties into the unit's lighting and can be managed centrally by the property in the event there's
a malfunction.
The third hotel visionary’s award handed out this year went to Hilton Hotels Corp. for excellence in business intelligence. Business intelligence are the applications and technologies that are used to gather, provide access to, and analyze data and information about company operations. Hilton has become and expert on gathering information on their guests and using that information to give power to their employees to better serve their guests. Says Bob Baker, Hilton's vice president of OnQ solutions, “We want to empower our team members to serve our guests. If we know about some of the things they like in their room so they don't have to ask for it every time, we can offer that."
I believe that it is a great thing to be rewarding forward thinking companies for their innovations. New ideas regarding guest satisfaction (i.e. wowing the guest and new technologies on the property) are one of the most important aspects of running a hospitality establishment and these companies are doing just that. Innovation is important in any industry, but especially so in the hospitality industry because people will always be traveling. People will always want their amenities and to become a strong competitor in any market place you have to please your customers. This is exactly what these three companies have done. If they continue to innovate and perform as they have been, then other companies are going to find themselves playing catch up in order to compete.
Link: http://www.htmagazine.com/HT/archive/0607/0607_01.html
Saturday, October 13, 2007
Blog 3: Foodservice: Building the Wireless Backbone
Link: http://www.htmagazine.com/HT/archive/0604/0604_5.shtml
Over the past few years wireless technology hardware prices have dropped roughly 50 percent. The technology has also gotten a lot better in that same time. There are four elements that make up a good high speed wireless internet access connection. They are:
1) wide area network (WAN) from each location to the Internet or corporate intranet
2) wireless access inside a facility (WLAN)
3) network management and support
4) mobile devices.
With these four main elements, restaurateurs can take make their establishments wireless and free up time, space and money. Wireless may be used by some establishments simply because they can use nothing else.
Another benefit of wireless technology is that even during wireless downtime, credit card numbers may be held in a queue in the systems cache and later be charged when the internet if functioning again.
In one restaurant in Brazil, the Nakombi operation mistakes were reduced by 90 percent and payroll was reduced by 15 percent. Because of these changes, turnover was increased by 25 percent.
I think that wireless technology is great and a huge part of the future of the hospitality industry. With the implementation of these innovative new systems, restaurateurs will begin to see changes in their revenue and turnover because their waiters and waitresses are able to work faster and more efficiently than was previously possible with the outdated pen and paper system. Servers may now cut down trips to kitchen and spend more time serving the customer and making their experience a memorable one, thereby bolstering repeat guests and creating a much larger customer base.
A repeat question has been whether or not to charge for wireless internet access at properties. When the technology was fairly young the answer was yes, but now that the technology is more readily available it is necessary to offer the service for free. Guests to come to expect the service for free.
It has been shown time and time again that wireless technology is the future of the hospitality business when it comes to hardware. Hospitality uses it for advertising. Hospitality uses it for it's in-house systems and hospitality uses it for it's guests in it's properties. It is very important that the industry leaders embrace wireless technology in the future because if they don't then they will fail and those that do embrace the technology will succeed and leave everyone else behind.
Over the past few years wireless technology hardware prices have dropped roughly 50 percent. The technology has also gotten a lot better in that same time. There are four elements that make up a good high speed wireless internet access connection. They are:
1) wide area network (WAN) from each location to the Internet or corporate intranet
2) wireless access inside a facility (WLAN)
3) network management and support
4) mobile devices.
With these four main elements, restaurateurs can take make their establishments wireless and free up time, space and money. Wireless may be used by some establishments simply because they can use nothing else.
Another benefit of wireless technology is that even during wireless downtime, credit card numbers may be held in a queue in the systems cache and later be charged when the internet if functioning again.
In one restaurant in Brazil, the Nakombi operation mistakes were reduced by 90 percent and payroll was reduced by 15 percent. Because of these changes, turnover was increased by 25 percent.
I think that wireless technology is great and a huge part of the future of the hospitality industry. With the implementation of these innovative new systems, restaurateurs will begin to see changes in their revenue and turnover because their waiters and waitresses are able to work faster and more efficiently than was previously possible with the outdated pen and paper system. Servers may now cut down trips to kitchen and spend more time serving the customer and making their experience a memorable one, thereby bolstering repeat guests and creating a much larger customer base.
A repeat question has been whether or not to charge for wireless internet access at properties. When the technology was fairly young the answer was yes, but now that the technology is more readily available it is necessary to offer the service for free. Guests to come to expect the service for free.
It has been shown time and time again that wireless technology is the future of the hospitality business when it comes to hardware. Hospitality uses it for advertising. Hospitality uses it for it's in-house systems and hospitality uses it for it's guests in it's properties. It is very important that the industry leaders embrace wireless technology in the future because if they don't then they will fail and those that do embrace the technology will succeed and leave everyone else behind.
Sunday, September 30, 2007
Blog #2: The Sky is the Limit
Link to Article: http://www.htmagazine.com/HT/archive/0605/0605_2.shtml
Wireless property management systems (POS) are becoming more and more prevalent throughout the hospitality industry today.
In my article, “The Sky is the Limit,” George Koroneos informs the reader that the possibilities with wireless technology in the hospitality industry currently seems endless. The benefits are many when it comes to wireless technology, and while the drawback may be serious, they are few.
Wireless technology in the hospitality industry today saves time as well as improves critical service and efficiency. It also allows service to be provided in areas where service would otherwise not exist. For example, waiters and waitresses are able to take orders on hand held ordering units and transmit these orders wirelessly to the kitchen.
Wireless may be used by some establishments simply because they can use nothing else.
Another benefit of wireless technology is that even during wireless downtime, credit card numbers may be held in a queue in the systems cache and later be charged when the internet if functioning again.
In one restaurant in Brazil, the Nakombi the change from paper to wireless hand held units provided cost reductions of 90 percent caused by operational mistakes and a 15 percent cost reduction in payroll. This faster service ended up increasing the restaurant's turnover by 20 percent.
I think that wireless technology is great and a huge part of the future of the hospitality industry. With the implementation of these innovative new systems, restaurateurs will begin to see changes in their revenue and turnover because their waiters and waitresses are able to work faster and more efficiently than was previously possible with the outdated pen and paper system. Servers may now cut down trips to kitchen and spend more time serving the customer and making their experience a memorable one, thereby bolstering repeat guests and creating a much larger customer base.
I foresee many restaurateurs turning to this technology in the future to stay ahead and keep their completive advantage. They need to make sure that their wireless networks are secure, however, as hackers can easily steal information such as credit card numbers from an unprotected wireless network.
One thing that I am worried about is that technology is taking the place of human employees and people them out of work. This is shown by the 15 percent cost reduction in payroll. With waiters and waitresses being more efficient and doing more business quicker than ever before, the need for many servers is lessened.
Wireless property management systems (POS) are becoming more and more prevalent throughout the hospitality industry today.
In my article, “The Sky is the Limit,” George Koroneos informs the reader that the possibilities with wireless technology in the hospitality industry currently seems endless. The benefits are many when it comes to wireless technology, and while the drawback may be serious, they are few.
Wireless technology in the hospitality industry today saves time as well as improves critical service and efficiency. It also allows service to be provided in areas where service would otherwise not exist. For example, waiters and waitresses are able to take orders on hand held ordering units and transmit these orders wirelessly to the kitchen.
Wireless may be used by some establishments simply because they can use nothing else.
Another benefit of wireless technology is that even during wireless downtime, credit card numbers may be held in a queue in the systems cache and later be charged when the internet if functioning again.
In one restaurant in Brazil, the Nakombi the change from paper to wireless hand held units provided cost reductions of 90 percent caused by operational mistakes and a 15 percent cost reduction in payroll. This faster service ended up increasing the restaurant's turnover by 20 percent.
I think that wireless technology is great and a huge part of the future of the hospitality industry. With the implementation of these innovative new systems, restaurateurs will begin to see changes in their revenue and turnover because their waiters and waitresses are able to work faster and more efficiently than was previously possible with the outdated pen and paper system. Servers may now cut down trips to kitchen and spend more time serving the customer and making their experience a memorable one, thereby bolstering repeat guests and creating a much larger customer base.
I foresee many restaurateurs turning to this technology in the future to stay ahead and keep their completive advantage. They need to make sure that their wireless networks are secure, however, as hackers can easily steal information such as credit card numbers from an unprotected wireless network.
One thing that I am worried about is that technology is taking the place of human employees and people them out of work. This is shown by the 15 percent cost reduction in payroll. With waiters and waitresses being more efficient and doing more business quicker than ever before, the need for many servers is lessened.
Tuesday, September 11, 2007
Will We Access the Internet via Gas Pipes?
US-based information technology company, Nethercomm has proposed delivering broadband Internet as well as other data services through underground natural gas pipes even while fuel is flowing through them. This new technology could help to foster the delivery of HDTV technology as rates less expensive than those currently offered. The broadband in gas (BiG) technology could handle data at speed of up to 1Gbit per second. BiG is said to offer a less expensive, higher-capacity broadband capability than that of cable as well as DSL and fiber optics. Also, DSL is not able to support HDTV. BiG would also be able to help independent network-service providers, whose infrastructures were injured by US federal court and administrative decisions. One of the reasons BiG would be so inexpensive is because many home and businesses that would use it already have the necessary infrastructure installed. In the United States, about 70 percent of households and 35 percent of businesses use natural gas according to a senior analyst at West Technology. Although the approach to delivery broadband to homes in the United States is a new and unique one, it does has some industry credibility because Nethercomm's founder and CEO is the former chief technology office for Patriot Scientific and the former president and CEO of Intertech.
Some problems that Nethercomm could run into is the fact that not everyone uses natural gas and they would be limited in service to those American businesses and home which already have the necessary infrastructure in place (since they do not also provide the infrastructure). Utility companies may be hesitant to work with a start up company with new and untested technology. Additionally, it is still not totally clear exactly how well this method of Internet access would function from within a gas pipe.
Nethercomm has plans to license it's technology to service providers and also to launch a pilot program this summer in Arizona and Illinois. It is predicted that 3.9 million American households will utilize BiG technology by 2008 and will have 18.6 million households by 2010 which is a figure based on different business relationships in development as well as the high demand for new broadband services.
I find this article very interesting because it could change the way the Internet is looked at by service providers as well as consumers. This new technology consolidates by taking two different existing technologies and combining them to make a service for people that has the potential to be cheaper for the consumer in addition to being faster than current broadband with perks such as HDTV of which which DSL is not even capable. The reduction in cost for HDTV could help to usher in a new era in television for the average American household: the HD Era.
The fact that 70 percent of American households are served by natural gas is an indication of how big this market could be if the technology works. 70 percent of the household in America is a very large market to work with making the potential payoff a very big one indeed.
Even if BiG does not pan out, I love the fact that American entrepreneurs are constantly trying new ways to push the envelope in technology. Without companies like Nethercomm to lead the way in developing cutting edge technologies, there would be no successes or failures and therefore no forward progress.
Some problems that Nethercomm could run into is the fact that not everyone uses natural gas and they would be limited in service to those American businesses and home which already have the necessary infrastructure in place (since they do not also provide the infrastructure). Utility companies may be hesitant to work with a start up company with new and untested technology. Additionally, it is still not totally clear exactly how well this method of Internet access would function from within a gas pipe.
Nethercomm has plans to license it's technology to service providers and also to launch a pilot program this summer in Arizona and Illinois. It is predicted that 3.9 million American households will utilize BiG technology by 2008 and will have 18.6 million households by 2010 which is a figure based on different business relationships in development as well as the high demand for new broadband services.
I find this article very interesting because it could change the way the Internet is looked at by service providers as well as consumers. This new technology consolidates by taking two different existing technologies and combining them to make a service for people that has the potential to be cheaper for the consumer in addition to being faster than current broadband with perks such as HDTV of which which DSL is not even capable. The reduction in cost for HDTV could help to usher in a new era in television for the average American household: the HD Era.
The fact that 70 percent of American households are served by natural gas is an indication of how big this market could be if the technology works. 70 percent of the household in America is a very large market to work with making the potential payoff a very big one indeed.
Even if BiG does not pan out, I love the fact that American entrepreneurs are constantly trying new ways to push the envelope in technology. Without companies like Nethercomm to lead the way in developing cutting edge technologies, there would be no successes or failures and therefore no forward progress.
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