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<strong>SMARTreport</strong><br />

Information Intelligence by<br />

CLEVERDIS Edition • October 2007 – April 2008<br />

THE ULTIMATE SOURCE BOOK<br />

FOR HOTEL TECHNOLOGIES<br />

CREATING THE MEMORABLE GUEST EXPERIENCE<br />

Including: > IN-ROOM ENTERTAINMENT > COMMUNICATION TECHNOLOGIES<br />

> IN HOUSE AUTOMATION > DIGITAL SIGNAGE AND CUSTOM TV<br />

> CONFERENCE TECHNOLOGIES > RESERVATION SYSTEMS • GDS AND PMS<br />

> SECURITY<br />

Meet the visionaries<br />

Nick Price<br />

CIO/CTO –<br />

Mandarin Oriental<br />

Hotel Group<br />

> page 6<br />

Fraser Hickox<br />

General Manager<br />

Research and<br />

Technology –<br />

Peninsula Group<br />

> page 9<br />

Ian Crabb<br />

Chief Executive<br />

Officer –<br />

Quadriga<br />

Worldwide Ltd<br />

> page 22


<strong>SMARTreport</strong><br />

THE ULTIMATE SOURCE BOOK FOR HOTEL TECHNOLOGIES<br />

03 Tracking Emerging Technology<br />

Interview with Douglas Rice – HTNG<br />

06 Knowing The Guest<br />

Interview with Nick Price – Mandarin Oriental<br />

Hotel Group<br />

09 When Hotels Lead the Way<br />

Interview with Fraser Hickox – Peninsula Group<br />

13 IN-ROOM ENTERTAINMENT<br />

14 Pacific Media Predicts Rapid Growth for Hospitality<br />

HDTV Sales<br />

15 The TV of the Future<br />

15 Internet TV ‘Gold Rush’<br />

16 <strong>Deuromedia</strong> Interactive Platform<br />

Interview with Markus Hiebeler – <strong>Deuromedia</strong><br />

17 Licence to Screen<br />

19 MCOM – First to offer a VC-1/MPEG4 IPTV<br />

platform with a VOD multilingual subtitling service<br />

to the hospitality industry...<br />

Interview with Costas Sakellariou – Media<br />

Communications<br />

20 Convergence – In Room Centric Trends in Hotel<br />

Technologies – The vision of a market leader<br />

22 Meeting New Guest Entertainment Demands The<br />

Trends<br />

Interview with Ian Crabb – Quadriga Worldwide Ltd<br />

24 Massive Roll-out for Genesis System<br />

Interview with Myron Tataryn – Quadriga<br />

Worldwide Ltd<br />

26 CASE STUDY – A Taste of Genesis<br />

27 Quadriga Worldwide Ltd KEY FIGURES<br />

28 NxTV First of Kind to Earn HTNG Certification for<br />

Guest Itinerary Display on Hotel Televisions<br />

29 CASE STUDY – Trump International Hotel & Tower<br />

Chicago Installs Next Generation HD IP Video on<br />

Demand Entertainment Services<br />

31 The Shift from Pay TV Provider to Veritable “Media<br />

Partner”<br />

Interview with Tonio Fruehauf – Premiere Hotel<br />

Entertainment<br />

32 CASE STUDY – Surprising Guests with Simplicity,<br />

Quality and Quantity (of channels)<br />

33 One Step Beyond!!...<br />

Interview with Patrick Goubet – ArtDisplay<br />

34 Strength, Security and Aesthetics<br />

37 COMMUNICATION TECHNOLOGIES<br />

38 IP PABX: Stepping into the Future<br />

A White Paper by Percipia, Inc.<br />

43 Virtual Private Networks<br />

44 Wireless Phones for Staff – a Key to Improved<br />

Service<br />

45 No New Wires!<br />

46 Communication (and other) Technologies that will<br />

impact hotel operations in the future<br />

47 IN HOUSE AUTOMATION<br />

48 Enlightening ideas<br />

49 DIGITAL SIGNAGE & CUSTOM TV<br />

50 "…It's pure marketing, but with an emotional<br />

dimension…"<br />

Interview with Betty Castaldi – Idylle Production<br />

53 CONFERENCE TECHNOLOGIES<br />

54 Conference Room Technologies<br />

57 RESERVATION SYSTEMS<br />

• GDS AND PMS<br />

58 Interview with Kaweh Niroomand – Micros-Fidelio –<br />

EAME (Europe, Africa, Middle East)<br />

60 HTNG Certification for IDeaS Revenue Optimization<br />

61 CASE STUDY – Optimising hotel and conference<br />

center operations on one database…<br />

63 SECURITY<br />

64 CASE STUDY – Security Evaluation and Verification<br />

by HP Strengthens interTouch Service Offering<br />

A CLEVERDIS PUBLICATION - SMARTREPORT ENGLISH Ed n°5 October 2007<br />

65 avenue Jules Cantini - Tour Méditerranée - 13298 Marseille • France • Tel : + 33 4 42 77 46 00 • Fax : + 33 4 42 77 46 01<br />

• E-mail : info@cleverdis.com • www.cleverdis.com • SARL capitalised at ?128,250 - VAT FR 95413604471 • RCS Marseille B 413 604 471 - 00024<br />

• Publisher: Gérard Lefebvre (gerard.lefebvre@cleverdis.com) • Publishing Director: Jean-Guy Bienfait (jeanguy.bienfait@cleverdis.com)<br />

• Editor-in-Chief: Richard Barnes (richard.barnes@cleverdis.com) • Design & Page Setting: Valentina Russo (valentina.russo@cleverdis.com)<br />

• Cover : © Photo: Hotel Principe di Savoia, Milan, Italy • Printing: Imprimerie Toscane (Nice, France)<br />

With the participation of: Katharina Mendel (katharina.mendel@cleverdis.com), Jean-François Pieri (jeanfrancois.pieri@cleverdis.com),<br />

Raphaël Pinot (raphael.pinot@cleverdis.com), Bettina Spegele (bettina.spegele@cleverdis.com)<br />

© CLEVERDIS 2007 - Registration of Copyright October 2007 - ISSN 1771-2815<br />

Information presented in this publication is purely indicative in order to illustrate subjects contained therein. No guarantee can be given as to the accuracy of data or content at time<br />

of printing and thus the latter should not be used to professional or commercial ends. While all efforts have been made as to accuracy and pertinence of content and data contained<br />

in this publication, CLEVERDIS may in no case be held responsible for the consequences, whatever their nature may be, that may result from the interpretation of this data or content,<br />

or any eventual errors therein. All rights are reserved. Any reproduction of the content of this publication, even partial, by any procedure whatsoever, is strictly prohibited without the<br />

prior authorisation of the publisher. Any copy, whether by photography, photography film, magnetic tape, disc or other means constitutes a forgery, liable to punishment under French<br />

law under the legislation of 11th March 1957 covering copyright. All brands cited in this publication are registered trade marks and/or belong to companies which are their respective<br />

proprietors. The publishers and editorial staff decline all responsibilty as to opinions formulated in this publication by those interviewed or cited therein. Their opinions are entirely their<br />

own, and are included with the understanding that they contain, to our knowledge, no malicious intent. The inclusion of all texts, photographs and other documents supplied by those<br />

included in the encyclopaedia imply the acceptance by their authors of their free publication therein. Documents and photgraphs are not returned. It should be understood that this<br />

publication contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be<br />

deemed forward-looking statements. Risks, uncertainties and assumptions include assumptions relating to the timing of the record date. If any of these risks or uncertainties materialises<br />

or any of these assumptions proves incorrect, actual results could differ materially from the expectations outlined in these statements. Cleverdis assumes no obligation and does not<br />

intend to update these forward-looking statements during the period of publication. Photo Credits and Copyright: All Rights Reserved<br />

CONTENTS


<strong>SMARTreport</strong><br />

THE ULTIMATE SOURCE BOOK FOR HOTEL TECHNOLOGIES<br />

EDITORIAL<br />

Richard BARNES<br />

Editor-in-chief<br />

Tel. +33 (0)4 42 77 46 08<br />

E-mail: richard.barnes@cleverdis.com<br />

Enhancing Guest Satisfaction<br />

Technology… and the Part it SHOULD Play…<br />

The savvy use of technology in hotels should lead to a number<br />

of positive outcomes… a win-win scenario for both hoteliers<br />

and guests… if approached the right way. The aim of this<br />

<strong>SMARTreport</strong> is not only to demystify some of the latest digital<br />

technologies and their applications in the hotel field, but also<br />

to encourage the intelligent use of these technologies in such a<br />

way that they save money and/or increase profits for the<br />

hotel, while vastly improving the guest experience. We have<br />

timed the launch of this edition to coincide with the European<br />

meeting of HTNG (Hotel Technology Next Generation) in<br />

Lausanne; a conference which truly marks the forward march<br />

of the industry world-wide and underlines a new form of<br />

understanding between hoteliers and service providers. What<br />

is extraordinary today is the extreme effort put in by some<br />

hotel groups, such as the Mandarin Oriental Group and the<br />

Peninsula Group, in beating a path through the jungle as true<br />

pioneers in the field of technology convergence. This is<br />

underlined in interviews with Nick Price of the Mandarin<br />

oriental Group and Fraser Hickox of the Peninsula Group, both<br />

of whom are true visionaries and leaders among their peers.<br />

The time given by people such as these (as well as all those<br />

who have participated in this edition) towards helping their<br />

peers and advancing the industry in general through the<br />

movement created by the HTNG is proof of their selflessness<br />

and dedication to improving guest services across the board.<br />

To this extent, Nick Price has even agreed to give his<br />

“personal touch” to each of our sections in this <strong>SMARTreport</strong>...<br />

an input which is greatly appreciated due to his astute and<br />

broad vision of industry issues. This <strong>SMARTreport</strong> is, I believe,<br />

more than ever in the spirit of Cleverdis, our mother<br />

organisation, in terms of giving a clear and unbiased view of<br />

the industry at large. The broad contribution and support<br />

shown by leading companies from all walks of technology<br />

gives it an unequalled richness and uniqueness, making it a<br />

true reference work. Again thanks to all of you who have<br />

contributed to making this edition a real “keeper”!


© photo: HTNG<br />

www.cleverdis.com<br />

HTNG<br />

(Hotel Technology Next<br />

Generation)<br />

Douglas Rice<br />

Executive Director<br />

Douglas C. Rice has been working as Executive Director of Hotel Technology<br />

Next Generation (HTNG) since September 2004. Mr Rice moved into the<br />

HTNG executive role from a successful career spanning more than 15 years<br />

as a consultant to senior executives throughout the hospitality industry. He<br />

was one of the original visionaries and founders of HTNG, recruited many<br />

of the CIOs that formed its first Board of Directors, and has remained<br />

integrally involved throughout the early years of the organization, serving as<br />

Executive Advisor to HTNG since the organization was formalized.<br />

INTRODUCTION<br />

Interview with...<br />

Tracking Emerging Technology<br />

Spotlight on the HTNG European Meeting in Lausanne<br />

With HTNG’s European meeting again<br />

taking place in Lausanne, we spoke to<br />

Mr Rice about the main thrusts of the<br />

organisation, and what outcomes are<br />

expected from the meeting...<br />

The main thrusts of our conference are<br />

always multi-fold. One is to update our<br />

members on the accomplishments and<br />

directions of our various work group<br />

activities. Each group spends between<br />

20 minutes and more than an hour<br />

going through the specific things they’ve<br />

done, talking about the benefits for<br />

hotels and about how vendors can<br />

engage with some of their initiatives<br />

and some of their future directions. The<br />

other thing our conferences always<br />

emphasise is thought leadership. We try<br />

to identify some areas of emerging<br />

technologies that aren’t being covered<br />

well by other conferences in the industry<br />

and find speakers who can address<br />

those issues and present some thought<br />

provoking ideas about how these<br />

technologies can be used in hotels. As<br />

far as the European activities go, we<br />

have now more and more of our<br />

workgroups that are engaging with<br />

European hoteliers and vendors... we<br />

now have two work-groups that have<br />

regular meetings in Europe. We have<br />

other work-groups that still have most of<br />

their regular meetings in the US, but that<br />

still have significant European<br />

participation, and a lot of the<br />

presentations will be made by the<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 3


<strong>SMARTreport</strong><br />

© photo: HTNG<br />

4 /<br />

European participants in the various<br />

work-groups.<br />

The European In-Room Technology workgroup<br />

will be officially meeting for the<br />

first time just after the meeting in<br />

Lausanne. This is something that is<br />

going to be very important for the<br />

forward movement of the HTNG in<br />

Europe...<br />

We certainly think so. We’ve always<br />

believed that the needs of the industry<br />

are global because many of the<br />

companies that operate in our industry<br />

are global... both on the hotel side and<br />

on the vendors’ side. There is no way to<br />

“regionalise” it in a way that doesn’t<br />

disenfranchise someone. So from the<br />

very beginning we have had extensive<br />

participation from a number of<br />

international companies and this is an<br />

opportunity to get more engagement in<br />

Europe in the in-room technology area,<br />

where a lot is going on, and we are<br />

very much looking forward to getting<br />

that greater engagement.<br />

One of the interesting facts that was<br />

brought up during the initial briefing for<br />

the work-group in London was the fact<br />

that there are a lot of differences in<br />

between the issues that have to be dealt<br />

with in the US and in Europe, and which<br />

of course are different to Asia as well. Is<br />

this one of the main factors that will<br />

have to be addressed?<br />

Absolutely. We know some certain<br />

fundamental differences exist in Europe<br />

in terms of the physical structure, in<br />

particular of the older or smaller hotel<br />

buildings. To a degree we have<br />

addressed that already, but we<br />

Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

probably have some more work to do in<br />

that area. There are some major<br />

differences in the entertainment system<br />

technologies ... in particular the speed<br />

at which HD is being deployed is quite<br />

a bit slower in Europe than it is in<br />

America, and all these things change<br />

the landscape of what needs to be<br />

done. Probably even more important<br />

though is the vendor community... it’s a<br />

very different set of vendors... in some<br />

cases more fragmented, because there<br />

may be different vendors in different<br />

parts of Europe that have dominant<br />

positions, and the companies that<br />

operate across Europe need solutions<br />

that work across Europe and across the<br />

world. So both the technology and the<br />

vendor set are different and that’s really<br />

what this work-group, and indeed all<br />

our work-groups need to address.<br />

In different regions of the world, hotel<br />

chains have vastly different levels of<br />

penetration as opposed to privately run<br />

individual establishments. How<br />

important is it for us to come to grips<br />

with the differences in needs for each<br />

category?<br />

To benefit the entire industry I think we<br />

definitely have to. The main thing that<br />

we see different between the major<br />

chains and the independents (and the<br />

smaller chains that fall somewhere in<br />

between) is the amount of resources they<br />

can devote to analysing and selecting<br />

future technologies. Larger chains can<br />

devote some resources to deciding what<br />

they want and engaging vendors to go<br />

build it, driving some of the activities<br />

through HTNG in terms of developing<br />

industry solutions. The independent<br />

hotels don’t have the resources to do<br />

INTRODUCTION<br />

that. They don’t have dedicated<br />

technology resources, so many of the<br />

larger chains view their role as<br />

delivering technology solutions to<br />

independent managed or franchised<br />

hotels within their group. A lot of our<br />

larger participants do consider the<br />

needs of individual hotels that are their<br />

customers. So independents can still<br />

benefit without necessarily being active<br />

participants. We can’t expect a small<br />

hotel to devote the resources, although<br />

we do have a few who want to and we<br />

certainly welcome them, but we have to<br />

find ways to give them the derivative<br />

benefit of the work of the larger groups.<br />

At the end of the day, every one of them<br />

is deploying into individual hotels and<br />

the way they may want to do it may be<br />

different if they are a large chain but the<br />

actual physical things that go into the<br />

hotel are generally the same.<br />

On the one hand there are individual<br />

problems, and on the other we’re<br />

dealing with global issues. How<br />

important are issues such as in-room<br />

technologies in general, flat-screen TVs,<br />

HDTV, new networking technologies like<br />

IPTV and so on?<br />

There’s a balance. The global trends we<br />

see in in-room entertainment are the<br />

move towards converged IP networks,<br />

and a move definitively towards digital<br />

TV and increasingly towards IPTV. The<br />

regional differences are topics like HD<br />

versus SD. Trends differ between<br />

different regions, so this is an important<br />

consideration. Obviously, on a more<br />

technical level, it’s interesting for hotel<br />

operators in different parts of the world<br />

to look at internal signal distribution for<br />

entertainment systems. We’ve seen<br />

some great HD systems in the US (e.g.<br />

Mandalay Bay in Las Vegas etc.) and<br />

it’s no doubt interesting for people to<br />

learn about this... We have one session<br />

that is a group of hoteliers that have<br />

struggled through the deployment of a<br />

distribution with the objective of getting<br />

an all-IP network, and they will talk<br />

about the evolution over the last years<br />

and their ability to do that as technology<br />

has evolved. Some of them have had a<br />

goal of doing this over five, six or seven<br />

years and in their first projects they ran<br />

into a number of barriers ... then in the<br />

next projects, they were able to remove<br />

www.cleverdis.com


a few of these, and some of them are<br />

finally getting close to getting exactly<br />

what they want now... but I hear a lot of<br />

real life horror stories about distribution<br />

within the hotel, and some of the real<br />

barriers you have even in new hotels to<br />

getting systems to work well.<br />

No doubt the US operators attending<br />

the European conference will also be<br />

able to get the inside line on IPTV which<br />

is much more advanced in Europe than<br />

in the States...<br />

Exactly. This is a good opportunity for<br />

both sides to share. We’ll have several<br />

of the major companies who are<br />

involved in the in-room entertainment<br />

systems from both sides of the Atlantic<br />

as well as in the Pacific zone, getting a<br />

chance to see what’s happening in parts<br />

of the world where they may not<br />

operate directly.<br />

We’ve been talking a lot about in-room<br />

technology, which has become a sweet<br />

spot, but obviously everything that is<br />

built around is becoming integrated and<br />

part of an entire system… And this is<br />

one of the most exciting things that<br />

hoteliers can work on as well...<br />

Yes. In Lausanne we will certainly be<br />

talking about bringing together all the<br />

systems. This is particularly valid in a<br />

complex hotel or resort system that has<br />

a spa, perhaps golfing activities,<br />

concierge, theatre tickets, meeting<br />

rooms, etc. The aim is to have a<br />

common way for the different systems<br />

that manage each of these activities to<br />

communicate about the guest and to<br />

manage their schedules and various<br />

appointments and to make that<br />

information available both to the staff<br />

and the guest. We’ve made some really<br />

tremendous strides in that area and<br />

when you have a converged network,<br />

you can share data much more easily. It<br />

doesn’t mean that it happens without<br />

some work, but I think we’ll see some<br />

real live results with hoteliers talking<br />

about how they’re using these solutions<br />

in their hotels. Five years ago people<br />

told us you’d never get the vendors to<br />

share their customer data or work with<br />

each other to manage a guest itinerary<br />

across several of these systems and this<br />

is happening today.<br />

www.cleverdis.com<br />

I guess it comes down to building on<br />

existing IT platforms that are often<br />

proprietary systems and have been builtup<br />

with either home-grown or vendor<br />

specific interfaces?<br />

I think what is happening is that both the<br />

vendors and the hoteliers are realising<br />

that one-off interfaces don’t make a lot<br />

of sense. I think vendors had a lot of<br />

concern that because they got a lot of<br />

their revenue from interfaces,<br />

particularly some of the Property<br />

Management System vendors and other<br />

core system vendors, that this would<br />

threaten their revenue stream. And in<br />

fact what is happening is that they are<br />

Why HTNG?<br />

Hotels deal with scores of technology<br />

systems, but only a few were designed for<br />

hotels! Guests and staff need the systems to<br />

work together:<br />

• Hotel systems, e.g. PMS, PoS, sales &<br />

catering • Telephony systems<br />

• Entertainment systems • Building control<br />

systems • Distribution systems<br />

• Administrative, financial & control systems<br />

• Customer relationship management<br />

systems • Human resource systems...<br />

HTNG Mission<br />

The mission of HTNG is to provide<br />

leadership that will facilitate the creation of<br />

one (or more) industry solution set(s) for the<br />

lodging industry that:<br />

• Are modeled around the customer and<br />

allow for a rich definition and distribution<br />

of hotel products, beyond simply sleeping<br />

rooms<br />

• Comprise best-of-breed software<br />

components from existing vendors, and<br />

enable vendors to collaboratively produce<br />

world-class software products<br />

encompassing all major areas of<br />

technology spending: hotel operations,<br />

telecommunications (PABX), in-room<br />

entertainment, customer information<br />

systems, and electronic distribution<br />

• Properly exploit and leverage a base<br />

system architecture that provides<br />

integration and interoperability through<br />

messaging; and that provides security,<br />

redundancy, and high availability<br />

• Target the needs of hotel companies of all<br />

sizes and geographic locations<br />

• Will reduce technology management cost<br />

and complexity while improving reliability<br />

and scalability<br />

INTRODUCTION<br />

finding that by running with open source<br />

interfaces it reduces costs quite a bit<br />

because they don’t spend so much time<br />

doing custom development and they get<br />

a whole lot more revenue potential<br />

because the customers now look at these<br />

interfaces as something that is not oneoff<br />

but which is reusable. There is a lot<br />

more willingness among hotels to start<br />

to buy these interfaces as they are<br />

starting to become standardised. I don’t<br />

want to overstate this as we have a long<br />

way to go, but certainly if you look at<br />

some of the major vendors and some of<br />

the major customers, all are going<br />

towards HTNG standard interfaces.<br />

• Can be deployed globally, managed<br />

remotely, and outsourced to service<br />

providers where needed.<br />

HTNG Workgroups:<br />

HTNG is moving information technology in<br />

hospitality forward by bringing all industry<br />

constituencies-hoteliers, vendors, consultants<br />

and others--together to address the most<br />

pressing needs. The method by which HTNG<br />

is attacking this problem is Workgroups.<br />

What's a Workgroup?<br />

Workgroups are groups of HTNG member<br />

companies, typically numbering 10 to 25 but<br />

sometimes more, chartered with addressing a<br />

specific business or technical problem. Hotel<br />

companies (technology buyers) and vendors<br />

(technology sellers) work together to solve the<br />

problem and implement one or more<br />

solution(s). Other industry participants<br />

(consultants, academics, media) may also<br />

participate. A key difference between HTNG<br />

and other industry organizations is that<br />

HTNG's focus is facilitating the creation of<br />

industry solution sets. Workgroups are not<br />

think tanks or standards bodies. They may<br />

produce white papers, specifications, and<br />

other documents, but these are simply means<br />

to achieving their primary objective. HTNG's<br />

workgroup process is inclusive of all HTNG<br />

members. Moreover, small and large<br />

companies participate on an equal footing –<br />

one company, one vote.<br />

In-Room Technology Workgroup -<br />

European Chapter<br />

The European Chapter of the HTNG’s In-<br />

Room Technology Workgroup (spawned<br />

originally by Nick Price in 2004) officially<br />

becomes operative in 2007.<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 5


<strong>SMARTreport</strong><br />

Interview with...<br />

© photo: Mandarin Oriental<br />

6 /<br />

HTNG<br />

(Hotel Technology<br />

Nick Price<br />

Next Generation)<br />

President Emeritus – HTNG<br />

CIO/CTO, Mandarin Oriental Hotel Group<br />

Nick Price joined Mandarin Oriental Hotel Group in January 2000 as Director of<br />

Technology. A newly created position, the appointment was in line with the Group's<br />

objective of strengthening its corporate and specialist core competencies in areas<br />

most critical to success. With more than 19 years experience in IT and emerging<br />

technologies, Nick brings to Mandarin Oriental, an in-depth understanding of<br />

current and emerging technology trends and their commercial application. Nick<br />

reports directly to the Group's Managing Director, Edouard Ettedgui.<br />

Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

INTRODUCTION<br />

Knowing The Guest<br />

Making Information Accessible In-House<br />

Nick Price is one of the most respected people in the industry when it comes to having a global (in<br />

more ways than one) knowledge about Hotel Technologies and how they should be leveraged to<br />

truly enhance the guests’ experience. We asked Nick what was new at the Mandarin Oriental<br />

Group, and how he is leveraging technology to create a near to perfect guest experience...<br />

To some extent we are refining the path<br />

we’ve been on for a while, especially<br />

since 2003, leveraging networks to be<br />

able to either bring in content to a guest<br />

that makes sense, or enable our staff to<br />

understand something about the guest<br />

and to deliver a service that they<br />

otherwise couldn’t have done. Obviously<br />

we have been very focused on capturing<br />

information about our customers and<br />

making that available across our<br />

company in terms of an xml profile of the<br />

guest, and a fairly rich and deep and<br />

accessible xml profile that you can ask<br />

questions of the system... “What does<br />

somebody like to eat?”... or “What<br />

temperature should the room be at?”, or<br />

“What kind of wine do they like?”...<br />

Things like that... and just to make that<br />

information accessible.<br />

Once you have that information you have<br />

to think about how to deliver it, and that’s<br />

all about networks, and how do you<br />

communicate it to the front line staff, and<br />

that’s really all about access devices that<br />

are hooked onto those networks, and<br />

many of those networks are wireless<br />

today...<br />

www.cleverdis.com


Of course one would have to avoid<br />

saying, “Good morning Mr Smith, you’re<br />

not with your usual girlfriend today ... Oh,<br />

it’s your wife?”...<br />

You know that’s a cliché ... I’ve heard that<br />

so many times. Are we in the business<br />

for? We’re in the business to satisfy<br />

99.9% of our guests or are we in the<br />

business of XXXXing of 0.1% of them? Just<br />

because something can happen doesn’t<br />

mean you should build your company or<br />

operation around the fact that it will.<br />

While I know you meant it as a joke,<br />

there are a whole lot of people going<br />

around saying, “we’re not going to do<br />

this because of that reason. We’re not<br />

going to build information in the systems<br />

about our customer just in case we are<br />

talking about the wife when we should be<br />

talking about the girlfriend, and that’s just<br />

stupid. It’s just an excuse for not doing<br />

things right if you ask me.<br />

One of your pet bugbears is that of<br />

business models for internet. How are you<br />

seeing business models evolving today?<br />

First of all, you have to look at it from both<br />

sides, from the hotel side and the<br />

suppliers’ side. There is no free lunch.<br />

There is no free product today, and from<br />

www.cleverdis.com<br />

a hotel’s point of view you wouldn’t want<br />

to. If you go back five years ago,<br />

everyone was rushing for the revenue<br />

share “land grab” and the suppliers were<br />

very much looking at the long term,<br />

saying “we’ll lose money on 2%<br />

utilisation, but we’ll make it up on 20%<br />

utilisation”, and the hotels were saying “I<br />

don’t care, I just want something that<br />

satisfies today’s guest. Now those hotels<br />

are saying “At 20% look at the amount of<br />

money you’re making, Mr Supplier, and I<br />

still have three years to go on my revenue<br />

share contract!” So both sides have<br />

learnt. On the supplier side, they’re<br />

looking at it and saying “How do I renew<br />

my contract with the certainty that I’m not<br />

going to be able to roll-over a revenue<br />

share contract on the same percentages<br />

as I did before?”... Because the unique<br />

technology I had back then are now<br />

commodities... These can be used today<br />

in a much more accessible “Do It Yourself”<br />

fashion to the hoteliers. So hoteliers if they<br />

wish can assemble these HSIA networks<br />

themselves these days at a cost, but that<br />

cost is generally affordable based upon<br />

the revenues that are a fairly near<br />

certainty today and into the near future,<br />

so there’s a fairly strong ROI for DIY.<br />

Looking out a little bit further, the<br />

attractiveness of a DIY model becomes<br />

INTRODUCTION<br />

less attractive today if you consider the<br />

services you are going to have to bundle<br />

onto that network to make it attractive<br />

over the long term, because again that’s<br />

very much harder to do that it is just to put<br />

a simple HSIE service in place today...<br />

and also the fact that your costs are<br />

definitely going to increase as well,<br />

because the bandwidth is increasing,<br />

significantly so, and that has to be paid<br />

for. So really there are two sides of the<br />

thing. Revenue share was a model that is<br />

not necessarily the right model for the<br />

future, but it may become the right model<br />

again as you add more feature functions.<br />

In the past you have spoken of the<br />

importance of “bringing the technology<br />

islands together”... talking about the<br />

different technology groups within the<br />

hotel. How do you see this evolving? I<br />

guess this is indelibly linked to the HTNG?<br />

It is in a number of ways. Firstly, they are<br />

broadly together these days, or they<br />

certainly are at Mandarin. We have fully<br />

converged networks today in our hotels...<br />

fully converged IP networks. So from a<br />

functional view you have HSIA, Video On<br />

Demand and IP television on the same set<br />

of cables – the same network as the<br />

administrative network, back of house,<br />

© photo: Mandarin Oriental<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 7


<strong>SMARTreport</strong><br />

© photo: Mandarin Oriental<br />

8 /<br />

PMS and so on, just as CCTV and<br />

telephone which is now IP as well, and all<br />

of that is wired and wireless. So the main<br />

functional and discreet separate networks<br />

that a hotel typically did install on<br />

separate unique cable systems is, at least<br />

at the Mandarin, a fully converged<br />

network today. We’re just months away<br />

from opening our first hotels that have no<br />

Coax for TV and they have no Coax to<br />

drive CCTV. All of those things are on the<br />

IP network today.<br />

On Cat 5 or Cat 6?<br />

All Fibre! Fibre to the rooms is going to be<br />

a very useful technology. The same model<br />

that telcos are using to take fibre to the<br />

home... that same basic technology, when<br />

you translate it into a fibre to the room,<br />

has some basic advantages. It is subtly<br />

different from a Cat 6 Ethernet model. It’s<br />

more configurable and you can do more<br />

with it. You can reserve elements of the<br />

bandwidth over the fibre to do interesting<br />

things. So it’s definitely a technology that<br />

we’re actively investigating.<br />

How is the use of content changing in the<br />

field of in-room entertainment?<br />

One of the other things we should<br />

absolutely be aware of as hoteliers is that<br />

a vast amount of content walks into our<br />

rooms every day, brought in by the<br />

guests. Whether it’s a USB stick with a<br />

film on it or some form of audio or video<br />

content, or whether it be an i-Pod or i-<br />

Phone or whatever, a huge amount of<br />

content is walking into our rooms, and for<br />

Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

us to be able to make use of that is a very<br />

important thing – providing easily<br />

accessible methods whereby a guest who<br />

has a small and portable device which is,<br />

by definition, very restricted in its picture<br />

and sound quality... to plug that into a<br />

room and make full use of the room to<br />

entertain them or inform them for the<br />

period of time they are there... I think it’s<br />

a really important thing, because one of<br />

the things I think have trained ourselves to<br />

believe is that a guest has an awful lot of<br />

time in our rooms to be entertained and<br />

that is simply not true. The whole notion of<br />

a feature film being a relevant piece of<br />

content in a hotel room is bogus! I don’t<br />

think it ever was correct, but it certainly is<br />

bogus today. People don’t have that time,<br />

and the viewing figures support that it is<br />

irrelevant. So today, really it’s 30 minutes,<br />

and it’s what you choose to do in those<br />

INTRODUCTION<br />

30 minutes. Increasingly what we’re<br />

seeing is that those 30 minutes are being<br />

filled by guests’ own content. It’s that “Let<br />

me be me for 30 minutes and make me<br />

feel human again. I think it’s a very<br />

important thing that we should focus on<br />

and try and satisfy. The ability to be able<br />

to tune into “u-tube” or the guest’s own<br />

DVR via Sling-box or other similar<br />

technology I think is also immense. Things<br />

that were considered teenage or geeky in<br />

the past are now very much mainstream.<br />

You have to be a little bit visionary, but<br />

you don’t have to be VERY visionary to<br />

figure out what people are doing today.<br />

You’ve just got to be open to it and<br />

understand that those expectations, if<br />

they’re met, contribute to your room rate<br />

and occupancy, and if they’re not met,<br />

contribute negatively to your room rate<br />

and occupancy.<br />

© photo: Mandarin Oriental<br />

www.cleverdis.com


© photo: Peninsula Group Hotels<br />

www.cleverdis.com<br />

Peninsula Group<br />

Fraser HICKOX<br />

General Manager<br />

Research and Technology<br />

Peninsula Group Hotels<br />

HTNG Director<br />

INTRODUCTION<br />

Interview with...<br />

Mr. Hickox has spent 21 years with the Peninsula Group, and established the Technology Laboratory in<br />

Aberdeen, Hong Kong, where the Peninsula's guest-room technology is developed and refined for use<br />

exclusively in their properties. He is responsible for the refurbishment of the Peninsula Hotels World-wide.<br />

Twenty years ago he opened Asia's first technology hotel, the Kowloon Hotel, with a network system linking<br />

all rooms to a central database and a fax server enabling their guests the opportunity of performing business<br />

functions in their guest rooms. Prior to joining Peninsula, Mr. Hickox worked in television and radio<br />

broadcasting, at an airline in Papua New Guinea, for a Japanese bank, with the Nauruan Government<br />

during the design and installation of a new country-wide telephone system, and on a development line in<br />

Taiwan to gain production line experience. Mr. Hickox was awarded a Ph.D. for his efforts in radio physics.<br />

He holds a number of accreditations from various institutions and is a Director of the China Light & Power<br />

Research Institute.<br />

When Hotels Lead the Way<br />

The Peninsula Group – at the Forefront of Hotel Technology Development<br />

Peninsula Group's design laboratory does research and development for technology to improve<br />

services in guest rooms and elsewhere in nine worldwide Peninsula hotels... This is somewhat<br />

unique in the industry... We asked Fraser Hickox to tell us about the most recent findings...<br />

We are working on a number of projects,<br />

some to be introduced immediately, some<br />

that will be introduced in time and others<br />

that may or may not ever be used. The<br />

technology is, as a matter of principal,<br />

discreet. It should touch the guests but not<br />

know them out. The greatest compliment<br />

we can receive is when our guest travels<br />

to a non-Peninsula and then realises what<br />

was missed.<br />

HDTV has reached critical mass in the US<br />

– what about Europe and Asia?<br />

It is slowly evolving in Asia... very slowly.<br />

Our broadcasters are still undertaking test<br />

transmissions although I understand there<br />

is a push in China in time for the<br />

Olympics. There are now some HD<br />

broadcasts in the US, but I suggest the<br />

European community is making greater<br />

inroads. However the key is content and<br />

not enough is yet available to satisfy the<br />

demand of the major networks, hence the<br />

proliferation of sport and reality<br />

programming.<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 9


<strong>SMARTreport</strong><br />

© photo: Peninsula Group Hotels<br />

What about flat panel TV’s?<br />

We’re pursuing a rapid programme to<br />

have flat panel televisions in all our guest<br />

rooms as quickly as possible. The trend is<br />

toward the use of IP rather than the<br />

modulated coaxial distribution still found<br />

in many hotels today.<br />

It's one thing to specify HD TV's, but what<br />

about getting them up on the walls... not<br />

all properties are suited to this... and<br />

what about cabling?<br />

I have heard of instances of flat panels<br />

falling off walls, but the real challenge is<br />

how to deal with these when not in use.<br />

One hotel in Vegas has a lift to the set<br />

emerges from a piece of furniture and<br />

when in operation sounds like a freight<br />

train, let alone what happens to anything<br />

left on top of the cabinet when the lift is<br />

activated. This is a problem for many<br />

hoteliers who have chosen in the past to<br />

use armoires and some attempts resemble<br />

British pub dart-boards, or are mounted<br />

directly on the wall, offering the incoming<br />

guest a view of a wad of cabling. The<br />

best example of a wall mounting that I<br />

have seen is the Mitsui Garden Hotel in<br />

the Ginza of Tokyo which was relatively<br />

simple but very clean. I look forward to<br />

the availability of OLED TV’s which will be<br />

considerably lighter, cooler and thinner.<br />

IPTV as part of triple play, along with<br />

internet radios... these are all part of your<br />

offering at a number of locations. You are<br />

cutting edge, but how quickly will these<br />

kinds of technologies totally take over<br />

from classic analogue delivery?<br />

Convergence is something we are all<br />

talking about in HTNG, the industry<br />

10 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

group of which we are part. Obviously if<br />

we can feed all-out telephony, Internet<br />

services, television, CCTV and guest room<br />

controls through one piece of fibre, this<br />

will give us greater flexibility in the future,<br />

not to mention realising considerable cost<br />

savings. Peninsula and Mandarin are<br />

early adopters of this technology, but we<br />

are taking measured steps. The use of this<br />

technology will become more prevalent in<br />

new builds, but it may take time in<br />

existing properties where its introduction<br />

INTRODUCTION<br />

would be associated with major<br />

refurbishments.<br />

What is the most important goal when it<br />

comes to in-room entertainment?<br />

At the soft opening of our Tokyo property,<br />

our interior designer spoke of the<br />

relevance of “touch and feel” in addition<br />

to the aesthetics and function. I believe<br />

whatever we do in the room should<br />

embrace this need, be it the music played<br />

in the bathroom when in the Spa mode,<br />

the lighting, and of course the<br />

entertainment. It’s interesting to hear that<br />

Sony are working on stimulating the<br />

brain’s cortex to deliver taste and smell<br />

and if successful will introduce a new<br />

dimension.<br />

You're working with Tangerine Global on<br />

CONTENT... tell us about that.<br />

Tangerine has given us an alternative to<br />

Hollywood. They are offering content<br />

covering a large range of subjects, be it<br />

the latest fast cars to yoga... all short<br />

segment, but a great alternative. While in<br />

“As a result of the HTNG meetings I went on<br />

to design the guest room phone that has a<br />

bluetooth capability. This allows for the<br />

phone to be paired with a guest's mobile so<br />

any incoming cell call can be picked up on<br />

any phone in the room (we have 6). The<br />

device is also equipped with a button so the<br />

guest can use Skype rather than PSTN to<br />

dial out… It is a great idea but needs more<br />

European hotel participation…”<br />

© photo: Peninsula Group Hotels<br />

www.cleverdis.com


© photo: Peninsula Group Hotels<br />

Tokyo recently I think I watched all the<br />

musical concerts under one of their<br />

segments.<br />

How important is it to tailor content to<br />

groups or local markets?<br />

Very important. Language is a major<br />

consideration but also there are cultural<br />

considerations. We are starting to see<br />

narrowcasting evolving in some parts of<br />

the world and we should provide access<br />

to this where possible.<br />

How do you expect TV and on-demand<br />

services to evolve in the next years?<br />

I believe the nature of on-demand and<br />

even local broadcasting will change in<br />

the next five years. We will want to watch<br />

programming from where we want when<br />

we want. Sling media and location-free<br />

technology already makes this possible<br />

and will challenge traditional thinking<br />

and distribution. I know of a hotel under<br />

construction in the Philippines that hopes<br />

to provide for their American clientele<br />

who stay for two or more weeks at a time<br />

to watch their home sling box which will<br />

www.cleverdis.com<br />

offer better programming than they can<br />

offer from local cable TV systems. The<br />

limiting factor in many countries today is<br />

the cost of bandwidth, however the<br />

Philippine carrier is willing to consider<br />

bandwidth on demand. It’s only a matter<br />

of time before others will start to consider<br />

these options.<br />

What about telephony? This has been a<br />

bugbear in hotels for many years...<br />

In Tokyo, we installed our own IP<br />

telephone system as part of a converged<br />

network. Our IT people are now<br />

reviewing this to see how we can improve<br />

this further in the other properties.<br />

Certainly it can represent a considerable<br />

saving. The biggest challenge was that<br />

the pricing for these switches is based on<br />

the number of licences, and with six<br />

telephones in each room, we were<br />

particularly battered. However I believe<br />

there is a move afoot to modify the<br />

costing to a per room basis. This is<br />

potentially a very competitive business<br />

and I predict we will see the cost of<br />

hardware fall considerably to make it<br />

attractive to hoteliers who now consider<br />

INTRODUCTION<br />

the service as a loss leading “must have”.<br />

Furthermore in Tokyo, where GSM is not<br />

used, we have provided for a handheld<br />

that may be used in the hotel using the wifi<br />

network and around the city with<br />

charges being transferred to the guest’s<br />

folio immediately.<br />

A couple of years ago, you underlined<br />

that "we are a people business, and while<br />

technology offers great opportunity it is<br />

the outstretched hand of the hotelier that<br />

consummates the relationship." With the<br />

onset of "you are a number"<br />

technologies, do you feel this is even<br />

more important today?<br />

Absolutely. Hospitality is about being<br />

hospitable. We welcome our guests as we<br />

would to our own home. The technology<br />

certainly facilitates a stay, but does not<br />

replace the familiar face and the personal<br />

concern of our staff to serve our guests to<br />

the best of their ability.<br />

Our chairman takes a very close interest<br />

in all aspects of the guest experience and<br />

will pursue the finest detail to ensure it is<br />

the best.<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 11


Evolving gently with time…<br />

The Ultimate in Dynamic Aesthetics –<br />

adding value to any Plasma or LCD TV.<br />

Each one of these digital works is a<br />

“creative matrix” that informs and<br />

regenerates its surrounding environment.<br />

... welcome to the wonderful<br />

world of ArtDisplay...<br />

bringing art and emotion<br />

to your walls.<br />

www.artdisplay.fr


IN-ROOM<br />

ENTERTAINMENT<br />

In this section, we look at In-Room Entertainment . Here, the biggest challenge is finding a<br />

partner that really has the vision to deliver the next generation services that are required by<br />

today’s guests. Many hotels are still stuck in the “Hollywood and Adult” model, neither of which<br />

are entertaining in the context necessary for a hotel. What we need is a complete rethink. There<br />

are some new, smaller players out there today, and the future looks interesting. Whether they<br />

can get sufficient foothold to make really significant advances in a landscape dominated by a<br />

few large players who have vested interests in not moving as fast as the hotels would like, that’s<br />

another thing. In terms of the key movements we see, HDTV is one of those movements, but HD<br />

as part of a digital TV. It is part of a digital TV experience, and the move from analogue to<br />

digital is the fundamental shift. To go from an analogue world to a digital world and all that this<br />

means in terms of off-air television, is a huge jump, but it’s a jump that has already been made<br />

by the consumer. If you have a television in your home today, the odds are that you have a<br />

digital feed, whether it be over cable or satellite or terrestrial and you have a wide-screen LCD<br />

or plasma TV with HDMI inputs... The consumer at home has already made that jump and many<br />

of them have augmented their environment with a large number of channels and with a widescreen<br />

TV and DVR with time shift. There is a huge expectation that walks into our rooms every<br />

day and unfortunately in the majority of hotels it’s an expectation that simply isn’t met. The<br />

notion that “We’re an international hotel and we provide CNN, so if you speak English, you<br />

can watch CNN... that should be good enough for you...” It’s simply a notion that’s invalid<br />

today.<br />

Frankly, today when you’re coming from your home environment and you walk into a hotel, it’s<br />

often pretty sad. Among the hotels there are leaders. I think the Mandarin Oriental is one of<br />

those leaders and today we are opening a hotel after renovation in Munich that will have 800<br />

TV channels and they will all be digital. Ease of selection then becomes a huge issue... the<br />

channel up, channel down surfing model soon breaks down even if it ever was the right thing<br />

to do. But assuming you know something about the guest... either you know who they are very<br />

explicitly, or implicitly you know their language, their ethnicity and where they’ve come from<br />

and so on, you can make some fairly astute choices for them and present channels which you<br />

think they’re going to like. I may be just as simple as organising the channel-order so you put<br />

Japanese channels at the top for a Japanese guest. That may be sufficient...<br />

Nick Price


<strong>SMARTreport</strong><br />

14 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

IN-ROOM ENTERTAINMENT<br />

Pacific Media Predicts Rapid<br />

Growth for Hospitality HDTV Sales<br />

Large flat panel models provide competitive advantage<br />

Rosemary Abowd<br />

Pacific Media Associates Vice President<br />

In a US-only survey, Pacific Media<br />

Associates have been tracking some<br />

important trends which are of course not<br />

specific to hotels on the other side of the<br />

pond. We thus felt it was very interesting<br />

for hoteliers in all parts of the world to get<br />

wind of this survey. In the study released<br />

in May 2007, PMA reported that flat<br />

panel televisions for the hospitality market<br />

in the Americas accounted for 29% of unit<br />

sales of all professional displays 30” or<br />

larger in 2006. This proportion is forecast<br />

to swell to 40% in 2007.<br />

“The hospitality segment is gaining<br />

importance in the professional flat panel<br />

market,” according to Rosemary Abowd,<br />

Pacific Media Associates Vice President.<br />

“For the moment, a plasma or LCD HDTV<br />

is still a competitive advantage for the<br />

premier properties, but guests will soon<br />

come to expect it as a standard amenity,<br />

much like broadband Internet access.”<br />

Unit sales of in-room hospitality HDTVs<br />

increased 17% from 2005 to 2006, and<br />

are forecast to grow another 23% this<br />

year. The forecast for 2008 calls for<br />

nearly a one-third increase over this<br />

year’s sales<br />

These figures only include models 30” or<br />

larger, equipped for in-room<br />

entertainment. In its coverage of the<br />

professional flat panel market, Pacific<br />

Media includes other hospitality<br />

applications such as digital signage or<br />

public video displays, which are<br />

increasingly popular in hotels and sports<br />

arenas.<br />

“Hotel and motel properties in the lower<br />

tiers are using smaller screen sizes in their<br />

rooms,“ according to Abowd. “These<br />

installations are more price sensitive, and<br />

often use standard consumer models<br />

without any of the extra in-room<br />

hospitality features such as pay-per-view.<br />

These applications will also result in<br />

significantly more sales in the coming<br />

years.”<br />

www.pacificmediaassociates.com<br />

www.cleverdis.com


IN-ROOM ENTERTAINMENT<br />

The TV of the Future<br />

The Consumer TV Wish-list Helps Build the “wow factor” into your rooms<br />

Imagine the day when finding favourite<br />

TV programming is as easy as saying “TV,<br />

tune in the Super Bowl, please” or “TV,<br />

please find me a great action movie to<br />

watch!” Voice recognition is just one of<br />

the gee-wiz features that top consumer<br />

wish lists according to a new poll<br />

conducted by HDTV leader Westinghouse<br />

Digital Electronics, one of the top four<br />

LCD TV manufacturers in the U.S.<br />

Respondents came up with a wide variety<br />

of coveted features when asked, “If you<br />

could design a TV yourself, what would<br />

you add?” Top answers included:<br />

www.cleverdis.com<br />

• Voice recognition<br />

• Touch Screen<br />

• 120hz Refresh Rate<br />

• Wireless<br />

• Energy Conservation<br />

• Built In DVR<br />

• Built In DVD<br />

• Bluetooth<br />

Rey Roque, Vice President of Marketing at<br />

Westinghouse Digital Electronics, states,<br />

”We are always fascinated and<br />

enlightened by the comments and<br />

suggestions we get from our users -- and<br />

we encourage the dialog on an ongoing<br />

basis. Tomorrow’s realities always start<br />

with today’s dreams and desires, and<br />

these insights will inform our product and<br />

feature planning over the years to come.”<br />

More than 1200 consumers responded to<br />

the Westinghouse Digital HDTV Insights<br />

poll, which tapped their input on a<br />

number of hot-button issues of interest to<br />

HDTV users. The results will be issued on<br />

a regular basis.<br />

* The NPD Group/Retail Tracking Service,<br />

based on unit sales, from January through July<br />

2007.<br />

Internet TV ‘Gold Rush’<br />

Advertising revenues on track for $10bn worldwide<br />

Internet TV advertising could achieve<br />

revenues of up to $10bn worldwide by<br />

2011, according to a new industry report<br />

from Understanding & Solutions. This<br />

equates to 18% of the Internet advertising<br />

market for that year, forecast at $57bn.<br />

Delivery of television content over the<br />

Internet is nothing new, with a whole host<br />

of websites across the globe providing<br />

hundreds of free TV channels, many of<br />

which are pirated or re-transmitted without<br />

permission. However, there is an Internet<br />

TV ‘gold rush’ in progress, as mainstream<br />

broadcasters, cable networks and TV<br />

content producers move their content<br />

online alongside a new raft of legitimate<br />

‘Webcasters’ (Internet Video and TV<br />

aggregators) like Joost, Vudu and<br />

Babelgum. “The level of penetration<br />

already achieved by Internet video is mindblowing,”<br />

says John Bird, Principal<br />

Consultant with Understanding & Solutions.<br />

“Globally, we estimate there are more than<br />

20 billion videos being streamed across<br />

the web each and every month. In the US<br />

alone, active Internet video users are<br />

streaming an average of 55 videos per<br />

month – and this is just the beginning.”<br />

“Internet TV will challenge the traditional<br />

broadcast industry through rights<br />

distribution, on-demand content versus<br />

linear broadcast and the generation of<br />

advertising revenues,” says Alison Casey,<br />

Business Director: Content & Services,<br />

Understanding & Solutions. “The<br />

competitive structure of the market will be<br />

under threat as new ‘Webcasters’ compete<br />

with conventional broadcast channels for<br />

audiences and advertiser money. The<br />

national boundaries which govern<br />

broadcasting today will also be challenged<br />

by the global nature of the Internet, as has<br />

been the case with e-Commerce.” Going<br />

forward, Broadband Service Providers,<br />

who are on fixed revenue models, will<br />

need to invest in more infrastructure as and<br />

when high quality Internet TV and online<br />

film distribution becomes widespread,<br />

raising issues of higher consumer tariffs<br />

and possible revenue sharing with content<br />

owners.<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 15


<strong>SMARTreport</strong><br />

Interview with...<br />

Markus HIEBELER<br />

CIO<br />

16 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

Tel.: +4316986442-1100<br />

E-mail: m.hiebeler@deuromedia.com<br />

www.deuromedia.de<br />

<strong>Deuromedia</strong><br />

IN-ROOM ENTERTAINMENT<br />

New Levels of Personal Service for Your Guests<br />

<strong>Deuromedia</strong> Interactive Platform<br />

In the classic media such as radio and TV, picture and sound<br />

quality have improved greatly in the past few years, but<br />

compared with the revolution every couple of months in the<br />

computer market, the end equipment has been the same for a long<br />

time. So now it's time to take the next step here too. We asked<br />

Markus Hiebeler, CIO of <strong>Deuromedia</strong>, how he sees the roadmap<br />

for the industry...<br />

Indeed, our media landscape is changing.<br />

Many new terms and buzzwords are<br />

becoming familiar: convergence, digital<br />

TV, multimedia, UMTS, Internet and lots<br />

more. All the familiar digital information<br />

channels are merging – the boundaries<br />

between the Internet and television are<br />

vanishing. The key to this is the rapid<br />

transfer of large quantities of data via<br />

broadband technology. Satellites already<br />

provide us with reliable broadcasters.<br />

Other methods of transfer will become<br />

established in the future, e.g. UMTS or<br />

cable networks such as xDSL. As a modern<br />

entertainment system it offers all<br />

possibilities of multimedia entertainment<br />

which guests are knowing from private and<br />

public service providers. Hoteliers combine<br />

these services into their performance<br />

spectrum to offer a high level of experience<br />

and personal service to their guests. The<br />

main benefit for the hotel market is the total<br />

integration of TV broadcast, radio, PayTV,<br />

hotel services, local information services,<br />

shopping, gaming, private and business<br />

communication, served over a modern<br />

system platform. International TV- and<br />

radio broadcasting via satellite are usable<br />

for guests by a comfortable and easy<br />

electronic program guide (EPG). High<br />

speed Internet access and voice over IP is<br />

integrated.<br />

Main features offered by the<br />

deuromedia system...<br />

TV and Radio server: All international<br />

Free To Air channels and Radio stations<br />

receivable via Satellite are presented in<br />

each guest room.<br />

Audio on demand jukebox: Usable for<br />

guests like music CD albums, selected in<br />

several genres, delivered from a digital<br />

server. Same functionality as video<br />

library.<br />

Internet for business guests: High speed<br />

internet access should be a standard<br />

service of each hotel. Surfing and e-mail<br />

by guests notebook computers (CAT5<br />

wired connection or WLAN) is available<br />

in each guest room, in each open area<br />

and all conference rooms.<br />

Internet for leisure guests: High speed<br />

Surfing and e-mail over TV screen by<br />

infrared remote control in the guest room<br />

is available.<br />

Communication VoIP: Voice over Internet<br />

Protocol (VoIP) technology allows to deal<br />

with international Telcos and offer<br />

attractive pricing to the guests.<br />

Other Services:<br />

• In-room shopping • In-room gaming<br />

• DVD player<br />

• Hotel services (An electronic concierge<br />

functionality with services like personal<br />

welcome, wake up call, Video<br />

checkout, messaging)<br />

• Regional information services (weather<br />

forecast, event calendar, traffic info,<br />

ticket services and cultural city program<br />

guide)<br />

• Interface to Property management<br />

system<br />

• Independent of TV manufacturers (All<br />

TV sets (analogue CRT, digital LCD or<br />

Plasma) are usable via serial interface<br />

RS232)<br />

• Independent of hotel infrastructure<br />

(Integrated in hotel network: CAT5/7,<br />

COAX star topology, combination<br />

CAT5 / COAX)<br />

For further information please visit<br />

www.deuromedia.de<br />

© photo: <strong>Deuromedia</strong><br />

www.cleverdis.com<br />

© photo: <strong>Deuromedia</strong>


Licence to Screen<br />

Interested in screening films?<br />

© photo: Filmbank<br />

Guests are more discerning about their<br />

entertainment choices than ever before,<br />

they value their leisure time and<br />

appreciate the highest standards of inroom<br />

hotel entertainment – whether<br />

staying for business or pleasure.<br />

To show a film outside the home<br />

however, you need permission from the<br />

owner of the copyright (the studio) and<br />

for most of the major Hollywood studios,<br />

as well as some of the leading<br />

independents. The non-theatrical market<br />

covers any area that falls between the<br />

cinema and home where films are<br />

screened, for example: schools, film<br />

www.cleverdis.com<br />

societies, coaches, restaurants,<br />

town halls, and more. Permission<br />

must thus be obtained from a<br />

“middle man” company such as<br />

Filmbank. Filmbank Distributors, a<br />

joint venture between Warner Bros<br />

and Sony Pictures, is one of the<br />

leading non-theatrical film<br />

distributors outside North America,<br />

representing most of the major<br />

Hollywood and independent film<br />

studios in the area of film licensing<br />

outside the cinema and home.<br />

Filmbank offer two types of<br />

screening licences:<br />

1) The Public Video Screening<br />

Licence<br />

An annual licence entitling holders<br />

to screen unlimited films throughout<br />

the year to a non-paying audience.<br />

2 The Single Title Licence<br />

A licence issued on a title-by-title<br />

basis, allowing the licence holder<br />

to screen films in either commercial<br />

(paid audience) or non-commercial<br />

(free of charge) environments. The<br />

release dates for a film (in the<br />

cinema, then non-theatrical, then<br />

on video, then on TV services)<br />

change for each film and are called<br />

windows. Many films are available<br />

for a non-theatrical screening before<br />

they come out on video. These are<br />

Filmbank’s Box Office titles.<br />

The latest in-room<br />

entertainment technology<br />

As a leading international distributor of<br />

licensed films, Filmbank is able to supply<br />

films in formats for entertainment<br />

technologies such as Video on Demand<br />

in hotels, which offers guests a premium<br />

choice of films to watch when they want<br />

to watch them. Filmbank works closely<br />

with many licensees (suppliers of in-room<br />

entertainment systems) on the<br />

IN-ROOM ENTERTAINMENT<br />

development of digital content to provide<br />

fully interactive Video on Demand.<br />

For detailed information on the titles<br />

Filmbank can offer your hotel please<br />

contact Sam Partner on<br />

Tel.: +44(0)207 984 5975<br />

e-mail: sam.partner@filmbank.co.uk<br />

or contact your existing technology<br />

provider.<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 17<br />

© photo: Filmbank<br />

© photo: Filmbank


© photo: Media Communications<br />

MCOM HOTstream represents the highest<br />

level of innovation and reliability in hotel<br />

in-room entertainment. HOTstream<br />

delivers Video On Demand, free & pay<br />

TV channels, games, access to internet<br />

and email and novel hotel and travel<br />

interactive TV services, designed to meet<br />

the growing needs of the demanding and<br />

exceptional traveller. Its main features<br />

include:<br />

• State-of-the-art High Definition IPTV<br />

technology platform<br />

• Innovative travel content and TV<br />

programming<br />

• First-run movies from Hollywood and<br />

independent studios<br />

www.cleverdis.com<br />

Media Communications<br />

Costas SAKELLARIOU<br />

CEO<br />

Tel.: +302106839454<br />

E-mail: costas@mcoms.com<br />

www.mcoms.com • www.hotstream.eu<br />

• Industry-first Hotel VOD multilingual<br />

subtitling service<br />

• Customization and adaptation to the<br />

needs of each hotel<br />

MCOM HOTstream transforms the hotel<br />

rooms into advanced media & internet<br />

service centers. Moreover it links the room<br />

TVs to the hotel PMS, reservations,<br />

reception, restaurants, bars, spas, stores<br />

and other hotel facilities, increasing the<br />

revenues from the hotel infrastructure.<br />

What new initiatives do you have<br />

planned for your hotel's technology?<br />

MCOM is dedicated to offer state-of-theart<br />

technologies to the leading hotels of<br />

the world. MCOM was among the first to<br />

offer a VC-1/MPEG4 IPTV platform and<br />

the first to combine it with VOD<br />

multilingual subtitling service for the<br />

hospitality industry. Currently our R&D<br />

Department is finalizing our High<br />

Definition service that will allow the hotels<br />

to benefit at last from the new HD-ready<br />

LCD TVs they are currently installing. We<br />

are continuously focusing in bringing the<br />

changing home and office environment of<br />

the guest in the hotel room TV set or the<br />

guest’s mobile devices. Our new 3.7<br />

version includes an instant messaging<br />

application in the Internet on TV<br />

HOTstream portal, allowing guests to chat<br />

through their preferred service, without<br />

the need of their laptops. We are working<br />

IN-ROOM ENTERTAINMENT<br />

Interview with...<br />

MCOM – First to offer a VC-1/MPEG4 IPTV platform with a VOD<br />

multilingual subtitling service to the hospitality industry...<br />

The new version 3.7 of the MCOM HOTstream Interactive TV hospitality platform has just been<br />

released for all system packages, Basic, Standard and Seven Stars. We asked Costas Sakellariou,<br />

CEO of Media Communications (MCOM) to give us a behind-the-scenes look at the system...<br />

also on the popular social networking and<br />

VoIP services. A continuous initiative for<br />

new developments is the HOTstream<br />

Platinum support program, which allows<br />

the hotel to request the development of<br />

new Hotel Interactive TV services at no<br />

additional cost. All the new services, new<br />

features and updates are offered without<br />

charge to the members of the Platinum<br />

program, enabling the hotels and their<br />

guests to enjoy the latest system and<br />

services enhancements.<br />

How do you see the future in hotel<br />

technology progressing?<br />

As an in-room infotainment technology<br />

provider, MCOM focuses on IT and<br />

media technologies. In this area we will<br />

see very soon a quad play integration of<br />

video, internet, voice and hotel related<br />

services in the room TV set, allowing for<br />

unified messaging and billing, as well as<br />

for guest self-service online transactions<br />

with all hotel facilities (reservations,<br />

reception, restaurants, bars, spas, stores<br />

etc). These developments will increase the<br />

“infotainment” revenues from packages of<br />

movies, internet and voice calls, as well<br />

as the “other” hotel revenues from the<br />

restaurants, bars etc.<br />

Media Communications S.A.<br />

Tel.: +302106839454<br />

E-mail: info@mcoms.com<br />

www.hotstream.eu<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 19


<strong>SMARTreport</strong><br />

© photo: Otrum<br />

20 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

IN-ROOM ENTERTAINMENT<br />

Convergence – In Room Centric<br />

Trends in Hotel Technologies - The vision of a market leader<br />

In their last annual report, Otrum, known throughout the business for their in-room technology<br />

solutions, gave their “point of view” as to the current state of affairs and the outlook for the<br />

industry. We are pleased to be able to reproduce this extract from Otrum’s annual report in this<br />

<strong>SMARTreport</strong>.<br />

Digital TV becomes the<br />

standard<br />

During 2007 we will see the first<br />

European country completely switch off<br />

analogue terrestrial TV transmissions.<br />

Finland may well be the first, but there is<br />

a long list of countries to follow soon after,<br />

with most of Europe completing the<br />

analogue switch off by 2010-2011. In<br />

place of the old analogue TV signals, we<br />

will see the broadcast of digital TV in the<br />

form of DVB-T. Digital TV offers the viewer<br />

a highly improved audiovisual<br />

experience, with crystal clear picture and<br />

sound quality, complimented by a range<br />

of additional services sent along with the<br />

program broadcast.<br />

For the hotel, some focus is required to be<br />

prepared for this digital revolution. Being<br />

prepared is not necessarily expensive, it<br />

just means that any new equipment<br />

should be chosen for its upgradeability<br />

when DVB standards become<br />

mainstream. In the consumer environment,<br />

it is an easy procedure to add a new set<br />

top box and remote control in the living<br />

room, but obviously this is not a cost<br />

effective solution for the hotel room.<br />

Many hotel TVs today include DVB<br />

receivers as standard, but for those hotels<br />

which do not install DVB ready TVs,<br />

Otrum can provide cost efficient retrofit<br />

solutions to enable digital TV to be shown<br />

on the existing TV in the room. Although<br />

the DVB protocol has become a standard<br />

for the transmission of digital TV over<br />

terrestrial, cable and satellite networks, it<br />

is also possible to exploit the benefits of<br />

an IP infrastructure inside the hotel.<br />

IPTV allows digital TV broadcasts to be<br />

transmitted across the hotel’s IP data<br />

networks. Some new hardware is needed<br />

in the room, and of course some new<br />

head-end infrastructure, however IPTV is<br />

certainly on the roadmap for most<br />

international hotel chains in 2007. IPTV<br />

offers a fully digital experience for the<br />

guest, while giving the hotel much better<br />

control of the service delivery to the<br />

rooms.<br />

HD - High Definition<br />

During 2006, the hotel market saw an<br />

explosive growth in the number of new<br />

LCD screens installed in hotel rooms, with<br />

most new hotel installations taking only<br />

LCD screens for the guest rooms. All LCD<br />

screens delivered today carry the HD-<br />

Ready ‘logo’, certifying that they are<br />

100% ready for the transition to High<br />

Definition signals.<br />

2007 is seeing the launch of interactive<br />

HD platforms for the hotel business,<br />

allowing the in-room display of high<br />

definition movies, HDTV, interactive<br />

menus and of course the ‘true’ Internet on<br />

TV experience. HD is built for widescreen<br />

LCD displays, and it only makes sense to<br />

use the right content on these new LCD<br />

screens.<br />

The industry is just waiting for the content<br />

and transmission costs to reduce to a<br />

more affordable level, however<br />

widespread uptake of HDTV in the<br />

consumer market will see these content<br />

and transmission costs dropping to an<br />

affordable level in the very near future. As<br />

with DVB, some focus is required to be<br />

prepared for HD content – meaning that<br />

any new equipment should be chosen for<br />

its upgradeability.<br />

www.cleverdis.com


© photo: Otrum<br />

Centralised marketing<br />

Centralised marketing offers many<br />

advantages to hotel chains and individual<br />

hotels, allowing authorized personnel to<br />

create marketing campaigns, special<br />

offers, as well as advertising hotel and<br />

third party services via the in-room TV.<br />

This can be achieved through<br />

personalised welcome messages, pop up<br />

messages and information channels.<br />

Ultimately, centralised marketing will<br />

positively impact the hotel brand.<br />

Centralised marketing tools allow staff to<br />

plan and execute chain-wide or region<br />

specific marketing campaigns. For a<br />

chain-wide promotion, the central<br />

marketing team can develop a<br />

standardised template according to brand<br />

standards and this template can then be<br />

released to the regional property base.<br />

The centralised marketing team retain all<br />

ownership and control of the promotion,<br />

such as timeframes and pricing, or can<br />

allow the regional marketing teams to<br />

have full control.<br />

Through the use of a centralised<br />

marketing campaign, hotels can schedule<br />

time-sensitive campaigns (e.g. Easter,<br />

Christmas, summer, etc.). Through the onscreen<br />

marketing function, a chain can<br />

ensure that all hotels offer the same<br />

promotions over the same period of time,<br />

and that the parameters of the campaign<br />

fall within the specifications set centrally.<br />

By putting the hotels online, this gives the<br />

central marketing team simultaneous<br />

access to control the distributed hotel<br />

screens. This enables full monitoring of ongoing<br />

campaigns and concise<br />

comparisons of marketing initiatives<br />

within individual hotels, ultimately<br />

resulting in the possibility to share<br />

competencies and best practices across<br />

the entire chain.<br />

www.cleverdis.com<br />

Digital signage<br />

Information sharing is, and always will<br />

be, a critical factor in the successful<br />

operation of a hotel. By providing clear<br />

information in key areas of the hotel, such<br />

as the lobby, reception desk and<br />

conference areas, guests will have a<br />

sense of confidence in the hotel and there<br />

will be a reduction in the number of<br />

questions to the reception desk and hotel<br />

staff.<br />

Digital signage is an attractive and simple<br />

way to display information to guests, the<br />

total solution consists of highly visible<br />

screens placed in key areas and a PCbased<br />

update tool that is simple enough<br />

for all staff to use. Hotels can use digital<br />

signage in its simplest format, or enhance<br />

the total information experience with<br />

screens showing hotel details, current<br />

promotions, airline information and an<br />

infinite number of novel applications. At<br />

the same time, the hotel can promote their<br />

brand by using a customised template<br />

including corporate colour schemes and<br />

logos for on-screen use.<br />

Conference hotels can benefit further, with<br />

details of conferences taking place and<br />

the location, delegate information and<br />

special information from the conference<br />

organisers. Conference organisers can<br />

utilise dedicated screens to provide<br />

information to their delegates, such as the<br />

IN-ROOM ENTERTAINMENT<br />

agenda, meal times and important<br />

messages.<br />

Hotels can enhance their security<br />

procedures by adding information that is<br />

displayed in any type of emergency; this<br />

could be information regarding the nature<br />

of the emergency, evacuation procedures<br />

or directional arrows to show the guest<br />

the nearest emergency exit.<br />

Customisation and Brand<br />

Awareness<br />

Without doubt, all guests will either turn<br />

on the in-room TV during their stay, or<br />

look at a public area TV while walking<br />

through the hotel. This contact with the<br />

guest should be used by the hotel or chain<br />

to maximise the brand awareness of the<br />

hotel. On-screen customisation is a huge<br />

opportunity for promotional brand<br />

building, direct marketing, and<br />

strengthening the hotel's image. Hotels<br />

and hotel chains should look to develop a<br />

user interface that suits their needs and is<br />

visually pleasing for the guest.<br />

The choice also comes down to corporate<br />

colours, infusing elements of your<br />

corporate websites and utilising common<br />

visual component to promote your brand,<br />

as well as providing a user-friendly<br />

interface for your interactive TV system.<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 21<br />

© photo: Otrum


<strong>SMARTreport</strong><br />

Interview with...<br />

22 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

Quadriga Worldwide Ltd<br />

Ian CRABB<br />

Chief Executive Officer, Quadriga Worldwide Ltd<br />

Tel.: +44 (0) 1189 306030<br />

E-mail: ian.crabb@quadriga.com<br />

www.quadriga.com<br />

Appointed as CEO in 2004 – Previously with Permira and formerly CEO of<br />

IKON Office Solutions Europe.<br />

IN-ROOM ENTERTAINMENT<br />

Meeting New Guest Entertainment Demands<br />

The Trends – Tracked by Market Giant QUADRIGA<br />

In the increasingly demanding world of in-room entertainment, customers are seeking more depth<br />

and breadth of content, while at the same time hotels seek to differentiate through brand equity.<br />

As a long standing provider of both entertainment and Internet solutions to hotels, Quadriga are<br />

well placed to see how hoteliers’ requirements within these areas are changing. We asked Ian<br />

Crabb, CEO of Quadriga, to explain Quadriga’s strategy and how the company aims to meet guest<br />

demands for the future.<br />

Central to Quadriga’s strategy and<br />

product development is the ability to<br />

provide hotels with tangible benefits –<br />

enabling them to optimise guest<br />

satisfaction and generate additional<br />

revenue. We achieve this by anticipating<br />

and responding to:<br />

1) the evolving needs of our hotel<br />

customers<br />

2) the evolving expectations and<br />

requirements of the hotel guest<br />

3) rapid developments in technology,<br />

content and distribution channels<br />

In terms of entertainment, a key priority<br />

for hotels is to respond to guests’ growing<br />

demand for more depth and breadth of<br />

content – not only for more blockbuster<br />

content but also local content from<br />

national studios and shorter / “snacking”<br />

content for those guests who have a<br />

limited time in their room. Additionally as<br />

hotels increasingly segment their own<br />

products to appeal to different guest<br />

profiles we are being asked for content in<br />

specific genres and languages. Hoteliers’<br />

demands for internet solutions are also<br />

changing. High Speed Internet Access is<br />

an essential requirement and now as a<br />

key driver of guest satisfaction, hotels are<br />

searching for ways to improve their<br />

offering. Security and reliability are<br />

important considerations and have to be<br />

considered with guests demand for more<br />

bandwidth as they access more<br />

bandwidth hungry websites. Increasingly<br />

hotels are also discussing the merits of<br />

“free” internet provision to their guests<br />

and all of this has to be delivered in such<br />

a way that the overall guest experience is<br />

the most positive. In addition to the trends<br />

within Quadriga’s traditional service<br />

areas, we are also seeing hoteliers<br />

harnessing digital technology to bring<br />

benefits to their guests in other public<br />

areas, for example through digital<br />

signage solutions.<br />

One of the most significant changes we’re<br />

experiencing is an intense demand across<br />

© photo: Quadriga Worldwide Ltd.<br />

www.cleverdis.com


© photo: Quadriga Worldwide Ltd.<br />

all hotel segments, not just in the 5 star<br />

category, for brands to increasingly<br />

differentiate themselves and here the inroom<br />

TV is considered a powerful sales<br />

and marketing tool. Hoteliers are looking<br />

for every opportunity to reinforce their<br />

brand, their services, their loyalty<br />

programmes and their third party partners<br />

and suppliers like Quadriga, need to be<br />

positioned to enable their hotel customers<br />

to do this.<br />

Finally, to avoid dealing with multiple<br />

suppliers for a growing number of<br />

services, which can be both costly and<br />

time consuming, hotels will increasingly<br />

seek to work with just one supplier and as<br />

part of this they will request faster, on-line<br />

access to performance data and service<br />

information and statistics.<br />

So what exactly are guests now doing<br />

differently?<br />

Today’s guest is an accomplished internet<br />

user. A reliable and robust service in the<br />

hotel is a ‘must have’ for the business and<br />

leisure traveller as their usage of the<br />

internet is changing. The guest not only<br />

needs access to office applications or to<br />

surf local information but they now need<br />

access to the increasingly popular brands<br />

– You Tube, Facebook and Messenger<br />

where content sharing and video<br />

www.cleverdis.com<br />

streaming is more commonplace and at<br />

the same time places more and more<br />

demand on hotel bandwidth.<br />

Also, with the introduction of devices<br />

which enable home TV to be watched<br />

from anywhere (e.g Slingbox), the hotel<br />

now provides an environment for “place<br />

shifting”. Guests can view their own<br />

content from home, using the hotel’s<br />

bandwidth – but this can cause<br />

bandwidth availability issues for the hotel.<br />

Additionally, both business and leisure<br />

guests alike are now carrying into hotels<br />

a range of personal devices, digital<br />

cameras, iPods, sophisticated mobiles<br />

and PDA’s or indeed devices which can<br />

perform all these functions in one.<br />

Consequently hotels want to enable<br />

guests to interface these devices as<br />

appropriate with the TV in the room. So<br />

all of this means that guests are<br />

demanding more choice of content and<br />

more control over how they watch or<br />

listen to it.<br />

Can you summarise the changes that you<br />

are seeing in other key areas of your<br />

business such as technology?<br />

Today, technology in hotels is evolving<br />

rapidly and bringing many new and<br />

additional benefits. Digitalisation is<br />

providing us with huge opportunities;<br />

IN-ROOM ENTERTAINMENT<br />

superb quality, a greater choice of ondemand<br />

content and services, DVD type<br />

functionality and the ability to integrate<br />

services e.g. laptop internet access and<br />

entertainment.<br />

With the analogue switch-off in Europe<br />

already underway – Finland switched off<br />

on 31 st August 2007 – hotels need to be<br />

‘digital-ready’. Digital TV provides the<br />

ideal solution, also allowing hotels to offer<br />

guests a choice of hundreds of TV<br />

channels in superb digital quality. TV and<br />

screen technology is advancing at a fast<br />

pace – Hotels are rapidly replacing<br />

conventional analogue CRT screens with<br />

digital flat panel LCD screens and<br />

manufacturers are integrating more and<br />

more functionality into the TV.<br />

The next major technology trend is ‘High<br />

Definition’ and this will have a major<br />

impact on the TV – by 2010 it is forecast<br />

that 12 million European TV households<br />

will receive HDTV programmes and watch<br />

them on HD-ready television sets. This will<br />

provide hotels with even more<br />

opportunities in the next few years.<br />

Can you outline your strategy for the<br />

future?<br />

Our customers are at the very centre of<br />

our strategy, now and in the future and<br />

we are working with them to deliver the<br />

real benefits of digital entertainment and<br />

internet solutions. Whether it is migrating<br />

customers from an analogue platform to<br />

Genesis, adding new services and<br />

capabilities to Genesis or supporting our<br />

customers as they adopt increasingly<br />

global strategies, meeting our hotel<br />

customers needs is our number one<br />

priority.<br />

We will continue to invest extensively in<br />

technology and new product development<br />

in order to leverage our European market<br />

leading position and offer business<br />

benefits and service differentiation to our<br />

customers. We are looking at new<br />

services for outside of the hotel room and<br />

developing additional functionality for<br />

Genesis, to optimise guest satisfaction<br />

and reinforce the hotel’s brand, providing<br />

customers with a truly compelling sales<br />

and marketing tool and essentially<br />

generating additional revenues for the<br />

hotel.<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 23


<strong>SMARTreport</strong><br />

Interview with...<br />

© photo: Quadriga Worldwide Ltd.<br />

Our scale is absolutely a key<br />

differentiator. Our launch of Genesis on a<br />

coax network infrastructure in 2005<br />

effectively enabled us to deliver a cost<br />

effective solution to all hotels – whatever<br />

their network or budget. Customer data<br />

proves that Genesis revenue achieved is<br />

typically 3 times higher than that obtained<br />

with traditional analogue systems – in<br />

fact, most recent data proves it to<br />

contribute substantially higher than 3<br />

times. This demonstrates how Genesis is<br />

designed not only to enhance the guests’<br />

24 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

Quadriga Worldwide Ltd<br />

Myron TATARYN<br />

Sales and Marketing Director, Quadriga Worldwide Ltd<br />

Tel. : +44 (0) 1189 306030<br />

E-mail: myron.tataryn@quadriga.com<br />

www.quadriga.com<br />

Appointed as Sales and Marketing Director in February 2005 – Previously<br />

Director and Head of Sales at Radianz bringing extensive experience providing<br />

IP connectivity, hosting services and new business solutions to multi-nationals.<br />

Involved in setting up global networks for the majority of the major international<br />

hotel chains.<br />

stay but at the same time, increase room<br />

revenues. A major differentiator is that<br />

Genesis is the only proven entertainment<br />

solution to offer a single, fully integrated<br />

internet and entertainment capability. This<br />

enables guests to benefit from ‘bundled’<br />

special offer pricing where all Genesis<br />

services can be purchased for a single<br />

preferential price.<br />

Last, but not least – our customers know<br />

we are here to stay. We have 25 years<br />

experience in the industry – we are<br />

IN-ROOM ENTERTAINMENT<br />

Massive Roll-out for Genesis System<br />

Full Integration of Internet and Entertainment Arrives!<br />

Quadriga’s Genesis system is today firmly established as an industry standard with over 130,000<br />

fully digital Genesis rooms across Europe and the Middle East – no other supplier is close to<br />

matching this scale in both high and mid market segments. We asked Myron Tataryn to explain<br />

the factors which differentiate Quadriga and the Genesis solution...<br />

proven and successful in over 50<br />

countries. We continue to invest<br />

extensively in our product, with our<br />

customers at the heart of everything we<br />

do. We enable hotels to keep pace with<br />

changes in their guest requirements and<br />

technology, and in effect, future-proof the<br />

Genesis solution for them. All of these<br />

factors mean our customers are confident<br />

in us as a long-term ‘business partner of<br />

choice’. This is what differentiates<br />

Quadriga.<br />

So what does Genesis offer a hotel<br />

today?<br />

In addition to the array of on-demand<br />

video and music entertainment, Genesis<br />

offers the hotel and its guests a choice of<br />

hundreds of superb quality digital TV and<br />

radio channels. Available on both coax<br />

and CAT5, HSIA (High Speed Internet<br />

Access) for laptop users is integrated into<br />

Genesis enabling guests to benefit from<br />

our “all services” bundle. HSIA is<br />

available using both wired and wireless<br />

connections and guests have the ability to<br />

roam seamlessly between the two<br />

environments so they don’t have to log in<br />

twice. The hotel is able to direct guests to<br />

a specific landing page to promote hotel<br />

www.cleverdis.com


services and credit card payment is also<br />

available. Guests not carrying a laptop<br />

are also able to access the internet via the<br />

TV.<br />

We’re also finding that Genesis is<br />

increasingly becoming a valuable sales<br />

and marketing tool for the hotel, helping<br />

them to reinforce their brand. Our Web<br />

Promotions service enables hotels to<br />

integrate web content directly into the<br />

Genesis menu promoting specific hotel<br />

services and special offers – thus<br />

communicating and interacting directly<br />

with their guests in the comfort of their<br />

room via the TV. Recognising the<br />

importance of the TV itself to the hotel we<br />

are extending our interactive range to<br />

incorporate models from top brands<br />

including Philips, B&O, LG and Samsung.<br />

Similarly, we recognise the significant<br />

potential of HD – we’re already installing<br />

HD ready TVs and are actively<br />

progressing a complete HD solution.<br />

Underpinning this and unique to<br />

Quadriga and Genesis, is the ‘NOC’<br />

(Network Operating Centre), a<br />

sophisticated customer support tool<br />

enabling us to proactively identify and<br />

solve potential problems before the<br />

hotelier or guest even becomes aware of<br />

them. It remotely monitors and checks all<br />

Quadriga digital-IP based hotel<br />

installations across Europe and the<br />

Middle East every 6 minutes, and<br />

provides hotel customers with real peaceof-mind.<br />

How are you developing your<br />

entertainment and internet offering to<br />

respond to the key market trends?<br />

Recognising its strategic importance to<br />

our customers we are working with our<br />

partners to provide an unrivalled depth,<br />

breadth and quality of choice of content.<br />

Quadriga is able to offer a wide selection<br />

of movie titles sourced from all the ‘Big 7’<br />

Hollywood studios, including Universal,<br />

Paramount, Dreamworks, Warner Bros.,<br />

Sony Pictures, Twentieth Century Fox, and<br />

Buena Vista International – through an<br />

established agreement with United<br />

International Pictures (UIP) and a recently<br />

signed agreement with Filmbank<br />

Distributors.<br />

We enable hotels to offer the best and<br />

most appropriate content selection<br />

through providing a range of packages<br />

www.cleverdis.com<br />

where the volume and mix of content can<br />

be matched to guest profiles.<br />

Additionally we are providing a greater<br />

variety of shorter programmes and local<br />

content. We have established<br />

relationships with more specialist studios<br />

– for example Canal Plus for local French<br />

content. With the expectation of a true<br />

‘home from home’ TV experience,<br />

hoteliers need to provide more TV choice<br />

from around the world. Genesis Digital TV<br />

provides exactly this, and is delivered in<br />

superb digital quality direct to the room<br />

with crystal clear digital sound.<br />

What about High Speed Internet Access?<br />

We provide over 65% of our customers<br />

with HSIA and as such it is a key area of<br />

development. It represents a major<br />

opportunity for our customers to drive<br />

additional revenues and is an important<br />

factor influencing customer satisfaction.<br />

When integrated with Genesis, we’ve<br />

found in city centre hotels for example, an<br />

uplift in guest room revenue of nearly<br />

80%. We are partnered with industry<br />

leading SolutionInc, and are working with<br />

them to provide new solutions for our<br />

hotel customers to optimise their guest<br />

experience. Our future offer is influenced<br />

by the growing demand of guests to<br />

access more bandwidth intensive<br />

applications as well as the growing<br />

recognition in Europe of hotels wanting to<br />

offer ‘Internet for free’. This could lead to<br />

hotels offering lower levels of bandwidth<br />

IN-ROOM ENTERTAINMENT<br />

for free as well as a chargeable, more<br />

superior service with higher bandwidth<br />

levels.We also recognise the requirement<br />

for internet solutions tailored for the<br />

growing hotel conference business, with<br />

multi-user access codes and the ability to<br />

direct delegates to a specific portal for<br />

promotional purposes and conference<br />

information.<br />

Can you tell us about other areas of<br />

development?<br />

Building on the success of our Web<br />

Promotions tool it is our intention to further<br />

expand upon the many customisable<br />

components of Genesis; for example by<br />

providing further flexibility and branding<br />

capabilities within Genesis itself and<br />

utilising web based applications with Web<br />

Promotions. We know hoteliers require an<br />

array of multimedia components from<br />

music, video and internet links to be used to<br />

promote their brands and sell services and<br />

these are components that we would aim to<br />

accommodate in future development.<br />

For further information visit<br />

www.quadriga.com<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 25<br />

© photo: Quadriga Worldwide Ltd.<br />

© photo: Quadriga Worldwide Ltd.


<strong>SMARTreport</strong><br />

CASE STUDY<br />

A Taste of Genesis<br />

The S Group<br />

During July and August 2007 Quadriga<br />

installed its Genesis solution including<br />

Digital TV in to over 2100 rooms in<br />

Sokos, Holiday Club and Radisson SAS<br />

Hotels in Finland. In addition to the well<br />

established on-demand Genesis<br />

entertainment and internet services, Sokos<br />

guests are also benefiting from an<br />

unlimited choice of superb quality digital<br />

TV and radio channels, now an essential<br />

component of their offer as analogue<br />

transmissions were turned off in Finland at<br />

the end of August. These digital channels<br />

also enable guests to access both teletext<br />

and subtitle functionality.<br />

26 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

Marriot Rive Gauche<br />

The Paris Marriott Rive Gauche Hotel and<br />

Conference Centre officially opened its<br />

doors to the public in May 2007<br />

following a major refurbishment which<br />

included the adoption of a range of hotel<br />

and guest services provided by<br />

Quadriga’s Genesis solution. As part of<br />

this refurbishment the Paris Marriott Rive<br />

IN-ROOM ENTERTAINMENT<br />

Roll-out of Quadriga’s Genesis Solution Hits Top Locations<br />

Quadriga solutions are today installed in 4000 hotels across Europe and the Middle East, with<br />

Genesis, the industry standard digital hotel entertainment and internet solution, live in over<br />

130,000 rooms – the largest installed base of true digital solutions in our industry. On this page,<br />

you can read about how Quadriga is working with some of its hotel customers, delivering<br />

entertainment and internet solutions to enable them to provide the best possible guest experience<br />

and achieve real competitive advantage.<br />

© photo: the S Group<br />

© photo: Marriot Rive Gauche<br />

Gauche chose to use sales and marketing<br />

tools available within Genesis including<br />

the recently introduced Web Promotions.<br />

This enabled it to integrate its own<br />

website content into the Genesis main<br />

menu on the TV in order to promote its<br />

hotel services and Marriott Reward<br />

loyalty scheme directly to each guest in<br />

the comfort of their room.<br />

Luiten Van der Valk Beheer<br />

Luiten Van der Valk Beheer B.V, a Van der<br />

Valk Hotels group recently decided to<br />

upgrade its analogue Pay TV system in<br />

some of its hotels to a fully digital Genesis<br />

entertainment and internet solution. This<br />

decision reflected their desire to<br />

modernise the in-room entertainment<br />

service and to offer the ultimate guest<br />

experience, with a wider and more<br />

flexible range of service options and<br />

stylish and contemporary flat-screen TVs.<br />

It also reflected their confidence in<br />

Quadriga as a reliable partner. Following<br />

a successful installation in 3 or 4<br />

properties, Genesis was installed in a<br />

total of 10 hotels and over 1500 rooms –<br />

providing Luiten Van der Valk Beheer with<br />

the ability to deliver an outstanding guest<br />

experience, offering a full range of<br />

services including a wide range of ‘ondemand’<br />

entertainment as well as HSIA<br />

and Internet on TV. Consequently,<br />

revenues are up significantly in the<br />

installed hotels and Genesis virtually sells<br />

itself, making the investment a profit<br />

centre as well as a sales tool.<br />

www.cleverdis.com


IN-ROOM ENTERTAINMENT<br />

Quadriga Worldwide Ltd KEY FIGURES<br />

Belonging to: Quadriga Holdings Limited<br />

Legal form: Limited Company<br />

Year of creation: 1964<br />

Headquarters : Theale, Berkshire, UK<br />

CONTACTS<br />

COMPANY PROFILE<br />

Quadriga is the market leader in Europe and the<br />

Middle East in the provision of state-of-the-art<br />

digital-IP based entertainment and internet<br />

services for business and leisure guests staying<br />

in hotels, with over 130,000 fully digital<br />

Genesis rooms, more than 415,000 total<br />

installed rooms and an annual audience of<br />

some 100 million guests. The company<br />

operates in over 50 countries throughout Europe<br />

and the Middle East and serves a substantial<br />

share of the room base of Europe’s leading hotel<br />

chains including InterContinental Hotels Group,<br />

Accor, Starwood Hotels & Resorts, Marriott<br />

International, Hyatt, Best Western International,<br />

Four Seasons, Hilton, Le Meridien, Rica Hotels<br />

and Sol Melia.<br />

KNOW HOW & MAIN<br />

PRODUCTS<br />

Provision of entertainment and internet services<br />

delivered to the hotel guest via the TV and<br />

computer laptop, enabled through digital-IP<br />

technology and satellite content delivery<br />

allowing hotels to generate revenue, reduce<br />

costs and encourage guest loyalty.<br />

www.cleverdis.com<br />

Number of staff / offices Europe: 321<br />

Number of offices Worldwide: 50+<br />

Ian CRABB<br />

Chief Executive Officer, Quadriga Worldwide Limited<br />

ian.crabb@quadriga.com<br />

Number of rooms under contract: More than 415,000<br />

Number hotels under contract: circa 4000<br />

Appointed as CEO in 2004 – Previously with Permira and formerly CEO<br />

of IKON Office Solutions Europe.<br />

Myron TATARYN<br />

Sales and Marketing Director, Quadriga Worldwide Limited<br />

myron.tataryn@quadriga.com<br />

Appointed as Sales and Marketing Director in February 2005 – Previously<br />

Director and Head of Sales at Radianz bringing extensive experience<br />

providing IP connectivity, hosting services and new business solutions to<br />

multi-nationals. Involved in setting up global networks for the majority of the<br />

major international hotel chains.<br />

Marc BUDIE<br />

Director of Technology, Quadriga Worldwide<br />

marc.budie@quadriga.com<br />

Joined in 1997 – extensive knowledge and experience of both the hotel<br />

sector and interactive digital technology. Previously, 20 years technical<br />

industry experience in a variety of technology, networking, software<br />

development and delivery roles.<br />

Genesis is the first fully digital-IP based<br />

entertainment and internet services solution<br />

developed specifically for the hotel industry.<br />

With content delivered via satellite, Genesis<br />

offers a unique and comprehensive array of<br />

guest services. These include the latest<br />

blockbuster movies and popular music<br />

selections, available ‘on-demand’, an unlimited<br />

choice of digital TV and radio channels and<br />

Internet on TV or high speed internet access for<br />

laptop users using either wired connection or<br />

WiFi, through a partnership with market leading<br />

HSIA provider, SolutionInc. To further enhance<br />

the guest experience, a comprehensive range of<br />

flat-panel LCD screens is offered and a unique<br />

Network Operating Centre provides proactive<br />

monitoring and support, ensuring peace of mind<br />

for every hotel customer.<br />

PARTNERS<br />

• SolutionInc - High speed internet access<br />

services<br />

• Philips and B&O - Suppliers of interactive<br />

screens<br />

• Globecast - Distributors of content by satellite<br />

• Cisco Systems - Network / switch specialists<br />

• IBM - Provision of processor units<br />

HOTEL ENTERTAINMENT &<br />

INTERNET SERVICES<br />

www.quadriga.com<br />

REFERENCES<br />

Forum 1 - Station Road,<br />

Theale, Berkshire<br />

RG7 4RA<br />

United Kingdom<br />

Tel. : +44 (0) 1189 306030<br />

Fax :+44 (0) 1189 033970<br />

Quadriga works with many of the leading<br />

hotel brands across Europe and the<br />

Middle East including:<br />

InterContinental Hotels Group, Accor,<br />

Starwood Hotels & Resorts, Marriott<br />

International, Hyatt, Best Western<br />

International, Four Seasons, Hilton, Le<br />

Meridien, Rica Hotels and Sol Melia.<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 27<br />

© photos: Quadriga Worldwide Ltd.


<strong>SMARTreport</strong><br />

NxTV, Inc., who claim to be the “first and<br />

largest provider” of Internet Protocol<br />

Video on Demand (IP VOD) and<br />

interactive digital IP-based in-room<br />

entertainment and technology solutions in<br />

the hospitality industry, have announced<br />

they have earned HTNG certification for<br />

'single guest itinerary' display<br />

functionality. NxTV is the first and only inroom<br />

entertainment provider to comply<br />

with HTNG industry standards that<br />

enable NxTV to interface with other<br />

certified third-party systems to display<br />

guest reservation information including<br />

hotel check-in and check-out, spa<br />

appointments, golf tee times and<br />

restaurant reservations on hotel room<br />

televisions. One of HTNG's primary<br />

missions is to help the industry by creating<br />

new software standards enabling different<br />

hotel systems, which previously could not<br />

communicate with each other (or at most<br />

in a very limited manner), to connect and<br />

share guest-related data, opening up the<br />

flow of information between systems and<br />

enabling new and innovative services to<br />

hotel operators and guests. "HTNG's<br />

Property Web Services workgroup<br />

members invested hundreds of hours to<br />

28 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

create the 'single guest itinerary' standard<br />

and indeed, NxTV should be<br />

congratulated as the first company to<br />

certify against this new specification,<br />

other than companies directly involved in<br />

its creation," said Douglas Rice, Executive<br />

Vice President and CEO of HTNG. Barry<br />

Shuler, President of HTNG commented,<br />

"With standardized products, hotel<br />

operators are able to install new systems<br />

at their properties and be confident they<br />

will integrate with existing systems and<br />

technologies." NxTV's IP VOD system<br />

allows hotel owners to take full advantage<br />

of new technologies today and in the<br />

future. Designed specifically to carry<br />

digital information securely, an IP<br />

infrastructure is the only way to operate<br />

on a converged network. Without an IPbased<br />

solution, even the digital VOD<br />

systems on the market today are not<br />

scalable or capable of integration with<br />

other hotel applications on a converged<br />

network. NxTV's system runs over the<br />

hotel's existing converged IP network,<br />

which enables the property to<br />

communicate with a wide variety of inroom<br />

technologies without the cost and<br />

effort of installing and maintaining<br />

separate networks for each hotel<br />

technology. "The number one technology<br />

trend in hospitality today is the transition<br />

from analogue legacy systems to digital<br />

converged communications<br />

platforms," said<br />

Russell P. Reeder,<br />

President and<br />

COO of NxTV.<br />

"NxTV's versatile<br />

IP platform<br />

enabled us to<br />

easily adapt to<br />

HTNG's global<br />

industry standards<br />

that establish crosssystem<br />

communication<br />

IN-ROOM ENTERTAINMENT<br />

NxTV First of Kind to Earn HTNG Certification<br />

for Guest Itinerary Display on Hotel Televisions<br />

Leading IP provider, NxTV is only in-room entertainment vendor to win certification<br />

Russell P. Reeder<br />

President and COO of NxTV<br />

© photo: NxTV<br />

to benefit operators and guests." Reeder<br />

noted that the FCC's mandate that all<br />

television broadcasters must transition to<br />

digital content delivery by February 2009<br />

necessitates that hotels must rethink their<br />

digital entertainment strategy. "IP is the<br />

future of technology delivery for the<br />

hospitality industry and many hotel<br />

operators and chains are already making<br />

the decision to upgrade to IP-network<br />

systems that provide the benefits of a<br />

converged network platform," Reeder<br />

said. NxTV has been delivering IP-based<br />

in-room services to its<br />

customers for almost a<br />

decade.<br />

With converged IP<br />

networks, HD VOD,<br />

IPTV Free to Guest<br />

content, high-speed<br />

Internet access and<br />

communication with minibar,<br />

Voice over IP,<br />

reservation and POS<br />

systems all utilize one<br />

multi-application IP<br />

network for greater cost<br />

savings, reliability,<br />

improved applications<br />

integration, scalability and<br />

increased operator<br />

revenue.<br />

www.cleverdis.com


NxTV, Inc., currently claiming to be the<br />

world’s biggest provider of Internet<br />

Protocol Video on Demand (IPVOD), IPTV<br />

and interactive digital IP-based in-room<br />

entertainment and technology solutions in<br />

the hospitality industry, will be supplying<br />

a wide range of in-room entertainment<br />

services featuring high-definition IPVOD,<br />

for the new Trump International Hotel &<br />

Tower Chicago.<br />

www.cleverdis.com<br />

The property is scheduled to open in<br />

December 2007.<br />

“NxTV was selected for Trump<br />

International Hotel & Tower Chicago<br />

because they are the largest and most<br />

experienced provider of IP guest<br />

entertainment systems to the hospitality<br />

industry worldwide,” said Jerry Chang,<br />

Director of IT for Trump International<br />

Hotels Management.<br />

“Delivery of entertainment via a<br />

converged IP network is the<br />

future of guestroom<br />

technology and our<br />

research has shown that<br />

NxTV provides the clearest<br />

picture and widest range of<br />

content,” Chang added.<br />

NxTV is providing digital<br />

high definition IP VOD<br />

services for all 339 hotel<br />

rooms in the mixed-use<br />

development that includes<br />

hotel suites and residences.<br />

Russell P. Reeder, President and<br />

COO of NxTV, said, “Guests<br />

who stay at any Trump luxury<br />

hotel property expect the very<br />

best, and NxTV’s extensive suite of<br />

ultra-crisp HD IPVOD entertainment<br />

and other personalized video<br />

services consistently exceed<br />

expectations.” NxTV stores its content<br />

on the hospitality industry’s highest<br />

capacity digital entertainment servers and<br />

delivers VOD movies to guest rooms via a<br />

hotel’s converged IP network to best serve<br />

guest needs while maximizing revenuebuilding<br />

opportunities for its clients.<br />

NxTV’s lineup features more than 250<br />

movies on demand, the largest selection<br />

in the industry, including recent<br />

Hollywood blockbusters, episodes of<br />

IN-ROOM ENTERTAINMENT<br />

Trump International Hotel & Tower Chicago Installs Next<br />

Generation HD IP Video on Demand Entertainment Services<br />

Guests to receive NxTV 100% digital HD VOD content delivery<br />

popular television shows, family content<br />

and smaller box-office independent films.<br />

The 92-story Trump International Hotel &<br />

Tower, designed and engineered by<br />

Skidmore Owings & Merrill, has a<br />

building area of 2.6 million gross square<br />

feet and is located on the site of the<br />

former Chicago Sun-Times building. The<br />

new $740 million complex features 486<br />

ultra-luxury residential condominiums,<br />

from studios to three-bedrooms, as well as<br />

up-to-five-bedroom penthouses. In<br />

addition, the Trump International Hotel<br />

features 339 luxury hotel one- and twobedroom<br />

suites.<br />

CONTACTS:<br />

estern@nxtv.com<br />

http://www.nxtv.com<br />

CASE STUDY<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 29<br />

© photo: Trump International Hotel & Tower


www.cleverdis.com<br />

© photo: Premiere Hoel Entertainment<br />

Today it is essential… and creating this<br />

added value is precisely the challenge<br />

that we as a service provider have set<br />

ourselves. It is no longer enough to offer<br />

mere pay TV or TV systems - our role in<br />

the future will be that of a professional<br />

media partner offering intelligent,<br />

networked entertainment and marketing<br />

solutions from a single source. And<br />

Premiere Hotel Entertainment GmbH<br />

(PHE) is positioned excellently to do just<br />

that. As a subsidiary of Germany’s<br />

leading pay-TV group Premiere, we are,<br />

of course, in a very good position: we<br />

are able to profit from the competence,<br />

experience and support of our parent<br />

company. PHE is actually among the first<br />

to reflect the altered market conditions in<br />

its business model, and we are one of the<br />

few companies to offer hotels an<br />

integrated portfolio which goes far<br />

beyond classic pay TV. Another<br />

emerging development is the increasing<br />

significance of new technologies such as<br />

IP. In combination with classic TV<br />

entertainment, a new dimension of<br />

Internet infotainment is opening up which<br />

can be adapted to the individual needs<br />

of the specific hotel and which facilitates<br />

innovative sales and marketing activities<br />

within the hospitality industry. However,<br />

Premiere Hotel<br />

Entertainment<br />

Tonio FRUEHAUF<br />

Vice President Hotel & Gastronomy<br />

let me point out that we don’t only cater<br />

for high-end customer needs, we actually<br />

offer a wide range of hotel solutions to<br />

suit very individual requirements. This<br />

includes attractive, affordable<br />

entertainment packages in the low-end<br />

and middle-class sectors. In terms of<br />

future trends, we also see exclusive<br />

content such as live sports and HDTV<br />

become an increasingly important factor<br />

with which hotels can differentiate<br />

themselves from the competition.<br />

What about convergence?<br />

Convergence is a crucial topic. Whether<br />

we’re talking about in-room<br />

entertainment, telephone services, billing<br />

or Internet applications in hotel rooms,<br />

the future clearly belongs to a mix of<br />

web-based and classic hotel<br />

entertainment. In other words, our vision<br />

for the future is to offer hotels an effective<br />

combination of web-based entertainment,<br />

classic TV solutions with first-class content<br />

and value-added services.<br />

Please tell us about your offer.<br />

As already mentioned, PHE offers much<br />

more than just pay TV. Exclusive program<br />

IN-ROOM ENTERTAINMENT<br />

Interview with...<br />

The Shift from Pay TV Provider to<br />

Veritable “Media Partner”<br />

The hospitality industry is on the verge of a paradigmatic shift. The close cooperation of Premiere<br />

Hotel Entertainment with hoteliers gives them an insight into the pace the hotel market is taking on:<br />

faster than ever before… and the fact that the competition is getting ever harder. We asked Tonio<br />

Fruehauf how important it is today for hotels to stand out from their competitors and attract guests<br />

through real added value.<br />

content, complete TV and IP-based system<br />

solutions, covering the whole spectrum<br />

from high-end to basic, and a broad<br />

selection of various TV equipment are<br />

things which we regard as standard. And<br />

this allows us to respond to the increasing<br />

multi-media expectations of hotel guests.<br />

But we aren’t just focused on the latest<br />

technology; we are also committed to<br />

multi-media value-added services. These<br />

services all focus on making in-room<br />

entertainment a profitable business – and<br />

a real asset for guests.<br />

Innovative online platform:<br />

www.premiere-hotel.de<br />

© photo: Premiere Hoel Entertainment<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 31


<strong>SMARTreport</strong><br />

CASE STUDY<br />

Surprising Guests with Simplicity,<br />

32 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

IN-ROOM ENTERTAINMENT<br />

Quality and Quantity (of channels)<br />

Le Byblos – St Tropez<br />

Stéphane Personeni<br />

Hotel Director – Le Byblos, St Tropez<br />

Le Byblos sets itself apart by not only<br />

being a fabulously luxurious hotel on the<br />

French Riviera, but also through major<br />

annual refits, whereby sections are<br />

completely torn down, with everything<br />

rebuilt, from the wiring right up to the final<br />

finishing touches, with every room totally<br />

individual in character. This year, an allnew<br />

in-room entertainment system was<br />

installed that is leaving many a guest<br />

“gobsmacked”! We asked hotel director<br />

Stéphane Personeni to explain...<br />

We wanted to personalise the technology<br />

with the rooms, so we installed a new<br />

system designed and installed by Intens<br />

France. We chose 40 and 46 inch LCD<br />

Loewe TVs fed by IP distribution from a<br />

satellite system. This means we have more<br />

than 1,500 TV channels and on the TV<br />

you can also connect your i-Pod and use<br />

the TV as a sound system. If guests don’t<br />

have an i-Pod, we lend them one, with<br />

music from the “Cave du Roi”. The system<br />

is really excellent and very easy to use for<br />

the guest. In many hotels, the TVs are<br />

great, but they’re difficult to use. With the<br />

Loewe it is very easy and we can<br />

personalise the TV for the guest, meaning<br />

for example if you are Indian, when you<br />

press one you get the first Indian channel<br />

and so on. In this system you just have<br />

one menu, and if you want, for example,<br />

CNN, you just press “CN” and all TV<br />

stations starting with CN come up on the<br />

list. We also now have VOD via Internet<br />

which is a unique system designed by<br />

Intens. A number of channels are in HD,<br />

and the picture is fantastic! We are one of<br />

the first hotels to have such a<br />

sophisticated system.<br />

Does this surprise people?<br />

For the moment people are surprised<br />

because we are one of the only hotels to<br />

propose this, but I think it will become<br />

something normal. When you stay in a<br />

luxury hotel, you need to feel you’re at<br />

© photo: Le Byblos<br />

home, and I think with the music and the<br />

picture this helps. This year we will also<br />

add a new feature whereby you can<br />

leave your own picture (family, pets etc.)<br />

on the TV or use it as a computer. So we<br />

personalise the room with our ambience,<br />

but in the future it will be important to give<br />

the opportunity to the guest to customise<br />

the room with his own ambiance... either<br />

photos or music.<br />

How do you see the future?<br />

While the design of TV is excellent, the TV<br />

should become an artwork... like a<br />

painting, when not being used to transmit<br />

TV and video. The TV will also be used as<br />

a computer and we will be testing a new<br />

remote control which will give guests<br />

access to e-mail on an individual screen<br />

on the unit from anywhere in the hotel.<br />

For more information on the Intens system:<br />

Patrick Corchia<br />

pc@intensfrance.com<br />

Tel.: +33 4 72 17 04 09<br />

© photo: Le Byblos<br />

www.cleverdis.com


© photo: ArtDisplay<br />

The deluxe hotel trade has always been<br />

avant-garde when it comes to adding<br />

culture and ingenuity to their offering. The<br />

arrival of dynamic digital art onto the<br />

scene is no exception.<br />

Many establishments have created an<br />

audio/visual “ambience”. Thus has been<br />

spawned the role of “Sound Designer”,<br />

incarnated by Béatrice Ardisson in France<br />

with her work on an “audio identity” for<br />

such places as the Indian “Jaipur” lounge<br />

in the Vernet Hotel, the Fouquet’s<br />

Brasserie on the Champs Elysées, the<br />

www.cleverdis.com<br />

ArtDisplay<br />

Kong, the Bristol, le Crillon and the Louis<br />

Vuitton boutique.<br />

But today, sound is only one component<br />

of a digitally enhanced ambience. Going<br />

one step beyond this is a new art form<br />

which is beginning to appear in top-of-theline<br />

hotels. A pioneer in the field, the<br />

Mandarin Oriental is reported to be<br />

including dynamic digital art in its 48<br />

spacious rooms and 25 suites at the<br />

newly refurbished Mandarin Oriental in<br />

Munich. Nick Price, the charismatic CTO<br />

of the group, has been one of the first in<br />

the trade to recognise the attraction of<br />

including art on TV screens that would<br />

otherwise be somewhat unsightly when<br />

turned off, or which otherwise have to be<br />

hidden behind two-way mirrors or in<br />

motorised cabinets.<br />

In Paris, it was Raymond Visan (George V<br />

Group) who led the way, installing 4<br />

dynamic artworks in the Bound Bar in<br />

avenue Georges V. According to Visan, “I<br />

was looking for somebody who could<br />

create something that was fixed but that<br />

would change... but not like a video. I am<br />

against video in a restaurant. I think it’s<br />

better to have something like a painting or<br />

a photo ... to have something that<br />

changes but that you don’t see straight<br />

away. Everybody really loves it. People<br />

are curious and they look, and they really<br />

love it.”<br />

Patrick GOUBET<br />

Founder ArtDisplay<br />

patrickgoubet@artdisplay.fr<br />

IN-ROOM ENTERTAINMENT<br />

Interview with...<br />

One Step Beyond!!...<br />

DYNAMIC Digital Art in Hotels<br />

The “Creator” behind these works is<br />

Patrick Goubet, who has formed<br />

“ArtDisplay”, combining the talents of a<br />

number of artists with the advantage of<br />

digital technology – by “bringing the<br />

works to life”. Indeed, the works of<br />

ArtDisplay, virtual paintings or 3D<br />

sculptures, are unique in the way in which<br />

they “evolve” with time in such a way as<br />

to intrigue and fascinate the viewer, while<br />

not creating a distraction through the use<br />

of moving images such as video. Dynamic<br />

Digital Art may source existing traditional<br />

works, such as paintings, sketches,<br />

photos, engravings or texts, but may also<br />

be entirely conceived and made from<br />

digital sources (pictures and sounds made<br />

by computer)…<br />

Extra Dimension<br />

A new marriage has just been<br />

announced... that of dynamic digital art<br />

with an aural dimension. Idylle Production<br />

(see also interview in this section) has<br />

formed a partnership with ArtDisplay in<br />

order to add an extra dimension to these<br />

extraordinary works, imagining musical<br />

atmospheres to be included in the<br />

package!<br />

For further information, please visit:<br />

www.artdisplay.fr<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 33


<strong>SMARTreport</strong><br />

© photo: Chief Manufacturing<br />

Having flat screens on the wall is one<br />

thing, but their correct mounting is<br />

another matter. To this end, the mounting<br />

solutions should not be an afterthought,<br />

but should be an important part of your<br />

project. Innovative sleek designs, quick<br />

installations and integrated security are<br />

now within reach of all categories of<br />

hotels. So what are some of the main<br />

things to consider?<br />

Safety: The robustness and build quality<br />

of a screen mount must be such that under<br />

no circumstances could it come adrift and<br />

fall on someone... children are prone to<br />

pulling on anything they can reach, so on<br />

the one hand keep the screen out of the<br />

reach of children, but also be sure that the<br />

mounting solution is strong enough to<br />

withstand abuse.<br />

Security: Anti-theft mounts are essential.<br />

Aesthetics: This goes without saying... But<br />

why install highly aesthetic LCD or Plasma<br />

TVs with an ugly mount?<br />

Ease of Installation: If you have a large<br />

number of rooms, this will be a key factor<br />

in calculating real costs, as mounts that<br />

are “good value for money” but which<br />

take hours to install will cost more in the<br />

long run.<br />

34 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

Chief – Number one in<br />

Mounting Solutions – brings a<br />

broad range of solutions for<br />

hotel operators<br />

Rock-solid and flexible solutions for digital<br />

displays, hotel conference room projects<br />

and touch-screen applications where a tilt<br />

adjustment is needed are currently<br />

available from Chief.<br />

Chief's full line of wall-mounts for small,<br />

medium and large flat panels provide<br />

flexible mounting solutions using unique<br />

features such as<br />

• Rapid Level system for quick levelling of<br />

the screen<br />

• Open wall plate for quick cable access<br />

• Integrated lateral shift provides perfect<br />

position of the screen post-installation<br />

• Integrated security<br />

Flat panel mounting solutions include:<br />

• Fixed and tilt mounting solutions<br />

• Swing arm mounting solutions<br />

• Ceiling mount solutions<br />

• Projector mounting solutions<br />

Mounts provide maximum extension while<br />

remaining low profile when latched in the<br />

home position. Included features are:<br />

IN-ROOM ENTERTAINMENT<br />

Strength, Security and Aesthetics<br />

Important Factors to Consider when Choosing<br />

Display Mounts for Hotel Interiors<br />

• G-Force gravity-centered tilt system<br />

• CableTrac system for 'in-arm' cable<br />

management<br />

• Unmatched extension, remains low<br />

profile in home position<br />

The Q-Latch mounting system provides:<br />

• Integrated lateral shift, allows the<br />

screen positioning to be adjusted after<br />

installation<br />

• Integrated security<br />

Now You See It, Now You<br />

Don’t!<br />

Designer, decorative frames by Chief<br />

Manufacturing help flat panel technology<br />

blend seamlessly into any décor, while<br />

preserving viewing clarity. These designer<br />

frames are perfect for residential or highend<br />

commercial applications, including<br />

boardrooms, lobbies and bar/restaurant<br />

applications. Frames are available for<br />

32”, 42” and 50” flat panels. Chief’s<br />

Decorative Frames are constructed of high<br />

quality, real wood, and are offered in four<br />

different colour options: Black, Dark<br />

Pecan, Gold or Silver. An optional optical<br />

mirror kit can be ordered, giving the flat<br />

panel a reflective mirrored appearance<br />

when the flat panel is powered off.<br />

© photo: Chief Manufacturing<br />

www.cleverdis.com


© photo: Chief Manufacturing<br />

All frames include an easy-to-install<br />

Infrared Kit, allowing you to continue<br />

using your current television remote. The<br />

frames are quick to install with a<br />

convenient spacer to perfectly align the<br />

frame on the flat panel, while specially<br />

designed V-straps help secure the frame<br />

for a snug fit.<br />

Product Feature - Dual Arm TV<br />

Mount for Hotel Applications<br />

Chief’s “ultimate” mid-size wall mount –<br />

Chief JWD dual-arm wall mount for 26in-<br />

40in flat panel TVs, part of Chief's<br />

Cynergy Series, supports up to 34kg and<br />

installs in three easy steps. It has a simple,<br />

design with hidden hardware and broad<br />

range of motion for maximum flexibility.<br />

The JWD is part of Chief's new and<br />

innovative medium flat panel mounting<br />

solutions for 26in-40in TVs. Chief's<br />

exclusive Centris technology self-adjusts<br />

to support different TV weights and<br />

provides effortless, fingertip adjustments<br />

so you can position your screen to the<br />

perfect viewing angle. The JWD offers<br />

ultimate flexibility with a low-profile<br />

design that extends over 50cm for<br />

maximum range of motion.<br />

The JWD's teardrop hole pattern makes<br />

mounting the flat panel quick and easy.<br />

Plus, the wall mount hardware is<br />

completely hidden and cables are routed<br />

through a channel in the swing arm for a<br />

clean installation.<br />

www.cleverdis.com<br />

New Architect/Consultant<br />

Centric Website<br />

Chief has launched a newly designed<br />

website focused on the architect,<br />

consultant and interior designer. Chief<br />

works with you to integrate technology<br />

into your projects, respecting the integrity<br />

of the structure and overall design. One<br />

can find up-to-date information,<br />

specifications and drawings on the<br />

largest line of mounting solutions<br />

worldwide for flat panels and projectors.<br />

The site features a 'product specs' tab<br />

with downloads for CAD drawings and<br />

technical manuals. The FAQ section<br />

makes it easy to choose the right custom<br />

IN-ROOM ENTERTAINMENT<br />

or universal mount for your application.<br />

You can also register on the site to receive<br />

the latest news and product updates from<br />

Chief.<br />

Conference Rooms, Front and<br />

Back Office Applications<br />

Here again it is important to complement<br />

and increase functionality of LCD desktop<br />

screens, projectors etc., and it is vital that<br />

the mounts are compatible with all<br />

equipment used. For full information,<br />

please consult:<br />

http://www.hotelmanagementnetwork.com/contractors/interiordesign/chief3<br />

CONTACT<br />

Melinda von Horvath<br />

Tel.: +31 (0) 40 2668 620<br />

E-mail:melinda.von.horvath@csavinc.com<br />

www.chiefmfg.com<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 35<br />

© photo: Chief Manufacturing<br />

© photo: Chief Manufacturing


COMMUNICATION<br />

TECHNOLOGIES<br />

The hotel industry needs a wake-up call! If, ten years ago, hotels were receiving as much profit<br />

from their telephones as they do today, then telephones would not exist in a guestroom. They<br />

would never have been put in. You have all these companies today trying to sell a new version<br />

of what they did in the past, but they’ve completely missed the point that these telephones are<br />

there for one purpose only. On the cost side, we need to lower the costs of telephony to match<br />

the income stream we have. One of the ways you can do that in an IP environment is by<br />

reducing the number of handsets, because much of the costs is expressed in the handsets, while<br />

in the old analogue world, many of the costs were in the basement in a huge machine. How<br />

many handsets do we really need? Do we really need handsets in the bathroom? If there is just<br />

one, what should it be? It’s something worth considering. Customers simply no longer trust hotels<br />

to provide a telephone service at a known cost. One of the main uses of the little LCD screen<br />

on the phone should do that... to explain what the cost of the call will be, how much it is costing<br />

and how much it did cost. If you can do this, people will start using the phone again. If you<br />

pass on your cost reductions to the guest and show them you are doing that, you’ll do a lot to<br />

increasing trust. What we as hoteliers have failed to understand is that if someone mistrusts you<br />

sufficiently to avoid making a phone call on your in-room phone, then what do they think of your<br />

mini-bar, or your bar downstairs or your restaurant or spa? Surely they will have the same level<br />

of distrust!<br />

In terms of networks, the hotel industry has missed what’s been happening over the last ten<br />

years! If you just take a look at a PBX telephone system, there have really been three generations<br />

of modern telephone systems. You a wholly analogue product; you had a proprietary digital<br />

product and then now you have the IP product, and there has been transition between each one<br />

of those that has happened over the last 20 years. The proprietary digital product has really<br />

been available since the mid 90’s. But that product in the most part has been completely ignored<br />

by hotels which stayed with the analogue product because it was cheaper and because they<br />

were making a lot of money out of that expensive dial-tone, thank you very much! They didn’t<br />

really need to spend any more. The fact is today, if you were sensible and you were going out<br />

to buy a new PBX for a hotel, you really can’t buy an analogue PBX... they just don’t exist.<br />

They’re that old. So your choice is really one of buying a proprietary digital PBX or buying one<br />

of the open IP PBX’s. Frankly speaking I think it would be far more intelligent decision to buy an<br />

IP PBX today than it would be to take a proprietary digital model.<br />

Nick Price


<strong>SMARTreport</strong><br />

38 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

COMMUNICATION TECHNOLOGIES<br />

IP PABX: Stepping into the Future<br />

A White Paper by Percipia, Inc.<br />

For the past 30 years, the communication needs of the hospitality industry have been served by<br />

traditional telephone systems, referred to as PABXs (private branch exchanges, for language<br />

historians). These systems provide basic voice communication services to guests and staff.<br />

However, in the past few years, a new technology has appeared: IP telephony. It has the potential<br />

to dramatically change the role of telephony in hotels, and to reverse the decline of hotel telephony<br />

as a critical strategic component in a hotel’s revenue picture.<br />

In this paper we’ll take a look at both traditional and IP PABXs, focusing not so much on the<br />

technology as on the different impact that each can have on the success of a hotel business.<br />

© photo: Percipia<br />

www.cleverdis.com


In the interests of full disclosure, we want<br />

to make sure you realize that we have an<br />

axe to grind here: Percipia develops and<br />

sells hotel communication software for IPbased<br />

phone systems. We were the first<br />

company to introduce this technology into<br />

a hotel environment. We’re both the<br />

principal leader and cheerleader for IP<br />

telephony in the hotel industry, with<br />

18,000 rooms installed. Our customers<br />

include global luxury hotels and resorts,<br />

smaller boutiques, traditional properties,<br />

casinos and many more. Naturally, we<br />

think that IP telephony is the wave of the<br />

future. However, we also maintain<br />

traditional hotel phone systems, a<br />

business which continues to be important<br />

to us and our customers.<br />

Traditional PABXs in the Hotel<br />

Industry<br />

PABXs have played an extremely<br />

important role in the history of the hotel<br />

industry. Simply put, they gave hoteliers<br />

freedom from the phone company and<br />

hence control over their own destinies.<br />

This led to a long, glorious period in<br />

which phone revenues rose to become the<br />

2nd or 3rd line item on hotel income<br />

statements, just behind room revenues.<br />

The systems themselves were expensive,<br />

but they worked well and they paid for<br />

themselves in a few short years. It’s true<br />

that maintaining and repairing them<br />

required specialized and expensive skills<br />

but that was OK because the systems<br />

were money makers.<br />

In the late 80s, though, travellers began<br />

using alternatives to the in-room phone for<br />

their long distance calls. In the 90s this<br />

trend accelerated. Calling cards gave<br />

way to credit cards which have now<br />

given way to cell phones. The resulting<br />

decline in phone revenues has worked its<br />

way into the consciousness of every<br />

hotelier. Today it isn’t unusual to hear<br />

people in and around the industry<br />

speculating on the possibility of phoneless<br />

hotels, in which a guest arriving<br />

without a cell phone is simply handed one<br />

for the night.<br />

Today, PABXs look quite different from the<br />

way they looked even a decade ago. We<br />

still need them to open a new property:<br />

How would guests reach 911? How<br />

would they get their wake up calls?<br />

However, PABXs make no financial or<br />

www.cleverdis.com<br />

strategic contribution to the property. In<br />

addition, the cost of buying the system<br />

lengthens the breakeven period for a new<br />

property and the cost of supporting and<br />

maintaining it impacts operating profits.<br />

The best that can be said is that it’s a<br />

burden which everyone has to deal with<br />

equally, so at least there’s no competitive<br />

disadvantage in owning a PABX. Or is<br />

there?<br />

The IP Revolution<br />

Data communications based on internet<br />

protocol (IP) has emerged over the past<br />

decade to completely change the way<br />

information of all kinds is used, managed<br />

and communicated. Information in the<br />

form of voice, previously the domain of<br />

PABXs and the phone network, is no<br />

exception.<br />

The predecessor of today’s IP telephony<br />

technology first appeared as ‘voice over<br />

IP’ in the early 90s. At the time it was<br />

principally promoted as way of making<br />

cheap phone calls over the internet.<br />

Unfortunately, though, the internet wasn’t<br />

designed to carry voice traffic, so the<br />

quality of the connection was usually very<br />

bad. Many people still associate IP<br />

telephony with the experience of these<br />

early days. The fact is, though, that<br />

today’s IP-based phone systems (IP PABXs)<br />

provide a calling experience which at its<br />

best is far superior to that offered by<br />

traditional phone systems. The interest of<br />

most customers is no longer on how to<br />

beat long distance charges, but rather on<br />

reducing operating and support costs and<br />

on taking advantage of IP telephony’s<br />

tremendous potential for creating new<br />

customized services.<br />

COMMUNICATION TECHNOLOGIES<br />

IP-based systems have exploded onto the<br />

general market for business phone<br />

systems. Although they’re rather reluctant<br />

to say so in public, many manufacturers of<br />

PABXs have stopped development of their<br />

traditional models and directed all new<br />

R&D activities at mastering IP telephony<br />

technology.<br />

The IP Telephony Advantage<br />

This growth is being driven by a number<br />

of factors which distinguish IP PABXs from<br />

traditional systems.<br />

Single cable plant. A traditional PABX<br />

requires its own dedicated cable network.<br />

Since every property also requires a data<br />

communication network, hotels need to<br />

buy, install and maintain two completely<br />

separate cabling infrastructures. Each<br />

cable network is sophisticated, complex<br />

and requires extensive documentation.<br />

With an IP PABX, only one wiring<br />

infrastructure is needed. This single cable<br />

plant supports both voice and data<br />

communications. There are significant<br />

economic benefits related both to capital<br />

expense and ongoing maintenance, and<br />

these benefits are becoming even more<br />

compelling as in-room entertainment<br />

migrates to IP technology, allowing the<br />

elimination of the cable network for TV as<br />

well.<br />

Availability of maintenance expertise.<br />

Traditional PABXs are unique beasts<br />

technologically. Every manufacturer has<br />

its own proprietary software with its own<br />

unique administrative interface. What this<br />

means is that a technician trained on<br />

Mitel systems, for example, cannot<br />

support Avaya, and technicians trained<br />

on Avaya cannot support Nortel. As a<br />

© photo: Percipia<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 39


<strong>SMARTreport</strong><br />

© photo: Cisco<br />

result, people who support PABXs have<br />

become a very specialized breed. This<br />

can translate into higher costs and a<br />

limited talent pool. IP PABXs, in contrast,<br />

are designed to work as an integral part<br />

of a data network. It’s relatively easy for<br />

an individual with data network expertise<br />

to learn the incremental skills needed to<br />

manage and maintain an IP PABX. The<br />

reverse cannot be said of a phone system<br />

technician because the domains are quite<br />

different. The need for data networking<br />

expertise is widespread and very<br />

obvious, so many individuals possess<br />

these skills.<br />

Technology competitiveness. PABXs are<br />

designed to last for 10 to 15 years. This<br />

sounds very appealing, because data<br />

networks certainly are not. The flip side,<br />

though, is that a property which buys a<br />

traditional PABX is locked into PABX<br />

technology for that same 10 to 15 years.<br />

As we’ve mentioned above,<br />

manufacturers aren’t putting any more<br />

development resources into these<br />

products, so buyers will find themselves<br />

falling farther and farther behind their<br />

competitors who invest in IP-based<br />

systems, where the pace of innovation is<br />

feverish.<br />

Interchangeability of components. With<br />

traditional PABXs, components can’t be<br />

interchanged from one manufacturer to<br />

another. Mitel cards won’t work on Nortel<br />

systems; Avaya digital phones can’t be<br />

used with NEC. Once a customer chooses<br />

a manufacturer, he’s locked in for the<br />

useful life of the equipment. With IP PABXs<br />

the picture is different. The IP PABX is<br />

40 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

actually a controller which works with<br />

routers, data switches, gateways and IP<br />

telephones to provide voice<br />

communication services. All of these<br />

devices communicate with each other<br />

using internet protocol. This means that<br />

the controller can be one manufacturer’s<br />

product while the routers and gateways<br />

are another’s, with data switches and<br />

phones coming from yet a third or a<br />

fourth. The customer is not locked in to a<br />

single vendor, and as better products<br />

become available, possibly from<br />

companies which may not even exist<br />

today, they can be put into service with<br />

little or no disruption.<br />

Application possibilities. The openness<br />

described above, and the fact that the<br />

underlying data communication<br />

technology is based on internet protocol,<br />

means that innovative software<br />

companies like ours can create new<br />

services that run on or with IP PABXs.<br />

With an IP PABX, we and our customers<br />

can dream up and actually implement<br />

new guest and staff services which can<br />

bring the phone system back into the<br />

strategic and financial mainstream of the<br />

hotel.<br />

The New World of Services<br />

Our expectations of telephony in hotels<br />

have been lowered to the extent that all<br />

we demand of it is dial tone, wake up<br />

calls and similar services. But why<br />

shouldn’t we have higher expectations?<br />

Shouldn’t we expect it to help us sell<br />

rooms? To personalize our guest services?<br />

COMMUNICATION TECHNOLOGIES<br />

To bring in incremental revenues?<br />

Shouldn’t it give us a competitive<br />

advantage on RFPs? Communication is a<br />

central need of every human being.<br />

Instead of being a marginal service,<br />

almost an afterthought, shouldn’t our<br />

communication system help us build better<br />

bridges with our guests around their<br />

communication needs?<br />

IP telephony brings the toolset which<br />

makes this possible, and companies like<br />

ours use these tools to create the<br />

innovative services which are the promise<br />

of the technology. These are the basic<br />

building blocks of the new services, as<br />

provided by IP telephony.<br />

1. IP telephones.<br />

Many models come with screens capable<br />

of displaying visual content. Some offer<br />

colour, some touch screen capabilities.<br />

There are also programming tools which<br />

allow input to be collected from the user.<br />

What results is the possibility of creating<br />

interactive applications which can<br />

provide information to guests and provide<br />

many convenient self-service<br />

opportunities.<br />

2. Telephony interface software.<br />

This is a set of programming tools which<br />

allows an outside application to control<br />

what the IP PABX does and how it does it.<br />

For example, conference calling is a need<br />

which many hotel guests have. However,<br />

on most phones, people actually need to<br />

be trained the procedures for initiating a<br />

conference call, so it’s impractical to offer<br />

this as a service on guest room phones.<br />

With the interface software mentioned<br />

above, however, a programmer can<br />

create a conference calling application<br />

which guests will be able to use without<br />

any training, much as they can use hotel<br />

voice mail without any training.<br />

3. Superior data communication<br />

capabilities.<br />

IP technology excels at moving data<br />

transparently between systems which may<br />

be based on completely different<br />

operating systems and programming<br />

languages. In the hotel industry, systems<br />

have always had difficulty communicating<br />

due to proprietary interfaces,<br />

technologies and methods of<br />

communication. The result has been that<br />

hotel data and communication systems<br />

www.cleverdis.com


© photo: Percipia<br />

have been isolated and unable to share<br />

data with the richness and flexibility<br />

needed to offer dramatic new services. IP<br />

changes that through the use of XMLbased<br />

communication protocols. The<br />

group Hotel Technology Next Generation<br />

(HTNG – www.htng.org), of which we’re<br />

a charter member, is actively promoting<br />

inter-vendor cooperation using XML and<br />

other IP-based tools, and for the first time<br />

in the industry’s history it looks as though<br />

active and flexible data sharing are about<br />

to become the norm. These building<br />

blocks allow the creation of applications<br />

and services which address critical<br />

strategic and revenue-generating<br />

objectives.<br />

Attracting group business. Make your<br />

property more attractive to meeting<br />

planners by offering communication<br />

services that their clients can’t get from<br />

others in your competitive set.<br />

• Group directory<br />

As they check in, group members’ names<br />

appear in a list on the screens of IP<br />

phones. Only the members of the group<br />

see the list, and individuals can opt out if<br />

they don’t want their names to appear.<br />

Room numbers are not shown. By<br />

selecting a member’s name and pressing<br />

the ‘dial’ button, the guest can<br />

automatically dial the room of the<br />

colleague.<br />

• Group events<br />

Events scheduled for group members are<br />

listed on the screens of their phones.<br />

Each event is described and its location<br />

indicated, providing a convenient way for<br />

delegates to plan their time and navigate<br />

through the sessions.<br />

• Group text broadcasts<br />

Group leaders can send text messages<br />

automatically to the phones of all group<br />

members.<br />

www.cleverdis.com<br />

Recognize guests and up sell products<br />

and services. Use your special knowledge<br />

of the guest, as captured in the PMS user<br />

profile or other CRM type of system, to<br />

enhance your relationship and sell<br />

services, every time he or she picks up the<br />

phone.<br />

• Guest language<br />

All buttons, menus and displays<br />

automatically reset to the language of the<br />

incoming guest. Guests can also set the<br />

language of the phone independently,<br />

whenever they want.<br />

• Profile-enhanced call delivery<br />

When the guest calls room service, food<br />

and beverage preferences and food<br />

allergy information show up on the room<br />

service phone as the call is ringing in.<br />

The staff member can offer the guest a<br />

favourite wine or dish, or steer him/her<br />

away from a food which contains (for<br />

example) nut products. A call to the spa is<br />

delivered with information about spa<br />

preferences or spending patterns, a call to<br />

the pro shop is delivered with handicap<br />

information and so forth.<br />

Capture direct and indirect revenues by<br />

directing guests to internal amenities or<br />

outside businesses. Using the phone<br />

screen, promote your own services or<br />

those of merchant partners. A single press<br />

of the ‘dial’ button on the phone connects<br />

the guest with the service of interest. Bill<br />

your merchant partners for their listings.<br />

• Dining directory<br />

Let guests find the type of cuisine they<br />

want, then display descriptions from a list<br />

of establishments which you know to be<br />

worthy of referral.<br />

• Area attractions<br />

Provide a listing of attractions, along with<br />

descriptive information.<br />

• Rotating promotional display<br />

Use the display of the IP phone to rotate<br />

colour messages about services, catching<br />

the eye of the guest and drawing him or<br />

her to respond with a press of the ‘dial’<br />

button.<br />

Enhance your guest’s productivity and<br />

convenience with ‘always-on’ access to<br />

information. Using the IP phone screen,<br />

display useful information retrieved in real<br />

time from the internet or from other<br />

COMMUNICATION TECHNOLOGIES<br />

external sources. Unlike a TV or a laptop,<br />

the phone is always on and the<br />

information is always available.<br />

• Flight information<br />

Current flight times; delays.<br />

• Traffic delays<br />

Let guests verify the travel time to the<br />

airport so that they can decide how early<br />

to leave to catch a flight.<br />

• Stock prices<br />

Guests can determine current prices by<br />

entering a ticker symbol.<br />

• Current weather<br />

Guests can identify cities by name or<br />

postal code and get information about<br />

weather conditions and forecasts.<br />

Find out about guests’ concerns while<br />

there’s still time to fix problems. Guests<br />

can use an interactive ‘Guest satisfaction<br />

alert’ application on the IP phone to<br />

indicate their level of satisfaction or<br />

dissatisfaction with services offered by the<br />

property. If they indicate dissatisfaction,<br />

an immediate alert to management can<br />

be sent by email or pager. These are<br />

examples of the kinds of services which<br />

can be offered using IP telephony and the<br />

marriage it allows between information<br />

and action in very different kinds of<br />

systems. Most of these services, though<br />

not all, are actually installed and running<br />

in our current customer base.<br />

In addition to these services, which are<br />

applicable in most higher-end hotels,<br />

applications can be created to address<br />

the needs of specific types of hospitality<br />

establishment. These might include casino<br />

hotels, condo hotels, fractional ownership<br />

properties, resorts and more. Each of<br />

these has a distinct business model which<br />

demands different guest and staff<br />

services, or different implementations of<br />

common services.<br />

IP telephony technology offers the<br />

possibility of creating a diversity of<br />

services to meet the needs of these<br />

various segments of the industry.<br />

Traditional telephony, which can only<br />

deliver dial tone, cannot offer<br />

comparable strategic and financial<br />

benefits.<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 41


© photo: iBAHN<br />

Proprietary data is recognised as one of a<br />

company’s most valuable assets. More<br />

and more corporations are deploying<br />

Virtual Private Networks (VPNs) as a way<br />

of giving their employees a direct and<br />

secure tunnel to the corporate network via<br />

the internet whilst they are "on the road".<br />

VPN issues are a significant source of<br />

complaints among business travellers<br />

when using hotel networks that are not set<br />

up for VPN usage. Providers thus need to<br />

address VPN connectivity issues at hotels<br />

through private end-to-end network and<br />

corporate VPN certification services,<br />

meeting guests’ expectations more fully<br />

and noticeably improving results in guest<br />

satisfaction surveys.<br />

What is a VPN and why<br />

should I care?<br />

VPN is an acronym for Virtual Private<br />

Network. Although VPNs use public<br />

networks, they inherit the characteristics of<br />

a private network, thus the "Virtual"<br />

Private Network. A VPN provides a secure<br />

way to access network resources over the<br />

internet or other networks by allowing a<br />

person to connect to a remote network and<br />

become a node on that network and is<br />

usually used to give employees access to<br />

corporate resources while they are located<br />

in remote locations. VPN functionality is of<br />

www.cleverdis.com<br />

vital importance to some HSIA providers.<br />

At iBAHN installed hotels over 70% of a<br />

hotel’s business guests depend on VPN<br />

connections to their private networks while<br />

they are “on the road.” However, the very<br />

VPNs they depend upon to connect to their<br />

companies' networks can also cause<br />

serious connectivity issues with many hotel<br />

internet services. When guests cannot<br />

launch their corporate VPNs and connect,<br />

they are unable to complete their work.<br />

What is changing with VPN<br />

technology and how does it<br />

affect me?<br />

The way corporations conduct business<br />

continues to change. As more business<br />

travellers become mobile, the traditional<br />

lines of “inside the corporate network” vs.<br />

“outside the corporate network” have<br />

blurred. VPNs have provided mobile<br />

travellers with the means to connect<br />

securely to the corporate enterprise<br />

network remotely - mainly via their laptop<br />

computers. Today, the use of VPN<br />

technologies is expanding - and becoming<br />

more complex. VPNs are now used with<br />

new mobile communication technologies<br />

such as Smartphones. “Mobile VPNs are<br />

the future of remote access,” says Robert<br />

Whiteley, senior analyst for enterprise<br />

networking at Forrester Research. VPNs<br />

COMMUNICATION TECHNOLOGIES<br />

Virtual Private Networks<br />

Is YOUR Hotel Set-up for VPN Usage?<br />

“When guests cannot launch<br />

their corporate VPNs and<br />

connect, they are unable to<br />

complete their work.”<br />

are being tailored for these other mobile<br />

environments. With the introduction of<br />

new technologies and applications,<br />

companies will look for new tools to allow<br />

users to access a VPN solution with more<br />

devices and in more ways.<br />

So what does all this mean to<br />

hoteliers?<br />

Many hoteliers are unaware of the fact<br />

that for a VPN to function, it requires an<br />

individual Internet Protocol (IP) address for<br />

each VPN connection. Many HSIA<br />

providers have a limited pool of IP<br />

addresses to give hotels. Once the IP pool<br />

runs out, additional guests can no longer<br />

access their VPN – leaving them “locked<br />

out” of their corporate network. This<br />

shortage of individual IP addresses is<br />

made more critical by expanded use of<br />

Wi-Fi demand imposed by these new<br />

technologies. The “lock out” nightmare<br />

grows for both the guest and the hotelier.<br />

To summarize, all of the speed and<br />

security in the world doesn’t matter if a<br />

guest is unable to connect in the first<br />

place. From an hotelier’s perspective, it<br />

should be absolutely critical to provide<br />

guests with a network that is not only<br />

secure, but is capable of handling these<br />

emerging technologies.<br />

iBAHN offer free corporate VPN<br />

certifications. Find out more at<br />

http://www.ibahneurope.com/vpn.html<br />

Contact:<br />

E-mail: eurovpn@ibahn.com<br />

Tel.: +44 (0)870 1500 111<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 43


<strong>SMARTreport</strong><br />

44 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

COMMUNICATION TECHNOLOGIES<br />

Wireless Phones for Staff<br />

A Key to Improved Service<br />

The Royal Hideaway Playacar use Polycom’s SpectraLink Wireless Telephones<br />

for In-house Communications<br />

Overview<br />

The Royal Hideaway Playacar is a fivestar,<br />

all-inclusive luxury resort in Playa del<br />

Carmen, Mexico. The property covers<br />

5.5 acres and is host to 200 guestrooms.<br />

This member of Leading Hotels of the<br />

World was awarded the coveted AAA<br />

Five Diamond Award in 2007, thereby<br />

establishing the Royal Hideaway as the<br />

first adult-only, all-inclusive resort in the<br />

world to achieve this prestigious<br />

accolade. Its parent company, Occidental<br />

Hotels & Resorts, is the first Spanish<br />

hotelier to be recognized with such an<br />

honor.<br />

The Challenge<br />

Maintaining the highest standards in<br />

guest services requires that staff always<br />

be available to tend to guest requests and<br />

always be in touch with one another no<br />

matter where they are throughout the<br />

property. In early 2006, the resort’s<br />

management team sought a new<br />

communications system to equip staff with<br />

the tools they need to perform their jobs<br />

as efficiently and effectively as possible.<br />

The hotel was using two-way radios to<br />

keep staff in contact, however the radios<br />

were noisy and there was no integration<br />

with other information systems or the<br />

property’s telephone system. In its search<br />

for a communications solution that met its<br />

needs, management identified several<br />

criteria they were hoping to meet. They<br />

wanted to have a device that offered all<br />

the features of a business telephone along<br />

with two-way radio functionally, but also<br />

capable of integrating with the hotels<br />

CRM system, Triton by Knowcross. Lastly,<br />

they wanted to be sure that staff would<br />

have coverage anywhere on property.<br />

Wireless Telephony Keeps Resort Staff<br />

Connected with Guests and One Another<br />

Royal Hideaway evaluated several<br />

different wireless telephone systems and<br />

decided to deploy Wi-Fi handsets from<br />

Polycom. They chose 30 SpectraLink i640<br />

Wireless Telephones to be used by the<br />

concierge, management, and<br />

housekeeping teams. Management liked<br />

that the handsets interfaced directly into<br />

the existing Nortel PBX and leveraged the<br />

existing property-wide Wi-Fi network<br />

consisting of access points from Cisco,<br />

Proxim and 3Com. The system offered<br />

integration with the Triton CRM system,<br />

allowing for automated two-way text<br />

messaging so that guest requests could be<br />

addressed in real time. The SpectraLink<br />

handsets allow users to make and receive<br />

phone calls and make internal calls by<br />

dialing an extension. Management also<br />

like that the handset offers a unique pushto-talk<br />

(PTT) feature so that staff can either<br />

use the telephone or broadcast<br />

information depending upon the<br />

circumstances. In addition, the design<br />

allows staff to maintain quiet, discreet<br />

conversations whereas the noise<br />

generated from the two-way radios often<br />

disrupted the guest experience. The<br />

response time to guest requests has<br />

improved through the use of wireless<br />

telephones. For example, there is often a<br />

staff member assigned to a guest at checkin<br />

to ensure each guest receives a VIP<br />

level of service. In the past when a person<br />

checked in, tracking down the assigned<br />

staff member was done manually, and<br />

often took several steps to accomplish.<br />

Now through the integration with the<br />

Triton system, a message is automatically<br />

sent to the appropriate staff’s handset to<br />

let them know the guest has checked in.<br />

Staff can then greet the guest right away.<br />

The same is true when a guest checks out.<br />

The staff member receives a message on<br />

the handset and can then check the room<br />

to make sure that the guest has left<br />

nothing behind. In addition, a message is<br />

sent to the housekeeping team so that they<br />

know the room is ready to be cleaned.<br />

The text messaging capability allows staff<br />

to address issues that are urgent or gives<br />

them the option to put less urgent requests<br />

on hold so they can refer back to them<br />

later in the day. Liliana Martinez, the<br />

property’s director of rooms said, “Once<br />

you have a handset, you don’t want to<br />

lose it. It is so handy and easy-to-use. We<br />

are able to complete tasks more quickly<br />

than ever before.” She added, “We<br />

picked Polycom’s SpectraLink Wireless<br />

Telephones and Knowcross so that we<br />

could continue to provide our guests the<br />

highest level of service. We can address<br />

guest requests more quickly than ever, it’s<br />

easier access our staff, and we like the<br />

ability to receive information in textmessage<br />

format.” Hotel management has<br />

seen consistently high guest satisfaction<br />

scores of 95 percent and higher, and they<br />

are confident that the wireless telephone<br />

system has played a role in this. They are<br />

delighted with the telephone system and<br />

plan to add additional handsets so that,<br />

eventually, all team members will be<br />

equipped with their own wireless<br />

telephones.<br />

© photo: Netlink<br />

www.cleverdis.com


© photo: Telkonet<br />

No New Wires!<br />

Guests today expect High Speed Internet<br />

Access (HSIA) as a given and it has<br />

become a must-have service for every<br />

type and size of venue. Until relatively<br />

recently, the choices were either to install<br />

a totally wireless system or cabling a<br />

building with a CAT 5 network – costly,<br />

and potentially very disruptive, with<br />

limitations regarding coverage and<br />

installation flexibility. The third way takes<br />

a very different path – US company<br />

Telkonet’s solution enables a building’s<br />

existing electrical wiring to be<br />

transformed into a broadband Internet<br />

and data networking backbone. For the<br />

Best Western (BW) Midland Hotel in<br />

Derby, UK, this was the optimum fast track<br />

path to broadband Internet within its<br />

historic 100-bedroom building.<br />

At the 4-star BW Midland, every guest<br />

has the freedom to choose either hardwired<br />

or wireless broadband access.<br />

Built in 1841, the Grade II listed hotel is<br />

the oldest operating railway hotel in the<br />

world and any Internet access system<br />

installation had to be accomplished<br />

without damaging the fabric of the<br />

www.cleverdis.com<br />

building, or any disruption to the hotel’s<br />

business or guests. Telkonet’s system, a<br />

preferred solution for Best Western GB<br />

hotels, met all the hotel’s requirements,<br />

including the critical need to offer hardwired<br />

access to any guests concerned<br />

about security – an important<br />

consideration for many of the hotel’s<br />

customers, which include government<br />

departments.<br />

The Telkonet iWire System transformed<br />

the hotel’s electrical wiring into an IP<br />

network backbone, allowing every<br />

electrical outlet to be used as a<br />

COMMUNICATION TECHNOLOGIES<br />

The BW Midland Hotel Fast Tracks its Broadband Internet<br />

Installation<br />

CASE STUDY<br />

broadband access data port, via Telkonet<br />

iBridge interface units installed in every<br />

guest room. The IP backbone also drives<br />

wireless access points, which are<br />

strategically located around the hotel’s<br />

corridors to provide site-wide WiFi<br />

coverage. Further Telkonet iBridge units<br />

are kept at reception, for use by delegates<br />

in the hotel’s conference and training<br />

suites.<br />

Roger Coe, Chief Executive of Midland<br />

Hotels Limited, commented: “Broadband<br />

is absolutely essential to our guests, as it<br />

is to our own operation – it’s the lifeblood<br />

of our on-line booking system. The choice<br />

of Telkonet’s solution was simple and<br />

logical. It was really the only option that<br />

satisfied all our requirements – in terms of<br />

the flexibility to offer wired and wireless<br />

from the same system, the speed and<br />

unobtrusiveness of the installation, and<br />

the high reliability of its day-to-day<br />

operation. As it harnesses a building’s<br />

existing electrical wiring, it elegantly<br />

avoids the time, expense, and inevitable<br />

damage and disruption caused by<br />

running new cabling. It has also<br />

successfully added to our venue’s unique<br />

benefits – a city centre hotel, close to the<br />

station, with free onsite parking and a<br />

large garden. Now we can offer the dual<br />

benefit of wired and wireless broadband,<br />

fully supporting our ethos of a traditional,<br />

quality-focused hotelier.”<br />

© photo: Telkonet<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 45


<strong>SMARTreport</strong><br />

46 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

COMMUNICATION TECHNOLOGIES<br />

Communication (and other) Technologies that<br />

will impact hotel operations in the future<br />

Intertouch Looks into the Crystal Ball...<br />

Charles Reed<br />

Chief Executive Officer of interTouch<br />

The travel industry is always seeking new<br />

ways to improve guests experience and<br />

operational efficiency and it is becoming<br />

increasingly clear that technology has the<br />

potential to deliver tangible benefits.<br />

Rather than a barrier, technology is now<br />

being harnessed for its potential to lower<br />

cost, improve yield and retain guests.<br />

InterTouch, a global provider of<br />

broadband wired and wireless services,<br />

predicts that developments in the<br />

following three areas, will have the<br />

greatest impact in the way a hotel will<br />

operate in the future.<br />

Trend 1: Rise of the IP networks – More<br />

hotels are investing to building their own<br />

IP networks, which once in place will<br />

enable hotels to easily enhance many of<br />

their current applications. These networks<br />

which are installed to carry phones calls,<br />

video and internet connects, can also<br />

support the hotels’ security systems as well<br />

as connect lights, air conditioners and<br />

other room devices to a central system.<br />

Trend 2: Customisation brings more<br />

options – It will be a matter of time when<br />

the same technologies enabling<br />

passengers to select their seat on an<br />

airplane will become widely available for<br />

hotels. With these technologies, guests<br />

will be able to choose the type and<br />

location of rooms, and going a step<br />

further, they will even be able to dictate<br />

amenities they want in them.<br />

Trend 3: Unlocking doors with just a look<br />

– Finally, retina scans and fingerprints,<br />

more common in high security<br />

organisations, may eventually make their<br />

way to more daily applications. We<br />

already have phones with fingerprint<br />

scanners, so it is highly possible in<br />

tomorrow’s high tech hotels for biometrics<br />

to replace card access to enter a room,<br />

and fingerprint scans to be combined with<br />

code access as added security to open<br />

the in-room safe.<br />

“Hotels are beginning to realise how<br />

important technologies are in the running<br />

of their business and how they could reap<br />

benefits in terms of improving guest<br />

satisfaction as well as their overall<br />

efficiency,” said Charles Reed, Chief<br />

Executive Officer of interTouch.<br />

“In the past, hotels have always focused<br />

on the soft features, but now, more are<br />

investing in making sure that on the<br />

technology front, they are able to deliver<br />

the same if not better level of attention<br />

and efficiency as their other services and<br />

thereby enhance their most important<br />

hotel brands,” he added.<br />

© photo: Intertouch<br />

www.cleverdis.com


IN HOUSE<br />

AUTOMATION<br />

When it comes to such things at lighting controls, it’s not so much a question of how you control<br />

light, but it’s why you would want to control lighting. Many of those things in the past were not<br />

networked, or were networked in a proprietary way. Clearly, if you don’t have a mini-bar<br />

network, you are going to have to send people up several times a day to figure out whether it’s<br />

empty or it needs re-stocking. That’s a very expensive thing to do. If you look at lighting for<br />

example, the two primary drivers behind lighting are: 1) if lighting is left on it is extremely<br />

expensive, and 2) it is very, very difficult, technically, to deliver a high quality lighting product<br />

using high voltage circuits. It’s particularly difficult in a luxury world where we’re trying to create<br />

a good sense of ambiance and simply so people don’t have to go around and turn off every<br />

single light individually. It’s a heroic task trying to do this using traditional high-voltage circuits.<br />

So you are, by definition, saying we are going to have to control these in a soft way, in a way<br />

that is slightly more intelligent. That then gives you the opportunity to look at the same time into<br />

how you link up that soft control with other things so that it can be more effective. It’s the same<br />

control that turns the light out when nobody is in the room, and it’s exactly the same control that<br />

turns the heating down or the air conditioning off. All of these are very valid and appropriate<br />

“green” things to do! They also happen to be exactly the same technology that can transform<br />

the ambiance of a room simply by doing lighting in a controlled and high quality way, and that<br />

the lighting you need in a room to get dressed with is a very different set of lighting that that<br />

you need when you watch a film at ten o’clock at night.<br />

Nick Price


<strong>SMARTreport</strong><br />

© photo: Lutron<br />

48 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

IN HOUSE AUTOMATION<br />

Enlightening ideas<br />

Intelligent Hotel Guestroom Lighting Controls – Making Life<br />

Simple for Guests and Saving Money for Hotels<br />

At a recent IHOF meeting in Prague,<br />

bringing together a number of hotel<br />

professionals together with manufacturers<br />

and service providers, a “brainstorming”<br />

session came up with a number of “pet<br />

gripes” of those present as to problems<br />

still existing in hotels... and one of the<br />

main ones was that of LIGHTING controls.<br />

Virtually everyone present agreed that in<br />

most cases, lighting controls are difficult<br />

to understand, to the point occasionally<br />

that one has to call reception to ask how<br />

to switch off all the lights. As rooms<br />

become more complex and featurepacked,<br />

this problem will become more<br />

and more prevalent.<br />

Finding specific simplified<br />

solutions:<br />

Designed to meet the needs of hotel<br />

guests, the Stanza lighting control system<br />

by Lutron provides stand-alone lighting<br />

control in each room. It can also be<br />

upgraded to integrate with other<br />

guestroom systems, including automated<br />

window treatments, key cards, occupancy<br />

and property management systems.<br />

Guests can control lights individually with<br />

a local control, or all together with a<br />

master keypad. Guest security and safety<br />

are enhanced thanks to Master on/off<br />

capability and Night Light functions. By<br />

the same token, a master off button by<br />

entrance meets today’s energy standards,<br />

supports sustainable designs, and allows<br />

guests to save energy easily at the touch<br />

of a button.<br />

Energy Savings – We Can Do<br />

Our Bit!<br />

EcoSystem is a revolutionary lighting<br />

control system comprised of digital<br />

electronic dimming ballasts, controls, and<br />

environmental sensors. EcoSystem can<br />

generate energy savings of 50% to 70%,<br />

increase occupant comfort, and increase<br />

space flexibility.<br />

In Meeting Rooms<br />

EcoSystem offers meeting and conference<br />

rooms flexibility, preset light levels, and<br />

energy savings. This translates into<br />

financial savings that quickly pay for<br />

EcoSystem. EcoSystem offers wall controls<br />

with four preset light levels to provide the<br />

right light at all times, and allow energy<br />

conscious individuals to reduce lighting<br />

levels whenever possible.<br />

• Provide general lights at an 80% level,<br />

• Dim the lights for PC presentations,<br />

• Highlight a white board area for formal<br />

meetings,<br />

• Provide full intensity for cleaning and<br />

team projects.<br />

As preferences change or meeting room<br />

walls are moved, it’s possible to re-<br />

programme the EcoSystem without<br />

rewiring. As needs and preferences shift,<br />

one can adjust a space with a handheld<br />

PDA, simply and economically. The<br />

combined effect of EcoSystem sensors<br />

and controls, operating together, brings<br />

major energy savings in the real world.<br />

© photo: Lutron © photo: Lutron<br />

www.cleverdis.com


CUSTOM TV AND<br />

DIGITAL SIGNAGE<br />

These two fields are quite separate, but also can be grouped together from the point of view<br />

that they both require specific individual input from the hotel. Nick Price gave us some insight<br />

into his experience in the field of Custom TV:<br />

“In our group, we were quick to realise that the television offered to our guests was of poor<br />

source quality. It didn’t matter how good we made the content look on the television, the fact<br />

was that someone who had taken a private jet to New York didn’t want to watch Mrs Long<br />

making noodles on the TV. There had to be something more. We work with a company called<br />

Tangerine Global who have developed about ten channels of customised hotel TV which are<br />

very channelled and targeted towards the upper-end guest. That doesn’t mean you couldn’t<br />

apply the same model, just using different content, at a 3 or 4-star level. The fact is that one<br />

thing we don’t see is the regional or national barriers, fundamentally breaking down, and<br />

ceasing to be barriers, to enable us to receive the same content from the same supplier across<br />

a wide geography, and that will enable us to do one very interesting thing. It will enable us to<br />

target a global niche market. Imagine having exactly the same channel line-up from the same<br />

supplier in Japan as you do in New York!” –<br />

Nick Price<br />

...Digital signage is also becoming a major field of interest for hotel operators, and here,<br />

specific “easy to use” software packages are emerging for the management of such systems.<br />

Highly specific vertical market specialists are also emerging. To learn more about this<br />

fascinating field, please refer to the Cleverdis <strong>SMARTreport</strong> – “Out of Home Digital Media”...


<strong>SMARTreport</strong><br />

Interview with...<br />

© photo: Idylle Production<br />

Betty CASTALDI<br />

President, Idylle Production<br />

50 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

Tel.: +33 (0)4 92 60 60 20<br />

E-mail: info@idylleproduction.com<br />

www.idylleproduction.com<br />

Idylle Production<br />

DIGITAL SIGNAGE AND CUSTOM TV<br />

"…It's pure marketing, but with<br />

an emotional dimension…"<br />

With major references such as<br />

the Lucien Barrière Casino<br />

group, Idylle Production has<br />

moved to the forefront of the<br />

exploding market for custom<br />

TV solutions.<br />

While it all started with audio, around 4<br />

years ago, flat screens began appearing<br />

in various locations. The Casino groups<br />

were the first to trust us in this area. In was<br />

in a sense the beginning of “custom TV”.<br />

This concept is now mature and we have<br />

evolved greatly. Our first aim was to<br />

develop a programme that would work<br />

like a TV channel, in other words with<br />

different programmes from one hour to<br />

the next... accompanied with<br />

advertising... and all this of course<br />

accompanied by audio. A system with<br />

only the visual aspect can only<br />

communicate 50% of a message.<br />

Are your clients sensitive to the<br />

advantages you bring with this<br />

combination of sound and images?<br />

That’s for sure. This is why we have<br />

references such as a major retail group<br />

selling articles for the home as well as DIY<br />

and garden supplies. We initially<br />

equipped their stores with audio systems,<br />

and progressively they are moving over to<br />

the use of a visual support together with<br />

the sound. This group, Leroy Merlin, has<br />

bought its own TV channel on the national<br />

www.cleverdis.com


network, which is called "A Côté de Chez<br />

Vous" and is available on satellite and<br />

cable TV, broadcasting reports and<br />

programmes throughout the day (see our<br />

case study in this SPECIALreport)… and<br />

they now also broadcast this channel in<br />

their stores. We have created a system for<br />

them that allows for having commercial<br />

breaks every 10 minutes.<br />

What differentiates your visual offer?<br />

We have developed a very flexible system<br />

which allows the client to have<br />

programming that completely fits with their<br />

frequentation according to the days of the<br />

week. Take the example of a casino. The<br />

number of people is not the same on a<br />

Monday and on a Saturday, but what also<br />

changes is the type of clientele: different<br />

people go to play at the casino on a<br />

Monday than over the weekend. The fact<br />

that the advertisements change every day<br />

and are adapted to the type of clientele<br />

shows the real possibilities of this media.<br />

Does this idea come from your experience<br />

in radio with the "day-parting"?<br />

Of course. Thanks to this experience, we<br />

don't develop our products in the same<br />

way as our competitors, and we don't sell<br />

in the same way. I personally involve<br />

myself in every project, and above all, we<br />

share with the clients what they experience<br />

every day. They talk about their customers<br />

www.cleverdis.com<br />

and their habits… In the morning at Leroy<br />

Merlin, you will find single women or DIY<br />

amateurs in a hurry, while on the weekend<br />

there will be a lot more couples who will<br />

make big purchases like a change of<br />

kitchen or bathroom. You have to put<br />

yourself in their position and understand<br />

what the customers want to hear on a<br />

Saturday morning in a Leroy Merlin store,<br />

when they are at the point of making a<br />

major and very personal decision,<br />

implying an investment, choice and<br />

financing... You really have to take into<br />

account the emotional dimension because<br />

the clients are waiting for us to give them<br />

this advice. When I sell my product,<br />

whether it is sound or image, I say to the<br />

client "If you only buy to broadcast, it is<br />

not worth it…" Today, the two products,<br />

audio and visual, developed the way they<br />

are, it’s 99% marketing. We’re talking<br />

about pure sales but with an emotional<br />

dimension. We are able to create a<br />

unique sound ambience. The human brain<br />

has an extraordinary capacity... for<br />

example it records the "gaps". When you<br />

listen to a radio programme, music is<br />

cross-faded without any "gaps" between<br />

the tunes. Why? Because the brain<br />

registers the gap as meaning something<br />

has finished, provoking a lapse of<br />

attention. In the Idylle Production system<br />

each song is mixed in such a way that the<br />

ear does not register any aural<br />

interruptions. This a one of the plusses we<br />

bring.<br />

DIGITAL SIGNAGE AND CUSTOM TV<br />

Is there an international vocation for the<br />

future?<br />

Absolutely! We have a nice business in<br />

Canada that runs very smoothly, with<br />

approximately 50 stores in Toronto and in<br />

Québec, and now starting to move in the<br />

US. I think that Idylle's destiny will be<br />

decided between 2007 and 2008. In<br />

Europe, we are present in Belgium and in<br />

Switzerland.<br />

In terms of market expansion where do<br />

you plan to develop?<br />

The hotel sector is one of our main<br />

priorities. We have already made<br />

demonstrations for Accor and Novotel. I<br />

think that we have a place in this business<br />

and that we can bring a lot to it, but that<br />

the problem is we are not well known<br />

enough yet. We can create and<br />

programme just as they want, and provide<br />

content (video, clip, report, emotional)...<br />

Our “top of the line” aspect is an<br />

advantage for this market. Through its own<br />

channel, a hotel can also communicate via<br />

the screens in the bedrooms on all the<br />

services and derived products it has to<br />

offer, it can inform the client about the<br />

casino or the lounge bar downstairs for<br />

example… Hotels are not aware of the<br />

fact that today we can provide them with<br />

this service at a truly affordable price. It’s<br />

now important that we communicate in<br />

order to be known in this sector.<br />

© photo: Idylle Production<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 51


CONFERENCE<br />

TECHNOLOGIES<br />

Conference facilities have always been a major part of hotels. In some way they have always<br />

been THE product, as there are a large number of hotels that drive a substantial proportion of<br />

their rooms business through meetings and conferences. The fact is that technologically, I think<br />

that conference facilities in most hotels have lagged behind sadly a long way. Evidence of that<br />

is the amount of sticky tape running across floors to locate on the floor cables, simply because<br />

the points at which they’re located were not thought through properly. Or the other one of<br />

somebody trying to connect up a laptop to a projector and... Guess what? It doesn’t work!<br />

We’ve all seen it a hundred times. It shouldn’t be that difficult, so I think modern hotels have to<br />

re-think about the kind of facilities they’re putting in place. For example, the notion that you<br />

could have a conference room for maybe 150 people and maybe 120 of them want to have<br />

an active internet session and you might want to switch between many different sources, not just<br />

a PowerPoint presentation, and you have a large number of presenters and some may be<br />

remote in other parts of the world – doing a joint presentation. That’s the future but it’s already<br />

here today, and it’s not very well met. The same could be said for the audio at most conference<br />

facilities which I think in many cases is shocking. We have put a huge amount of effort into<br />

making sure the audio works... so that wherever you’re sitting, in a meeting room or a large<br />

conference area, you can have a very high quality of sound, without running cables all over the<br />

place, or hiring in vast amounts of equipment to do what should already be part of the<br />

infrastructure! You have to understand the reason people are there in the first place and you<br />

have to help them with that, and to a very, very large extent it comes down to making the<br />

technology work, getting the right bandwidth in, getting the right power in, and getting the A/V<br />

systems working. Some hotels do it a lot better than others!<br />

Nick Price


<strong>SMARTreport</strong><br />

© photo: Amx<br />

54 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

CONFERENCE TECHNOLOGIES<br />

Conference Room Technologies<br />

New Products on Market – Touch Panel Technologies<br />

Reach New Levels of Sophistication<br />

The recent CEDIA Expo in the US was the launching point for a number of new products in the field<br />

of room automation, in particular by two popular companies in the conference automation field:<br />

AMX and Crestron. On these pages, we highlight a few of the latest products...<br />

AMX provided a sneak peak at its nextgeneration<br />

Modero Touch Panel line as it<br />

unveiled its 5.2” Modero ViewPoint<br />

Widescreen Touch Panel (MVP-5200i).<br />

The MVP-5200i combines a stylish design<br />

with high-resolution graphics, wireless<br />

mobility, digital intercom functionality and<br />

extended battery life.<br />

"Beyond its exterior aesthetics, it (the<br />

MVP-5200i) packs a whole lot of<br />

technology innovation into an ultra-thin,<br />

compact design," said Robert Noble,<br />

AMX chief technology officer. "With the<br />

MVP-5200i, AMX has redefined the style,<br />

form, and function of our flagship Modero<br />

Touch Panel line, and in the process,<br />

we've raised the bar for all touch panels -<br />

industry wide."<br />

According to AMX, the MVP-5200i<br />

provides fast, power-efficient processing –<br />

supporting up to eight hours of continuous<br />

use and four days of standby time – while<br />

its 5.2" widescreen delivers the highest<br />

resolution of any AMX MVP Touch Panel –<br />

800 x 480 WVGA (Wide Video Graphic<br />

Array) at 180 DPI (Dots Per Inch). It<br />

supports JPEG and PNG images, as well<br />

as streaming motion-JPEG video, and can<br />

play MP3 and WAV audio files.<br />

The ultra-compact MVP-5200i weighs 1.2<br />

pounds and is only 0.8" thick. It features<br />

an integrated kickstand; wireless mobility<br />

(802.11b/g); digital, full-duplex intercom<br />

for panel-to-panel communication<br />

throughout a home, business or campus;<br />

and a navigation wheel for levels and<br />

functions. It also incorporates the highest<br />

wireless network security standards,<br />

including WEP, WPA, WPA2, EAP-TLS,<br />

EAP-TTLS and PEAP.<br />

Options and Availability<br />

The MVP-5200i, along with its optional<br />

Table Charging Station and Wall<br />

Charging Station, will be available in<br />

gloss white and gloss black.<br />

AMX expects the products to ship in<br />

January 2008.<br />

Wall Integration of Keypads<br />

Rises to a New Level<br />

AMX has announced the launch of a new<br />

line of Metreau Keypads. The keypads fit<br />

in any Decora-style wallplate and provide<br />

a convenient, flexible and cost-effective<br />

way to communicate with any AMX<br />

Control or Distributed Audio System.<br />

Metreau Keypads are available in two<br />

distinct varieties – one can be used with<br />

any AMX Control System, while the other<br />

© photo: Amx<br />

www.cleverdis.com


© photo: Amx<br />

is designed for the company's growing<br />

line of distributed audio products. In<br />

addition to music, the keypads can<br />

control lighting, video, projection, HVAC<br />

and window treatments. They are an<br />

ideal solution for homes, offices, small<br />

meeting rooms, hotel rooms and many<br />

other environments.<br />

The Metreau Keypad line features a<br />

navigation wheel – an innovative, new<br />

interface feature that is designed to<br />

simplify the way people<br />

interact with, and use, the<br />

keypad. The wheel<br />

provides a natural and<br />

intuitive way to expand the<br />

keypad's functionality.<br />

Simply turn the wheel to the<br />

left or right to quickly and<br />

easily adjust audio volume,<br />

lighting levels and more, or<br />

press the top, bottom, left,<br />

right or center of the wheel<br />

to activate, set or select any<br />

level or function. This new<br />

interface feature is also<br />

incorporated into AMX’s<br />

new 5.2" Widescreen<br />

Modero ViewPoint Touch<br />

Panel (MVP-5200i).<br />

New Wall Mount<br />

Touch-panel from<br />

Crestron<br />

TPS-6L 5.7-inch touchpanel<br />

offers CAT5 audio/video<br />

www.cleverdis.com<br />

and Ethernet connectivity. Crestron<br />

introduced its latest Isys touch panel at<br />

Cedia 2007. Featuring a bright, highcontrast<br />

5.7" colour touch screen with 16bit<br />

Isys graphics, 640 x 480 resolution,<br />

video window display, the TPS-6L panel<br />

delivers a world of control capability yet<br />

leaves a very small footprint. High-speed<br />

Ethernet communication provides easy<br />

network integration and seamless<br />

communications with Crestron home<br />

automation solutions.<br />

CONFERENCE TECHNOLOGIES<br />

Crestron touch panels offer a userinterface<br />

for controlling audio, video,<br />

lighting and HVAC. Both Cresnet and<br />

high-speed Ethernet are standard in the<br />

TPS-6L, providing easy network<br />

integration and seamless communications<br />

with Crestron control systems.<br />

The TPS-6L can display full-motion video<br />

from an external source such as security<br />

cameras, video servers and cable TV on<br />

the touchscreen display. The video image<br />

is fully scalable for viewing in any sized<br />

window or full screen. The choice of<br />

balanced or unbalanced composite inputs<br />

allows compatibility with both<br />

conventional coaxial and CAT5 AV<br />

distribution systems.<br />

Each TPS-6L is furnished with two front<br />

bezels - with or without 12 programmable<br />

softkey pushbuttons. The optional<br />

pushbuttons are positioned to align with<br />

dynamically changing text and graphics<br />

onscreen, supporting context-sensitive<br />

menu functions such as digital media<br />

titles, channels, or lighting presets.<br />

Custom engraving of the bezel is also<br />

available, with a choice of solid or backlit<br />

text. A light sensor is built into the TPS-6L<br />

to automatically adjust the display<br />

brightness for optimal visibility under<br />

varying light conditions.<br />

© photo: Crestron<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 55


RESERVATION SYSTEMS<br />

• GDS AND PMS<br />

This is one of main missions of HTNG... Joining-up the islands. This has largely meant joining<br />

up PMS with the outside world. One of the elements we want to join up to is the various flavours<br />

of incoming reservations, whether they be GDS or a web-based intermediary. There has been<br />

huge work done to date to transition a lot of reservation activity away from the hotel out to web<br />

based services. I still think however there is a lot more to be done, particularly in the world of<br />

GDS, where it’s so information poor, that it is very difficult to receive at the hotel level any<br />

quality of information about the customer you are going to receive, even if that customer has<br />

stayed with you many, many times before. The reliability and the ease with which a reservation<br />

arrives has definitely been improved, and this is very automatic and joined-up today, where<br />

even a few years ago a lot of manual processes, a lot of faxes, a lot of telephone calls, a lot of<br />

manual transcribing of reservation information... That to a large extent has been solved today.<br />

Nick Price


<strong>SMARTreport</strong><br />

Interview with...<br />

58 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

Micros-Fidelio<br />

EAME (Europe,<br />

Africa, Middle East)<br />

Kaweh NIROOMAND<br />

President Micros-Fidelio<br />

EAME (Europe, Africa, Middle East)<br />

RESERVATION SYSTEMS / GDS AND PMS<br />

In the past, Micros-Fidelio provided hotels and restaurants with a complete suite of products,<br />

including PMS, catering systems, and everything around those products. But the central hotel<br />

systems, where their customers sold their own products (their rooms) were not covered. We asked<br />

Kaweh Niroomand to give us the background as to how Micros-Fidelio developed its new<br />

“converged” system...<br />

© photo: Micros-Fidelio<br />

Hotels sell rooms through different<br />

channels... through their own web-sites,<br />

through Alternate Distribution Systems<br />

(ADS) and through Global Distribution<br />

Systems (GDS). Another way is of course<br />

via their own call centres. Until a certain<br />

point these were all completely split.<br />

Fidelio was providing the PMS system<br />

and we had interfaces to products which<br />

could sell the room for our customers<br />

through these different channels. The<br />

question for us was “Why should we not<br />

develop a suite of products which is an<br />

integrated solution for PMS and central<br />

system solutions which can immediately<br />

go to the different channels, directly<br />

connecting the sales from the end user to<br />

the hotel, and no longer through third<br />

party products?” This is the big change in<br />

what we have developed with our product<br />

suite. In developing Opera as a complete<br />

suite of products – as an enterprise<br />

solution – we are able to give to the enduser<br />

direct access to the last available<br />

room of a chain so that they can book<br />

directly into that room, whereas before<br />

this was not possible.<br />

Tell us about some of the successful<br />

projects...<br />

After initial testing of several systems,<br />

Micros’s solution has been chosen by the<br />

Louvre Group* because of what they saw<br />

as the centralised benefits it offered over<br />

a competing provider. At a comparable<br />

cost, Micros was able to provide Louvre<br />

Hotels a scalable contract supported by a<br />

single data centre located in Frankfurt,<br />

Germany. The Micros-Fidelio Data Centre<br />

could house all of the Micros applications<br />

in a multi-property and integrated<br />

environment, allowing Louvre Hotels to<br />

use a secure, private network connection<br />

to access Opera. Since Opera’s<br />

reservation and property management<br />

systems would be integrated on one<br />

database, all reservations could be<br />

distributed down to each hotel in real-time<br />

providing single image inventory. With<br />

an integrated Central Reservation System<br />

interfacing to the global travel agency<br />

community, all data could be<br />

accommodated in one single database<br />

securing single image guest records and<br />

hotel inventory. In other words, traditional<br />

interfacing between central and hotel<br />

systems would become obsolete.<br />

Furthermore, direct sales via Louvre<br />

Hotels’ corporate hotel websites using the<br />

Opera Web Suite, would dramatically<br />

increase web presence and direct<br />

bookings.<br />

The deployment of the Centrally Hosted<br />

Opera Property Management Systems<br />

with installations at over 500 Louvre<br />

Hotels took only eight months. This seems<br />

to be very fast... How was this achieved?<br />

Micros worked closely with Louvre Hotels<br />

to speed the deployment pace and meet<br />

important milestones prior to sending the<br />

www.cleverdis.com


installer on site. A key practice involved<br />

complete staging of hardware before it<br />

was sent to the hotel to minimize the level<br />

of effort on-site. The length of each<br />

deployment averaged two and a half<br />

days. Several weeks before the<br />

installation, end-users were able to utilise<br />

a customised e-learning tool developed<br />

by Micros and Louvre Hotels to streamline<br />

the training process. Following a week to<br />

10-day specific Louvre Hotels solution<br />

training period, a Micros representative<br />

was available onsite for an additional two<br />

days to help supervise the launch. Due to<br />

effective communication and a positive<br />

approach, Micros was able to tailor the<br />

deployment speed for Louvre Hotels and<br />

successfully deploy over 30 hotels<br />

simultaneously per week, which provided<br />

valuable time and costs savings.<br />

Has the group been able to measure<br />

Return on Investment?<br />

Absolutely. By consolidating all Opera<br />

applications to the Micros-Fidelio Data<br />

Centre and including both support and<br />

hardware on a “1 contract, 1 contact”<br />

centralised solution, Micros has helped<br />

Louvre Hotels to reduce its maintenance<br />

support costs by 70%, which in-turn has<br />

improved financial controls. IT<br />

Management especially values its cost<br />

savings from the simultaneous upgrade<br />

process. Reservations in direct Internet<br />

bookings have also increased by 300%<br />

for the 500 hotels deployed. Interfacing<br />

work with global portal partners is easier<br />

to manage due to the direct link between<br />

the portal partner and Louvre Hotels’<br />

database and application. Productivity is<br />

higher, now that the IT team is able to<br />

redirect its focus to other IT projects.<br />

You also recently announced the results (to<br />

date) of Global Hotel Alliance’s state of<br />

the art central reservations system,<br />

GHA.net, launched in February 2007,<br />

Kempinski Hotels, Leela Hotels and Pan<br />

Pacific Hotels have been the first to<br />

deploy your system... Tell us about this.<br />

The GHA team has been working closely<br />

with Micros-Fidelio to address the special<br />

needs and requirements of the world’s<br />

largest hotel alliance, and we are on<br />

track to switch three of the four remaining<br />

GHA members to this new distribution<br />

technology throughout the remainder of<br />

www.cleverdis.com<br />

2007. There has been an immediate and<br />

positive impact for each of the brands,<br />

with enhanced productivity and customer<br />

service giving measurable results in<br />

inventory and rate integrity across all<br />

distribution channels in a real-time<br />

environment combined with reduced<br />

operating expenses. Since the switch in<br />

February, all three brands have seen their<br />

combined voice, GDS and internet<br />

revenues increase. Pan Pacific has<br />

witnessed a staggering 50% increase,<br />

with Kempinski growing 39% and Leela<br />

26%.<br />

So finally, how would you best describe<br />

the key advantages of the Opera system?<br />

RESERVATION SYSTEMS / GDS AND PMS<br />

Firstly, and importantly, there are two<br />

purchase models – full out-and-out<br />

purchase, or transaction based. Secondly,<br />

we offer complete administration with<br />

everything based in our data centre in<br />

Frankfurt, and engineers on hand 24<br />

hours a day ensuring smooth operation...<br />

and thirdly, we are able to roll-out systems<br />

very rapidly. It’s possible to get a system<br />

up and running in 500 hotels in just 6<br />

months, whereas before, something like<br />

this would have taken up to 3 years.<br />

* Societé du Louvre is now owned by<br />

Starwood Capital and covers brands like<br />

Concorde, Campanile, Kyriad<br />

© photo: Micros-Fidelio<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 59


<strong>SMARTreport</strong><br />

60 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

RESERVATION SYSTEMS / GDS AND PMS<br />

HTNG Certification for IDeaS<br />

Revenue Optimisation<br />

Linda HATFIELD<br />

Vice President, Product Management<br />

IDeaS<br />

IDeaS, the leading provider of hospitality<br />

revenue optimisation solutions and one of<br />

America’s fastest growing technology<br />

companies, has announced that IDeaS V5i<br />

Revenue Management solution has been<br />

certified under the Hotel Technology Next<br />

Generation (HTNG) Certification Program.<br />

"We are pleased to have successfully<br />

completed the HTNG certification<br />

process,” said Linda Hatfield, Vice<br />

President Product Management, IDeaS.<br />

“As a founding member of HTNG, we are<br />

strong supporters of their initiatives and will<br />

continue to work on behalf of our clients<br />

with other vendors to move forward the<br />

Intelligence: - in·tel·li·gence ( n-t l -j ns) n.<br />

a) The capacity to acquire and apply knowledge.<br />

b) The faculty of thought and reason.<br />

c) Superior powers of mind.<br />

Whichever way you look at it, intelligence is a good<br />

thing to have. At Cleverdis, our mission is to give the<br />

necessary intelligence to make the right decisions in<br />

business. Our vertical market <strong>SMARTreport</strong>s are part of<br />

that mission. But complementary to these publications,<br />

we have developed an extremely powerful tool… even<br />

more finely honed… in the form of our SPECIALreports.<br />

acceptance and use of the HTNG<br />

standards.”<br />

News: IDeaS Revenue<br />

Optimisation and Agilysys<br />

Bring Their Systems Integration<br />

to the Next Level<br />

IDeaS has announced the availability of a<br />

full two-way integration between IDeaS<br />

Revenue Optimisation Solution and Visual<br />

One Property Management System (PMS)<br />

by Agilysys. The solution offers joint clients<br />

and future prospects the ability to fully<br />

leverage the strengths of both products in<br />

addition to the assurance of compatibility<br />

into the future. “This is a major<br />

advancement in our existing partnership<br />

with Agilysys. The joint work we have done<br />

to seamlessly update IDeaS revenue<br />

management controls into Visual One PMS<br />

by Agilysys is highly valuable for our<br />

clients,” said Linda Hatfield, IDeaS Vice<br />

President, Product Management. “Our<br />

development teams have been able to<br />

quickly bring to market this functionality<br />

due to our shared vision of serving the<br />

needs of our respective client bases. The<br />

clear product focus and ongoing<br />

innovation demonstrated by IDeaS<br />

Revenue Optimisation Solutions has made<br />

their product essential for hoteliers looking<br />

to maximize their revenues in an ever<br />

changing marketplace. This two-way<br />

integration allows us to deliver maximum<br />

Cleverdis SPECIALreports are aimed at educating<br />

highly specific groups of people to gain intelligence<br />

through targeted information. Sponsored individually<br />

by companies with a mission to educate and inform,<br />

such as Panasonic, Sharp, Sony, Alcatel Lucent, Canon,<br />

Samsung, Microsoft, HP, NEC Electronics, and<br />

LG.Philips LCD, each Special Report is dedicated to a<br />

highly specific market, with highly specific information<br />

gathered and edited by Cleverdis.<br />

You can download PDF samples of our SPECIALreports<br />

on www.cleverdis.com.<br />

Cleverdis SPECIALreports – a CLEVER way of bringing<br />

Intelligence to the market.<br />

benefit to our customers,” said Tina Stehle,<br />

Senior Vice President at Agilysys.<br />

Major rollout by Millennium<br />

Meantime, in recent news, IDeaS has also<br />

announced that its on-demand Revenue<br />

Optimisation system V5i is being deployed<br />

by Millennium and Copthorne across its<br />

portfolio of hotels throughout Asia Pacific,<br />

EAME and the Americas. Millennium<br />

Hotels and Resorts completed an extensive<br />

due diligence of the Revenue Management<br />

Systems available and selected the IDeaS<br />

on-demand solution V5i. “Having multiproperty<br />

imple-mentation and working<br />

experience of several other RMS, I<br />

particularly value the very strong and<br />

dedicated service and account support that<br />

IDeaS provides across the globe. It<br />

contributes significantly in the global rollout<br />

of our RMS program, both pre and post<br />

implementation. It is great to see how this<br />

intensive co-operation has helped us<br />

achieve more accurate forecasts, ultimately<br />

resulting in optimal results.” said Hannes<br />

Bos, Global Director of Revenue<br />

Management. “We are proud of our long<br />

standing relationship with Millennium<br />

Hotels and Resorts. Their Revenue<br />

Management initiative has been innovative<br />

and decisive and we are pleased to be<br />

playing a vital part in its successful<br />

deployment.” said Grahame Tate<br />

Managing Director IDeaS Asia Pacific<br />

www.cleverdis.com


www.cleverdis.com<br />

RESERVATION SYSTEMS / GDS AND PMS<br />

CASE STUDY<br />

Optimising hotel and conference center<br />

operations on one database…<br />

For greater staff productivity, stronger financial management<br />

and better guest tracking<br />

Lodge of the Ozarks Drives<br />

Higher Profitability with<br />

Maestro System at the Largest<br />

Convention Center in Branson,<br />

Missouri – USA.<br />

Branson, Missouri is a booming vacation<br />

destination that attracts hundreds of<br />

thousands of families annually to its<br />

award-winning headliner entertainment,<br />

theme parks, and golf courses. It is a<br />

favorite location for conferences and<br />

military and family reunions, and one of<br />

the largest spaces for conventions in<br />

Branson is operated by the Lodge of the<br />

Ozarks. Branson works to keep its<br />

“country” roots, and The Lodge of the<br />

Ozarks is a beautifully decorated<br />

property providing rustic elegance to the<br />

guests. But there is nothing rustic about<br />

the new, single-image database<br />

technology from Northwind-Maestro PMS<br />

that the property installed to automate its<br />

resort, convention center, club, spa and<br />

food services operations.<br />

“Lodge of the Ozarks is among the busiest<br />

conference center hotels in Branson,” said<br />

Randy Park, business agent for Morrell<br />

Hospitality, the property’s owner. “Our<br />

property operates its own Club, similar to<br />

a Las Vegas supper club, and Timber<br />

Creek restaurant. Today we are in the<br />

midst of upgrading the entire property to<br />

attract a new, higher-rated guest segment.<br />

To make our operation as efficient as<br />

possible, we installed the Maestro<br />

Enterprise Suite of hotel software to<br />

automate and integrate our entire<br />

operation on one database for greater<br />

staff productivity, stronger financial<br />

management and better guest tracking.”<br />

Maestro automates the entire<br />

conference resort<br />

In June 2007 the property implemented<br />

Maestro PMS to automate hotel<br />

management operations and Maestro<br />

Sales and Catering to computerize its<br />

conference sales management and<br />

catering business. The hotel also installed<br />

Maestro POS on the same database for<br />

guest charge posting and uses Maestro<br />

Work Order Scheduling to oversee its<br />

upgrade projects. When the property’s<br />

new Spa is completed, Lodge of the<br />

Ozarks will install Maestro’s Spa system<br />

to automate client scheduling, billing and<br />

reservations. “The Maestro single-image<br />

database technology is ideal for any<br />

complex conference center property<br />

because every module is integrated to<br />

give a 360-degree picture of each guest,”<br />

said Park. The system tracks guest’s<br />

activities, whether in the hotel, convention<br />

center or dining to capture charges at<br />

every touch point. The property will use<br />

Maestro Analytics business intelligence<br />

solution to mine guest information to<br />

create effective marketing campaigns<br />

based on each guest’s historical<br />

preferences. According to Park, “The<br />

system is so intuitive that our staff and<br />

management learned to use it quickly.<br />

NORTHWIND understands the hotel<br />

business and its team took time to see<br />

how we do business, then applied their<br />

system to optimize our property’s<br />

operation.” Park is also impressed with<br />

Maestro’s financial and operations<br />

reporting. “As business manager for<br />

Morrell Hospitality, I appreciate solid<br />

reporting. We never looked for a report<br />

that the system did not already provide.”<br />

Park noted that when the property’s<br />

renovation is completed he expects the<br />

Lodge of the Ozarks will attract a more<br />

highly rated guest segment. “The Maestro<br />

system has an integrated Yield<br />

Management program that will enable us<br />

to optimize our rates when we finish<br />

upgrading all areas of the hotel,<br />

conference center, dining outlets and<br />

club.”<br />

“Branson is a family destination that<br />

understands the importance of caring for<br />

every guest during their stay,” said Park.<br />

“Northwind-Maestro is a client-focused<br />

technology partner that delivered on<br />

every part of our agreement.”<br />

Contact:<br />

info@maestropms.com<br />

www.maestropms.com/HOL<br />

© photo: Ozarks<br />

Hotel <strong>SMARTreport</strong> October 2007 – April 2008 / 61


SECURITY<br />

All forms of security are becoming much more important than they were. Today, we are living<br />

in what we perceive as a more insecure world than we were living in ten years ago. There is a<br />

physical notion of security, whether that means security guards, number of staff or locked doors<br />

or lifts that only go to certain floors. Obviously there is also CCTV and the sheer explosion in<br />

the number of cameras everywhere... not just in hotels. We need to provide that level of security<br />

to our customers... but the flip side of it is that you are increasingly the guardians of a large<br />

amount of very sensitive, personal information - that is information about the customers. And you<br />

need to keep that information safe. Overlay that the fact that you have a converging of networks<br />

today and it makes the job of the IT security specialists hundreds of times more important and<br />

difficult than it was ten years ago in a hotel. In my company I have someone who does nothing<br />

else but security and many companies would be wise to follow the same practice. We regularly,<br />

every quarter, physically – on site – send an outside hired specialist to try to penetrate and<br />

break our networks... every hotel... every quarter... and we act upon the results very quickly.<br />

Nick Price


<strong>SMARTreport</strong><br />

CASE STUDY<br />

64 / Hotel <strong>SMARTreport</strong> • October 2007 – April 2008<br />

SECURITY<br />

Security Evaluation and Verification by<br />

HP Strengthens interTouch Service<br />

Offering<br />

For 9 years, interTouch has been the<br />

provider of wired and wireless<br />

Broadband and Internet access services<br />

to international hotel chains such as Hilton<br />

Hotels, Hyatt Hotels and Resorts, Four<br />

Seasons Hotels and Resorts,<br />

InterContinental Hotels Group, Le<br />

Meridien, Pan Pacific Hotels and Resorts,<br />

Shangri-La Hotels and Resorts, and<br />

Sheraton Hotels and Resorts. While<br />

interTouch services enable travellers to<br />

stay connected no matter where they are,<br />

the company is responsible for the<br />

prevention of spam and virus attacks on<br />

users logged on to their network.<br />

Essentially, security, reliability and<br />

trustworthiness of their services are crucial<br />

elements influencing the reputation of the<br />

company. Thus, interTouch recently took<br />

steps to ensure that the latest security<br />

features were adopted into their new<br />

version of iBIS. In order to ensure that<br />

these features conform to industry<br />

standards, interTouch engaged the<br />

services of HP to conduct evaluation and<br />

verification specifically on the security<br />

functions of iBIS 7.0. Ultimately,<br />

interTouch’s decision to work with HP was<br />

influenced by a previous assessment in<br />

which HP delivered excellent results. This<br />

experience resulted in interTouch turning<br />

to HP again for this evaluation.<br />

The Security Vulnerability Assessment<br />

consisted of 2 modules:<br />

• Module 1: Black Box Penetration Testing<br />

(External)<br />

An external assessment was performed to<br />

mimic the behaviour of a malicious<br />

hacker attempting to penetrate the system<br />

from the Internet. In this instance, a<br />

security evaluation method was utilized to<br />

stimulate an attack. This also incorporated<br />

an active analysis of the system to<br />

uncover weaknesses, technical flaws or<br />

vulnerabilities.<br />

• Module 2: Vulnerability Scanning<br />

(Internal)<br />

An internal assessment analyzes possible<br />

threats and weaknesses that can be<br />

exploited within WAN and LAN<br />

environments. This exercise was<br />

performed on-site, from within interTouch’s<br />

internal network. Specifically, the<br />

objective of this exercise was to uncover<br />

possible system vulnerabilities, and<br />

subsequently recommend mitigation<br />

measures as well as to identify areas for<br />

improvement.<br />

HP’s comparison study indicated that<br />

interTouch had successfully enforced<br />

strong measures of security protection.<br />

There were no vulnerabilities found during<br />

the external assessment, and the year-toyear<br />

comparison on the number of<br />

vulnerabilities has significantly<br />

decreased. This represents a positive<br />

system improvement, providing users with<br />

improved security while surfing the<br />

Internet via the interTouch network.<br />

Some of the main findings of the<br />

assessment:<br />

• Denial of Service (DoS) attacks: The<br />

VBN disables the connection from the<br />

source IP when TCP connections exceed<br />

80,000 TCPs/second.<br />

• Unauthorized access to file and<br />

database servers: Not possible without<br />

valid access credentials as TCP ports<br />

are filtered and protected by the<br />

firewall.<br />

• Visibility between users logged on to<br />

the network: As connectivity between<br />

ports (rooms) is prevented, traffic<br />

sniffing or virus infections between<br />

users on the same network are virtually<br />

impossible.<br />

• Guests attempting to gain free internet<br />

access: Attempts to alter URLs to bypass<br />

access failed, and thus free Internet<br />

access cannot occur.<br />

However, HP’s assessment also revealed<br />

areas where the system could be<br />

improved upon. The following were<br />

proposed recommendations from HP:<br />

• Display authorization usage banners on<br />

Administration pages. A statement<br />

communicating a requirement for<br />

compliance before accessing system<br />

resources need to be displayed on the<br />

login page, before granting access into<br />

the system.<br />

• Deploy Intrusion Detection/Prevention<br />

systems to detect malicious activities on<br />

hosts and network.<br />

These recommendations will be<br />

addressed in upcoming versions of iBIS as<br />

part of interTouch’s continuous product<br />

improvement initiatives.<br />

© photo: Intertouch<br />

www.cleverdis.com

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