Newsletter - June 11, 2002

SUPER HIGH-TECH HOTELS - HOW THE HECK DO YOU TURN OFF THE TV

By Steve Shellum      Hotel Asia Pacific Magazine

How Shangri-La is facing its technological challenges 

When Max Fankhanel checked into one of those new super-high-tech hotels in Dubai, with guestrooms containing more gadgets than NASA’s control centre, he was faced with a dilemma: how the heck do you turn off the TV? 

Given that Fankhanel is Shangri-La’s group director of engineering and deals with technology every day of his working life, that particular incident reflects just how far some hotels have lost the plot on what hospitality is all about. 

It also neatly illustrates the approach that Shangri-La is most definitely not taking towards inroom technology. Although the group realises that IT is crucial to the success of any hotel operation, it does not see it as the be-all and end-all.
“We are not tech junkies,” says Anand Rao, who is responsible for IT strategy throughout the group. 

“Technology has to justify itself in terms of both customers and staff. It should be used to enable services, not replace them. People want to see a human face and, ideally, they should not see the technology.

“Take wake-up calls, for instance: hotels that expect you to dial in masses of numbers or codes just so you can get up on time in the morning are missing the point. Guests don’t want their bedside consoles to look like a 747 cockpit. Technology has to be simple and non threatening.”

Rao gives another example of IT gone astray. 

“Some hotels spend millions of dollars to become what they believe is energy efficient, with motion or heat detectors installed in all the guestrooms. But it doesn’t work because if a couple is staying in the room and one of them decides to go out, then all the lights go off.

“It’s much more efficient and cost effective to simply put up a sign saying, ‘Please help conserve energy and turn off the lights when you leave the room’.

“That leaves the guest in control of his or her environment, which is how it should be.”
According to Rao, Shangri-La is in the process of making all its hotels “future-proof”. 
“The systems we have chosen to install will last us for a long, long time,” he says.

The focus is on groupwide initiatives, with hotels being wired for high-speed data access, internet and video conferencing, using CAT-5, vertical cable and fibre optics. 
“In the past, a lot of companies that were in the business of wiring up hotels for IT went bust because they had to invest in the infrastructure, but the usage wasn’t there,” says Rao. 

“We own the cables, so we stay in control.”

He believes that one trend that looks like it may develop further is wireless internet access. “We are laying the pathways now and will have the infrastructure ready for whatever our guests decide they want.

“The hotels have been fairly well automated in the past and we are just putting in the new infrastructure. It’s much cheaper to do it now than later.” 

He estimates that current guest usage of inroom internet facilities is 3-4%. “It’s more of a service than a revenue driver.”

Other IT initiatives being undertaken by the group include replacing existing property management systtems (PMS) with new central reservation and yield management systems, and revamping its groupwide sales-management systems.

“We are putting more and more emphasis on control,” says Rao. 

“At one time, PMS was the main focus because everything was connected to it. But the focus is now turning to central systems, with every guest history recorded in detail.”

The group has teamed up with Micros Fidelio to develop new systems that work across the chain. “Standard solutions that work for other groups don’t work for us, but this is a very cost efficient way of ensuring we develop exactly what we need,” says Rao. 

“There are things that a domestic hotel chain in the US could do, but in our case we deal with 10 countries and currencies, so consolidation isn’t always possible.”
The group is also developing a new database platform, and is working on the challenge of incorporating Chinese characters into its systems

Hotel Asia Pacific Magazine    http://www.hotelasiapacific.com

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MELBOURNE GEARS UP FOR ATE 2003

TravelWeeklyEast.com  -  Melbourne will put its best foot forward when it plays host to the Australian Tourism Exchange in 2003 and 2004.

Victoria’s minister for tourism, John Pandazopoulos, is upbeat that Melbourne's fame as a world-class events capital will be enhanced with the Australian Tourist Commission’s decision to grant Melbourne the rights to host ATE for the next two years

"This is a vote of confidence in Melbourne’s previous performance as host in 1991, 1992, 1997 and 1998. In 1998, Melbourne ATE was voted ‘best ever’ by local and overseas delegates and Tourism Victoria will be working hard to ensure the 2003 and 2004 events are equally outstanding."

Pandazopoulos said Melbourne had flourished since it last hosted ATE in 1998, with a significant number of new developments projects contributing to the city’s image as a vibrant and exciting destination.

When asked whether ATE’s format of dividing the show into the Eastern Hemisphere and Western Hemisphere will be revised, the chairman of Tourism Victoria, John Morse, said "it is premature to comment" as this format is only in its second year.

Morse also said the dates for the 2003 show are still being finalised.

Melbourne expects 1,000 international delegates from around 50 countries to Victoria for the ATE.

The buyers and the media will be invited to experience the city and participate in tours through regional Victoria.

UNCERTAINTY NO MEETINGS DAMENER: EIBTM

TravelAsia.com   -  A recent report about meetings and incentives reveals that contrary to expectations, the climate of uncertainty has not dampened the number of meetings and conference delegates. EIBTM’s new European Meetings and Incentive Report shows that the average number of participants per event has grown – from 639 nine years ago to today’s 815.

The report by Philip Alford, senior lecturer, University of Luton Business School and a member of its International Tourism Research Centre, is published in conjunction with the Mintel International Group. Alford will be presenting the findings on May 21 at EIBTM 2002.

The report indicates that new technology has encouraged the emergence of powerful internet search engines which are useful in identifying venues, and the popularity of virtual conferencing as a cheaper alternative to traditional forms of meetings. Alford concludes that while the longhaul market is slow in recovering, domestic and European incentive business is on the rise.  

ITE TO ‘ELEVATE’ CHINA’S ROLE IN GLOBAL TOURISM

TravelAsia.com   -  This year’s International Travel Expo (ITE) will position Hong Kong as an important hub for both inbound and outbound travel, while serving as a platform to help ‘elevate’ China’s role in world tourism, says its organiser, Adsale.

“We want to encourage the mainland Chinese to continue travelling to Hong Kong and bring people from other parts of the world to China through Hong Kong,” said PY Ho, general manager sales and marketing for Adsale.

ITE (May 30-June 2) is in its 16th year, and the event’s organiser says it is working more closely with the Tourism Commission as well as the Hong Kong Tourism Board (HKTB) to promote tourism into Hong Kong.

HKTB executive director Clara Chong says the show has a unique geographical advantage.

“By holding ITE in Hong Kong, it has two distinct advantages: its closeness to the mainland attracts very good responses from its inbound and outbound buyers and sellers.

“There is also a strong industry contingent from other parts of the world looking to sell this market, as well as to buy Hong Kong and mainland products.”

Key Hong Kong inbound agents have withdrawn their support for ITE over the past few years, but Ho said Adsale is working to bring in more quality buyers and speakers for both the inbound and outbound seminars.

“In terms of outbound, we are getting good support from NTOs to get results from both the trade and consumer days at the show. Their focus is to generate not only Hong Kong outbound, but China outbound as well,” Ho said.

The Australian Tourist Commission, which has not participated in recent years at ITE, is returning as an exhibitor in the hopes of capturing the China outbound market.

“ITE used to be viewed as very much a B2B show, but it is gaining more popularity as being a B2C event, receiving over the past couple of years, larger numbers of visitors. With public desire for travel returning, the last two days of the Expo this year, June 1-2, are expected to receive a good turnout,” Chong said.

LUXURY HOTEL PERKS PUT GUESTS IN THE DRIVER’S SEAT

USA TODAY  -  Checking into a chic hotel now can mean checking out -- free of charge -- more than the complimentary shampoo and body lotion.

Goods ranging from CDs to luxury autos are being placed gratis at select lodgings by companies that hope trying will lead to buying.

A sampling of luxury freebies being lavished on guests:

* The chance to take a $ 155,500 Aston Martin convertible for a two-hour spin is offered at the 24-room Casa Palmero in Pebble Beach, Calif. Guests at its sister resorts, The Inn at Spanish Bay and The Lodge at Pebble Beach, may reserve two hours in a Volvo C70 convertible.

* A gift basket overflowing with more than a dozen trendy products, such as Sony and Def Jam hit CDs, Skyy Vodka, Red Bull energy drink and Lacoste shirts, will be included in the price of a room when the Opus Hotel in Vancouver, British Columbia, opens in July. After the first month, smaller goody bags will be handed out.

* Elegant Burberry raincoats are available for use by guests -- and their pooches -- at the new Ritz-Carlton New York, Central Park.

* A package of a dozen complimentary Prada skin-care products is presented to repeat visitors and VIPs at the Fifteen Beacon boutique hotel in Boston.

Hotels are receptive to this kind of product placement, since they spend nothing. Guests adore luxuries they don't have to pay for.

"It's a win-win for us," says Casa Palmero general manager Janine Chicourrat. Guests "have a pleasant surprise" when told they can drive the pricey DB7 Vantage Volante convertible, she says. "The reaction is fantastic."

The Prada package is a way to reward guests and give "added value" to a stay, agrees Fifteen Beacon general manager William Sander.

And firms love getting their wares in the hands of well-heeled potential customers.

"People don't know how amazing the car is till they drive it," says Aston Martin North American marketing director Cristina Bruzzi, who placed the convertible at Casa Palmero in February.

"The fit was the exclusivity factor," she says. Casa Palmero, where rates start at about $ 600 daily, "was desirable, luxurious. The demographic that stays there fits our demographics -- professionals, entrepreneurs, people who own high-ticket items."

The Opus, a chic boutique hotel, is getting handouts of trendy stuff from companies that want to target tastemakers -- "the upscale, celebrity crowd that's going in there," says hotel spokeswoman Norah Lawlor.

Similar reasoning is at work at the Ritz-Carlton New York, Central Park, where a nearby Burberry store is showering clients with protection on rainy days.

"They really like it," says chief concierge Frederick Bigler. So far, the only guest that hasn't is a poodle unenthusiastic about being bundled into the tan coat with distinctive plaid lining. And should a guest subsequently desire to purchase a trench coat, the hotel will arrange for delivery.

Also eager to reach the hotel's ritzy clientele is the nearby Bergdorf Goodman department store, which supplies guest rooms with complimentary copies of its magazine. Inside is an incentive to visit the store -- a $ 50 gift card for those who spend $ 500 or more.

Is there a downside to freely dispensing expensive wares?

Aston Martin's Bruzzi admits to a bit of worry about damage to the pricey convertible. "But what it's doing for us on a brand-awareness front is fantastic."

SAS SEEKS 3-STAR HOTEL CHAIN FOR LEISURE CUSTOMERS

AFX News   -   Scandinavian Airlines System AB (SAS) is accelerating the development of its hotel operations and is looking for a chain of three-star hotels for its increasing number of leisure passengers, daily Boersen reported, citing chief executive Joergen Lindegaard.

Its current chains, Radisson SAS and Malmaison, are four-star hotels catering for the business traveller, the daily wrote.

"It's a natural extension of our increased efforts in the leisure travel sector and we lack a supplement to the Radisson SAS and Malmaison chains," Lindegaard told the daily.

"We would like to take over a chain of three-star hotels, but if we can't find one then we'll establish one ourselves," he said.

Such an investment would not be very large as SAS' policy is not to own buildings, he emphasised.

"We will start in our home markets and expand from there," Lindegaard said.

"There is nothing to hinder a chain of three-star hotels becoming as big as a chain of four-star hotels," he added.

U.S. TO REVIEW WEB TRAVEL SITES

Panel to investigate pricing and effect on industry.  

As the Internet becomes more of a destination of choice for consumers looking to book airline tickets, hotel rooms or car rentals, the government is considering whether the Web sites should be regulated and whether they are indeed offering the lowest fares.

Transportation Secretary Norman Mineta has named David Winstead, a former state transportation secretary in Maryland, to oversee a nine-member commission created by Congress to investigate prices and practices of various airline sites and independent sites - such as Travelocity.com and Expedia.com - and their impact on travelers and travel agents. The commission is to hold its first hearing next Wednesday. On Nov. 15, Winstead is to present a report to members of Congress, who will then determine whether any "recommendations or regulations" should be implemented by Congress or the Bush administration.

According to Jupiter Media Metrix Inc., the online research and consulting company, consumers are expected to spend about $30.8 billion on travel sites this year, up from $24 billion in 2001. The Web sites may make it easier for consumers to shop for the lowest fares, but government officials worry about problems that may spring from the practice. For example, Congress is worried about the impact of the Internet on travel agents. Many airlines have eliminated the commissions they pay travel agents and have been encouraging travelers to book online by putting their lowest fares on airline Web sites. But Orbitz.com - founded by American, United, Delta, Northwest and Continental airlines - recently announced plans to create a system that would give travel agents direct access to its fares, which should provide agents with some relief.

Congress is also concerned that some sites are getting lower fares than others, Winstead said. And the Justice Department is investigating Orbitz.com to see whether the site is favoring the five major airlines that own it. A European counterpart, Opodo.com, as been created by British Airways, Air France, Lufthansa, Aer Lingus, Alitalia, Austrian Airlines, Finnair, Iberia and KLM. Internet travel services such as Travelocity, Priceline.com and Expedia say they display the lowest fare that meets the customer's criteria, such as destination and time of travel. Yet in March, Expedia briefly refused to display United Airlines fares after the carrier said it would stop paying Expedia commissions. In April, Northwest Airlines charged that Travelocity and Expedia had refused to offer its reduced fares to Frankfurt. A Northwest spokesman, Kurt Ebenhoch, said the sites argued that they could not promote the fares because that would conflict with marketing agreements they had with European carriers. An Expedia spokeswoman, Suzi LeVine, denied that was the reason. She said Northwest had decided not to give its fares to Expedia after Expedia said the fares would not be advertised on its Web site or in its promotional e- mails. Winstead said he planned to study the kind of exclusive marketing agreements that Internet travel sites have with airlines to determine whether they influence the way sites display fares.

SOME 4 MILLION TOURISTS EXPECTED TO VISIT ARGENTINA IN 2002

Tourism Secretary Daniel Scioli estimated that some four million tourists will visit Argentina this year, one million more than in 2001. Income from tourism is expected to account for 7 percent of the gross domestic product (GDP) and should continue to grow in coming years, Scioli told the press.

"We'll easily surpass the three million tourists we had last year. I think we'll approach the four-million mark, which would be a new record and we're putting every effort into (achieving it)," Scioli said. "We've got to make an attempt to standardize prices and promote Argentina as both an affordable travel destination and a place with many beautiful tourist attractions," the official said. Scioli said income from tourism accounts for as much as 11 percent of GDP in countries that effectively promote the industry, leading him to believe that Argentina "has room to grow."

After registering a tourism industry deficit of some $1.3 billion in 2001, Argentina has posted a $2 billion tourism surplus in the first few months of 2002, according to Tourism Secretariat figures. Tourists have been drawn to Argentina because of the lower cost of hotels, transportation and other services following the peso's devaluation. The peso has fallen some 71 percent relative to the dollar since January, when President Eduardo Duhalde's administration ended a decade-old currency regime that pegged the peso at parity to the U.S. dollar.