Monday, October 22, 2007

Blog Posting #4

Hospitality Technology Magazine
October 2007
Self-Service Success
By Mary L. Carlin, Contributing Editor


This is yet another article to point out the fact that self-service is becoming an extrememly popular trend throughout the hospitality industry. As we well know, both the restaurant and lodging sides of the hospitality world are moving toward a more self-service based style of operation. This article highlights some of the important things to follow and keep in mind when making a move toward embracing a more self-service way of doing business.

At the top of the list is having a strategic business plan. This seems paramount. Without knowing what your goals are and what your desired way of operating is, making this sort of move is not only premature, but a bit foolish. Capitalizing on upselling is another key facet to keep in mind. The use of self-service kiosks can be optimized to expand and maximize the business's return on investment (ROI). A kiosk, i.e. a computer will never forget to offer "extra cheese" or to upgrade to the "best value" once it has been programmed to do so. It is much easier to simply press "OK' on the screen and instantly the business is maximizing profits.

Promoting and marketing is also very important. Customers must have a positive impression of self-service, and not be timid or turned off by such an option. Hand-in-hand with this is the need to train your staff to encourage the use of self-service. The mindset must be that you are not cutting costs, but rather increasing throughput. The location of these kiosks is also vital. Poor planning or positioning can have very negative effects. Owners must be able to communicate with their customers about how self-service will help with speed and accuracy, and the location of the machines must be aligned with this philosophy.

Rewarding customer loyalty is also another important area. Guests will be pleased to continue using self-service machines especially when there is an added incentive to do so. One of the easiest incentives, and subsequent benefits of these services in the fact that kiosks don't call out sick. It is possible to break down, but typically that maintenance will not be so extensive that it hurts business. The speed, efficiency, "line busting", are all benefits that the guest will enjoy. It is important however to keep things relatively simple. There is no need to have "killer applications" that over complicate a simple transaction. At the same time it is necessary to look to the future and be sure to invest in it. It has been said that self-service kiosks might eventually put the front desk out of business, and it is imperative to stay current and on the right side of change.

As I said in the beginning, I feel that this article is right on track with one of the fastest growing technology trends in the industry. Each of the ten items mentioned in the article make great business sense, and can help to insure success with the use of self-service kiosks and applications. I know that personally I am a big fan of self-service ( it is always the first line I go to at the supermarket for example) but I do feel that it needs to be complimented by actual human interaction. I do not necessarily agree that the front desk will be driven out of business by technology. I feel that for as "hi-tech" as the hospitality industry can get in the hope of increasing efficiency and convenience, there is still an undying need for "hi-touch" service as well. There can be no greater feeling of hospitality than that which you receive from an actual person smiling and greeting you at the front desk or at a host/hostess podium.

5 comments:

Monika Menuau said...

I thought this article was pertinent to our industry nowadays, as we read in one of our articles this semester on the 10 trends influencing our industry self-service was one of them. I think self-service has become very important because the customer has been asking for it, the customer wants that feeling of empowerment, of being in control and letting them take charge and also it ties in perfectly with the customization aspect that customers are asking for. I think self-service kiosks are very important but shouldn’t be the only options available, after all this business is based on hospitality and it cannot revolved around only “hi-tech”, we definitely need the “hi-touch” also so hotels should be strategic in placing those kiosks.

Joe G. said...

I completely agree with everything that you said in your reflection. Self-service definitely is an upcoming trend in the industry and is an excellent move for a smart business to make. I thought the phiosphy behind using it to maximize profits was very interesting, stating the fact that a computer would never forget to ask for extra sides to charge. I think that it's an excellent way to make extra money. Personally, whenever I get a WaWa sandwich the screen for "extra bacon" always gets me, which is a perfect example of this strategy. Self-kiosks are easy-to-use and help expedite financial transactions in many different settings throughout the industry. I think that in the next few years they will mire prevalant and be a necessity for hotels and institutions alike.

Lina said...

I agree with the comments. Self-service is absolutely one of the top trends going on in the industry.
At first we may recon that only specific hotel types such as business hotels may be more suitable for self-service as the customers may demand more efficiency. However, now I would think every market segment should have selfservice content to some extent, but definitely not the same ones. For example, in Dr. Serva's class, one group has shown a dynamic daily window to us. It was really amazing that a seemly regular window can be customized into so many shapes and views. Say if you are a business traveller from China, with this window, you can change the view into Beijing's skyline, day or night, up to you. Would it be great for you time jag?
This kind of self-service will not only "amaze" the guest, but also give the guest the fun to live in your hotel. This technology can be used in hotel brands such as RITZ CARLTON, so called as hi-tech, hi-touch.
Similarly, some other selfservice, like in-room service can be applied here. A big screen showing every control in the guest room and with reservation and query functions will definitely improve the quaility of staying in the room, therefore, more chances to make more profits.

Moreo said...

I agree with both Anthony and the author of the article. I read a question once that asked: If you do not offer self-service are you truly a full service hotel? I think this question accurately represents the technology climate in the hotel industry at present. In the vast majority of hotels, self service will never replace the front desk, with some economy brand exceptions, however this same group must invest in some self service to maintain pace with the rest of the industry and other industries. There are many travelers who would much prefer to go to a self service kiosk and check out of their hotel room and check into their flight, all in one fell swoop. We need to ensure that we continue to cater to those travelers as well as the traveler who prefers the high-touch of a live front desk clerk.

Pam said...

Self-service is making a huge impact in our industry because of it's ease, convenience, and efficiency. But I think that it is important for businesses to make sure that they are heading into the direction of self-service with their goals, like Anthony said in the blog. Since the kiosks and self checkouts are becoming so popular I feel like some businesses will start using them just so they don't feel left behind and outdated, even though they don't need them in their business plan.
Even though I like using the self-checkouts, I feel that if I'm on vacation or something of leisure I want the person to person interatction. For business people that are on the go, it's understandable to want to click in and out quickly but when you want to be able to slow down and relax, I think that to have a well trained staff is extremely important. If these establishments don't have a great staff to backup their technology it's not really going to matter how advanced they seem.