Part 3 of 3: Lessons from Hotel Industry HTNG 2010 – Clouds in The Forecast for Hotel Tech Developers

by Michael Squires on March 11, 2010

in Hospitality,Hotel marketing,Michael Squires,Public relations,Views

                                                    Cloud computing is more than a good thing.  According to Nick Price,  Mandarin Oriental’s CIO/CTO, it is a requirement for any vendor who wants to do business with MO in the future.  Price made this pronouncement at the conclusion of his presentation, ‘Clouds Are Looming: Are You Ready,’ at the HTNG  Conference in Orlando March 3.   Why the mandate?

It is estimated that the highest percentage of hotel brand and property growth in future years will be in offshore markets.  Price speaks with authority because Mandarin Oriental operates hotels in Asia, The Americas, Europe, the Middle East, and North Africa.  To maintain any semblance of system standards or compatibility internationally without breaking the bank for applications, installation, and support, a virtual implementation strategy is required – a cloud computing strategy.  Why?

1)   Cloud computing, or virtual SaaS, platforms can support applications uniformly in multiple locations via the internet.  Properties only need a high-speed web connection and a network of compatible PC workstations that enable staff to access the application. To install a system in a new property anywhere, simply access the app’s website and log in. 

2)  Virtual application deployment lets operators make flexible hardware decisions.  It also lifts the burden of data backups and system maintenance from property staff so hotels need fewer, specially trained, IT staff.

3)   Centrally-held property data enables corporate business analysis and chain-wide CRM.  Guests who stay at multiple properties within the chain have their personal profile available to each hotel that supports guest recognition and higher service standards. 

4)   If that is not enough, cloud implementations save money.  Nick Price made a clear business case for a virtual system strategy by citing annual savings of many thousands of dollars per property in energy expenditures, payroll, and property real estate (how much space do your equipment rooms occupy?).

Price closed by saying he thought cloud computing was actually more reliable than property-based platforms.  I personally used to worry about the backhoe working on the sidewalk in front of my property cutting my internet connection. 

What do you think about virtual platforms for the hotel industry?  Reliable, fast enough?

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