Magazine

Mobility Movement - The Impact on Hotel Services

© 2007 Hospitality Upgrade. No reproduction without written permission.

There were 12.7 million portable media players and over 60 million laptop computers shipped in 2006. Now people communicate, seek information, entertain and transact business all through a personal mobile device, portable media player and wireless-enabled laptop. More hotel guests will bring their own modes of communications and the personalized services with them. This will have a profound impact on how guests interact with the services at a hotel and what hotels will need to offer going forward into the future.

The Trend Toward More Content Over Mobile Devices
Of the 192 million wireless subscribers in 2006, 42 percent subscribe to data services and today about 2 percent also subscribe to mobile video content. The significant change projected is that of the forecasted 228 million subscribers by year 2010, 83 percent of them will have wireless data services and over 13 percent with mobile video content. Interest in video content delivered through the cellular system is increasing.

In a survey of 1,000 people in 2006, respondents showed their propensity to use mobile devices more and more with the newer and faster third generation (3G) cell networks. Music content, downloading and video applications led the way, as can be seen from the figure on page 52. Industry analysts use the term video snacking for the viewing of the mobile video clips in short durations. This is already substituting for people’s interest to sit and watch TV in the conventional manner for longer durations.               

Impact to Hotel Services 
Radio and phone usage in hotel guestrooms is directly impacted by the mobility trend evident by their decline in usage. The radio is being replaced by portable media players, iPods and cell phones as the preferred sources of music, particularly with the younger generation. The number of portable media players is expected to increase to 40 million units by 2009. Current portable media players comprise such products as Apple’s Video iPod, Microsoft’s Zune and Slingbox.

The convenience of a single number to reach someone, and the abundance of minutes on most wireless plans, the cell phone has replaced guestroom phones as the primary contact device for the ever-increasing mobile workforce. The issue of in-building coverage problem is being addressed by the industry with smarter antenna technologies and the coming of technologies of WiMax combined with Wi-Fi already installed on the hotel premises. The decline in use of the phone in guestrooms and their associated revenue loss have been well documented. (See Guestroom Phones: Replacing that Costly Intercom (PBX) System, by Dan Phillips, Hospitality Upgrade, Summer 2006).  
  
On data services, high-speed wireless access is now available in more than half of the hotels and this trend will continue over the next two to three years. Most hotels that started out with wired solutions have now enabled them for wireless access as well. Guests’ use of the wired connections in the rooms is on the decline. The next aspect of this mobility is the guest expectation to roam in the public areas of the hotel without having to reconnect. When it comes to this guest expectation, hotels need to take a close look at their high-speed Internet access (HSIA) solution and the vendor providing the service. Not all systems are created equal.    
 
Lastly the area that might experience big change could be in the area of video content delivery through mobile devices. Verizon’s V Cast and Sprint PCS Video have been prime examples of cell networks carrying video content. Major TV networks have been launching online video portals in 2006 and will get more serious about mobile video in 2007. The advent of mobile TV services may complement or compete with the commercial and pay TV services in the guestrooms. The pay-per-view take rate is likely to drop due to the proliferation of mobile TV services and portable media. 

What Should Hotel Operators Do?
Hotel operators need to recognize the shift that mobility causes and facilitate for the change in guest behavior. Simple things such as iPod stations in the guestrooms and ease of connectivity to the TV speakers can go a long way in accommodating the new tastes. This can be more beneficial than a new clock radio.  On the guestroom phones, the ability to transfer a cell network call on to the PBX and the phone at the desk can be a personalized service that can lead to higher guest ratings.
 
In-room video service is likely to be the area with most significant change. If you are hotel owner or operator about to embark on large expenditures for HDTVs in the guestrooms then you should consider various factors of how the content might get sourced. The key is how content might be downloaded by the guest–it could be from a mobile device or it could be from the HSIA network to a laptop. Guests might bring their own personalized content and then wish to view that content on the HDTV in the guestroom. The video system must be capable of accommodating various forms of content sourcing. This requires more than just technology compatibility, it is important for the hotel to negotiate the proper terms with the video service provider that will allow guests to view personalized content, irrespective of what network gets sourced. There might also be potential opportunities with location-based services working with the cell carriers for services offered in and around the hotel by way of virtual concierge services.

An area with good potential for innovation is integrating electronic door lock systems with the cell networks. A guest could checkin remotely on the hotel’s Web site when he lands at the airport. A bar code would download to his mobile device. When he arrives at the hotel he points the downloaded bar code to the reader at his guestroom door and enters the room. This has been on the industry wish list for some time and is now turning into a reality thanks to interoperable standards. 
  
There will be change in guest behavior with mobility. Hotels need to adapt and recognize the guests’ needs for various communications modes, services and content that they may carry with them. There is tremendous potential for hotels to be innovators and offer guests conveniences as well as personalized services going forward.

Ashok Kumar is with ITS, a consulting and advocacy firm, and has extensive experience in the justifiable implementations of emerging technologies such as Wi-Fi, IP networks, voice and video communications. He can be reached at (404) 626-0227 or e-mail akumar@ieee.org.