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Definitely Doug 6/9/23: Hotels Fighting Trafficking: The Role of Technology
Posted: 06/09/2023

This week I want to address an important issue for the hospitality industry, albeit one that technologists have not historically had on their radar. They can potentially play a significant role in addressing the issue, which is human trafficking, and more specifically sex trafficking.

In my last column, I reviewed some key trends in autonomous mobile robotics for hotels, and dove into three categories of delivery robots in more detail – room delivery, food delivery, and heavy-lift robots. This week I will round out the topic with several other robot types and applications, as well as general guidance for evaluating, acquiring, and adopting mobile autonomous robotics. If you have not yet read part one, I recommend going back and doing so before continuing below, as some of the introductory material is important background to what follows.

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Best Practices for Hotel & Resort Operators in Pool Season 2023
Posted: 05/25/2023

With the arrival of warmer weather and summer fast approaching, hospitality operators are gearing up for another pool season. This year, technology is at the forefront of driving booking revenue and taking operational efficiency to the next level. Modern technology platforms (such as hospitality’s newest technology category – the Property Experience Management System or PXMS) are providing brand new capabilities that unlock new strategies and approaches to filling the pool with satisfied guests.

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The Growing Role Technology Plays in Hotels and Restaurants
Posted: 05/25/2023

In the past few years, hotels and restaurants have grown into hubs for entertainment, leisure, and human connection. In an effort to best serve their guests, operators have begun rethinking their technological investments and working to adapt to recent shifts in consumer preference and operations. To ensure that guests have the best on-site experience possible, brands are increasingly looking to new technologies to make their experiences more convenient and comfortable. Advanced property management systems (PMS) and point-of-sale (POS) systems can increase operational and staff efficiency, while also meeting changing customer expectations for a high-value but relatively low-touch experience.

This week I will return to a topic I have covered before, because it has, within the last 12 to 18 months, become one of the hottest-growth categories in hospitality technology. That topic is autonomous mobile robots – specifically, ones that can move around the facility as well as perform specific tasks. Many of these products were launched pre-Covid but were often seen at the time as more of a marketing gimmick than a legitimate operational solution.

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The Saga Continues: When You Play the Game of M&A, You Win or You Die

11/23/2015

by Michael Schubach

Despite some extensive public hand wringing for the past few days, there’s one certain ray of sunshine amidst the dire speculation racking the hospitality industry: there are now many more hotels that will accept your points if you’re a member of Marriott Rewards or a Starwood Preferred Guest. The bigger question, of course, is if you aren’t a loyalty club member, an employee, a supplier or a shareholder, did anything of any significance actually happen during Marriott’s annexation of Starwood.

Let’s face facts: we occupy a spot on the time/space continuum that favors the mega-corporation. In and of itself, being plus-sized isn’t a bad thing – it’s just one other way of being. The stakeholders of such companies – as well as every other kind of company in the galaxy – have an expectation that the business they’ve invested in will grow, prosper and produce a significant return on that investment. Mega-corporations can’t meet this requirement through constant and sustainable growth; after all, how do you go up from already there? For the giants that dwell amongst us, growth happens primarily through mergers and acquisitions. M&A activity doesn’t always yield the hoped-for organizational and financial objectives – in fact, statistics show that it fails in those areas more often than it succeeds – but you can’t deny that Marriott just grew. Their property count leapt by an astounding 30 percent. To quote Arne Sorenson, president and CEO of Marriott International, “The driving force behind this transaction is growth.”

How will Marriott manage this sudden growth spurt? According to the joint press release issued on November 16, “Marriott expects to deliver at least $200 million in annual cost savings in the second full year after closing. This will be accomplished by leveraging operating and G&A efficiencies.” For those who of you who do not speak Mergerese, “leveraging operational and G&A efficiencies” translates into English as “we will convert them to our purchasing program and IT systems, and then we will eliminate their accounting team in favor of our own.” Everything that is redundant will be made redundant.

And what about the changes in both company cultures? Not a problem, according to the press release: “This combination brings together two of the most talented teams in the industry. Together, they will combine their innovative ideas and service commitment to deliver unforgettable guest experiences.” Again, allow me to translate: “We will send them a copy of our procedural manuals.”

Let me be very clear here: I’m not Marriott bashing, I’m M&A process bashing. It’s a long, tough path but when all is said and done, Marriott will have significantly expanded its global footprint and will leverage and grow the lifestyle brands that Starwood brings to the table. Marriott will continue to march toward management deals and away from direct property ownership. “Marriott expects Starwood to continue its capital recycling program, generating an estimated $1.5 to $2.0 billion of after-tax proceeds from the sale of owned hotels over the next two years. The hotels are expected to be sold subject to long-term operating agreements.” Will the stakeholder/investors applaud the deal? You tell me: “In 2015, Marriott expects to return at least $2.25 billion in dividends and share repurchases to shareholders. Marriott believes it can return at least as much in the first year following the merger.”

But what will really really happen? Nuances will be lost in translation. People will quit or be fired, retired or released over changes they didn’t foresee or can’t adapt to. The guests who loved things just the way they were will probably feel the great disturbance in the Force the most acutely. They will look back nostalgically to the time when Starwood was Starwood, much as I like to remember a time when air travel was fun. And to quote the ancient Romans, this too shall pass.

Nonetheless, I suspect it would somehow be more satisfying if the situation were more dramatic. As a nation of Game-of-Thrones addicts who are more drama-dependent than anyone cares to admit, we constantly search for some deeper mystery, some hidden agenda or some covert conspiracy that is attempting to rob us of our last chance to Starwood before we go on to our greater Rewards. To satisfy that urge, I offer my synopsis of the current season of Game of Beds, as well as a preview of the upcoming seasons, if you can’t find time for binge watching:

The third largest hotel corporation in the world bought the eighth largest hotel corporation in the world.
As one unified singularity, the Kingdom of Wood-Riot becomes the largest hotel company in the world.
Good times are coming, followed by bad times… Or vice versa.
Everything will work out nicely unless something serious happens.
If something serious does happen, they will fix the problem unless, of course, they can’t.
Hotel companies will continue to buy each other, or sell themselves, or both.
There will always be the 10 biggest hotel companies in the world; they will just be different companies with different names and brands.
Everyone continues to award and collect points, but during a sudden and severe economic downturn, impoverished guests are forced to exchange their points for bottled water and barely warm chocolate chip cookies.
In the series finale, old King Willard the Elder of Wood-Riot lies on his deathbed – a pillow-top Heavenly Bed with adjustable levels of mattress firmness. He is surrounded by his sons, Crown Prince Conrad, Prince Sheraton (who had at one time been given up for dead) and the little upstart, Prince Yotel. King Willard turns to them and says, “You know, my sons, a hotel company is only as good as each guest’s last stay.” He then closes his eyes and with his dying breath mutters his last word: “Rosewood.” The befuddled princes have no idea what this cryptic message means, but one can practically feel the beginning of the dynastic wars that will rock next season’s series sequel, Beds, Brands and Beyond.

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About The Author

Michael Schubach

Michael Schubach, CHTP+, CHAE+ is Chief Information Officer of Millennium Technology Group, the Information Technology subsidiary of Rosen Hotels & Resorts of Orlando, Florida. He is a member of the HFTP International Hospitality Hall of Fame, and frequent contributor to Hospitality Upgrade. He can be contacted at mschubach@mtg-fl.com.