From a loss leader to a profitable amenity
by Sergio Laurant*
Never before in the last three years has there been greater demand for technological services among hotel guests. But at the same time, a very popular technological trend is the growing demand by travelers for access to the services of business centers and guest computers with internet connection. One explanation for this increased demand is that many travelers have become heavily dependent on online services, such as banking, flight confirmation and the like.
But it's notable that a study last year by the Association for the Travel Industry and Synovate revealed that even less than 25% of American leisure travelers carry a laptop with them on vacation. This percentage of travelers carrying laptops, which is probably even lower among international travelers, is unlikely to increase in the coming years as a direct result of the more rigorous and often harsh controls that airports exert to counter the terrorist threat.
Another factor that deters vacationers from traveling with their laptops is the significant increase in thefts of these devices in recent years. According to Safeware Insurance, the largest provider of laptop insurance in the United States, more than 600,000 laptop thefts occurred in 2004, totaling nearly $720 million in equipment losses and $5.4 billion in information theft. In this way, the next best alternative that travelers concerned about technology have to stay connected when they are away from home is to have access to commercial computers with internet, in their vacation spots.
Selling the smell and not the steak
Although it is not talked about in the media, for years many hotels have realized the need to have some form of business center services to attract corporate guests. And what's happening in recent times is that many properties are adopting a business center as a standard amenity. Many of them have noticed that a considerable number of reservations from business and leisure travelers, estimated at around 20%, are made or canceled depending on the availability of computer services in the business center of their hotel.
A good example of this are the Hilton hotels, which are promoted as the "Business Address of America". Since 2005, Hilton issued a memo for all of its properties that urged all international hotels to adopt an in-house business center as part of the standard amenities offered by their properties. And many other independent chains and hotels have followed or are following suit.
However, one factor that deserves the attention of hotel executives is that many guests perceive that often the services of the hotel's business center are provided and promoted simply as one more hook to attract business to the hotel. Some travelers point out that while it's easy to figure out if a certain hotel has a business center by simply looking at the site, often the details related to its services are limited to a short phrase stating that "business center services are offered." This widespread practice of limiting the publication of details relating to the business center makes many road warriors or regular travelers wary of the omission of specific details about these services by pretending to sell the smell rather than the steak.
It is a fact that there is no international standard of minimum characteristics to which hotels in their business centers must adhere. And while most of the larger hotel chains have written procedures on all the important aspects of installing and managing high-speed internet access in their hotels, very few have a similar document specifying the rules for their hotels' business centers.
Standard of a service
Promoting any service, without first making sure it conforms to standards is like saddling the horse without bringing the jamelgo. That is why, before publishing any specific details about the services of the business center, the hotel must first establish its own standards for business centers. The goal of setting such standards is to ensure that the services offered add value to the guest experience during their stay at the hotel. Within such standards, the establishment must list all the minimum characteristics that are required to respond to the needs of the type of guests they serve. As in any other hotel establishment, the four factors that influence the perceived value are: appearance, performance, functionality and economy.
Below are some questions regarding the appearance of the business center, which can serve as an evaluation tool: what perception of value does the hotel want to create with the furniture of the business center?; Does the current quality of the furniture and equipment fit the luxury that guests expect from the profile that the hotel serves?; How is the current degree of neatness in the business center area, including the cleanliness of computers? Does the current lighting create an atmosphere suitable for an office environment?
Here are some performance questions: Does the computer's performance meet the expectations of regular business center guests? And some questions regarding functionality can be the following: are the chairs, desks, keyboards and monitor ergonomically placed so that guests work as comfortably as possible?; In case the business center has more than one guest computer, how do you experience privacy when using the computers while other guests?
Some questions concerning the economy are: is it better to invest the minimum in the business center and offer the service for free or do guests expect the best and do not mind paying for it?; Does it make economic sense to have employees in charge of the business center or should the business center function as an automated self-service location?
Using these and similar questions to evaluate their business center, hotel managers can adopt a new paradigm that will bring together a process that will elevate the service of their hotel's business center. These questions should be studied and discussed in a strategy group, consisting of at least one member of the Executive Committee, such as general managers or the room division, and members of the reception, such as the guest relations manager, the reception manager, of the business center and very safely the it technology department. It is ideal that in the relevant aspects also intervene the guests who use the business center of the hotel, through a formal or informal survey.
By paying more attention to these four factors, hotel managers can elevate the business center of their hotels to new levels of performance. And publishing the details of all the new features at the service of the public in their improved business centers will allow them to differentiate themselves from other hotels and attract and retain a considerable percentage of the large group of modern travelers who rely on the hotel's business center to stay in line with the world.
* Sergio Laurant is a consultant in profitability of business centers. Founder of SuiteKiosks. E-mail: [email protected] and website www.suitekiosks.com
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