There’s
more to new technology than new budget line items and new headaches for
operators. For the creative IT professional, high-tech advances also
can serve as new channels of revenue for properties constrained by
ever-tightening purse strings.

New technologies, when used creatively and to their
fullest potential, provide a gateway to not only a hotel’s in-house
services but also external revenue-generating opportunities, according
to Derek Wood, managing director for consulting firm Derek Wood
Associates Limited.

“People
aren’t going to spend money with you unless they know about what you
have to offer,” he told attendees at the fourth annual European
Hospitality Technology Educational Program in Amsterdam. “The more you
place something in front of people, the more likely they are to buy.”

Get the word out

In a word: advertise. Wood said despite the
reluctance of some owners and operators, advertising is an acceptable
and, when used properly, unobtrusive way to put your services in front
of guests.

Ads can cover the gamut of your in-house services,
including restaurants, golf packages and health treatments. For
example, Wood explained how a hotel could stream messages across the
bottom of a television screen alerting guests of discounts in an
attempt to sell off empty spa treatment slots or of happy hour specials
at the lobby bar.

The TV represents a prime stage for such
communication, Wood said. Not only is it used by the vast majority of
guests, but the advent of Internet Protocol technology and Internet
connectivity make controlling streaming content more seamless and
fool-proof than ever. These capabilities also allow operators to sell
advertising real estate to external parties, such as area restaurants,
theaters and shopping outlets.

“The TV is the focal point of the room, he said. “You
have an opportunity to do something and put some good information onto
that TV.”

In the U.S., LodgeNet Interactive Corporation, a
provider of media and connectivity solutions to the hotel industry, has
begun to sell ad space on its menus and other in-suite applications.
Wood shared a few examples, including a TV’s wake-up menu, which allows
users to set the time of their wake-up call. Displayed unobtrusively on
the bottom of the screen was an advertisement for various breakfast
cereals.

But the TVs aren’t the only platforms for internal or
external advertising. Digital signage, which has grown exponentially in
usage in recent years, provides highly visible real estate that can be
adjusted minute by minute and day-by-day using incredibly intuitive
interfaces, Wood said.

IP telephone systems are on the rise as well. Though
some might argue telephones in general are anachronistic
representations of the industry’s past, Wood disagreed. Today’s IP
phone systems use slick, customizable, touchscreen interfaces that
allow guests to navigate and purchase everything a given property has
to offer.

Again, Wood stressed the acceptability of advertising
in and around the hotel. Not only does it generate revenue, but
travelers are so exposed to it that it no longer seems garish or cheap.

The consultant was so in favor of putting the
revenue-generating services of a property in front of the guests that
he even suggested several low-tech channels: check-in collateral, key
cards, tent cards, in-room guest directory—even signage in the bathroom
stalls.

“The more they are aware of your services, the more likely they are to use them,” Wood said.

The Internet conundrum

Though guests might grumble as they accept charges
for Internet usage, Wood still admitted he was a strong advocate of a
pay-to-play system. In fact, he even argued operators could probably
charge more for their high-speed Internet access than they currently
do.

For one thing, many travelers would rather reach for
their pocketbooks than slap on the torturous shackles of a shoddy Web
connection. After all, just because a hotel offers free high-speed
Internet access doesn’t mean the connection is any good, Wood said.

For another, intelligent systems now can manage
bandwidth more efficiently, creating opportunities to sell different
levels of Internet connectivity, depending on the required need of the
guest.

But perhaps more so than anything else, the Internet
is a necessity. Everyone uses it, so it’s a natural portal to other
revenue-generating opportunities, Wood explained. Operators can sell
advertising on their Web access splash page, they can include
information about their property’s services, they can provide traceable
links to outside retailers and entertainment venues—the possibilities
are truly endless.

“You have an opportunity especially with Internet,
because everybody uses Internet,” Wood said. “You can be creative to
increase your take up.”