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Hospitality Industry Sees Rise in Mobility, Wireless Technologies

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August 14, 2009

Hospitality Industry Sees Rise in Mobility, Wireless Technologies

By Vivek Naik, TMCnet Contributor

Motorola reportedly has announced that its latest market research effort, titled, “Motorola (News - Alert) Enterprise Mobility Solutions Hospitality Barometer,” finds that 82 percent of respondents reported an increasing importance of mobility and wireless technologies within their organization in 2009 to help drive revenue and improve the customer experience.

Marketing researchers at the company also claimed that more than 60 percent of hospitality industry’s decision makers believe these technologies are providing customers with consistent quality service, and are offering hotel, club and resort owners with a major competitive advantage.
“Hospitality IT decision makers have made it clear that mobility is no longer an option but a necessity to survive in an increasingly competitive market,” said Frank Riso, senior director of retail, Motorola Enterprise Mobility Solutions. “And with seven in ten decision makers viewing mobility as a downtime conversion tool – Motorola’s hospitality barometer indicates that the mobilization of key applications enables organizations to save or recover a daily average of 44 minutes per employee.”
The company said just less than 470 hospitality decision makers globally were surveyed from bars, restaurants, hotels, resorts, clubs, casinos, motels and conference centers. Most respondents agreed that IT investment in mobility is being justified in real time by improved efficiency levels, enhanced customer experience feed-back, cost saving figures and revenue generating opportunities. 
Motorola said that almost 50 percent of respondents affirmed that customers were happier than before, 27 percent said the technologies helped customers to spend more, 25 percent claimed precise inventory reportage, and 53 percent of respondents believe wireless ordering and reservation technologies will provide the greatest impact on the hospitality industry.
A recent related marketing study estimated that the IP TV market should exceed the $6 billion mark by 2013 due to the migration of families from single premise ownership to Multi Dwelling Units such as apartment blocks and condominiums, but did not anticipate any significant revenues from the hospitality industry.
With the rise in demand for MDU’s it becomes significantly easier and financially more viable for IP service providers to set up infrastructural requirements in high density and grouped dwellings. Even though hotels are similarly clustered temporary nesting places and therefore should be ideal an target segment, they are not figure too significantly in the report since the hospitality industry has been severely hit due to the current recession.
Hoteliers are therefore unwilling to spend on such an investment, which looks like having an extended gestation period, and that is totally detrimental to planned and relatively quick revenue yield.
However, given Motorola’s recent encouraging findings and given the fact that quad play services and beyond are increasing in demand, it may well be worth the while of hitherto non-technology investing hoteliers to revise their plans in an attempt to sustain long term business.
“With a focus on revolutionizing the customer experience, empowering our wait staff with the right tools has been a priority since the inception of City Winery,” said Michael Dorf, founder and chief executive officer for City Winery. “As we recognize the value of mobility, we look for new ways to leverage our Motorola mobile computers. Moving forward, we will mobilize our “Vinophile” customer loyalty program, setting a new bar for customer service within a hospitality establishment.”

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Vivek Naik is a contributing editor for TMCnet. To read more of Vivek's articles, please visit his columnist page.

Edited by Michael Dinan

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