Wireless Technology in Hotels - Assignment Example

HOSPITALITY INFORMATION TECHNOLOGY STRATEGY WI-FI Prof Information and communication(s) technology (ICT) is an extensive subject having to do with technology and other characteristic of managing and processing information, mostly in large organizations. ICT or IT deals with electronic computers and software to transmit and process data. The main idea is to draw information from the process and store them. When we talk about IT as a whole, we always think of the larger and the most sophisticated IT setup, the Internet. All things come from small beginnings, we started with one computer and later we connected several computers together and call it a "wired" network. Later, we discover the importance of mobility and came up with a "wireless" network. Now, everybody is taking about "wireless" and we cannot help thinking of Wi-Fi, the marvel of wireless. SUMMARY This report details the technical aspects of Wi-Fi and its advantages over the conventional wired networks. It presents the evolution of Wi-Fi from a humble mobile device tool into a sought after device for high-speed wireless internet access. It shows the unique qualities of Wi-Fi that captures the heart of businesses around the globe and how it became so popular in the hospitality industry. It also covers the impact of wireless technology in hotels and the numerous benefits it will bring. INTRODUCTION In the past decades, the hospitality industry has witness remarkable rise in computer use. It is difficult to find an establishment in the industry without some type of information technology. IT influenced the hotels in various ways, increasing competence and reducing domestic operations cost through efficient property management systems, billing, accounting, human resources, inventories and more. It is no doubt an important tool for marketing and dissemination through the internet and digital media. It is the significant force driving change in hospitality industry and its occurring more quickly than anyone can foresee. Moreover, it has widely influence the in-room technology and guest's contentment. Hotel guests increasingly expect to be "on-line" 24/7 whether at work or play and consequently, hotel management should cover these necessities, ensure technology meets guest needs, and optimize the hotel room as a profit source. It seems that any hotel that does not acknowledge the vibrant nature of the hospitality industry, and appreciate the extraordinary changes taking place within it, will have a modest chance of being competitive in the 21st century. A hotel room with stunning view and high-speed broadband services are now becoming a standard request from travellers. It is an indication that the technology is already a part of the hotel industry and an essential service to implement in order to be competitive in the present industry setting. A "must have" amenity for mid-size to large hotels is the innovative technology known as Wi-Fi. It enables a person with a wireless enabled computer to connect to the internet remotely with greater transfer speed. Many hotels are now offering Wi-Fi access free as part of their standard services and are making money from this cutting-edge technology through soaring occupancy rates. THE WI-FI TECHNOLOGY Lucent and Agere Systems (formerly NCR Corporation and AT&T) with Victor Hayes invented Wi-Fi in 1991. Victor Hayes and his team design the standards such as IEEE 802.11b, 802.11a and 802.11g and later he became the father of Wi-Fi. The Agere System, without Hayes (retired in 2003), suffered strong competition from cheaper Wi-Fi solutions and later quit the Wi-Fi market in 2004. The term Wi-Fi for clarification, is not "Wireless Fidelity" but a term to described WLAN (Wireless Local Area Network) products that are based on the IEEE 802.11 standards. The Interbrand Corporation developed the brand name "Wi-Fi" for the Wireless Ethernet Compatibility Alliance (better known as Wi-Fi Alliance) for their marketing strategy. Audeh 2004, page 1 Basically, a Wi-Fi unit contains multiple access points called "AP" that can accommodate one or more clients. It uses radio waves as its carrier just like any other wireless LAN. The AP transmits it Service Set Identifier (SSID) and Network name on air via "beacons", a data packet that are transmitted every 100 milliseconds at 1 megabit per second. The Wi-Fi ensures that the clients who intercept the beacon can communicate at a minimal signal of 1 Mbit/s without reduction on performance. On the other side, the firmware running on the client's wireless adapter may decide what is best based on the signal strength (AP) and connects. This means that the Wi-Fi standard absolutely provides the client the freedom to pick the best connection. The same principle is now supported by the latest release of Windows XP that allows users to browse available network and connect to it in no time. Although Wi-Fi uses the air to transmit data, it still has the same properties of a conventional non-switched Ethernet network wherein protocols and data integrity are a concern. Wi-Fi phones are not like a cellular telephone network and at present are unlikely to be a competitor against cellular. It has a limited range and it is only for local and corporate networks. Audeh 2004, page 1 To see it more clearly, Wi-Fi technically refers to a standard called 802.11 of Institute of Electrical and Electronics Engineers (IEEE), which in non-professional's term simply means "wireless" access. Audeh 2004, page 1 The goal is to take one broadband or DSL internet connection the attached a "Wireless Access Point" (WAP) which transmits the signal thru the airwaves using radio signals. When a different computer near the area is equipped with a wireless adapter, it can pick up the signal and connect to the internet. A simple Wi-Fi network can transmit signal in about a 150-foot radius but it can be increase by a high-powered amplifier if required. WI-FI TECHNOLOGY IN HOTELS Wi-Fi services are now available in commercial places like airports, universities, coffee shops, hotels, malls, and government offices. Some are bigger in scope and wider scale like the deployment of OzoneParis network to cover the city of Paris in 2003. It offers free internet access for life to all home or building owners who offer their roof for Wi-Fi network (Wikipedia n.d.). The 2.4 GHz Wi-Fi services across a 3,700 square miles region in Walla Walla and Columbia County in Washington and Umatilla County in the state of Oregon in the United States. Wi-Fi hotspots in the United Kingdom mostly in McDonald's outlets. BT Openzone provides the services in cooperation with T-Mobile UK and ReadytoSurf (Wikipedia n.d.). In recent times, commercial service providers hoping that a free Wi-Fi access would bring significant return of investment by linking more users into the network offered free Wi-Fi hotspots and hotzones. The government, cities, local groups, communities, and individuals are also joining the Wi-Fi enthusiasm by setting up free Wi-Fi networks through volunteer efforts and donations. However, several communities like universities are providing free Wi-Fi services to members and guest only. They are getting their income from the services provided outside the community like companies and non-members. A hotel with free Wi-Fi services that enables guest to access the internet anytime anywhere nears the hotel is not something of the future, but a present day reality. According to CNN's Nick Easen after interviewing Matthew Nuss of the Houston based Valencia Group, hotels from Australia to England and California are going wireless to catch the attention of business travellers and snatch the market from those competitors who do not have the technological capability. Nuss said, "The response has been very, very good to date" after they set up Wi-Fi in one of their hotels, Easen added. Easen reported that some hotels, mainly five-star and luxury chains, are marketing high-tech as a convenience, others anticipated traveller's requirement for high-tech as a way to do business, and some hotels are responding to customer's demands for Wi-Fi for their shareholder meetings, trade shows, or employee retreats. Generally, these hotels are selling the image of a room with a view and convenient internet access for guest anywhere in the hotel. In Greenspan's article entitled "High-Speed Hotel", he noted, "hotels now perceive the broadband as a necessary service offering to remain competitive in the current environment". The current environment he is referring to is the growing number of hotels offering free Wi-Fi services to their guests. Senior Analyst Amy Craven of In-Stat/MDR (a research firm in Scottsdale, Arizona, U.S.A.), confirm this statement by saying that "Hotels are acting on a new vision of broadband's importance to their competitive ability, and more and more properties are offering high-speed access as an amenity" (Greenspan 2003). The global figure of hotel rooms offering broadband internet connection will climb up from a lesser quantity of 400,000 in 2003 to nearly 2.3 million by 2007 (Greenspan 2003). In the survey conducted by In-Stat/MDR, the worldwide market is led by North America followed by the Asia Pacific region, and Europe. Worldwide Guestrooms Connected 2002 208,300 2003 393,400 2004 696,100 2005 1,118,300 2006 1,668,800 2007 2,287,400 Source: In-Stat/MDR -Greenspan Article Greenspan 2003, page 1 Wi-Fi is a "must have" according to Pyramid Research's John Yunker (Greenspan 2003) for medium size and large hotels. Analysis reveals hotels offering free Wi-Fi service are enjoying higher occupancy rates and generating more income. Furthermore, it is less expensive to install Wi-Fi than conventionally wired rooms. Examining the cost of cable or DSL installation shows an average of $285 to 450 per room while Wi-Fi comes cheaper with $225 per room. Installing broadband-wired access in older hotels with deteriorating phone lines cost more than installing a wireless access. This is the reason why two thirds of the hotels are choosing Wi-Fi (Lai 2005). Another important economic reason why higher-end hotels decided to go Wi-Fi is the fact that they lost high revenues from charging guests for local and long distance calls because of cell phones. According to PKF Consulting, as told by Lai 2005, hotel revenues from guest phone call charges have dropped by an estimated average of between 2000 and 2003. To help soften the financial blow, higher-end hotels are charging business travellers a $10 fee for internet access instead of providing it free (Lai 2005). While we are seeing apparent monetary gains from hotel's offering Wi-Fi services due to the increase of occupancy, let us take a glimpse on the benefits Wi-Fi to management in terms of productivity and efficiency of their employees. According to Paterson, 2003, Wi-Fi can provide numerous benefits including improved employees productivity and collaboration, always-on access, faster operation, enhanced resource sharing, temporary access for meetings and visitors, and hot spot readiness. Wi-Fi as a productivity tool allows workers to remain connected to their mission-critical business applications, wherever they are. With Wi-Fi hot spots available everywhere, employees are constantly at work even when not on their desk. Management gets further mileage out of the equipment and training they put into Wi-Fi by allowing employees to tap on local hotspots while travelling or on vacation. Employee's can be productive for as long as they are within range, always connected, able to access the internet and e-mail anytime anywhere. Most importantly, real-time communication and data sharing brings better collaboration between employees. They can share, evaluate, and manipulate documents, images, plans, and other media. A good example of convenience is in meetings, where users would no longer have to find and connect to individual cords(Paterson 2003). Wireless resource sharing provides cable free device integration that enables employees to share printers, scanners, cd-writers, and other peripherals with ease anywhere they are. Furthermore, businesses that have installed Wi-Fi for use by knowledge workers are reporting, "As much as 90 minutes of timesaving per employee per day" (Paterson 2003). Many hotels while using Wi-Fi to attract guest are also using it for "internal applications such as automated guest check-in at the curb" (Paterson, 2003). There is no doubt that Wi-Fi added more efficiency and productivity to employees by helping them to accomplish their work in the soonest possible time, improved collaboration, and working even at home. While you may find some individual high-end hotels offering free Wi-Fi access, only Radisson SAS chain of hotels announced plans to offer free Wi-Fi in Europe, Africa and the Middle East. A report says 25,000 hotels worldwide will be offering Wi-Fi by 2007 (Greenspan, 2003) and the number could be triple by 2009 (Lai 2005). Recent statistics of free Wi-Fi service installed in medium to large hotels shows; Best Western International Inc. 15% of the rooms in 2,300 hotels in North America and the Caribbean. There is 100% Free Wi-Fi in all Clarion Hotels and Comfort Inns and Suites. Intercontinental Hotels Group offers free Wi-Fi on Holiday Inns and other low-to midrange hotels only out of its 2,700 North American hotels. It does not offer free Wi-Fi on its deluxe hotels. More than 20,000 hotels worldwide are now offering Wi-Fi, 5,500 of it are in the U.S, and experts expect that the figure will rise by 50% in 2005 (Lai 2005). Marriot Hotels, according to Andy McCue, a Mobile & Wireless correspondent for Silicon.com, has installed one of the most advanced Wi-Fi networks in the UK in their Swindon hotel. Wireless high-speed internet is now accessible in every room, guest areas, conference rooms, the bar, restaurant, and in the vicinity of the swimming pool, he added. However, the service is unfortunately not free for guest. They either buy an access card from the hotel or pay for time online to their own respective service provider (McCue 2003). Business manager Mark Kemp of Marriott Hotels told McCue that, "Wi-Fi deployment is a key service differentiator for the hotel in attracting travelling business people". "We would see it not as a major revenue generator. It supports other strategies such as customer loyalty and repeat business. Our business customers come to us for a reason," he added. Marriot hotel is looking for the possibility of further deployment of Wi-Fi networks at hotels where there is concentration of hi-tech companies in close proximity (McCue 2003). In addition, statistics taken by In-Stat/MzDR shows a rough 500,000 or 11.4% of hotels worldwide will have broadband access in 2009. In-Stat/MDR also predicted that many conventional hotel business centres would be obsolete (Lai 2005). "The Wi-Fi market is beginning to mature, but already the utility of it as a communications medium is apparent", an statement from David Garrison, CEO of STSN, the IT company behind Marriott Hotels Wi-Fi (McCue 2003). In the 2004 report by analyst Ovum, as stated by McCue says that while 2003 has been the year that has seen Wi-Fi made its way into to the mainstream, the business impact of its deployment will become much apparent in 2005. This statement is supported by the current trend where more and more devices are being enabled for Wi-Fi access and people are gaining better and clear understanding of Wi-Fi (McCue 2003). Experts predicted the coming of more enhancements that will address security issues, supports for multimedia streams, interactive games, and VoIP services. In the meantime, the demand for Wi-Fi is still rising. A study conducted by Gartner Inc. as stated by Lai 2005 shows 25% of U.S. travellers and 17% of U.K. business travellers consider hotels with Wi-Fi hotspots. CONCLUSION We can no longer ignore the impact of Wi-Fi in the Hospitality Industry and it is now a vital requirement if we want to succeed in the business. A hotel is nothing short of a shack unless it happens to be a Wi-Fi hotspot. It has become a standard hotel feature expected by guests like a room with a stunning view. The hotel industry is grabbing the opportunities presented by Wi-Fi and using it as a tool in the struggle for business customers. The inclusion of free Wi-Fi access in hotels can deliver more remuneration than simply catching the attention of guests. Surveys confirm that the vast majority of travellers like it better to stay in a hotel with free Wi-Fi because they do not want to pay extra money for internet access. For many hotels, the biggest problem will be staying ahead of the continually evolving advances in the technology. There is a definite need for a hotel to be equipped with the latest technology that has become a powerful tool for sales. 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