WAYS TO IMPROVE YOUR HOTEL A CASE STUDY OF INTERCONTINENTAL SAIGON HOTEL

Assignment Group Assignment WAYS TO IMPROVE YOUR HOTEL A CASE STUDY OF INTERCONTINENTAL SAIGON HOTEL Course Name Facilities Management and Development Course Number BUSM4570 Student Name/ID Nguyen Quang Hong Phuc - s3752084 Le Quang Kim Ngan - s3751591 Do Linh Chi - s3751492 Nguyen Nhu Phuong Anh - s3741039 Ngo Bao Quan - s3515258 Lecturer’s Name Nuno Ribeiro Assignment Group Assignment - Ways to Improve Your Hotel Word Count 5025 Table of Content Facilities Management and Development BUSM4570 ABSTRACT…………………………………………….……………… 02 INTRODUCTION………………………………………… ………… 03 ANALYSIS……………………………………………………….…… 04 1.1 Safety and Security Matter - Room Check-in System………04 a) Literature Review……………………………….……… 04 b) Reality………………………………………… ……… 05 1.2 Inconvenience of Temperature Controller 05 a) Literature Review……………………………………… 05 b) Reality………………………………………… ……… 06 1.3 Inflexibility of Outdated Telephone System 06 a) Literature Review……………………………………… 06 b) Reality………………………………………… ……… 06 RECOMMENDATIONS……………………………………………… 07 1.1 Check-in and Security……………………………………… 08 a) Mobile Keyless Room Entry…………………… ………08 b) Practices……………………………………… … … 08 c) Budget………………………………………… ……… 09 1.2 Temperature Control and Telephone System……………….09 a) Personalized iPad and Smartphone Availability……… 09 b) Practices…………………………………………… … 10 c) Budget……………………………………………….… 10 1.3 Risk Management………………………………………… 10 a) Device Property Loss Management……………… ……10 b) More Mobility Inside and Outside Rooms……… …… 11 c) Self-security Account Advice for Guest………….….… 11 REFERENCES………………………………………………………….12 APPENDICES……………………………………………………… ….25 Facilities Management and Development BUSM4570 ABSTRACT In hospitality industry, creating experience has become a critical must for the competitiveness of a business Personalization experience, as an advancement of high-tech revolution, tends to be more admired, also redefines guest expectations and satisfaction due to the changes Globally, the use of technological smart solutions in the hospitality industry generally spreads wider regarding its benefits on strategic implications In Vietnam, the Intercontinental Saigon Hotel is facing high competition in a complicated market with the increase in technological innovation demand In this paper, an analysis of technology applications in the hospitality industry based on theories and the hotel’s circumstances are clearly shown Indeed, critical findings, including insecure and unpersonalized check-in system, inconvenience of temperature controller, and outdated telephone system, will be illustrated for discussion and evaluation As a result, respectively suitable recommendations, consisted of budgeted costs and risks, are provided as they are beneficial in the long term development of the Intercontinental Saigon Hotel, meditating for its sustainability Those suggestions are respectively based on the possibility of the hotel and the usefulness of up-to-date technological innovations including the implications of mobile check-in and personalized iPads and smartphone availability Facilities Management and Development BUSM4570 INTRODUCTION In hospitality industry, creating experience has become a critical must for the competitiveness of a business (Zizka et al 2019) Undoubtedly, studies have proved that technologies become potential applications in the highly competitive market of hospitality by enhancing tourist experience and interactions between tourists and hotel operators (Gretzel et al 2015; Neuhofer, Buhalis & Ladkin 2015; Pitoska 2013) In the past, technology was just implemented to reduce operating costs and save energy (Bilgihan et al 2011) rather than experience creation (Law et al 2012; Zizka et al 2019) Nowadays, Kazandzhieva et al (2017) stated that technology investments will make hotel operators outstanding from other competitors, satisfy every guest’s expectations, and attain new custom segments Plus, personalization experience, as an advancement of high-tech revolution, tends to be more admired, also redefines guest expectations and satisfaction due to the changes (Law et al 2012; Intelity 2016) Globally, the use of technological smart solutions in the hospitality industry generally spreads wider regarding its benefits on strategic implications (Neuhofer, Buhalis & Ladkin 2015) For instance, the Pfister Hotel in Milwaukee has involved augmented reality applications into its artwork collection promotion for a more interactive and modern way (Fox & Tesse 2015) In 2016, Japan introduced the first robot hotel in the world (Intelity 2016) According to Grant Thornton (2019), tourism sector in Vietnam has an impressive outcome when there are 15.6 million international tourists and 80 million domestic visitors are recorded in 2018 As a tendency, the demand for accommodation is increasing in both quantity and quality (Brands Vietnam 2019) The competition among accommodation providers are rising as there are more and more hotel establishments, especially luxurious and 5-star ones (EVBN 2018) Technology is considered to be one of the differentiations of these hoteliers from their competitors (EVBN 2018) The result is more and more Vietnamese hotels have integrated technology to their business, mostly high-end ones (Grant Thornton 2019) Grant Thornton stated that “The trend of applying mobile application for guests personalisation will soon take over the hotel industry and change Vietnam’s hotel market” (The Leader 2018) It is no doubt that the changes in demographics and the development of technology have adjusted the use of technology in people’s lives, especially toward mobile phone (Le et al 2019) Furthermore, Vietnam has just adopted 5G technology, creating new opportunities in the digital era due to its greater bandwidth, higher speeds and lower latency (Public Security News 2019) Lately, Hôtel Des Arts, using the same applications as Pfister Hotel mentioned, has become the first in Vietnam to bring AR into its business as it is a boutique hotel (Saigoneer 2019) It is estimated that “in the next 10 years, high-end hotels in Vietnam may use technology during their operations”, CEO of Caravelle Saigon (Global Expat 2017) The Intercontinental Saigon Hotel is acknowledged as one of the most iconic historical destinations in Facilities Management and Development BUSM4570 the central district of Ho Chi Minh City in relation with distinguished international brands in the world (Intercontinental Hotel 2018) The hotel is designed to be luxurious and stylist for business and critical travellers (Intercontinental Hotel 2018) In spite of the global and national high-tech period, the Intercontinental Saigon Hotel is evaluated to be unadapted to cutting-edge technology while still using traditional service delivery, namely magnetic key card and front desk check-in, inconvenience in room operations in terms of temperature controls, and old-fashioned telephone system In this paper, an analysis of technology applications in the hospitality industry based on theories and hotel’s circumstances are shown Indeed, critical findings will be shown for discussion and evaluation As a result, respectively suitable recommendations, including budgeted costs and risks, are provided as they are beneficial in the long-term development of the Intercontinental Saigon Hotel, meditating for its sustainability ANALYSIS As mentioned, when technology is gradually taking over, it is crucial for tourism and hospitality businesses to constantly adapt to the latest technology development so that they can enhance their guest experience through high-quality services (Rob & Giri 2005) Recently, technology is not only utilized in booking or marketing activities via websites or email, but by facilitating IT into businesses, organizations can also leverage services and operations, including the applications of social media, artificial intelligence (AI), augmented reality (AR), numerous robots and softbots, oriented in collecting information, customizing or delivering services, communicating and generating loyalty (Zizka et al 2019) A recent boom in the appearance of the Internet of Things (IoTs) technology comprises improvements in the many familiar physical devices in important aspects, particularly room security and electricity (Prasanna, Arslan & Neda 2018) Despite the fast-changing technologies, several domestic and international hotels in Vietnam, specifically InterContinental Saigon, have not been able to catch up with the latest high-tech equipment in three vital fields including room check-in security, temperature controller (thermostat) and telephone system 1.1 Safety and Security Matter - Room Check-in System a) Literature Review One significant factor that a traveler would take into consideration while choosing accommodation is definitely safety and security of a hotel (Eric & Doris 2012) A secure hotel can be evaluated through various characteristics including location, safety equipment, and most importantly the room check-in system The quality of a hotel is always firstly being measured through the check-in procedure in Facilities Management and Development BUSM4570 terms of waiting time, front desk receptionist’s attitude and guest room door security (Mune 2018) Furthermore, it is critical to creating a speedy but accurate check-in system as this is where the very first direct communication between hotels and their guests is made (Sayin & Karaman 2019) Thus, it can leave a first good and long-lasting impression for customers before entering any other services of the hotel It is evident from most tourists’ preference that after a long, tiring journey they made while traveling to the destination, they would need quick service to have an immediate rest to reboot their energy for their upcoming travel on the trip (Rasika, Ritu & Puneet 2015, Chauhan, Shukla & Negi 2018) Thus, instead of waiting for the check-in paperwork at the reception to be processed and completed, they would prefer to be able to go straight to their room to take a rest (Cheong 2017) Another issue relating to conventional key cards are malfunctions of hotel door lock and demagnetization of plastic key cards may detain any guest’s satisfaction (Torres 2018) Consequently, the demand for asking help from reception staff or technological maintenance department is increasing (Sriyam 2010) This somewhat causes frustration for guests while enjoying their vacation as well as being time-consuming for businessmen Additionally, the programming of plastic key cards are prone to easily stolen or hacked, thereby, negatively impacts room security for guests (Adam n.d) Hotel security covers many aspects, especially guest room door lock, with a view to reducing any risks from crime, terrorism, natural disaster or man-made hazards (Chauhan, Shukla & Negi 2018), a strict security but with self-service applications is more preferable (Duo n.d) With the steady advance in technology nowadays, many hotels around the world have provided more flexibility and less complexity in the procedure of checking-in However, in Vietnam, even a big hotel with foreign investments like InterContinental Saigon, still use the conventional check-in method with room key cards b) Reality Though the InterContinental Saigon Hotel & Residences is well-known for its luxury outlook and superior quality that helped it be chosen as Vietnam’s Leading Hotel in 2018 (InterContinental Saigon 2018), its technology application is not so state-of-the-art Currently, customers staying at InterContinental still need to line up to check-in at the front desk office and go through some confirmation paperwork to get the magnetic key card for their room (Figure 1) One highlight advantage they have is the offering of one premium benefit for the loyal guests to speed up their check-in process if they own an exclusive membership card To be specific, when the guests have member cards of IHG Club, they would just need to go to a special front desk located next to the normal reception counter, swipe their card on an automatic check-in kiosk and then they can get to their room right away (InterContinental Saigon n.d.) Although this is already a leap ahead of many other luxury hotel brands in Vietnam, it is somewhat unequal for those new guests without membership cards and seems more like a force to entice them into registering for an IHG card Facilities Management and Development BUSM4570 Moreover, the traditional magnetic key card locks are proved to lack security as they are not designed to recognize the owner of the room leading to thievery or even adversely impact the guests’ safety if they accidentally lose the keycards (Adams 2001) 1.2 Inconvenience of Temperature Controller a) Literature Review Harkison, Hemmington and Hyde (2018) concluded that experience is the key product that tourism and hospitality sector is attempting to sell to customers In order to optimize the staying experience of a guest, it is essential for hotels to let the customers have as much self-service control of the room facilities, such as lighting, air conditioner, or water temperature, as possible (Nasoz 2011) In that way, they can adjust everything to suit their preferences and have a more enjoyable stay Room temperature is suggested to have a considerable impact on the emotional fluctuations of human beings as it is a major part of the physical environment that humans have to interact with (Thammanoon, Veerapol & Sirichai 2010) It is stated that the more modern and high-tech amenities that the hotel has implemented in guest rooms rooms, the more satisfied the guests will be since they are likely to find more interest in trying advanced features, like touch-screen devices, at which they are staying Additionally, in-room temperature controllers are considered to be one of the first technological items that the guests will use when entering their room (Murat, Katerina & Cihan 2011) Although 67,3 % of luxury hotels in Vietnam has been trying to apply high-tech facilities in guestrooms (Grant Thornton 2019) and this number is expected to continuously increase Nevertheless, InterContinental Saigon has installed a typically manual fan coil temperature controller for service rooms as yet b) Reality Even though InterContinental Saigon is well-known for being one of the most luxurious hotels, they still have primarily issues with temperature controller, also known as thermostat Specifically, their temperature controllers have some basic designed buttons and set firmly on the walls near the room door, which are inflexible and inconvenient for users to adapt their self-service in rooms since it should have been settled next to the bed zoning areas and ready-to-use in real time (Figure 2) It has just been basically designed within a manual non-programmable thermostat purchased from T.A.C technical programme company (Service Champions 2018) As the smart digital thermostat models are defined as a recent trend to upgrade a hotel into a more advanced system (Service Champions 2018), the replacement for old thermostats is crucial due to its inability of automatic adjustment, an increase in the monthly energy bills, non-detailed information about HVAC system, unattractive outlook displays and especially limitation of the movement (Marin Air 2017) Under the guests’ perspective, Facilities Management and Development BUSM4570 lacking accessibility to adjust the room temperature could impact negatively a guests’ sleep habits, thus reducing their general experience (Doheny n.d.) Therefore, giving the initiatives to upgrade from manual thermostat into modernized and smart thermostat should be highlighted in InterContinental Saigon Hotel facility 1.3 Inflexibility of Outdated Telephone System a) Literature Review Communication is a crucial hospitality activity of exchanging messages or opinions through many types like face-to-face speaking or through digital interaction like emails or social media, and an effective communication is only recognized until people know and understand each other better (Seyitoglu & Yuzbasioglu 2015) Additionally, a well-advanced communication system with customers is considered the first critical part in the tourism and hospitality industry (Samoszuk n.d.), especially the telephone system The hotel telephone system has been globally implemented in every hotel as a way to offer customers a seamless service quality and thus, adapt to their satisfaction (Eden Telecoms 2019) Recently, with the development of tourism and hospitality industries, they have already applied PBX or VoIP Technology instead of traditionally handset telephone system to contact with the guest so as to bring better experiences (Turner 2019) In contrast, one of the unparalleled hotels in Ho Chi Minh City like InterContinental Saigon Hotel still has been using the traditional telephone system for communication b) Reality InterContinental Saigon Hotel has declared their hotel service as the most ideal lodging choice for the tourists’ trips to Vietnam (InterContinental Hotel Group n.d.) However, the provision of old handsetdesigned telephone system, followed by the brand called iPECs, has been applied for many years without any telecommunication innovation (Figure 3) This manual telephone design may cause a limitation for customers to gain more flexibility in personalization or movement due to the lack of availability for internal calls, for example, if customers want to use the phone system, they have to get out of their bed and move to the nightstands, which requires them more effort and time to Although its functionality offers guests with several service keys buttons including instant service, emergency, concierge, in-room dining, and messages to make specific requests to hotel staff, it cannot adequately adapt to the increasing demand of tourists nowadays (Ferenczuk 2018) The decline in guest’s experience can be referred to the inefficient telephone system (Infor 2017) in InterContinental Saigon Hotel, as well as regarded as a reason for expanding gap between customer expectations and perspective (Infor 2017) Furthermore, customers are expected to pay more willingness to access a hi- Facilities Management and Development BUSM4570 tech telephone system for their external communication or the Internet during their traveling experience (Capilano University 2015) Some special features in telephone systems should have been innovated such as auto attendant, recorded announcements, call records, voicemail capability or mobile check-in options (Evoke Telecom 2019), which are still insufficiently offered in InterContinental Saigon Hotel RECOMMENDATION Nowadays, the powerful influence of the influx of mobile devices onto every aspect of life is undeniable (Varan et al 2013) This intense trend has been shaping guest expectations considerately in most businesses and industries, and hospitality is not an exception (Sheivachman 2012) Mobile service appears to be an ideal choice for tourism and hospitality industry as tourists are mostly on the move and purchasing for traveling experience (Brunner-Sperdin & Peters 2009), which is an important criterion for mobile services development relevantly (Carlsson & Walden 2005) Keen and Mackintosh (2001) claimed that mobile devices provide freedom, and freedom creates value of choice, much more than convenience as it can revolutionize the way that hospitality operation works, expand and collaborate In the InterContinental Hotel Saigon case, it is recommended that the three facility areas need technology innovation including temperature controllers, telephone system, and check-in security For each area, mobile innovation will be allocated by various functions within affordable budget cost, and illustrated diagram offered for better understanding of the benefits that a hotel can gain from Although the recommendations below focus on the adaptation of mobile devices, there will be two separated mobile-related options for guests based on their preferences include using personal gadget via a downloaded application and room tablets provided in advance Specifically, the availability of in-room tablets can be used to control all the important units in rooms like lighting system, water heating, and especially temperature control when they are unoccupied or unsole which can save energy expenses from 20 to 45 percent (DePinto 2016) Then, to facilitate seamless integration of technology into the guests’ travel experience, personalized communication and value-added services will be offered via digital services by smart-phones or iPads installed in per guest room, which entices technophile guests (Rossi 2015) so as to replace the old term “telephone system” Next, hotel can enable guests to use their personal smartphones in place of traditional key cards to enter their own rooms and access a more robust and efficient check-in process via mobile application, which ensures a higher security (Torres 2018) Thereby, within the usage of mobile devices, the three above problems can be simultaneously addressed Facilities Management and Development BUSM4570 1.1 Check-in and Security a Mobile Keyless Room Entry A mobile key, also known as ‘keyless room entry’, by using a smartphone innovative application could be an ideal innovate implication to be implemented as a way as improving self-service technology assisted check-in and security, for those above mentioned issues instantly Some design and development check-in applications are introduced globally to implement in supporting hotel check-in, for example Zest (StayNTouch n.d), The Ritz-Carlton or Marriott Hotels app (Weissman & Borison 2013) To using this mobile applications, guests are required to download via these Online Travel Agents to confirm the bookings or any relevantly personal information and then go straight to the selected rooms to unlock the door via Bluetooth connectivity in their personal smartphones (Figure 4) In fact, according to Business Insider (2014) the progress for this room entry has been integrated with a smart lock installation, which is an aluminum cylinder attaching to a door’s deadbolt and powered by the check-in mobile app, then automatically connected to the guests’ smartphone via Bluetooth LE (Figure 5) Also, this keyless entry system interacting with cloud-based data administration can organize guest traveling plan and every relevant interactions like room selections, check-in and check-out process, and monitor of guests’ payments or upgrades Because this system is activated by an individual guests’ registration, any upgrading announcements or privacy login from another devices or rooms will be transferred guest’s phone immediately, thereby, enhance security system and guests’ experience b Practices The first pioneer for this mobile guest check-in system called “StarWalker” was introduced globally by the Sheraton Hotel in Parsippany, NJ (Clarsson & Walden 2005) The StarWalker” solution was established by Galaxy Hotel Systems, IBM and Computerized Security 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