Network computing has enormous implications for marketing to customers on a
global basis, as well as hotel operations. Consider the potential for the
industry to connect with vendors worldwide for electronic purchasing,
potentially achieving economies of scale and leveraging not yet possible. World
purchasing functions will allow companies to customize their own catalogs.
Virtual channels of distribution using computer networking capabilities will
also allow hotel companies to market products and services - some traditional to
our industry, others not - to customers whether they are in the hotel, at work,
or at home. This will require a migration from today's central reservation
systems to tomorrow's customer information systems using network-centric
solutions. Development of customer profiles and guest recognition will make it
possible for hotel organizations to interact in entirely new ways with
customers, regardless of their physical location.
Clearly, the large hotel companies will need to be the first to address
questions raised by global networking capabilities and what this will mean in
terms of technology investment. But for many hospitality companies presently
struggling with the high cost of technology and the confusing state of our
industry's technology affairs, this will not be an easy task. And the decisions
will ultimately become further complicated by the opportunity to outsource
certain functions into subscription-based networks.
It is unlikely that the hospitality industry will be forced to bear the
entire burden for networking infrastructure. Strategic alliances with major
technology companies will be the catalysts in building this capability as they
become strategic providers of networking capabilities to hospitality and other
industries. And as network-centric computing comes of age and a company's
proprietary information is stored in cyberspace, security will become an
ever-more important issue requiring solutions. Whether it is an e-mail gateway
through an internal network or customer access via the Internet, network fire
walls and encryption systems will be required to mitigate the concern many will
have with system security.
In the final analysis, networking solutions will drive down the cost of
technology investment "on-property" where hotel real estate and business
interests merge. The solutions that hotel organizations will be able to choose
from in terms of networking should also be less expensive than the current
profile of technology spending. And we can expect that change to occur sooner
rather than later, given the present rate of investment in Internet-based
technologies.