Hilton Books Upgraded Technology - WSJ - 0 views
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The company plans to announce this week new technology intended for its 4,200 properties world-wide. Targeting younger travelers, Hilton is aiming to leapfrog competitors that already have rolled out new services like turning mobile phones into room keys.
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Guests already can check in and check out with a few punches on a smartphone or tablet-computer screen at all of Hilton's hotels in the U.S., the company said. By the end of summer, travelers will be able to see the location of and select their own rooms by mobile phone at six brands, from the midscale Hilton Garden Inn to the luxury Waldorf Astoria.
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"We are giving customers unprecedented choice and control at scale, and in the palm of their hands," says Christopher Nassetta, Hilton's chief executive.
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Hotel companies view being the dominant competitor in these mobile-phone services as crucial to winning over millennials, often defined as people born between 1980 and 2000. But there are potential risks, too, if money invested today is allocated to technology that goes out-of-date faster than expected.
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In the long run, hotel companies are also betting that if their customers can use a phone for multiple functions that have been traditionally performed by front-desk staff, they can run a leaner operation that is likely to reap savings. "I think over time there is the opportunity to gain efficiencies," Mr. Nassetta says.
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On a recent day in July, for example, a guest booking a standard room at the Hilton Miami Downtown on a mobile phone was offered the opportunity to upgrade to a junior suite for an additional $25 a night, saving $40 from the original website price, depending on availability.
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"It's a race for loyalty," says Guy Langford, head of Deloitte LLP's U.S. hospitality and leisure practice.
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Mr. Nassetta says that while Hilton is picking up the bulk of the costs for the mobile rollout, owners of Hilton-franchised hotels would be required to make a "modest" investment in their properties to upgrade them for the new mobile technology.