Cornell Insights

IN THE d e t a i l s
index measures readiness Demographics are related Report analyzes travelers Examine your guest profile

HSMM November 5, 2007 | HoielMotel.com

www. HotelMotel. com/digitaljsdi^on

Love it or hate it, technology differentiates

By Glenn Wrthiam H&MM

he hotel industry constantiy iooks for ways to use technology to provide better service to guests and, not incidentally, to find ways to improve revenue. In an earlier day, hotel technt>logical improvements included piping chilled water and AM radio signals into guestrooms. Though hotels have moved far beyond

such humble innovations, one factor remains constant: guests' reaction to teclinology. Aithough we teil ourselves that our guests demand the iatest in computer-based gadgets, the fact is that not all guests are comfortable with technological changes, whether in the lobby, in the guestroom or when they are trying to book a room. As it

turns out. the extent to which your guests embrace technology in their personal lives provides a straightforward way to differentiate those guests on a ntimber of other dimensions. The tool for creating market segments based on guests' reaction to technology is called the Technology Readiness Index. As explained in a new re-

port from the Corneil University Center for Hospitality Research, theTRl is a relatively simple, 10-item survey thatyou could ask guests to complete in their spare time, perhaps instead of a satisfaction card or as a special request by your front-desk associates. The 7 R I gauges guests' view of technology on fourdimensions: optimism, innovativeness, discomfort and insecurity. We usually think of technology-focused individuals in terms of their willingness to intiovate, but the research behind the TRI also measures the extent to which people believe that technology helps improve their lives (optimism). Against that score arc measures of whether people feel befuddled by technology (discomfort) and whether they simply don t trust technological devices to work correctly (insecurity). Ifyou're a fan of technology, you can download this report along with the TRI questions from the center's web site {chr. comeU.edu). Most obviously, ;is a hotel manager, you need to consider your guests' possible reactions to any technology-based additions to your service package. If it turns out that yout guests don't appreciate technological innovations, you can save yourmoney rather than install self check-in kiosks or in-room WiFi. According to this idea, hotels can differentiate themselves using technology to attract frequent travelers who are wiiiing to pay upscale room rates. With the many product tiers now in the hotel industry, hoteis can prosper whether they focus on upscaie, technology-loving guests or on budget-minded, technology-anxious guests. The key is to know which group frequents your hotel before you spend the money for the next big technological intiovation. tex. com Glenn Withiam directs publications at The Center for Hospitality Research at the Cornell University School of Hotel Administration. He can be reachedatgrw4@comeU.edu.

Plea5e contact Moiinaro Koger for comprehensive hotei investment services

WASHINGTON, DC I N E W YORK | LONDON ATLANTA | CHICAGO I CINCINNATI | DALLAS I Los ANGELES I PHOENIX | SHANGHAI | SAN FRANCISCO

BEIJING | MUMBAI

CIRCLE NO. 147

www.mkhotels.com | +1.703.760.9600