Thursday, 19 March 2015

Enter the hotel like you enter your house!



Imagine a hotel where you do not have to wait at the reception to get your key after a long and exhausting day. Imagine a hotel where you can simply enter the reception and walk to your room. Today, it becomes possible in more and more hotels, thanks to the direct check-in and keyless technology. 

 credit photo: freedigitalphoto retrieved from http://www.freedigitalphotos.net/images/agree-terms.php?id=10076372

Direct check in the first step to an automated check in. How does it work? First, guests need to download the hotel application and during the 24 hours before arrival, they register and check in online. After this key step, two solutions are available depending on the hotel; in the Premiere Classe hotel in France for example, guests have to stop at the entrance to get their keycard from the kiosk. Same service is available in the US in Mariott and Intercontinental hotels. In the B&B hotels, clients register on the hotel application and on the arrival day, they get a message on their smartphone with their room number and access code, no key is needed at all!

Some hotels go further in the keyless technology, using smartphones’ Bluetooth to unlock the rooms’ doors. It is the case of the Starwood Hotels and Resorts, which was the first chain to launch this technology in November, 5th 2014 in three Starwood brands: Aloft, Element and W. Keyless technology is also coming by the end of 2015 in Hilton Group hotels. After downloading the hotel application and registering online, guests receive a notification approximatively 24 hours before arrival. Once at the hotel, they just have to walk to their room and hand their phone with activated Bluetooth on the room door. The door will open!
It is a true gain of time for guests who do not want to queue at the reception and it definitely enhance the experience, adding a touch of comfort and novelty to the stay!

It looks like the implementation of direct check-in and keyless rooms is more suitable for business guests, and frequent travelers as they are less looking for human interaction whereas leisure guests are more likely to enjoy a chat with the receptionist to know more about the hotel and the destination. But using this technology or not is always a choice, as hotels keep receptionists available for traditional checks-in. Nevertheless, by bypassing the desk for some customers, the time allocated to check-in can increase for the other customers and receptionists will be more available for other tasks.

For hotels, implementing direct checks-in and keyless technology is clearly a competitive advantage, as we can imagine that the benefits for the guests will attract more customers to the hotel. Moreover, it only works for direct channels bookings (brand.com, brand apps, call centers, etc.), thus it enhances direct booking which are preferred by hotels and increases loyalty. Furthermore, companies like Starwood, intend not to stop here and keep on developing new technologies to optimize the direct check-in. Starwood plans to use its keyless system via the Apple Watch, that has just been launched, and upgrading at the same time the technology to offer not only a room key but a personalized warm welcome to its guests when they first enter their room. Again, the objective is to gain a competitive advantage compare to the other hotels and to increase customer satisfaction and loyalty by customizing their residents’ stay.

Nevertheless, this new technology has limits: it is currently available only for special guests that are members of the fidelity program for example. Indeed, if we take the example of the Starwoods hotels, keyless rooms can only be booked by the Starwood Preferred Guest (SPG). Moreover, the costs of adapting the lock on every door will be very high, meaning that this technology will probably not be available in the close future for small and independent hotels running on a limited budget. Finally, there is always the risk of a bug in the system, which will force the guests to go to the reception anyway.

We think that this kind of technology helps the hospitality industry to move forward. The sector, which is traditionally slow to innovate, can take advantage of the information and communication technologies to improve its services. Both industries are indeed a real match since they are dealing with intangible products and services that are directed to people. In our opinion the keyless system is a way to enhance the customer relationship management by using devices and technologies used by the targeted guests. The strategy is therefore consistent and such technologies will probably spread in the medium term.

Florence Autier & Marie Lallement

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