SHARE



ABOUT THE AUTHOR


Dave Michels
Dave Michels is a Principal Analyst at TalkingPointz. His unique perspective on unified communications comes from a career involving telecommunications...
Read Full Bio >>
SHARE



Dave Michels | August 13, 2014 |

 
   

Hospitality Communications Coming Off Hold

Hospitality Communications Coming Off Hold There are few buildings with more phones per square foot than hotels. However, don't assume that hotels make good telecom prospects – they aren't, or at least they haven't been recently. But that is beginning to change.

There are few buildings with more phones per square foot than hotels. However, don't assume that hotels make good telecom prospects – they aren't, or at least they haven't been recently. But that is beginning to change.

A decade or two ago, the phone system was as lucrative to a hotel as room service. Although the room phone never looked like a payphone, appearances were deceiving. Hotels charged for local and long distance, and both were frequently used. Then, long before BYOD hit the enterprise, hotels started experiencing a different aspect of the BYOD phenomenon. First, guests brought their own calling cards, and now they bring their own phones. The defiant few who still use hotel phones are resentful when charged for it.

As such, the hotel phone system switched from profit center to liability. Hotels began sweating their assets – and the phone system's life was extended well beyond anyone's initial intent. The hospitality industry ignored the new technologies, but to be fair, VoIP didn't offer hotels many benefits. IP phones cost more than analog phones and offered little in terms of cost savings. For example, one of the big enterprise drivers were simplified moves, adds, and changes –which occur very rarely in hospitality.

Enterprises and hotels were previously more aligned with their objectives. They concurrently embraced voicemail and even touch-tone dialing. Today, hotels and enterprise telecom buyers have few shared priorities. The enterprise is excited about soft phones, cloud, and UC. The hospitality industry is primarily concerned about safety, security, and the guest experience; replacements are primarily justified for cost savings rather than feature upgrades.

However, overall growth in the hospitality industry has begun to pick up again. Intercontinental Hotel Group reported that revenue per available room increased globally by 4.4 percent in 2013 and by 6.6 percent in the Americas. The industry is now in its fourth year of recovery and new construction is back. In 2013, Hilton reported it added 1,000 hotels to its portfolio over the past several years.

How are Telecom Vendors Responding to Increased Demand?
That depends on who you ask. Established premises-based vendors NEC and Mitel leverage the onsite experience, while BroadSoft offers a pure-cloud solution for the hospitality industry. NEC proudly lists many of the world's largest hotels on its customer roster. Mitel claims it has the largest installed base within hospitality. BroadSoft recently announced a strategic acquisition of SDD to facilitate its ability to serve hospitality.

Mike Gray, Senior Practice Manager of Hospitality at NEC, explained that the drivers for enterprise and hospitality are similar, just with different outcomes. The key drivers he was referring to were to minimize the technology footprint on premises as well as capital expenditures. Since the hospitality industry's preference for analog phones restricts options, NEC opted to repackage its premises-based solutions.

NEC recently introduced the NSP or NEC Solution Platform, which is a "Hotel-in-a-Box" solution that includes the new SV-9500 communications platform (configured with hospitality options), NEC UM4730 messaging suite, integrations to property management systems, and UC and mobility features for staff.

Gray said that hospitality requirements are inherently local, as most calls are analog and kept internal. Also, most hotels integrate the communications platform with on-site property management systems and other applications. As with enterprises, hospitality also wants to shift toward OpEx models, so NEC offers new service solutions, including rental programs aimed at the hospitality vertical.

For its part, Mitel extended its onsite MiVoice hospitality platform to enable a hybrid option. According to Jeff Nolan, Vice President Vertical Markets, the same Mitel 3300 ICP AX can be used as a standalone appliance or configured as a gateway based on the licensed software. When it is used as a gateway, the call control moves to Mitel's hosted hospitality service called MiCloud Hospitality. The service can be used without a gateway, but Nolan acknowledges that most hotels do prefer to keep room phones analog. In this hybrid deployment, the gateway keeps many functions local, including wake-up call services, 911 routing, and internal calls.

Nolan said most properties are still using onsite property management systems, but some cloud-based models are emerging. He said the integration between these systems are now IP, so it can take place on premises or in the cloud. Mitel expects to see more cloud-based property management and communications systems in the future – especially for multi-site properties.

BroadSoft sees hospitality as a next segment destined to migrate to the cloud. BroadSoft recently acquired Systems Design and Development (SDD), a service provider which specializes in large hotels and resorts; SDD had repackaged BroadSoft's UC-One into a product called Jazz Fusion for hospitality. Now, BroadSoft is taking this as a wholesale service to its global base of service providers under the brand of UC-One Hospitality. The service allows service providers to bundle connectivity, minutes, UC features, and property management integration. The approach offers the additional benefit that service providers can skip the capital and human investments otherwise required to adequately meet the unique needs of the hospitality industry.

BroadSoft specifically positions UC-One Hospitality to best serve organizations that have multiple locations and small IT staffs. The service is intended as leveraging OpEx and being evergreen, and capacity can be adjusted up or down with seasonal demand fluctuations.

Read about the future of the hotel room phone on the next page





COMMENTS



April 19, 2017

Now more than ever, enterprise contact centers have a unique opportunity to lead the way towards complete, digital transformation. Moving your contact center to the cloud is a starting point, quick

April 5, 2017

Its no secret that the cloud offers significant benefits to enterprises - including cost reduction, scalability, higher efficiency, and more flexibility. If your phone system and contact center are

March 22, 2017

As today's competitive business environments push workforces into overdrive, many enterprises are seeking ways of streamlining workflows while optimizing productivity, business agility, and speed.

April 20, 2017
Robin Gareiss, president of Nemertes Research, shares insight gleaned from the firm's 12th annual UCC Total Cost of Operations study.
March 23, 2017
Tim Banting, of Current Analysis, gives us a peek into what the next three years will bring in advance of his Enterprise Connect session exploring the question: Will there be a new model for enterpris....
March 15, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, discusses the evolving role of the all-important session border controller.
March 9, 2017
Organizer Alan Quayle gives us the lowdown on programmable communications and all you need to know about participating in this pre-Enterprise Connect hackathon.
March 3, 2017
From protecting against new vulnerabilities to keeping security assessments up to date, security consultant Mark Collier shares tips on how best to protect your UC systems.
February 24, 2017
UC analyst Blair Pleasant sorts through the myriad cloud architectural models underlying UCaaS and CCaaS offerings, and explains why knowing the differences matter.
February 17, 2017
From the most basics of basics to the hidden gotchas, UC consultant Melissa Swartz helps demystify the complex world of SIP trunking.
February 7, 2017
UC&C consultant Kevin Kieller, a partner at enableUC, shares pointers for making the right architectural choices for your Skype for Business deployment.
February 1, 2017
Elka Popova, a Frost & Sullivan program director, shares a status report on the UCaaS market today and offers her perspective on what large enterprises need before committing to UC in the cloud.
January 26, 2017
Andrew Davis, co-founder of Wainhouse Research and chair of the Video track at Enterprise Connect 2017, sorts through the myriad cloud video service options and shares how to tell if your choice is en....
January 23, 2017
Sheila McGee-Smith, Contact Center/Customer Experience track chair for Enterprise Connect 2017, tells us what we need to know about the role cloud software is playing in contact centers today.