It has been a good summer and
a pleasantly busy one for us. In the last two months, we have won several new
accounts. Is there an economic crisis? Maybe so, and in many ways we see
hoteliers asking the tough questions. They are thinking about new ways of
attracting customers and local tourism has become a point of focus. New
hotels are questioning their construction and IT budgets, especially their
PMS. Current industry standard software vendors are not necessarily their
only choice anymore. A simple exercise to evaluate the Total Cost of
Ownership is to divide the no of rooms by the total cost and see how many
room nights it takes to cover the investment. There will be a few surprises
here! Take caution of sales gimmicks
the cheaper version, which can be tempting but not quite meeting the
requirements and upgrade costs later on might defeat the purpose. What is
the point in reducing costs across the board using 'value-engineering' but
not questioning their PMS standard? Apparently, this should be a high
Questions one needs to ask industry standard software vendors. What is the
cost of ownership (software license, hardware, systems software, post
implementation support)? Are there any hidden costs such as upgrades,
interfaces, specialist skills etc? Does it meet
current business software best in class standards? Does it meet current and
future market dynamics? What is the innovation index in the last three
years? Is there any visible value migration? What are the core attraction
factors? Is 'old is gold' valid anymore? How secure and robust is the
software? Is it truly integrated or smug in making bold statements without
foundation? Is 'going with the flow' the only solution? These and many more
questions should be asked to seek the 'edge' in these trying times and
achieve competitive advantage. As General George Patton said, "If
everybody is thinking alike, then somebody isn't thinking." This
mindset appears to be a widespread rigidity in the industry when it comes
to PMS selection. Even Keith Gruen, ex cofounder
of Fidelio mentioned about this and said, "Never mind that almost none
of these people are with the same company they were ten years ago. Some
left hotel companies to work for vendors. Others left vendors to work for
hotel companies. This industry is like a family and that's part of what
made it a fun industry to be involved in. On the other hand, maybe this is
one of the reasons that this industry hasn't progressed much in ten
years." Interestingly IBM says, "The industry is struggling with
a single source of the truth and single image strategies for inventory,
guest information and marketing/operational content." They are all
pointing out to legacy stalwarts who have failed to provide the truly
integrated solution to bring the industry into the 21st century.
Moving from end of life industry standard software to the newer versions
from the same company requires a cold hard evaluation, questioning the
technology, design and functional features, license and operational costs
(at times so high, that the entire cost of the software is paid for every
four years), and ROI.
Pondering on an old Chinese proverb, "It takes a first step, to reach
a 1,000 miles", is apt in these troubled times. Taking a departure
from the old is a bold step, albeit the most important decision today,
although hotelier's tend to worry about other aspects such as bookings, RevPar, occupancy etc. If there ever was a time to
unlearn and embrace new learning, ask the tough questions, re-evaluate with
fresh perspectives by applying new rules, this is as good a time to do so.
According to Smith Travel Research (STR), occupancy rates for luxury hotels
worldwide have dropped to 57 percent this year through July. That's down
from 71 percent occupancy just one year earlier.
Additionally, according to the group, the average daily room rate will drop
by 9.7 percent, and revenue per available room (RevPAR)
will be down 17.1 percent this year. As for 2010, STR projects further
occupancy declines of 0.6 percent, and additional RevPAR
declines of 4.0 percent. Neither metric is exactly encouraging. With H1N1
showing no signs of abating, air travel is bound to face challenges and
this may put additional pressure on the hospitality industry.
Seven Seas is in the Food & Hotel Thailand 2009
participating in the Food & Hotel Thailand 2009, 2-5 September from
10.30 am till 6.30 pm held at the Royal Paragon Halls in the heart of
Bangkok, Thailand. Visit us at Stand No. R25. We will have the full range
of momentohs® software on display. Last year,
there were over 752 participants from 45 different countries and the show
attracted 22,595 visitors. As part of the Allworld
Apple series of food & hotel events, Food & Hotel Thailand holds
the unique status of being "Asia's 5 Star Hospitality Event." See
momentohs® new look
Our website www.momentohs.com has a totally new
look, in line with our steady and strong expansion in the past few months.
It is designed for hoteliers to understand how momentohs®
helps them in their day to day activities in each and every department,
i.e. Front Office, Finance, F&B etc. It also clearly shows how hotel
owners can generate maximize their profit when their hotel is powered by momentohs®, be it from the ROI or TCO point of view.
Click on each position and see for yourself on how momentohs®
provides the value propositions to make your life easy, improve efficiency
and excel your performance beyond expectations.
World's Weirdest Hotel
At Berlin's Propeller Island
City Lodge, Berlin, Germany, each of the 30 rooms is weird in its own way.
The first room of City Lodge, shown above, is made to look like a brightly
painted medieval town, with an ultra-mini golf course surrounding the
castle bed. The colorful room is part of the artist's private area and it
is available for photo / video sessions. Wardrobes and compartments are
cleverly hidden among the bright and colourful
paintings of the wall.
Not unique enough? How about seeing things upside down? Room 23 is
certainly in a topsy-turvy, with
furniture hanging from the ceiling. From beds to table and chairs, almost
everything is on the ceiling! Luckily you don't have to sleep on the
ceiling too, although we're not too sure how that can be done. Instead,
visitors sleep and sit in comfortable boxes beneath the floorboards.
Uncannily surreal! And also the only four bed bedroom in the hotel.
The list doesn't stop there. Another room has coffins for beds, with the
lids closeable for those who want a 'total darkness' feel and another room
has lion cages on stilts (the website claims that kids "love to
sleep" in them). Then there's the Freedom Room, which resembles a
prison, complete with a toilet next to the bed.
The hotel's artist-owner, who is also a keen music lover, is certainly into
innovation and has a taste for unique experience. Room rates start from
Employees' productivity has
always been an ongoing problem in hospitality, specifically in the Finance
and Accounting division. They have been drowning with the dull, routine
clerking work which is time consuming and pointless rather than the more
important and crucial analytical work.
They amount of work for an Account Payable person is enormous, not to
mention the hectic responsibility to analyze the numerous figure, let alone
the struggle to complete the items received by the hotel in to the Account
Payable Subsidiary and General Ledger.
This would not be the case if the hotel management system is turbocharged
by momentohs®. Clerking jobs, which eat into
precious time and creates boredom in ones work scope will no longer be a
burden. With momentohs® in place, once the Items
Received has been checked and posted, the system will smartly do a direct
posting to the respective Account Payable Subsidiary and as well as to the
General Ledger. This of course eliminate the need
to do it manually each time Items Received is checked.
Syed Irfanuddin Quadri
Business Solution Services
email : email@example.com
Direct : +971 4 308 3645
Mobile : +971 50 7187292