OM in the News: Hotels Turn to Text Messaging

hotelAs a well-traveled businessman, James Linn felt silly during a trip this month, when he forgot to pack dress socks. In the past, he would have rushed to a store to buy an extra pair. Instead, he texted the Hyatt Regency. The front desk texted back within minutes, saying it would have socks waiting for him in the lobby.

Today, having a concierge ready at the tap of a thumb is an amenity offered mostly at luxury hotels, reports The New York Times (June 30, 2015). But more hotels of all types are beginning to accommodate guests unwilling to call a concierge — increasingly relying on text messages to keep smartphone-wielding guests happy and spending money. At the beginning of last year, Zingle, a start-up running the technology to connect hotel customers to concierge by text, ran a pilot program at a handful of Four Seasons and Loews hotels. Today, it works with about 300 individual hotels, including Hyatt Regency.

Hotels hope to encourage guests accustomed to ordering from Seamless and GrubHub to rely more on room service, where business has slid nationwide. In 2010, American hotels made $2.33 per room from room service requests. By 2014, that average fell to $1.61. But even more important is saving a hotel from a bad review on TripAdvisor or Expedia. For picky travelers, little things like a broken light or a leaky faucet can shave a star or two off an online review. But if guests can air grievances more easily and hotels respond quickly, it could lead to more positive reviews.

When a guest sends a text to a hotel that uses the Zingle app, the message is delivered to the phones, tablets and desktops of dozens of hotel employees. When a staff member begins to type a reply, the app lets the others know someone else is on it, so the guests do not receive more than one response. Hotel staff members say the system helps them keep requests organized and respond quickly. Hotels aim to answer all texts within 3 minutes.

Discussion questions:

1. How else can hotels use apps to increase service quality?

2. What other technologies are being introduced by hotels?

OM in the News: The Bellhop Robot

 

A touch screen on Botlr allows guests to give the robot a review
A touch screen on Botlr allows guests to give the robot a review

“Think of it as the Terminator’s human-friendly sibling,” writes The New York Times (Aug.12, 2014). In the Aloft  hotel lobby in Cupertino CA, a desk clerk places a razor in the bin of a 3-foot-high robot and taps in a room number on a display. The robot, “Botlr,” chirps an R2-D2-style acknowledgment and rolls off to an elevator and its final destination. On the move, it can reach speeds of up to 4 miles per hour, adequate for Botlr to hustle razors, toothbrushes, smartphone chargers, snacks and the morning paper to any of the hotel’s 150 rooms in 2-3 minutes.

When the robot reaches the guest’s door, the system calls the room, alerting the guest to the delivery. The robot, which has a camera and other sensors, can recognize that the room door has been opened and then lift the lid on the storage bin that holds the delivery. A flat panel display at the top of the robot is used for the guest to enter a “review” rather than giving a tip. In return for a positive review, the robot will do a small dance before it departs.

Perhaps the most impressive capability of the new robot is its ability to independently make its way to upper floors. When it reaches the elevator, it wirelessly sends a command for the door to open and then maneuvers into the elevator car, taking care to stay out of the way of any human passengers. When it returns to the lobby, Botlr can plug itself into a recharging station while it awaits its next errand. As a hotel application, the robot can free up the hotel desk clerk from having to run up to the room, giving the staff more time with the guests.

Classroom discussion questions:

1. How else can service robots be used in hotels?

2. What are the advantages and disadvantages of Botlr, from an OM perspective?