untitledDRIVE- THRU
Produced by
TAKES OFF
H O S P I TA L I T Y I N D U S T RY S E L F - S E R V I C E T E C H
N O L O G Y S T U D Y
A S U P P L E M E N T T O H O S P I T A L I T Y T E C H N O L O G
Y
3
INSIDE PERSPECTIVE: Preparing the Way for a Self-Service Explosion
. . . . . . . . .4
EXECUTIVE SUMMARY: Kiosk Check-In . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .6
CHAPTER ONE: Consumer Attitudes Towards Self-Service . . . . . . .
. . . .7
COMMENTARY: Self-Service Checks in . . . . . . . . . . . . . . . .
. . . . . . . . .10
CHAPTER TWO: Lodging Industry . . . . . . . . . . . . . . . . . . .
. . . . . . . . . .12
CHAPTER THREE: Restaurant Industry . . . . . . . . . . . . . . . .
. . . . . . . . . . .16
CASE STUDY: The Business Traveler’s Best Friend . . . . . . . . . .
. . . . .18
Group Publisher . . . . . . . . . . . . . . . . . . .Andrew Gaffney
Associate Publisher . . . . . . . . . . . . . . . .Lenore O’Meara
CEO . . . . . . . . . . . . . . . . . . . . . . . . .Gabriele A.
Edgell President . . . . . . . . . . . . . . . . . . . . . .Gerald
C. Ryerson
Editor . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.Reid A. Paul Associate Editor . . . . . . . . . . . . . . . . . .
.Kevin O’Rourke Author . . . . . . . . . . . . . . . . . . . . . .
. . . . .Mary L. Carlin Creative Director . . . . . . . . . . . . .
. . . . .Colette Magliaro Graphic Designer . . . . . . . . . . . .
. . . . . . . . .Crystal Iglar Production Director . . . . . . . .
. . . . . . . . . .Patricia Wisser Production Manager . . . . . . .
. . . . . . .Kimberley Hartman Circulation Director . . . . . . . .
. . . . . . . . . . .Jeffrey Zabe Marketing Director . . . . . . .
. . . . . . . . . . . .Dan Ligorner
© 2005 by Edgell Communications
4 Middlebury Blvd. Randolph, NJ 07869 Tel: 973.252.0100 Fax:
973.252.9020
Founded by Douglas C. Edgell 1951-1998
WHY IS SELF-SERVICE IMPORTANT? Service is a key differentiator for
the hospitality market. Self-service provides an option for
consumers to interface with your brand, and another avenue to
increase your service. Repetitive tasks like hotel check-in and
food service pre-order can oftentimes be done quicker and more
easily through an automated device.
WHY DOES SELF-SERVICE SEEM TO BE GAINING MOMENTUM RIGHT NOW?
Changes in consumer attitudes and in the technology itself have
brought about a general acceptance of self-service both in terms of
usability and a willingness to use kiosks. Consumers have less and
less time for routine and repetitive tasks, many of which can
easily be automated. Consumers are also looking for a predictable
experience, even though sales associates can vary in knowledge and
experience. Self-service works best in a space without much value
add for the human touch. I see this area exploding in the next
12-18 months, especially as the economy continues to improve.
WHAT ARE THE KEYS TO A SUCCESSFUL SELF-SERVICE IMPLEMENTATION IN
HOTELS AND/OR RESTAURANTS? The first key is determining the need
for a kiosk. What is the benefit to the consumer? An ATM is
probably the most successful example of a self-service device
because it has very clear benefits for the consumer. Usage will
grow from usability—ease of use—which must be clear and very
natural. Location is also key: The design must reflect the
environment for placement. Reliability is very important for a
self- service device. To build consumer confidence, guests need to
be able to depend on it working. Integration with back-office core
systems is also significant. Self-ordering should integrate with
the POS and other systems to gather pricing and inventory; while
check-in kiosks need to integrate with the PMS.
WHAT ARE THE IMPORTANT FACTORS DRIVING SELF-SERVICE IN HOSPITALITY—
EFFICIENCY, REDUCING LABOR COSTS, UPSELLING, IMPROVED SERVICE?
Certainly all of those play a role, but improved service is first
and foremost. Improved food service means speed of service and
order accuracy, and a kiosk can really improve both, because there
is no communication with a person—the order goes straight to the
kitchen. For hotels, providing a kiosk improves service through
speed. With the kiosk users’ displacement out of the queue
everybody gets served faster, including those at the counter or
front desk.
Upselling on a kiosk for QSR means the average ticket size
increases over the counter, both in terms of size and additional
items. Counter people are less consistent at upselling than a
kiosk. With hotels, the opportunity is there also, say for
upgrading to a room with a view at extra cost.
Preparing the Way for a
SELF-SERVICE
4
To get the inside track on the latest self-service
innovations
and trends in foodservice and lodging, Hospitality
Technology interviewed Tracy Flynn, vice president of
hospitality sales for NCR’s Retail Solutions Division.
5
EXPLOSION WHAT IMPORTANT CHALLENGES DOES SELF-SERVICE ADDRESS FOR
HOTELS AND RESTAURANTS? For hotel and restaurant operators, the
ultimate goal is the same: efficiently providing guests with a high
level of service. How that service is provided be it through a
quick and easy self-service experience or through interaction with
someone at the front desk, is less important than the guest’s
satisfaction and the delivery of the desired service. Self-service
can help hotels and restaurants deliver that service efficiently,
accurately and with high customer satisfaction.
Service should not be defined by the amount of time guests spend
waiting in line. Both hotels and quick-service restaurants face
distinct periods of heavy activity. Those periods—whether it is a
lunch rush or a noon check-out—can be more efficiently handled by
offering guests a self-service alternative.
Self-service can also help hotel and restaurant operators handle
other challenges, like upselling and redirecting personnel to
interact more with guests. In QSR settings, kiosks have been shown
to be more successful at upselling guests as well as encouraging
the use of credit cards. And, in both hotel and restaurant
settings, after implementing self-service many operators have found
great success by moving employees out from behind the front desk
either to interact more directly with guests or to help handle
orders more quickly and accurately.
WHAT DO YOU SEE HAPPENING IN HOTEL SELF-SERVICE IN FIVE YEARS’
TIME? Self-service will address and accommodate more and more guest
requests and additional applications, like airline check-in at the
hotels. NCR acquired [airline check-in kiosk vendor] Kinetics last
year with a vision to integrate it with our hotel program, i.e. to
check-in luggage at the hotel, providing a better guest experience.
This is becoming very possible, to send it directly to your home
from the hotel. As security increases and airport check-in lines
get longer, separating the guest from their luggage will make
check-in two different functions.
WHAT DO YOU SEE HAPPENING IN RESTAURANT SELF-SERVICE IN FIVE YEARS’
TIME? Soon, guests will be able to recall orders at every visit,
say with a loyalty card for regular orders, or printing out a bar
code or receipt to scan in and recall a previous order. Guests will
then be able to add modifications. Payment is another big driver,
we’ve seen a transition from cash to electronic cash recyclers in
the last six months. This means the change from customer #1 can be
reused for customer #2, like a cashier drawer. Previously, most
kiosk implementations did not handled cash or used dispensers only,
which meant too much cash was required for running the
device.
WHAT NEW SOLUTIONS DOES NCR OFFER FOR HOTEL AND RESTAURANT
SELF-SERVICE? For lodging, we have NCR EasyPoint Xpress Check-In,
and we offer Xpress Order and Pay for QSR. We’re working
aggressively on airline check-in in off-airport locations.
HOW DOES NCR’S EXPERIENCE IN OTHER INDUSTRIES CONTRIBUTE TO ITS
HOSPITALITY SELF-SERVICE OFFERINGS? We are the world’s largest
provider of self-service solutions—the leader in ATMs and in the
retail self- service market. We really understand reliability and
serviceability—especially hardware; usability; locations to
maximize usage; and the consumer’s expectations in interfacing to a
self-service device.
5
KEY FINDINGS Thanks to the dramatic increase of self-service
options in other industries, consumers are ready for self- service
hospitality. This interest in self-service may even translate into
a willingness to shift brand loyalty based on access to
self-service solutions. Even though relatively few consumers have
seen or used a self- service option at a quick-service restaurant
or hotel—16% for QSRs and 17% for hotels—more than 50% of
respondents indicated that they were willing to use a self-service
kiosk in either setting. More significantly, 38% of respondents
indicated that they were more likely to dine at a QSR with
self-service and 41% were more likely to stay at a hotel with
self-service.
Lodging operators clearly are preparing for growth in self-service
check-in and/or check-out. The trend is being led by larger hotel
companies, averaging 758 hotels and an average daily rate (ADR) of
$187.60. Even the hotels that have decided against self-service
check-in have made the decision after careful consideration: 62% of
such respondents indicated that self-service does not fit their
industry segment. In total, 59% of respondents indicate that they
plan to implement kiosks and of those 45% have already implemented
self-service check-in or will do so within one year. Another 44%
will implement self- service within two years. The key business
driver for implementing check-in kiosks is customer service.
Consequently, it should come as no surprise that a majority of
hotels will measure the kiosk’s success by looking at customer
satisfaction.
In contrast, while consumers seem ready for order and pay kiosks at
quick-service restaurants, restaurant operators have not given the
technology the same level of consideration. Relatively few
operators elected to participate in the survey and those that did
by and large responded that they were not considering self-service
alternatives. Interestingly, those that did indicated deployment at
over 2,200 restaurants within two years’ time.
METHODOLOGY During April 2005, three separate surveys were
conducted covering consumer attitudes, restaurant and lodging
operators. 1,125 were contacted via telephone in a survey conducted
by Opinion Research Corp. In addition, Hospitality Technology
conducted its own survey of industry-specific experts. One hundred
and twelve lodging operators and sixteen quick-service restaurant
operators responded to e- mail invitations to complete the online
survey. The surveys were focused exclusively on check-in/check- out
kiosks for hotels and order and pay kiosks for quick-service
restaurants and did not include any other type of self-service
solution for the industry.
Hospitality Technology would like to thank Mary L. Carlin for her
insight into this study and her authorship of its findings. As the
former editor of Kiosk Business, Carlin brought a wealth of
experience and insight to the topic as well as a refreshing
analysis of the findings.
Executive Summary
KIOSK CHECK-IN In the first Hospitality Industry Self-Service
Technology Study, consumers, lodging operators
and restaurant operators were surveyed about their interest in
self-service and the state of current
implementations. The results of all three surveys indicate a
growing interest in self-service even
though restaurants are lagging behind both hotel implementations
and consumer expectations.
6
7
QUICK SERVICE RESTAURANT ORDER & PAY KIOSKS For the consumer
survey, respondents were asked whether they had heard of or seen a
self- service kiosk to place orders and pay for food at a quick
service restaurant. Of the sample, 16% said yes, and 83% said no
(1% said don’t know). This indicates the relative newness of the
technology for the majority of participants in the survey. The
largest group answering yes was aged 18-24, perhaps reflecting the
younger customer base of QSR. When asked to weight the potential
benefits of the technology, 56% cited faster service, 55% shorter
lines, 52% accuracy, 45% greater control, and 36% no interaction
with a cashier (See Figure 1.1).
Participants were also asked how likely they would be to use an
order and pay self- service kiosk at a quick-service restaurant.
56% of the sample said they were very likely/ somewhat likely, 40%
were not likely, and 4% didn’t know. The willingness to use
self-service is very promising especially in light of their overall
lack of exposure to these devices.
Consumer Attitudes Towards
SELF-SERVICE From April 22-25, 2005, Opinion Research Corporation
conducted a telephone survey of 511
men and 514 women aged 18 or older and living in private households
in the continental United
States. The goal of the survey was to investigate consumer
knowledge of and interest
in using kiosks for ordering and payment in quick-service
restaurants (QSR) and for hotel
self-check in.
Privacy
58%
44%
50%
45%
52%
52%
59%
55%
61%
56%
8
1
The last question in this section asked, “Would you be more likely
to dine at a QSR that offered a self-service check-out option?” 38%
answered that they were in fact more likely to go to a restaurant
offering self-service. This is especially interesting in light of
the above answers; here is a new technology that most people
haven’t even seen or used yet, but nearly 4 out of 10 are going to
make a purchasing decision based on whether or not it is
available.
HOTEL SELF-CHECK IN KIOSKS The second section asked about hotel
self-service for check-in or check-out. Just 17% of the sample had
heard of or seen a self-service kiosk that allows you to check
yourself in and/or out of a hotel, 81% had not, and 1% didn’t know.
As with the QSR question, this illustrates the relative newness of
the application. The age group 33-44 was most likely to use a kiosk
(72%). When weighting the potential benefits, 61% cited faster
service, 59% shorter lines, 58% privacy, 52% accuracy, 50% greater
control, and 38% no interaction with a desk clerk (See Figure
1.2).
As with the QSR weighting of benefits, speed and line busting came
out as the strongest advantages of using a kiosk, and over a third
of participants preferred not to interact with a person to complete
such a simple task. In both cases, the younger the participants,
the more they preferred this benefit, perhaps reflecting relative
comfort using a new technology unaided. When asked how likely they
would be to use a self-service kiosk, 59% were either very likely
or somewhat likely to use such a self-service option. While the
technology is relatively unknown, its
“Speed and line busting came out as the strongest advantages of
using a kiosk, and over a third of participants preferred not to
interact with a person to complete such a simple task.”
9
availability is likely to have an impact, given that 81% of the
sample had not seen or heard of these kiosks before (See Figure
1.3).
When asked if they were more likely to stay at a hotel that offered
a self-service check-out option 41% of respondents indicated that
they were more likely to stay at such a property—a very promising
response. Again, customer loyalty and purchasing decisions are
going to be swayed by the availability of a technology that is only
known directly by 17% of the sample thus far (See Figure
1.4).
WOULD YOU BE MORE LIKELY TO PATRONIZE A LOCATION WITH
SELF-SERVICE
QSR
Hotel
RESPONSE
0
10
20
30
40
50
60
Figure 1.4
LIKELIHOOD OF USING CHECK-IN/OUT KIOSKS
What a difference a year or two has made in terms of the
proliferation and acceptance of self- service devices. According to
Jeffrey Rayport and Bernard Jaworski in their newest book Best Face
Forward: Why Companies Must Improve Their Service Interfaces with
Customers (Harvard Business School Publishing, 2005), the service
industry is undergoing a major revolution as self-service kiosks
sprout across the business landscape like dandelions on an open
field in the spring. Following the lead taken by bank institutions,
retailers, airlines and others, hospitality organizations are
turning to self-service options in part because of necessity and in
part because of opportunity.
Necessity stems from the typical labor woes facing the industry:
rising labor costs, difficulties in attracting and retaining
quality employees, and service inconsistencies due to employee mood
swings. Opportunity knocks as technology capabilities grow, costs
decrease, and use becomes more intuitive. Self-service kiosks
provide new ways to deliver services, often faster and cheaper than
by traditional approaches, with their rich media capabilities and
their ability to be placed almost anywhere. Consequently, companies
are seeking innovative, yet practical ways to combine people and
technology to process transactions quickly and
cost-effectively.
With the big chains joining the self-service bandwagon and negating
the arguments of naysayers that this technology is not appropriate
for hospitality, it is safe to say that self-serve technology has
entered the mainstream and is here to stay. Perhaps we as a society
should now be labeled as the “self-serve nation,” as we begin to
see the concept of industrialized service first proposed by
marketing guru Theodore Levitt in a Harvard Business Review article
more than 30 years ago finally come to light and come to grips with
the commodity-like nature of many basic services like check-in and
check-out.
Despite the rapid proliferation of kiosks, the industry is only
beginning to tap the full potential of this technology wave. Once
considered only appropriate for the budget and economy sectors of
the industry, kiosks show great promise in more up-scale segments
as well (see Table 1). Today, most major full-service brands have
embarked upon kiosk rollouts. According to this study,
proliferation of kiosk devices is on the rise across the industry,
from casinos to luxury hotels and resorts as well as within the
mid-scale segment.
To date, the focus of kiosks has been almost entirely on check-in
and check-out functionality; yet some hospitality companies are
exploring the possibilities of adding other value-adding
capabilities such as language translation for international guests,
airline check-in for departing guests, concierge functions for
in-house guests, profile maintenance and account management for
frequent travelers, and guest satisfaction surveys for all
guests.
One of the distinguishing characteristics of the service industry
is the participatory role customers play with regards to the
creation and delivery of the service. The customer not only plays a
pivotal role in specifying the service parameters but also in
delivering the service
SELF SERVICE Checks-in to Hospitality
10
by Daniel J. Connolly, Ph.D., Assistant Professor, University of
Denver
11
experience. It may seem counterintuitive to think hospitality can
be delivered via a kiosk, but that is exactly what this year’s
respondents are saying. Over 90 percent of the respondent pool
noted customer service—not cost reductions or labor issues—as the
driving force behind kiosks. In addition, almost 60% of the
respondents indicated that they were likely to use kiosks for
check-in when given the option.
Kiosk and self-service technologies are becoming more important in
the hospitality industry and are tools hospitality leaders should
watch and experiment with—especially given the growing ubiquity of
these technologies, a more technologically sophisticated society,
and the need to minimize costs. The successes experienced thus far
in hospitality and other industries suggest that these technologies
offer great potential and are worthy of consideration. The trick is
to find the appropriate blend of machines and people to optimize
the organization’s service delivery, customer interaction, and
customer relationship management.
Although technology is great, it is important to provide service
options and let guests select the most appropriate approach based
on their needs, situation, and comfort levels. Clearly, the
adoption of self-service technologies is changing the high-touch
tradition of the hospitality industry and will put more pressure on
organizations to pursue customer relationship management (CRM)
initiatives to provide personal touches at each point of customer
interaction. Kiosk technology will likely cause some changes in
staffing requirements, particularly with the skills sought. If
customers are doing much of the data entry and transaction
processing, service agents can focus more on greeting and
conversing with guests. Personal skills rather than technical
skills will once again rise to the top of the selection
criteria.
Despite these issues, kiosk applications offer a great deal of
appeal to service providers and are likely to transform the notion
of service as it is presently defined today. The Internet is
perhaps the biggest kiosk of all. While the impact of kiosks may
not be as profound as that of the Internet, the future could get
exciting, so stay tuned!
Dan Connolly is assistant professor at the School of Hotel,
Restaurant, and Tourism Management and the Department of
Information Technology and Electronic Commerce University of
Denver's Daniels College of Business.
GUEST ADVANTAGES
•Flexibility to select desired service delivery method •Shorter
lines •Faster processing times •Added convenience •Increased
control over transaction •Communications conducted in native
language •Additional services (e.g., airline check in, frequent
travel program account management, concierge, etc.)
•Consistent service delivery (i.e., service is not subject to mood
swings)
•More privacy (by completing transactions off-site)
HOTEL ADVANTAGES
•Labor reduction •Operational efficiencies •Consistency in service
delivery •Ability to expand service reach, capacity, and offerings
•Remote check-in options •Opportunities for incremental revenue
•Use of multimedia to personalize and up-sell guests •Convert
variable costs (labor) to fixed costs (machines)
•Free up staff to handle more complex transactions •Data capture
(e.g., guest feedback surveys) Always available (i.e., 24/7)
TABLE 1: KIOSKS CREATE WIN-WIN OPPORTUNITIES
Lodging Industry
SELF-SERVICE In addition to the consumer survey, more than 100
lodging operators responded to a
questionnaire covering attitudes towards self-service check-in and
check-out implementations.
The survey reveals that attitudes towards and expectations of
self-service have changed
remarkably in the hotel sector in the last few years. Kiosks have
evolved from Internet access
or ‘virtual concierge’ services to become a popular guest
alternative to the front desk. Kiosks can
now dispense card keys, print maps of the property, and print
folios to avoid a wait at the front
desk when you’re sprinting to catch a flight.
Business travelers in particular have been clamoring for hotel
self-check-in kiosks, having become accustomed to the convenience
of the airlines’ self-check-in options at the airport. Frequent
travelers have come to expect speed and convenience from their
airlines and their hotels, and customer loyalty is being driven by
the availability of such options as hotel self-check in.
Our first self-service study of the lodging industry reflects these
new developments. As shown in the chart below, larger properties
and hotel chains are the early adopters, as they have the most to
gain by shortening the lines at their front desks. Of the hotel
operators responding to our survey that had already implemented
kiosks, 46% had less than 1,000 rooms, and 43% had between 1,001
and 10,000 rooms. The largest properties accounted for just 11% of
the total, but may end up accounting for a greater number of kiosks
in place (See Figure 2.1).
10,000 or more
Fewer than 1,000
12
2
13
WILL KIOSKS BE DEPLOYED?
CATCHING THE WAVE A major wave of kiosk deployments has taken place
led by industry leaders like Hyatt, Hilton and Marriott. “If you
don’t have self-service options, you’re not offering your guests a
full-service experience,” Barry Shuler senior vice president IT
strategy & chief technology officer at Marriott International
recently wrote in Hospitality Technology. “Exceptional hospitality
is reinforced through deep, continuous conversations with guests,
whether with carefully trained service associates or through robust
self-service offerings.”
Similarly, as Tim Harvey, senior vice president and CIO of Hilton
Hotel Corporation explains: “We think that self-service will be a
standard for all brands, but may not look like a kiosk. For
example, with Web check-in at focus service brands we’ll provide a
scanner and key dispenser in the lobby to complete the check-in
process.” The economics are tougher for smaller hotels. We are also
researching co-residing with an ATM.” Co-residing or hybrid kiosks
can help reduce footprints in precious lobby space and foster
economies of scale for getting a new deployment financed and off
the ground.
Size definitely influences the impetus for installing kiosks. The
longer the lines, the greater the advantage to be reaped by
offering line-busting alternatives, and the larger the chains, the
larger the budget for launching such initiatives. Of our sample,
the average number of hotels for operators deploying kiosks was
758. In contrast, respondents not implementing kiosks had an
average of 165 hotels. The average daily rate (ADR) was $187.60 for
hotels implementing kiosks, while those without reported an ADR of
$164.60.
The current push forward in hotel self-check-in deployments was
reflected in our data for planned kiosk installations. 45% of
respondents with kiosk plans in place will reach full deployment
within one year; a further 44% will be fully deployed within two
years. Just 11% have kiosk plans that are three or more years
out.
2
KEY BUSINESS DRIVERS Behind the push to self-service is an interest
in improving service. “Business travelers know what they want and
go directly to the kiosks,” explains Gary Dollens, vice president
of product design and strategy at Hyatt.” If they need a desk clerk
they can go directly there, but if not they can go use the kiosk
and get on their way. Echoing the sentiment, Hilton’s Harvey adds,
“We deploy kiosks for offering customers a choice…use the front
desk or use self-service.”
Overall enhancement of the travel experience by increasing speed
and efficiency is the shared goal of both the airline and lodging
industries. Not surprisingly, many hotels appear to be examining
self-service solutions that combine airline check-in (and even
luggage check-in) as well hotel self-service.
Customer service is the ultimate goal for hotel kiosk
installations, coming in at over 92% with our hotel operator
respondents. Improved service drives customer loyalty, as the
airlines have found with their kiosk installations. At over 63%,
improving operational efficiencies and redeploying resources is
the
second major business driver, perhaps reflecting the pressures of a
difficult travel economy and the high rate of staff turnover.
Competitive differentiation came in at 24%, but this aspect should
increase in importance as more and more major chains offer kiosk
check in to their guests. The lowest number, 11%, chose to increase
revenue and upselling opportunities through their kiosks. Again, as
this technology moves forward into ubiquity, the strengths of
kiosks as key business drivers in these areas will become more and
more apparent. Some chains are already looking into offering
upgrades and rooms with a view through their kiosks, and research
has shown that customers tend to react more favorably toward
upselling onscreen than coming from an employee (See Figure
2.3).
0 20 40 60 80 100
92%
63%
11%
14
2
15
CUSTOMER SATISFACTION Our respondents’ key measures of success for
hotel kiosk deployments were also overwhelmingly in favor of
customer satisfaction, shown in the chart at 58%, followed by usage
rate at 34%. For Hilton properties with kiosks, “Success is
measured by usage and customer feedback,” explains Harvey.
According to our survey, the average number of kiosks deployed per
location is 3.1, and this number will fluctuate (as will kiosk
location) according to usage rates. Customer satisfaction is more
difficult to measure, and is generally done through feedback to
staff or customer surveys (See Figure 2.4).
For those survey respondents without any plans for kiosks, we asked
why. The Achilles’ heel of any business plan for deploying kiosks
has always been the difficulty of measuring return on investment,
or ROI. The inability to measure ROI tied with no IT budget at 19%.
A lack of investment money for IT spending is a problem that has
historically slowed the lodging industry in making many
technological improvements. A more insurmountable problem for kiosk
initiatives is reflected by the 62% who feel that kiosks do not fit
their hotel segment. This perception will change with time, and
with changing customer expectations for boutique and smaller
leisure hotels.
Customer Satisfaction Usage Rate
Kiosks do not fit this hotel segment
19%
62%
19%
SELF-SERVICE When restaurant operators were surveyed about
self-service implementations, relatively few
operators completed the survey. While the sample size was too small
to draw any sweeping
conclusions, the data does lend some interesting insights into the
concerns and interest levels
for kiosks in the QSR space. As with hotel check in kiosks, the
overwhelming goal of QSR
deployments is to improve customer service. Of our respondents from
the restaurant industry,
nearly 88% of those deploying kiosks named that as their key
business driver, and
almost 63% are deploying kiosks with the goal of increased revenue
and upselling opportunities.
Other
63%
38%
13%
88%
13%
BUSINESS DRIVERS FOR ORDER AND PAY KIOSKS
Upselling has been particularly successful for kiosks in the QSR
space, as customers respond much more favorably to a prompt
onscreen (“Would you like fries with that?”) than to an employee
suggesting it. Employees are also less reliable in remembering to
capitalize on upselling opportunities, and high employee turnover
in this industry has made this problem more acute. Upselling on
kiosks is an area that is quantifiable in terms of ROI for
justifying deployments. The other key driver, at nearly 38%, was
improving operational efficiencies and redeploying
resources—particularly staff, who can focus on customer service and
leave repetitive tasks like order and payment acceptance to the
kiosks. Answers listed under ‘Other’ included increased average
check sizes and speed (See Figure 3.1).
16
3
46%
8%
31%
15%
Figure 3.2
Only two of our respondents plan deployment within a year, but six
out of sixteen plan it within two years, to be deployed at over
2200 restaurant locations. This reflects the curve of early
adoption that often exists for important growing technologies, with
the key players moving ahead first. For best business practices,
POS (point of sale) integration ranked as the most important issue,
followed by remote management and prominent location. POS
integration is critical for the smooth integration of self-service
into QSR—particularly for pricing and stock updates to be done
automatically and as close to real time as possible. Remote
management has taken a giant step forward in keeping kiosks up and
running, and has largely erased the public perception of five years
ago of kiosks as “those things that never work.” Prominent location
is more critical than many first time deployers realize; if
customers don’t immediately see the kiosk as an option to standing
in line to order and pay, they won’t know to look for it, and
therefore won’t use it.
In choosing a kiosk vendor, cost was the top factor, followed
closely by durability and vendor expertise. Respondents are also
looking for end-to-end, retail hardened solutions that are
upgradeable and easy to service. Peripheral options and wireless
were the least important options, reflecting the early days of this
relatively new technology for wide-ranging adoption in the QSR
space.
For those respondents with no plans for implementing kiosks in
their restaurants, we asked why not. Over 46% cited “Other,” and
explanations included: “We have small locations and are service
intensive;” “Prefer face-to-face customer service;” “Not convinced
that it makes sense in QSR;” “Won’t work for us;” and “Not enough
info. or testing.” These answers reflect the concerns of many in
QSR who will be watching to see how the early adopters fare. As
with hotel check-in kiosks, the big players will pave the way
before kiosks become necessary tools for gaining competitive
advantage through enhanced customer expectations of speed and line
busting. “No IT budget” was the reason for nearly 31% of our
respondents, followed by “Kiosks do not fit this industry” and
“Cannot measure ROI.” Again, these perceptions should change as the
technology’s acceptance matures and grows.
FACTORS LIMITING KIOSK IMPLEMENTATION
“WE ARE IN A SELF-SERVICE WORLD TODAY,” INSISTS Gary Dollens vice
president of product and design and strategy at Hyatt
International. “It is absolutely a critical component to what you
should be offering your customer to use it for their arrival,
departure and to ensure that the information that the hotel has
given the operator is correct.”
Hyatt has already introduced NCR kiosks at the New York Hyatt and
the Hyatt Regency O’Hare in Chicago and is beginning the first
phase of a nationwide rollout this month. “Our plan is to roll out
over 100 kiosks throughout the domestic hotels and we will continue
to add functionality to the machines. In many locations we will add
additional kiosks as people use them more,” explained Dollens.
“We’ve been testing these machines since August of last year, and
we know where the bugs were and have them smoothed out. We are
confident that we will have smooth rollout.”
This commitment to self-service was not taken lightly at Hyatt and
is not the company’s first experience with self-service. “This is
not technology for technology’s sake,” says Dollens. “We tried
kiosks in 1994 and we were ahead of our time. But, now that the
airlines have educated the public on using kiosks it has helped
us.”
MEETING EXPECTATIONS Business travelers are expected to keep the
kiosks humming. “Initially, we think that it is going to be geared
toward the business traveler who knows how to operate the
machines,” says Dollens. “The business travelers know what they
want and go directly to it. If they need a desk clerk they can go
there, but if not they can use the machine and get on their way.
Most business travelers have become so used to being able to go
right to that kiosk and check themselves in and it is
effortless.”
However, Dollens is quick to point out there are significant
differences between hotel service and airline service. “The
self-service kiosks free up the front desk for those people that
really need a particular service,” he says. “Unlike the airlines
where once you check- in you are gone, in a hotel guests often use
the front desk for a whole host of other reasons. Our real goal is
to provide an additional service for those that want the kiosk as a
way to simply check-in or check-out, while improving the service
level for the rest of the customer base.”
While Hyatt is expecting the kiosks to slowly gain acceptance with
all travelers, the company is careful not to make the kiosks a
focus of the traveler’s stay. Despite the temptation, Dollens
insists, Hyatt will not use the kiosks for other potential services
to avoid having guests spend long amounts of time using the kiosks
and creating lines.
“The goal of the kiosks is helping guests accomplish what is really
necessary for them,” Dollens argues. “Still, you have to ask what
will the guest utilize at the kiosks without overburdening the
machine. We have been really careful that we control the amount of
time at the kiosks.”
The Business Traveler’s
18
19
Which is not to say that more applications may not be added in the
future. Hyatt is investigating allowing guests to select room
locations. Initially this may be restricted to low medium or high
floors, near the elevator, or a particular zone. “Guests may not be
able to pick an exact room in the building, but you can select a
location very close to where a guest wants to be,” he said. “We
also see the functionality down the road of people being able to
print out their airline boarding passes. That is where I see this
whole product headed in a year or two.”
According to Dollens, hospitality specific experience and
functionality led Hyatt to NCR EasyPoint Xpress Check-In kiosks.
Given Hyatt’s international portfolio and its commitment to a major
nationwide self-service rollout, it was also critical to have a
business partner that had an international reach and extensive
experience with self-service solutions in a variety of industries,
ranging from banks to retail stores to restaurants.
Simplicity and ease of use were critical concerns for Hyatt, when
designing the guest interface. Guests can swipe a credit card and
after a few touches of the screen an encoded key card and a basic
printout containing the room number and directions to the room are
created. “For us, the simple functionality of the fully encoded key
was very important,” explains Dollens. “Otherwise, the process
becomes very confusing for guests. We wanted it to be as simple as
possible.” The kiosks also have the ability to print any coupons or
comps for guests that are part of a package or other group, such as
a AAA partnership or other similar groups.
REINVENTING THE FRONT DESK Dollens believes that as the use of
kiosks grows in popularity the concept of the front desk will
change. The return on investment on programs such as kiosks is
something that hotels are going to have to determine over a period
of time, according to Dollens. “If more and more people use the
kiosks, we will see some corresponding efficiencies at the front
office.”
The location of the kiosk is another factor that Hyatt put a great
deal of thought into and will be vital to acceptance of the
technology. Hyatt will be placing the kiosks as close to the front
desk as possible. “In our tests, when the kiosks are away from the
front desk they have much less usage. As a result we’ve decided to
put the kiosks right in front of the desk.” Indeed, in the future,
when Hyatt renovates its properties or builds new hotels, it will
create fully integrated self-service “pods” right in the front desk
for maximum exposure and guest use, according to Dollens.
Currently, Hyatt plans to have an employee available at the kiosks
to assist guests and handle any issues or questions that may arise.
The goal is that if somebody has any questions or concerns
mid-transaction, a Hyatt employee is there to handle the issue
without forcing the guest to go stand on line at the front desk to
get service. As guests become more comfortable with the technology,
Hyatt expects the need for assistance will decrease.
“I look at the larger hotels such as the Hyatt Regency Chicago with
2,000 rooms. We currently have five machines in that hotel and I
can see up to 10 machines in those locations. We have those big
days when you have 1,000 people coming in and you have 500
transient customers who are going to go right to that machine,
because they are frequent travelers, they know the east tower and
the west tower. They don’t get confused about where they are going
in the hotel. It is a 30-second activity for these people,”
explains Dollens.
“Kiosks free up the desk for those people that really need a
particular service.”
DRIVE- THRU
Produced by
Hospitality Technology would like to thank NCR for sponsoring the
first Hospitality Industry Self-Service Study.
21
1