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Application of technology in hotel industry Application of technology in hotel industry

Bovornrudee Kongboonma

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APPLICATION OF TECHNOLOGY IN HOTEL INDUSTRY

By

Bovornrudee Kongboonma

A project submitted to

Faculty of the School of Food, Hotel, and Travel Management

at

Rochester Institute of Technology

in partial fulfillment of the requirements

for the degree of

Master of Science

May, 1992

FORl\tl IROCHESTER INS1TTIJTE OF TECHNOLOGY

School of Food, Hotel and Travel ManagementDepartment of Graduate Studies

M.S. Hospitality-Tourism ManagementPresentation of'lilihislProject Findin2s

Name: Bovornrudee Kongboonma Date:5/22/92 SS#: _

Title of Research: Application of Technology in Hotel Industry

Specific Reconunendations: (Use other side if necessary.)

Thesis Committee: (1) __D_r_._Ed_w_a_r_d_B_.~S_t_oc_k_h_a_m (Chairperson)

(2) _

OR (3) _

Faculty Advisor: . Dr. Edward B. Stockham

Number of Credits Approved: 3 _

SLZ~!CJLI I

Date Committee Chairperson's Signature

t/t7112-Date' Department Chairperson's Signature

Note: This form will not be signed by the Department Chairperson until all corrections,as suggested in the specific recommendations (above) are completed.

cc: Departmental Student Record File - OriginalStudent

39

FORMKROCHESTER INSTITUTE OF TECHNOLOGY

School of Food, Hotel and Travel ManagementDepartment of Graduate Studies

M.S. Hospitality-Tourism ManagementStatement Grantin2 or Denyin2 Permission to Reproduce 'Ba-sis!Project

The author of a thesis or project should complete one of the following statementsand include this statement as the page following the title page.

Title of thesis/project: Application of Technology in Hotel Industry

B ornrudee KongboonIQa /..11~, •• •I, ov , nereby (grant, utmy) pemnssIOn to the

Wallace Memorial Library of R.I.T., to reproduce the document titled above in

whole or part. Any reproduction will not be for commercial use or profit.

OR

I, , prefer to be contacted each time a

request for reproduction is made. I can be reached at the following address:

Signature

TABLE OF CONTENTS

DEDICATION iv

ACKNOWLEDGEMENTS v

LIST OF TABLES vi

LIST OF FIGURES vii

Chapter I. INTRODUCTION AND STATEMENTOF THE STUDY

Introduction 1

Background 2

Problem Statement 4

Purpose of the Study 4

Significance of the Study 5

Assumption 5

Scope and Limitations 5

Chapter II. LITERATURE REVIEW

Telecommunications 6

Audio-visual 8

Energy Conservation 10

Security and Safety 14

Fire Safety 16

Hotel Information Processing 17

Housekeeping and Laundry 18

Data Communication 19

i

Chapter ffl. METHODOLOGY

Sample Population 21

Survey Design 22

Survey Methods 23

Data Analysis 23

Chapter IV. RESULT AND DISCUSSION

Technologies in Telecommunications 30

Audio-visual 30

Energy Conservation 31

Security and Safety 32

Housekeeping and Laundry 33

Data Communication 33

Technology Investment 34

Equipment Procurement 35

Years of Technology Application and Replacement Plan.35

Maintenance Cost 36

Technology VS Guest Satisfaction 36

Investment Worthwhile 37

Future Trends 37

Comparison Between Literature Review and the Hotels...45

u

Chapter V. CONCLUSION

Conclusion 47

Recommendations 48

REFERENCES 49

APPENDICES

A. Map of Thailand 52

B. Map of Bangkok With Hotel Locations 53

C. Hotel Technology 54

D. Guest Room Control 55

E. HVAC Centralized System 56

F. Ving Card for Room Access 57

G. Security: Closed Circuit Television 58

H. Fire Annuciator and Smoke Detectors 59

I. Computerized Washing Machine 60

J. Folding Machine 61

K. Drying Machine and Dry Cleaning Machine 62

E. An Inquiry Letter to Hotels 63

in

DEDICATION

Tomy parents, brothers, and sisters for all their great support and encouragement

while I studied in The United States ofAmerica.

IV

ACKNOWLEDGEMENTS

Dr. Edward Stockham, Associate Professor, Rochester Institute of

Technology, Rochester, NY.

Mr. Alan Tan, Director of Engineering, The Novotel Bangkok, Thailand.

Mr. Deja Kisoravongse, Director of Engineering, The Regent Bangkok,

Thailand.

Mr. Bantao Pangmuangdee, Director of Engineering, Shangri-La Hotel,

Bangkok, Thailand.

Mr. Sompong Hanvajanawong, Technical Services Director, The Oriental,

Bangkok, Thailand.

Mr. Surapol Kongchuyarti, Chief Engineer, The Hilton Bangkok, Thailand.

Miss Chittimas Ketvoravit, Supervisor ofFood and Beverages, The Novotel,

Bangkok.

LIST OF TABLES

1. Technology Investment of The Hilton Bangkok 34

2. Summary and Comparison of Technology of The Novotel, The

Regent, and Shangri-la 39

3. Summary and Comparison of Technology of The Oriental, and

The Hilton Bangkok 42

vi

LIST OF FIGURES

1. The Novotel Bangkok 25

2. The Regent Bangkok 26

3. Shangri-La Hotel 27

4. The Oriental 28

5. The Hilton Bangkok 29

vn

Chapter I

INTRODUCTION

In the 1990s, lodging executives predict that technologywill play an important role

in everyday functions ofhotel operations and guest satisfaction. The technology in hotel

also enhances services.Nowadays, the business travelers demand technology amenities

and some guests in this groupwill be willing to paymore for such amenities, for example,

in-hotel computerized airline ticket dispensers, automatic baggage handling, voicemail, and

speedier check-in and check-out. Technology can be used tomake the guest experience

more relaxing and enjoyable. Television-based in-room entertainment is certainly an

industry standard. However, some properties are now looking forways to enhance this

amenitywith extra service, for example a video cassette recorder, cable TVwith free movie

channels.

Hotel technology also sharpens the competitive edge. Guests will both accept and

demand technology. Technologywill force out satisfaction and force inmarketing.

Technologywill enable corporate management tomonitor, evaluate, complement and help

the efforts of local managers to capture business in an ever-more competitive environment.

The 1990swill bring to this industry a rapid and truly visible increase number in the

use of technology. Thiswill occur in corporate headquarters and at the individual property

level.

BACKGROUND

Thailand is in SoutheastAsia region,with equal distant from China and India. It is

a tropical country bordered byBurma to thewest, Laos to the north, Cambodia to the east

andMalaysia to the south. It has 514,000 square kilometers, roughly the size ofFrance.

The population is about 55 million (1989 estimation),with themajority ethnic Thai, but as

the area has been themigratory crossroads, there are Chinese, Cambodian, Burmese,

Malaysian, Laotian, and Indian ( SeeAppendixA for themap ofThailand ).

Thailand is divided into four regions - themountainous north where elephants still

work teak forests, the semi - northeast plain where theworld's first civilization flourished

5,600 years ago, the central plains - one of the world's most fertile rice growing area, and

the tropical south.

Thailand has two distinct climates: a tropical climate from theGulfofThailand and

a tropicalmonsoon from the south. There are three seasons: summer (March andApril), the

rainy season (May throughOctober), andwinter (November through February). Average

temperature is about 83 degrees Fahrenheit.

Thai language is the official language in the country. However, English is

considered as the second languagewhich is used in hotels, shops, and restaurants in major

tourist destinations. Finally, Thai /English road and street signs are found nationwide.

The Thai currency is"

Baht \ which 25 Baht equals to 1 US$. Concerning the

transportation, tourists can visitThailand by planes arriving atBangkok International

Airportwhich is served by theworld'smajor airlines. Moreover, major downtown areas in

Bangkok can be reached from the airportwithin an hour eitherby airport taxi, limousine, or

private taxi.

Thailand offers accommodations ranging from luxury hotels to simple beachside

hotels for vacationers, businessmen, conventioners, or budget travelers. Major tourist

destinations, such as Bangkok, Pattaya, ChiangMai and Phuket have modern first-class

hotelswith conveniences and international standard to serve the tourist demand. Moreover,

with gross tourism earnings in 1990 ofwhich the amount over US$ 4.4 billion in a year in

which the Kingdom welcomed 5,298,860 visitorswas over double the figure for 1985.

Nearly 90% ofvisitors are vacationers, and some 43% of them have been to the country at

least once before ( Queen Sirikit Convention CenterBrochure, 199 1 ).

Bangkok, City ofAngels, a capital city ofThailand is more than forty times larger

than the nation's second city, ChiangMai in the north. Bangkok is where the King lives, it

is the center of the government, administration, business, commerce, finance, and tourism.

International conferences, exhibitions, includingMiss Universe Pageant 1992 have been

held in this city thus effecting in the numbers of tourists to Thailand. There are great hotels

in the Kingdom - The Regent Bangkok, The Hilton International ofBangkok, The

Shangri-La, The Royal Orchid Sheraton, The Novotel Bangkok, Holiday Inn Crowne

Plaza, The Landmark Hotel and Plaza, Siam Intercontinental, The Oriental, and Grand

Hyatt Erawan.

As in the early 1980s, the hotel was undergoing a rapid expansion. The total

numbers ofquality rooms in Bangkok at the end of 1990 was almost 29,000. If economy

class properties are included, the number is over 4 1,000, which is an almost fourfold

increase over 1980. By the end of 1992, Bangkokwill have added almost 5,500 new

rooms at the top end of the scale.Major developments in 199 1 included The Holiday Inn

Crowne Plaza, the opening ofa newwing at The Shangri-La, Grand Hyatt Erawan. The

largest development underway is The Twin Imperial, a 1,230 room property on

Sukhumvit Road. Now, there are 400 hotels in Bangkok ranging from luxury hotels to

budgeted-inn hotels. The hotel industry then is a competitive industry. The hotel operators

3

have to be better than their competitors and have applied technology to their hotels for guest

satisfaction and better services. However, when compared to technology used in the hotels

in the United States, technology in Bangkok hotels has a lag of time in technology

application. Nevertheless, in the future every hotelwill go formore sophisticated

technology to be able to compete with others in the industry. Thailand's better hotel

properties all belong to the ThaiHotels Association.

PROBLEM STATEMENT

The adaptation ofmodem hotel technology in themajor, well-known, and luxury

Bangkok hotels has not occurred as rapidly as in the United States. Do the technologies

effect the services ofthe Bangkok hotels to be better than others in the industry? Can the

Bangkok hotels remain competitive if they do not investmore in hotel technology?

PURPOSE

The purpose is to research technology development in the Bangkok hotel industry.

What technologies are used in themajor, well-known, and luxury hotels in Bangkok and

how they impact guest services will be investigated in the study, also the future trends for

using the technology in the Bangkok hotel industrywill be studied.

SIGNIFICANCE OF THE STUDY

The case study is ofsignificance to the hotel operators in Bangkok to be able to

competewith one another at the same time to bring in new technologies to their hotels to

increase guest satisfaction and to promote better services.

ASSUMPTION

Technology in the luxury hotels in Bangkok is not as advanced as in the United

States.

SCOPE AND LIMITATIONS

The scope of the research has focused on hotel technologies in the

telecommunications, audio-visual, energy conservation, security and safety, fire-safety

system, hotel information processing, housekeeping, laundry, and data communication

areas.

The limitationswere the interview ofdirectors of the engineering department of

major, well-known, and luxury hotels in Bangkok, Thailand aboutwhat technologies are

now used andwhat technologies are planned in the future.

Chapter II

LITERATURE REVIEW

Today, technology is used not only in some departments of the hospitality industry

but throughout the organization. Indeed, technology is a competitve tool that the hotel

operaotrs need to dealwith the services of the hotels. Major technolgies in the hotel

industry are telecommunications, audio-visual, energy conservation, security and sfaety,

fire safety, hotel information processing, housekeeping and laundry, and data

communication.

A. TELECOMMUNICATIONS

Hotel telecommunications is one ofan important factors to the hotel revenues. One

type of the telecommunications is call accounting, which hotels and motels use to bill the

guests.

CallAccounting

Call accounting is a device (usually amicro-processor)which is linked to the

telephone system. It has the capacity for"

automatic identification and outwarddialing"

(AIOD), eliminating the need for a telephone company operator to intervene and ask for the

room number. Calls are then charged by the telephone company at station-to-station rather

than at operator-assisted rates (Chervanak, 1991).

Hotels and motels use call accounting to keep track of the telephone service that a

guest uses. It providesmeans to bill the guest for services used and also keeps track of the

cost and profit for the sale of telephone services.

Call accounting also helps increase in lodging property's cost by providing a

printed record ofeach guest's local, interstate and/or long distance phone charges. This

recordmay be printed out separately and attached to the guest folio. If the property has a

computer systemwhich prints guest folio, the call accounting system can usually transfer

charges directly to guest folio.

Call accounting systems provide a direct increase in hotel revenue in two ways:

1 . by charging the guest at the traditional operator-assisted rates and paying the

telephone company atstation-to station rates (often less than half).

2 . billing the guest at the reduced rate but charging a flat-fee access charge for

the first long distance call each day (Chervenak, 1987).

Any call accounting system must perform these basic functions. Itmust be able to

monitor guest room lines and analyze the dialed digits to determinewhether to record the

calling information, including the full number called. Itmust also be able to time the call

and calculate the charge to the guest.

The system must then generate billing reports by individual guest room so that

charges can be billed to the guest. To be effective in this function, the call accounting

system must be linkedwith other systems such as propertymanagement and PABX (

Private Branch Property).

The key element thatwill contribute to the revenues and expenses of telephone

department once a call accounting system is installed are: number ofguest calls, network

cost savings, additional revenues from guest incentives to use direct dial, surcharges on

operator handled calls, increased collection, and the cost ofa call accounting system.

7

Guest Room Phones

The increasing use of tech-based services is reflected by the increase capabilities of

the newmethods ofguest-room phones by the PABXmanufacturers and independent

developers.

The advanced phones have an optional range of featureswhichmay includespeed-

dial, callwaiting, data ports for computers and faxmachines, speakerphone, laser-number

redial, and conference calling.

B. AUDIO-VISUAL TECHNOLOGY

Hotel audio-visual systems are often referred to as the "showbiz"

part of the

technology.Moreover, these systems have important operational and business

implications. Ahotel's audio-visual systems involve potential interfaceswith virtually

every other type of technology. The basic functions ofaudio-visual are to enhance the

hotel's internal communications network, provide audio-visual facilities for group

meetings, and provide guest-room entertainment and information.

Internal Communications

In addition to its telephone system, a hotel's internal communications depend on

audio-visual links, such asMaster TelevisionAntenna System (MATV) network,

backgroundmusic system, zone paging, and two-way radio system.

Audio-visual Systems forGroup Meetings

Hotel, conference center, and convention centermarketing departments often

providemeeting planners with lists ofavailable equipment and systems. Themeeting

planners have come to expect a wide range ofaudio-visual facilities. (Whiteley, 1987 ).

Audio-visual technology developments in 1992

1 . "Movies ondemand"

is an important factor in guest-room TV. With a

remote control, a guest can now choose his choice up to 100 movies. The

selected movie startswhen the guest chooses, rather than on a fixed

schedule (Chervenak, 1992).

2 . RCA began a new line of television in January 1992 specifically for the

hospitality industry. It features the "SmartPlug"

which allows pay-per-view

services to be connected directly and easily to the computer inside the

television, eliminating or reducing the cost of installing decoder boxes. The

set also features a built-in FM stereo radio, alarm clock, and stereo sound.

3. Zenith's "NewHorizons"

line of televisions in 19 inch, 20 inch and 25 inch

screens provides"boxless"

technology, putting the pay-per-view

technology into the set. According to Zenith, the advantages of"boxless"

sets are better picture quality, less time for repair, and lower power

assumption. Zenith's new line for the lodging industry includes closed

captioned programs for the guests; the guests just push a button on the set

ofon the remote control.

4 .TV-VCR combination is booming in the lodging industry. Samsung

produces three television-VCR combination models : 20 inch, 19 inch, and

13 inch. (Achorn, 1992).

In the future, television experts in the lodging industry are looking at high definition

television (HDTV). It offers amuch sharper image; the picture is clear close to that ofa

movie theater.

C. ENERGY CONSERVATION

Centralized Systems

This is an automatic demand controllers to monitor power usage. If the Kw

demand begins to go up, it shuts offpreselected energy-saving units. For example, it

might shut off toilet fans and other exhaust fans, portions of the air-conditioning system,

and unnecessarymotors thatwill not affect hotel operation. If the demand remains high,

other energy-using areas will take their rums at being shut off. When the high demand

goes down, the units will automatically be turned on again (Wolfe, 1984).

Sophisticated EnergyManagement System (EMS) features greater load capacity

than demand controllers, althoughmany of the same functions are performed. This system

can control more area and also provides the advantage of remote access. The system can be

controlled from other building via the use ofa portable computer and existing telephone

lines (Wolfe, 1984, p. 59).

10

BuildingAutomation System controls a property's temperature, humidity and

energy-using equipment in accordance with outside temperature changes. This type ofunit

is similar to the sophisticated EMS but usually incorporates such service extras as fire and

securitymonitoring.

Guest Room Control

Automatic guest room control is increasingly popular as amethod to reduce energy

consumption.

Check-in/Check-out Control will turn the electricity supply to a room on and offas

the room is rented and vacated. Heat, ventialation, and air-conditioning ( HVAC ), lights,

and TV's are controlled from a central point; the type ofsystem ifproperty applied and

installed will save energy and show a relatively quick payback.

Occupancy-Sensing Technology uses several electronic sensing devices to seek out

occupancy and turn the electricity to a room on and offas needed. The common three types

of sensing devices normally used are infra-red heat sensor, sound-activated sensors, and

ultrasonicmovement sensors. Such systems can be installed in new or existing buildings

without changingwiring orHVAC systems.

The occupancy sensing system is based on the potential disturbance ofa field of

ultra-sonic waves that fill the monitored area. When the room is vacated, the room is

deactivated. The infra-red systems detect body heat so that evenwithoutmovement for

long periods, as in sleep, the system remains activated.

Guest Controlled Technology is guest-activated usually through the insertion ofa

key, key ring tab, ormagnetic card into a room control panel. The guestmust use the

activating devicewhen he enters the room, thus "turningon"

the room. When the guest

leaves he takes the device, or has to remove the door chain lock, and the room is

deactivated. Since such systems are basically a guest-operated on/off switch, they usually

11

are less expensive and less technical than the occupancy-sensing technology system

(Wolfe, 1984, p. 60).

Water Flow and Temperature Control

Water flow restrictors and temperature controllers are the simplest ofenergy saving

technology.Water flow restrictors limit the flow rate ofguest-room showers and lavatory

faucets. Temperature controls for energy conservation are commonly in the form of

hot/coldmixing valves at the source ofhotwater supply, to control automatically the

supplywater temperature (Chervenak, 1987).

Clocks. Cyclers, or Programmable Controls

The simplest type of load control equipment, automatic timers rum lighting and

other energy users offand on at scheduled times ofday.

Load cyclers have advantages thatmany types of loads, such as motors used in

hotel equipment can be cycled (turned offat regular intervals for briefperiods) without

disturbing their effectiveness.

Programmable controllers aremicroprocessor-based units that can be readily

programmed for both on the on-off schedule and a duty-cycle schedule for a number of

remotely located loads (Chervenak, 1987, p. 26).

Peak power demand controllers are more sophisticated load cyclers, which can be

important electrical cost saverswhen a property's bill is not based only on the total kilowatt

hours used in a billing period. A peak power demand controller constantlymonitors the

power level. If the demand starts going up, it shuts off selected energy-using units. It

might shut off toilet fans, segments of the air-conditioning system, and/or a motor in the

back of the house, for a period of time which will not affect hotel operations or guest

comfort. If the demand remains high, other power-using units take their turn at being

12

temporarily shut off.When high demand goes down, all units are automatically turned on

again.

Relamping andAutomatic Lighting Controls

Relamping includes changing from inefficient light sources to efficient ones:

changing frommagnetic to electronic ballasts; installing reflectors.

Partial lighting control on a programmed basis can be accomplished by either

cycling only a portion ofan area's lighting, or by dimming all of it together. Dimming can

be applied to many types oflamping, including fluorescent, incandescent, quartz, mercury

vapor, high-and-low pressure sodium and metal halide, it can be regulated by photo-electric

cell or by time of the day (Chervanak, 1987, p. 26). A heavily occupied, 24-hour use area

with natural lighting lends itself to photo-electric control, while light is used, interior public

areamight be dimmed overnight.

13

D. SECURITY

Security is important to the guests staying at the hotels. Therefore, the hotel has to

provide an effective security to the guests, which is a combination ofpeople, procedures,

and technology.

Electronic Lock Systems

Electronic lock systems are themost prominent development among the recent

advances in security technology.Most of the electronic systems include the following

elements:

1 . A card key that communicates to the lock and permits entry.

2 . A control center at the front deskwhich produces the card or key and selects

the ranking thatwill permit entry by a new card or key and rejects all prior

units issued for the room.

3 . A computer capability thatwill provide millions ofcombination for entrance

to a guest room.

4 . A battery source for hardwired system for energizing the link system.

5 . A communication capabilitywithin the card or keywhich addresses a

microchip in the door-locking systemmechanism; orhardwire connection

for communication from the computer center to the door.

6 . A touch-pad system, which usually requires a guest to establish a number

sequence, known only to the guest, for entering the guest room.

14

With the use ofelectric and electronic systems, a standby source ofemergency-

power generation should be considered. Battery packs for immediate takeover in the event

ofa power failure may be supported by this capability (Eduacational Institute ofAmerican

Hotel andMotel Association, 1984).

Closed-circuit Television (CCTV)

Closed circuit television is themost often used tomonitor restricted areas and

entrances, public spaces, and hotel's premises outside the building. To help support the

CCTV cameras andmonitors, devices are available that can detectmotion, either in image

on the screen or in the area beingmonitored. CCTV cameras are also installed in high-

security outdoor areaswhere instant surveillance is desirable upon receipt ofan alarm.

Some hotel used CCTV for cashier, storage facilities, and kitchen surveillance. A videotape

recorder (VTR) provides a permanent record ofanymotion observed, but ifaVTR is used

without immediate response to an accident, the recording is only an after-the-fact record. In

addition, careless use of cameras and recordings can be unfavored by guests. Few guests

like to know that their activities are observed.Moreover, outside installations will be

ineffective at night if lighting is not enough, or if the cameras are not designed to operate at

low-light levels. To be effective,monitors must be observed constantly. Finally, CCTV

cameras and monitors require careful and continuous maintenance. Failure ofany

components of the system for lack ofmaintenance equals to having no system at all.

15

Photoelectric Sensing

Infra-red Sensing is installed to detect the unwanted presence ofan infra-red

emitting object-usually intruder. Microwave detectors are active units which transmit and

receive electromagnetic energy in the detection ofmotion. Perimeter protection with

microwaves is excellent, providing long-range capabilities and stability (Educational

Institute ofAmerican Hotel andMotelAssociation, 1984, p. 42).

E. FIRE SAFETY

A hotel's fire safety system is a combination of technology and procedures for early

detection and reaction to fire. There are many types fire safety technology in hotel industry.

SmokeDetectors

The systems transmit information from the smoke detectors over the existing

telephone system lines, via the broad band of themaster television antenna system (MATV)

or viawireless transmission techniques.

World Electronics is the farthest advanced inwireless techniques, which use coded

radio signals instead ofwiring, conduit, cable or line carrier to transmit the signals from an

activated protection device to central receiver.

Automatic Sprinkler

Lodging organizations use guest room sprinkler systems and central communication

ofguest room smoke detector alarm.

16

Guest Evacuation bv Sound

More properties have installed some type ofvoice sound system which permits

voice communications from a central control to any part of the property. Other approaches

use telephone systems, or equipment interfacedwith the telephone switch, with the

capability of ringing automatically all guest rooms or all rooms on any selected floor. Some

properties havemodified their guest room music to ring guest rooms. (Semple, 1986).

F. HOTEL INFORMATION PROCESSING

The hotel has to rely on the computers to operate the hotels. That's why hotel

information processing is important. Themost important system for this category is

propertymanagement system.

PropertyManagement Systems

PropertyManagement system (PMS) is a computer system designed to perform

the tasks accurately and efficiently in a hotel that are both repetitive and time-consuming.

The system handles basic front and back office functions. Reservations can be taken in two

to fourminutes. Preregistration routines allow automatic assignment of rooms, and

registration cards are printed out for expected arrivals, reducing waiting time at the front

desk. Upon registration, guest folio are created; telephone switchboards are filledwith

information on newly registered guest; housekeeping is informed that assigned rooms are

now occupied; room status is updated showing rooms occupied, charges to the guest room

for the use of telephones are enabled by interfaces to call accounting system, energy

management systems are activated, automatically turning on air-conditioning or heating

systems in guest rooms upon registration.

17

For back office, the system can do account payable, general ledger, and

payroll.Moreover, the system can calculate budget and forecast, inventory control,

purchasing, physical property and assetmanagement, and food and beveragemanagement (

Hughes, 1985).

G . HOUSEKEEPING AND LAUNDRY

The housekeeping is controlled by computer technology. An executive housekeeper

enters the rooms to be cleaned into the system. The program then processes this data to

generate work orders for employees. Eachwork order contains the routine tasks and

special jobs the employee is expected to perform. It sets a schedule for inspection based on

daily cleaning schedule.

Management can also pull reportsmeasuringwhat employees do beyond cleaning,

providing breakdowns of time spent on stocking carts, mixing solutions, traveling between

buildings, taking breaks, andmoving equipment among other tasks (Rosenbloom, 1990).

The laundry also uses microprocessor technology to sense or detect certain signals,

process them rapidly and-most important-to act on them. For example, where drain times

onwasher-extractors were once fixed and controlled by a preset timer, a sensor now

triggers the next step of the cycle immediately on completion of the drain.

Energy savings have been done by the precise control ofwater temperatureswhere

once therewas only a selection of temperature ranges.Microprocessors allow the operator

to experiment in search for the ideal temperature to handle a certain category of laundry.

Many facilities are includingwater re-use and heat transfer equipment in new laundry

installations, and microprocessors play a central role inmonitoring those systems.

18

For quality and productivity, folding equipment, for large flatwork and for small

pieces, uses microprocessor circuit to measure the length ofeach piece and the speed at

which the equipment is moving. Some equipment can easily track and fold several sizes of

laundry at the same timewithout adjustment or pre-sorting, and stack and foldwork

according to size as it emerges from the folder (Hertig, 1985 ).

H. DATA COMMUNICATION

Many propertymanagers and hotel chains rely on voice circuits, leased from the

local phone company, to carry their date. But traditional voice circuits are not specifically

designed to accommodate date,whichmay create problems. To solve these problems,

specialized carriers have dealt expressly in the transport of the data.

Date communication is the transportation ofdate from PMS to PMS, and from the

PMS to the central computer.

Date communication carriers usemostly phone lines for transport but these lines are

specifically designed for data, and are linked togetherby highly specialized, sophisticated

computerswhich enable these carriers to offer a very high quality ofdate to transport and

special services. Date communication is gainingwider recognition as an important element

in information system. Most of themajor data communication networks use a technology

called 'packet-switching', whereby full envelopes or packets ofdate are transmitted over

the phone line.

At the end of the line, the computer-often called a communications processor or

'node'- disassembles the packet and routes each user's date to the appropriate place. Most

of the larger data networks have 'accessnodes'

the specialized computer linked-inmany

19

location-to the phone lines. Thatmeans, for example, aNew York PMS user can call a

local access node and for the cost ofa local phone call, transmit date to Los Angeles.

Another thing that data communications networks can offer is 'error-detection'.If

there is any discrepancy ormissing data, it is immediately detected and the data is re-sent.

Most date networks provide security to protect theusers'

date. Common technique

is a userLD. and password arrangement inwhich a user cannot access the networkwithout

a pre-validated LD. and a password that a user knows (Winegar, 1987).

20

Chapter UI

METHODOLOGY

The findings of the studywere based on primary research conducted by the

personal interviews ofdirectors of the engineering departments in luxury hotels in the

central Bangkok. However, the secondary datewas collected by literature review.

Sample Population

The convenience sample often hotels was selected frommajor, well-known and

luxury hotels with 400 rooms ormore in the central Bangkok. All hotels belong to Thai

HotelAssociation. The hotels selectedwere The Oriental, Shangri-LaHotel, The

Novotel Bangkok, TheHilton Bangkok, Holiday Inn Crowne PlazaHotel, The

LandmarkHotel and Plaza, Royal Orchid Sheraton, Grand-Hyatt Erawan, Siam

IntercontinentalHotel, and The Regent Bangkok. All of thesemanage to offer a

standard ofpersonal service which is impossible to match anywhere in theworld,

according to the TourismAuthority ofThailand in 1989. The Oriental provides two

staffper guest. Moreover, it has hosted the rich and famous since 1876. Joseph

Conrad, SomersetMaugham, Graham Greene,William Golding and Gore Vidalwere

just a few of the great authors who have stayed here. The lists of royalty and other

celebrities are equally impressive. The Oriental has gained the reputation of theworld's

leading hotel from travel organizations, prestige customers, and trade publications.

21

Survey Design

Literature review was used to design the questions onwhat technologies to ask

about. Also, the questionswere asked about technology investment, years of

technology application, maintenance costs, equipment buying, technology versus guest

satisfaction, and future trends for hotel technology. The questions used were as

follows:

1 . What did the hotel use in technologies: telecommunications,

audio-visual, energy conservation, security and safety, fire safety, hotel

information processing, housekeeping, laundry, and date

communication?

2 . Howmuch did the hotel invest in these technologies?

3 . For how long has the hotel been applying these technologies?

4 . Howmuch are service andmaintenance costs?

5 . Did the hotel lease or buy the equipment ?Why?

6 . What technology is themost successful in the aspect of guest

satisfaction ?

7 . Is itworthwhile to invest in technology ?

8 . What are the future trends in hotel technology ?

22

SurveyMethods

The surveywas done by personal interview. An inquiry letterwas mailed to ask

for participation (SeeAppendix C). The first letterwas mailed to the generalmanager

ofThe Novotel Bangkok. A few days later, a phone call was made to set up an

appointment and itwas found out that the letterwas forwarded to the engineering

department director. Since then, the letters to otherhotelswere addressed to the

engineering director of those hotels. Again, phone calls were made to set up the

appointments. The first hotel interviewedwas The Novotel Bangkok, followed by The

Regent Bangkok, The Hilton Bangkok, The Oriental, and the last one was Shangri-La.

The interviews were conducted from January 15 to February 15, 1992.

Data Analysis

The date from the interviews conducted in the participating hotelswas compared

and is summarized in the result section. The technology found in the surveyed hotels

was comparedwith found in the United States hotels according to the literature review.

Comparisons were also made among the participating hotels.

23

Chapter IV

RESULT AND DISCUSSION

This chapter discusses the results of the personal interviews ofdirectors of

engineering departments and compareswhat technology is used among the Bangkok

hotels. Moreover, the chapter compares technology in the literature review and the five

Bangkok hotels participating in the study. The hotels included the properties are shown in

Figures 1 to 5.

24

Figure 1. The Novotel Bangkok

25

Figure 2. The Regent Bangkok

26

Figure 3. Shangri-La Hotel

27

Figure 4. The Oriental

28

Figure 5. The Hilton Bangkok

BANGKOK

THAILAND

29

The followings are the comparison of technology applications, technology

investment, equipment procurement, years of technology application and replacement plan,

maintenance costs, technology vs guest satisfaction, technologyworthwhile, and future

trends in fivemajor, luxury, and well-known hotels in Bangkok.

Technologies in Telecommunications

Three hotel used NEC PABX which were The Regent Bangkok, Shangri-LaHotel,

and The HiltonBangkok, while The Novotel Bangkok used theHitachi PABX telephone

system.

The Oriental used theNorthern Telecom PABX, whichwas linked to the main

computer to display theguests'

names, the room numbers, and the length of telephone call.

This informationwould be processed at themain computer for call accounting.

Audio-visual

The Novotel said that their audio-visual technologywas not as sophisticated as in

the United States because it could not perform group meetings.

The Regent Bangkok, Shangri-LaHotel, and The Hilton Bangkok had satellite

installations which could receive the programs fromHong Kong.

TheOriental has installed a TVRO ( Television ReceivingOnly ) satellite receiver

which played an important role inMATV (MusicAudio and Television ). Therewere 16

channels; 5 were satellite programs from Asia and Russia. Now, the hotel was planning to

install the Palapa satellitewhichwas believed to be a better program.

30

Energy Conservation

The Novotel had guest room control. The guest inserted the card into the panel in

the room, the lights then were automatically tuned on andwhen the guest left the room the

lights were automatically turned off. Thewindows in the guest room were double-layered

to prevent heat coming in from outside thus preserved air-conditioning energy. The hotel

also used dimming lights in the back offices and private areas.

The Regent Bangkok had energy control to control the chiller, pump operation, and

peak demand. The program was set on the controller. If the demand started going up, the

controller shut off energy-using units. When the demandwent down, the units were

automatically turned on. However, the hotel did not have guest room control because the

hotel was super-deluxe; the room rates included electricity charges. Dimming lightswere

also used in the back offices and private areas.

Shangri-LaHotel has installed building automation system controlwhich could

automatically turn-on and off the lights and air-conditioning. However, this did not apply

in the guest room.

The Oriental: Since the most energy loss was from the steam heating system and

therewere leaks in the boiler causing a lot of loss, the engineering department planned to

install a new safety valve and tried to utilizeheat efficiently by installing new insulate

valves to reuse heat for other purposes. Therewas also a plan to install valve meters at

every outlet such as thekitchen and receiving areas to utilizewastewater forwatering the

plants.

The Hilton Bangkok: the hotel relied on the computer to control maximum demand

load.

31

Security and Fire Safety

TheNovotel Bangkok used the card for room access and has installed smoke

detectors in the guest rooms and sprinklers in the back offices.

TheRegent Bangkok used the key for room access and has installed smoke

detectors in the guest rooms and heat detectors togetherwith the sprinklers in the back

offices.

Shangri-LaHotel used key for room access because of its reliability. In addition,

the hotel has installed smoke detectors, sprinklers and heat detectors in the guest rooms and

back offices.

The Oriental was hiring guards and using key for room access. The hotel did not

use the key card becausemost of the guests were aging people preferring simple and

comfortable style.More importantly, the hotelwanted tomaintain the Thai image of the

hotel. Therewas also FLESS (Fire Loss Energy Security Staff) consisting ofmany

departments, such as security, front office, housekeeping, assistantmanager, and

engineering. A meetingwas held every twomonths to refresh and reinforce the program,

such as fire drill, fire procedure and environment training, ifprovided. The hotel has

installed Cerberus smoke detectors in every guest room and in the back offices.

The Hilton used the card for room access because itwas convenient and the data

can be traced. Moreover, the hotel has installed heat detectors and sprinklers in the back

offices and smoke detectors in the guest rooms. There was also a fire annuciator system to

signal which sprinklers of fire pumps wereworkingwhen the fire broke out. The system

was installed in the engineering department, front desk, and security department.

32

Housekeeping and Laundry

Every hotel except Shangri-LaHotel relied on the computer in housekeeping to

check the room status, theguests'

names, check-in and check-out dates. The housekeeping

ofShangri-LaHotel has applied new technology for housekeeping. The housekeeperwas

called by the pager system to get the to-be cleaned room list from the chief-housekeeper.

The housekeeper could also clean the room by noticing the sign outside the room.

Concerning the laundry, every hotel relied on the computer to control washing,

drying, and spinning period. The equipment ofShangri-La Hotel was Cissell, Jensen,

Electrolux, andBruaun,while that ofThe Oriental was Spencerwashing machine, Cissell

dryingmachine,D'

Hooge ironingmachine, and Jensen foldingmachine. However, large

flatworkwas done manually.

Data Communication

None of the hotel in Bangkok has applied this technology.

33

Technology Investment

The Novotel and The Oriental said that the numberwas confidential. The

The investment ofThe Regent Bangkok was 180-200million Baht ofwhich

machinery accounted for 150 million Baht. The Shangri-La invested in these

areas: hotel information processing, telecommunications, and energy

conservation. The only hotel providing detailed investment figures was

TheHilton Bangkok, which is shown in Table 3.

Table 3

Technology Investment ofThe Hilton Bangkok

Technology Investment (Baht)*

Telecommunication 10 million Baht

Audio-visual 10 million Baht

Security and Safety 1 millionBaht

Fire Safety 5 million Baht

Hotel Information Processing 10 million Baht

Housekeeping 3 million Baht

Laundry 30 million Baht

DateCommunication 1 million Baht

* 1 US $ = 25 Baht

34

Equipment Procurement

Every hotel bought all equipment with different reasons, for example leasingwas

not popular inAsia, notworthwhile, impractical, unavailable, and expensive in Thailand.

Years of Technology Application and Replacement Plan

The Novotel Bangkok been using the technology since it opened in 1989.

Therefore, there was no placement plan for the hotel because all equipment was still in

good condition. However, the plan might be in effect in 20 years for air-conditioning and

laundry equipment.

The Regent Bangkok has been using the technology since its opening inmid 1983.

The hotel has replaced the guest elevator. However, the hotel had a replacement plan for the

telephone system which could display the guesfs name so that the operator could greet the

guest. In addition, the hotel planned to replace the employee elevator to electronical control

for faster service.

Shangri-LaHotel: the hotel has been using technology since it opened in 1 985 and

therewas no replacement plan yet because the equipment could be used up to 20 years.

The Oriental: the hotel has been using the technologies some time ago. So,there was

a replacement program formicroprocessor-controlledmodulating type oil burnerwhich

would control oil injectionmore efficiently.

The Hilton Bangkok: these technologies except foraudio-visual were used since the

hotel opened in 1982. The hotel then planned to replace the smoke detectors to

sophisticated andmore reliable systems and the telephone system to amore advanced

35system.

u J

Maintenance Cost

Maintenance costs ofThe Novotel Bangkokwere 7% to 10%, while those ofThe

Regent Bangkokwere nomore than 10%. The Hilton Bangkokwere 10% of total

revenues, while those ofShangri-LaHotel and the Oriental were 3% and less than 1%

respectively.

Technology VS Guest Satisfaction

The Novotel Bangkok said that every technologywas important to the guest

satisfaction, while The Regent Bangkok thought that the guest could choose music stations

from the TV remote control at the same time he chose TV channels or cable, which was

very convenient. Technology also affected guest satisfaction equaled to the service of the

hotel; if the technologywas good but the service was poor, the guestwould not stay at the

hotel. These three hotels; Shangri-LaHotel, The Oriental, and The Hilton Bangkok agreed

that technologywas not important to the the guest satisfaction. Shangri-LaHotel thought

that the guest was more impressed with the service and the landscaping of the hotel along

Chao Phraya River thanwith technology. The Oriental thought that guest satisfaction came

from services only and the guest liked the room style because of the influence. Finally,

The Hilton thought that the guest wasmore satisfied with the services more than

technology.

36

Investment Worthwhile

Every hotel except Shangri-LaHotel agreed that itwasworthwhile to invest in

technologieswith different reasons, for example the guest paid for the room thus expected

conveniences from the hotel, technology could help in eliminating labor, and to be able to

compete with others in the industry. On the contrary, Shangri-LaHotel thought thatwhat

was importantwas the easy operation of technology; not the investment.

Future Trends

The Novotel Bangkok thought that every hotelwould go for technology and the

technologywould become more sophisticated, for example air-conditioningwould

consume less energy, and cable TV could be viewed from all over the world.

The Regent Bangkok said that automatic control system; the computerwould be

used to control themachine operation thus eliminating labor. The system would control the

property's temperature, humidity, and energy-using equipment.

Shangri-LaHotel thought that telecommunications: the telephonewould be very

sophisticated and the computers would be improved to bemore efficient for the users.

The Oriental stated that new technology, such as a floor butler or housekeeper

paging system would increase the services of the hotel.Moreover, the hotel planned to set

up theBuildingAutomation System in 1993 to centralize all controls in the hotelwith only

one panel.

37

The HiltonBangkok: Energy conservationwould emphasize on environmental

protection. Therefore, the technology involved was the sewage plant technology.

Moreover, communication and information between the hotels especially the hotel chains

could be retrieved from the computer.

The questions and the summary and comparison of technology used in The Novotel

Bangkok, The Regent Bangkok, and Shangri-LaHotel are provided in Table 1. The same

questions, summary, and comparison is provided for The Oriental, and The Hilton

Bangkok in Table 2.

38

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Comparison Between Literature Review and Technology in

Bangkok Hotels

Telecommunications: The literature review stated two kinds of telephone systems,

while the telecommunications inBangkok hotels were only one kind of telephone system

whichwas PABX. The differencewas that the hotels use different brands ofPABX.

Audio-visual: According to the literature review, audio-visual increased internal

communication network, provided audio-visual for group meetings, guest-room

entertainment, and information. The audio-visual in Bangkok hotelswere not sophisticated

as in the United States. However, four hotels had satellites to receive the programs from

abroad.

Energy conservation: There were various kinds ofenergy conservation in the

literature review butwhat in the Bangkok hotels were just guest room control, chiller,

pump operation, and peak demand control, and building automation system control.

Security and safety: There were electronic lock systems, and closed-circuit

television, guest-room safes, and photoelectric sensing, while those in Bangkok hotels

were card or key for room access. Regarding the fire safety, the literature review and the

Bangkok hotels were the same in general, whichwere smoke detectors, heat detectors, and

sprinklers.

Hotel information processing: The literature review mentioned property

management system, while thiswas not applicable in Bangkok.

45

Housekeeping and laundry: the literature review andBangkok hotels used the same

technology, which relied on the computers.

Date communication: the literature review stated some information about data

communication, which was not applicable in Bangkokhotels.

46

Chapter V

CONCLUSION

To sum up, technology in Bangkok hotels is not as sophisticated as in the United

States. Generally, only luxury hotels invested in technology to maintain the leadership in

the industry. However, there are some technology that Bangkok hotel operators did not

think it impacted services or guest satisfaction, such asaudio-visual. Nevertheless,

Bangkok hotels are rated the best service hotels in the world. Luxury hotel operators are

also convinced that technology does contribute to service enhancement which satisfies the

guest in term of time and cost. Therefore, the hotels can stay in competitive edge.

Most of the Bangkok hotels use PABX telephone systems and install satellite to

receive the programs from abroad. Regarding energy conservation, the Bangkok hotels

applied guest room control, chiller, pump operation, peak demand control, and building

automation systems. The hotels use key and card for room access and install heat detectors,

smoke detectors, and sprinklers in the guest rooms and back offices. Housekeeping and

laundry rely on the computers but large flatwork is done manually. However, hotel

information processing and date communicationwere not applicable in Bangkok hotels.

For the future trends of technology, the directors ofengineering believe that every hotel

will go for technology and technologywill becomemore sophisticated, for exampleair-

conditioningwill consume less energy, and cable TVcan be viewed from all over the

world, the automatic control system, thetelephone system, and sewage plant technology.

47

Another interesting point is that the hotels bought all equipment because leasing is

not popular and available inAsia. In addition, the hotels thought that technologywas not

very important to the guest satisfaction. They believe that service, room styles, and the

landscaping of the hotel propertywere important. However, all said itwas amust to invest

in technology for better services, competition, and labor elimination in the future.

The recommendations for the Bangkok hotels are that hotel operators have to visit

the hotels in the United States, Europe, or Japan to see hotel operations and technology

development. So, the Bangkok hotels can develop an imported system of technologywith

the local agent in order to compete with the the international hotel chains all over theworld.

48

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Hertig, Daniel. (1988, October ). Computerized Laundry. Lodging, pp. 41-42

Hughes, Terry. (1985, October). Property Management System. Lodging, p. 86

Ministry of Finance, Thailand. (1991). Queen Sirikit Convention Center.

pp. 32-33

Redlin, Michael H.,and David M. Stipanuk. (1989). Managing Hospitality

Engineering Systems. Michigan: Educational Institute of the American

Hotel & Motel Association.

Reiss, Marc. (1989, October). Telecommunications. Lodging, pp. 29-35

Rosenbloom, Parcy. (1990, April). Computerized Housekeeping For Simplicity

and Productivity. Lodging, pp. 24-25

Semple, Brooks. (1986, October). Fire Safety. Lodging, pp. 39-40

Tourism Authority of Thailand. (1989). Thailand, pp. 1-4

Wagner, Grace. (1992, January). Tuning In. Lodging Hospitality, p. 60

Winegar, Joan. (1985, October). Date Communication. Lodging, pp. 49-50

Wolfe, Jack. (1984, March). Energy Management Systems. Lodging, pp. 59-64

Whiteley, Jerry. (1989, October).Audio-Visual Systems. Lodging, pp. 33-36

50

APPENDIX A

Map of Thailand

51

Map of Thailand

52

Map of Bangkok With Hotel Locations

HI The Menam Hotel

H2 Shangri-la Bangkok

H3 The Oriental, Bangkok Hl6

H4 Royal Orchid Sheraton Hotel HI 7

H5 Holiday Inn Crowne Plaza Hotel H18

H19

H20

H21

H22

H23

H24

H25

H26

H27

The Mansion Kempinski

Bangkok Hotel

The Imperial

Hilton International Bangko

The Regent of Bangkok

Grand Hyatt Erawan Bangkc

Le Meridien President

Arnoma Swissotel Bangkok

Novotel Bangkok

Hotel Siam Inter-Continenta

Asia Hotel

Indra Regent Hotel

Siam City Hotel

Princess Hotel

53

APPENDLX C

Hotel Technology

54

Guest Room Control

iflBl; i

Ifc 1

55

HVAC Centralized System

56

Ving Card for Room Access

!i-

. p

itt

mm

m

57

Security: Closed Cicuit Television

58

Fire Annuciator and Smoke Detectors

59

Computerized Washing Machine

60

Folding Machine

61

Drying Machine

_m

Dry Cleaning Machine

62

APPENDIX E

An Inquiry Letter to Hotels

63

699 Silom Road

Bangrak, Bangkok 10500

December 15, 1991

EngineeringDepartmentDirector

The Novotel Bangkok

Siam Square Soi 6

Bangkok 10330

Dear Sin

My name is Bovornrudee Kongboonma. As a graduate at Rochester Institute of

Technology, I amworking on the thesis"

Applications of technology in hotelindustry"

comparing technology in the luxury hotels in Bangkok.Moreover, I am very interested in

hearing your opinions on the mentioned subject.Would you kindly grant me an interview

on the fifteenth ofJanuary. With your permission, I will phone in a few days to make an

appointment to discuss this issue.

Throughoutmypreliminary research, I have the information of technologies in

telecommunication, audio-visual, energy conservation, security and safety, fire safety,

hotel information processing, housekeeping, laundry, and date communication. Your

answers to these questions belowwould perfectly help me complete my thesis.

1 . What did the hotel use in these technologies: telecommunications, audio

visual, energy conservation, security and safety, fire safety, hotel

information, processing, housekeeping, laundry, and data communication?

2 .How much did the hotel invest in these technologies ?

64

3 . For how long has the hotel been using these technologies ?

4 . Howmuch is service andmaintenance cost ?

5 . Did the hotel lease or buy the equipment ?Why ?

6 . What technology is themost successful to guest satisfaction ?

7 . Is itworthwhile to invest in these technologies ?

8 . What are the future trends for hotel technology ?

Iwould appreciate your assistance. Your answers, alongwith any recent findings you can

share, will enrichmy knowledges ofhotel technology to completemy thesis.

Sincerely,

(Bovornrudee Kongboonma)

65