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The ROI of Hospitality Technology
A dive into tech investment that expands on a recent report from the ILHA Tech Integration Committee
November 12
by Michelle Guss, Vice President of Hospitality

Technological advances can be a mixed bag, especially in public-facing industries. Some people have a negative reaction to self-service fast food kiosks or grocery checkouts. Customer concerns can range from worry about the accuracy of such devices to guilt that someone’s lost their job to a machine.

The issue is likely magnified as the product or service becomes more expensive. It’s an oversimplification, but machines shouldn’t do everything.

A guest at a luxury hotel, more often than not, expects human interaction. They expect someone to be available to answer their needs.

So what’s the right balance?

Quim Gener, operations director (USA and Caribbean) for Luxury Hotel Partners, may have found the “secret sauce.” In a recent report from the ILHA Tech Integration Committee, Gener says, “Traditionally, the industry has measured ROI in technology based on staff reduction. However, we want our human resources department to lead reconversion processes, reassigning staff to roles that increase personal interaction with the client. The true ROI is in the added value to the customer experience.”

Improve the Stay, Improve the Bottom Line

In the world of luxury hospitality, technology must offer solid returns on investment while enhancing the customer experience. The best tech solutions save the hotel operator money, allow the staff to put more time into client services, and improve the guest's stay.

Take something as simple as automated shading, for example. Blinds over southern-facing windows on a hot summer day that “know” when to close can cut down on AC costs while keeping temperatures and light levels comfortable for the guest — during the stay, check-in, or on the return to the room. They can also help mitigate the bleaching effects of sunlight on luxury finishes and fabrics. Occupancy sensors can further help the shading solution determine if manual adjustments should override automated functions. The concept is simple, but the positive results are undeniable.

And if occupancy sensors can help with shading, they can certainly be applied to lighting and HVAC settings. All of that data can be collated, analyzed, and applied to everything from blocks of rooms to the preferences of demographic segments of the customers.

It’s In the Data

That data may yield surprises. Steven Marais, VP of rooms and IT operations at Noble House Hotels, mentions this kind of discovery as he lays out a testing process that’s in place at the chain. “We typically pilot new technologies at one property and analyze the results before a broader rollout,” he says. “For example, we found that older demographics appreciated Apple TVs more than expected, which influenced our decision to implement them more widely.”

Taylor Fields, corporate director of spa, wellness, and retail of PCH Hotels and Resorts, uncovered another key data point that reflects a changing demographic at their hotels. “Online booking services for spa appointments have significantly higher average checks compared to bookings made over the phone, demonstrating the financial benefits of technology integration,” he notes.

Suite, Matild Palace
Spa, Atlantis Casino Resort
Sportsbook, Talking Stick

One-Touch Control

While that human interaction may be gone during the booking process, it does free up the staff to focus on the guest experience once they reach the spa. And the tech in the spa itself can add to that efficiency, as we noted on the Crestron blog in our chat with Zak Gulling, CIO of Atlantis Casino Resort Spa:

“Our spa, Spa Atlantis, is Forbes Four-Star rated — one of just a few in the world with that designation.” The systems in the spa can be set to provide the perfect environment for a massage or treatment with a single tap. “The therapist just hits a start button, and the room knows what type of massage and how long it should last, so the lighting, audio, and climate automatically adjust.”

The Crestron system that controls the spa sends audio and video to other parts of Atlantis. By leveraging Crestron DM NVX® AV-over-IP technology, Gulling replaced the limited analog feeds to the resort’s bars, restaurants, and other common areas and amenities with a centralized audio system. “With Crestron solutions, we can control audio across the entire property from a single location to ensure consistency,” he says.

Management and Control

Another resort and casino that’s had great success with the labor-saving aspects of Crestron technology is the Talking Stick Resort in Arizona. AV Manager Fletcher Hickey leans into DM NVX AV-over-IP to help him quickly troubleshoot the resort’s massive sportsbook. As he told us for another post on the Crestron blog: “I can’t tell you how many times we’ve run out of encoders — to be able to take something from a display that’s not in use, flip a switch, and have the right part for, say, a second tournament clock is a huge benefit.”

The Crestron technology in the Atlantis isn’t a one-way affair, either. The resort has also invested in the Crestron XiO Cloud® technology management platform to report on things such as room use — and to give staff greater control of the property from any location.
And to revisit the spa example, an ecosystem of technology built around Crestron control and management solutions could monitor spa appointment bookings, identify peak times, and suggest dynamic pricing strategies to maximize revenue.

The Crestron Difference

Of course, the true measure of guest satisfaction is occupancy and return rates. To help drive that customer loyalty — notably in the pricier rooms — Zak Gulling has implemented one-touch controls: “In our high-end VIP suites, we can automate drapery and lighting using Crestron touch panels and provide content via DM NVX AV-over-IP. Our keypads have a button labeled ‘good morning’ that slowly brings up lights, opens shades, brings up music, and more. The guest doesn’t need to be a tech wizard — we were able to make it very simple and understandable for a guest to use.”

Wendy Mertz, CIO of Virgin Hotels, summed things up in the ILHA report. “The ROI can be seen in both direct and indirect ways, such as labor savings and enhanced guest experience,” she says.

She did offer a caveat. “However, it is important to consider the costs involved in implementing and maintaining these technologies.” That’s why it’s important for a tech specifier to work with a company that has a segment dedicated to hospitality solutions, as Crestron does. (It’s worth mentioning that the Crestron Home® OS — a smart home platform often used to drive the in-room experience — is constantly being updated free of charge to the client.)

What’s more, Crestron understands that the most important role for technology in the hospitality industry is not to replace the human touch, but to enhance it. That’s how you create the “oh wow” factor for guests immediately, exceed their expectations during the stay, and ensure they’ll come back.

Find the report from the ILHA Tech Integration Committee.

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Crestron DM NVX AV-over-IP technology

DM NVX® AV-over-IP technology combines video, audio, USB, and control on a single platform to reliably distribute anything across your entire network — in real time, at the highest quality and security standards.

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Crestron Home® OS

With Crestron, everything in the home is controlled with ease on one intelligent platform. Your home becomes more secure, comfortable, and convenient.

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Hospitality Technology Solutions

Smart guest rooms that turn new visitors into repeat guests. Conference rooms that help them get down to business. Ballrooms that help them have a ball. Only Crestron enables you to provide premier, personalized guest service combined with robust, scalable, cost-effective property-wide monitoring and management. All on a single platform.

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