Results from Hospitality 2000: The Technology, a major international research study sponsored by Arthur Andersen, the New York University Center for Hospitality, Tourism and Travel Administration, and the international trade association Hospitality Financial and Technology Professionals (HFTP), indicate that hospitality companies are fine tuning their technology to better serve customers in the new millenium.

While the industry will increase its spending from 3.1 percent of revenues to 4.0 percent in the next three years, most of the expenditures will be used to improve property management systems. There is also a trend toward significant investment in technology applications to improve the customer experience. Voice mail is the dominant item with an 84 percent implementation rate among these organizations, followed by on-demand movies, dual phone lines, in-room Internet access and fax/copier/printers.

"As a major part of the industry's "real estate" and the place where the customer expects not only comfort, but convenience, the guestroom is where technology applications can and will provide competitive advantage," said Roger Cline, a partner at Arthur Andersen and Director of Hospitality Consulting Services.

Further, hospitality executives surveyed are continuing to devote time and resources in getting to know their customers. They are considering the integration of not only Property Management and Central Reservation Systems, but also data warehouses into fully integrated Customer Information Systems. But like the adoption of technology elsewhere in the industry, the pace is slow. Approximately 13 percent of respondents report that they have installed a Customer Information System. Another 11 percent have a plan for a Customer Information System and have allocated the capital (mostly for completion within the next three years).

The industry has moved quickly to embrace new ways of communicating with its customers, and vice versa. Most companies (90 percent) have a web site on the Internet and, for the minority that do not, the competitive pressure is high. The study indicates that virtually all of those without a current web site do plan to have one within the next two years.

"With the industry moving rapidly toward Internet offerings, the relative importance of distribution channels is set to change dramatically in the coming years. Today, an estimated 4 percent of all reservations are channeled through the Internet, but this is forecast to grow to 11 percent by year 2000," said Dr. Mark Warner, Director for Graduate Programs, New York University Center for Hospitality, Tourism and Travel Administration.

In summary, the stakes are high for hospitality organizations when it comes to investing well and wisely in technology. The executives surveyed seem well aware that how they invest in and use new tools and systems influences cost, effectiveness and the company's competitiveness. And as consumers choose from a growing variety of hospitality products - - and channels of distribution - - these technologies must support a customer-focused enterprise as never before.

Hospitality 2000: The Technology is the third in a series of global studies being created under the Hospitality 2000 banner that define some of the critical issues that the hospitality industry will face in the next millenium. Following the proven research methodology used in previous Hospitality 2000 studies, the research was conducted by completing a broad-ranging review of the current literature, preparing and testing a detailed questionnaire and mailing it to thousands of hospitality industry executives in the Americas, Europe, the Middle East, India, Africa and Asia/Pacific. The complete study is available for $195 U.S. by calling toll free 800-872-2454 (U.S.) or 941-373-2020 (outside U.S.). The two earlier studies, The People, and A View of the Next Millennium, are also available for purchase.

Arthur Andersen is a global professional services organization consisting of over 100 member firms in 81 countries. Its more than 70,000 people are united by a single worldwide operating structure and a common culture that fosters innovation, knowledge sharing and quality service. This unique one-firm approach qualifies the people of Arthur Andersen to serve clients by bringing together any of more than 40 services in a way that transcends geographic borders and organizational lines. Arthur Andersen's people provide effective business solutions to more than 100,000 clients around the world. Since its beginning in 1913, Arthur Andersen has realized 85 years of uninterrupted growth. With revenues of over $6 billion, it stands today as a world leader in professional services. Arthur Andersen is a business unit of Andersen Worldwide.

The Center for Hospitality, Tourism and Travel Administration (CHTTA) at NYU's School of Continuing and Professional Studies was established in 1992 to respond to the industry's burgeoning need for education and professional training. It has grown rapidly in both size and reputation, now enrolling more than 400 students in a full range of undergraduate and graduate degree programs, certificate programs, and noncredit courses. Degree programs at CHTTA include the Master of Science in Hospitality Industry Studies; the Master of Science in Tourism and Travel Management; the Bachelor of Science in Hotel and Tourism Management; and the Bachelor of Science in Recreation and Leisure Studies.

Hospitality Financial and Technology Professionals (HFTP), the international association for financial and technology professionals in the hospitality industry, provides continuing education and networking opportunities to hospitality professionals around the world. For more than 25 years, the association has been a leader in promoting and supporting hospitality technology.

Gina Marie Gralnik
619-699-6940
Arthur Andersen Real Estate Hospitality & Services Group