HT 344-Hospitality and Tourism Marketing and Sales                                                                Fall    ...
HT 344-Hospitality and Tourism Marketing and Sales         OpenWays is a company which provides mobile-based access manage...
HT 344-Hospitality and Tourism Marketing and Salescredential). By doing this the phones will always be compatible with Ope...
HT 344-Hospitality and Tourism Marketing and Sales        The margin of having this real world application is that it allo...
HT 344-Hospitality and Tourism Marketing and Salesapplications for service will be the new way of travel. As Sanders point...
HT 344-Hospitality and Tourism Marketing and Salesthey stay in the lead, there is no telling what it could do for the hosp...
HT 344-Hospitality and Tourism Marketing and SalesReferences:       Worcester, B. (2009, November). 100% of the world cell...
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Industry Trend Paper (Group)

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Industry Trends Paper on OpenWays. The mobile key application of the present and future.

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Industry Trend Paper (Group)

  1. 1. HT 344-Hospitality and Tourism Marketing and Sales Fall 12HT-344 Hospitality and Tourism Marketing and Sales Professor Eric Brey. Oct 3rd, 2012 Hospitality Trend Assignment Team Members: Katie Werner, Pu Zhao, Claire Zelenka 1 University of Wisconsin Stout | School of Hospitality
  2. 2. HT 344-Hospitality and Tourism Marketing and Sales OpenWays is a company which provides mobile-based access managementsolutions for the security and hospitality industries. In November 2009 the “mobile key”idea was unveiled at an international hotel/motel and restaurant show. The thoughtprocess of the mobile key idea was that when you get to your hotel you would be ableskip the standard front desk routine and go right to your hotel room without needing anytype of key to open your door. The co-founders of the OpenWays solution include: PascalMetivier, Paul Zimmerman, Josh Alper, and MauriMaza. How the OpenWays solutionworks is first a guest gives the hotel their smartphone number and download theOpenWays app. Then, two or three days before arrival, they’ll receive a text messagecontaining their room number and a unique and encrypted sound code that they’ll use tounlock their hotel-room door. The code will work once and then reset itself. The scope of people this type of solution is geared towards is hoteliers that like totake control of their travel experience. This has the potential to reach billions of peopleworldwide as the mobile key app can be downloaded on to all 6.5 billion cell phonesglobally. Andrew Sanders, the Vice President of OpenWays said, “OpenWays offers aunique solution that has the potential to revolutionize hotel travel in the same way thatonline airline check-in has changed how travelers fly -- it gives people a better and fasterexperience when they need it," Sanders said. "The OpenWays solution gives travelers anew choice, and provides hotels with the ability to offer something truly innovative andgreen to their guests. I was intrigued by OpenWays from the very first moment that Ilearned a mobile-key solution for front-desk bypass was being introduced to thehospitality industry," he said. "OpenWays is unique, ubiquitous and a cost-effectivemeans for guests to bypass the normal check-in process, while providing hotels withbrand differentiation and the ability to spend more one-on-one time with guests who needor demand personal attention. In addition, by dematerializing keys and cards and sendingthem over the air to cell phones, OpenWays also is making a significant contribution tothe environment. There are no key-cards greener than the OpenWays acoustic credentialswhich are only made of data." This scope reaches to both the hotel guests as well as theenvironment as he explained that the mobile key is “green” to the guests. Aside from the view point of the guests and how they are being impacted by thislook at it from the environmental view. With OpenWays mobile key app the traditionalhotel key card is eliminated allowing room a more environment friendly technology.Pascal Metivier the founder and CEO of this company said, "It also enhances a hotelssustainability program. Because the OpenWays Mobile Key credential is made only ofdata and not plastic, hotels are eliminating costs originally spent on toxic plastic keycards that frequently end up in landfills and instead are having a positive impact on theenvironment. The OpenWays Mobile Key is the greenest way on the planet to access aguestroom. In the end, Mobile Key enables staff to enhance the service they providewhile making their jobs more interesting, valuable and satisfying." In the future OpenWays will continue to operate this application as long asphones are in use (which I don’t see an end to). However, some small modifications arein store for the future as of right now. Apple is not equipped with NFC (Near FieldCommunication). This could be problematic because it won’t be compatible withOpenWays platforms. Nevertheless, OpenWays announced earlier this year that theywould make NFC available that combines on a dual platform with CAC (crypto acoustic 2 University of Wisconsin Stout | School of Hospitality |
  3. 3. HT 344-Hospitality and Tourism Marketing and Salescredential). By doing this the phones will always be compatible with OpenWaysplatforms, thus making it “fully future proof” Technology applications provide more and more convenient and intelligent meansto the world of commerce. Looking from the customer’s perspective, the most wildlycarried platform that allows technology application to function directly to the customer isthe mobile phone, smart type of phones to be specific. Smartphone allows theimplementation of customer chosen applications. In order to make the customer’shospitality experience to be more mobile and convenient, the smartphone application hasa great potential to take a representative role of future customers. OpenWays specifically developed its system that links the smartphone applicationwith hotel’s door locks. This project allows the guest to use their smartphone to open thedoor of their hotel room, thus skip the front desk check-in procedure.This piece oftechnology applicationmay embody the future technology applicationtrend in general inthe hospitality industry. More applications involve technologies application has alreadybeen put into use. The hospitality industry would address itself to the mobile trend more and more. According to HotelManagement.net, “Oklahoma hotel offers phone-activateddoor locks”, “a new Holiday Inn Express Inn & Suites, opening in Duncan, Oklahoma,will be the first in the state to enable guests to bypass the front desk process and unlocktheir room door with their mobile device.” This news report is posted on Sept 25th of2012. As the trend spread, we will ought to see more hotels across the country that arewilling to adopt this method of check-in. Because it would relatively reduces certainamount of labor burden to the hotel, and certain guests would prefer access his or herhotel room directly without stopping at the front desk. Another case of this type of technology would be a report in HospitalityTechnology.com. “Hotel enhances In-Room Dining Experience with iPad ordering”. Inthe report, “Intelity’s ICE (Interactive Customer Experience) virtual concierge systemmakes it simple and convenient to use the complimentaryiPads included in everyguestroom to review signature dishes. Then, guests at the Morgans Hotel Group propertycan choose to either place an in-room dining request for select items and enjoy their mealin the privacy of their room or make reservation to eat in the dining room of therestaurant.” In this case, the guest initiates a demand with the hotel directly from his orher mobile device, the iPad; similar in property with the previous case’s smartphone, tocommunicate directly with the hotel in order to fulfill the demand. Although the twocases appear to be using different technology.However, the trend that the two casesaccessed follows the same principle. The principle is that guests now are capable of avoidto communicate with guest service department on the phone, but order menu items in anew form. This application certainly shares the same advantages of reducing hotel laborburden, and guest dissatisfactions, as long as the software are intuitive enough to reachthe majority users in the future. Future business could reference the idea from the two cases above, and mostimportantly it is the principle of innovation behind it. Which is to let the customer to bepart of the process to form his or her own experience, by allowing services to havemobile access. The mobile device becomes the spokesperson or the concierge to the guest. 3 University of Wisconsin Stout | School of Hospitality
  4. 4. HT 344-Hospitality and Tourism Marketing and Sales The margin of having this real world application is that it allows guest to have thechoice to access the same party as before, but it adds certain level of convenience to it, tomention the least. Therefore, as this new piece of technology application gaining itspopularity, I presume there would be a room for improvement on the application itself, aswell as the advertisement of this new application. One disadvantage to the smartphone key access application, as well as the iPadordering system, is that it might targeted only to a limited group of guests, such asfrequent travelers, young age group who are able to utilize modern technologies in dailylife. Both of these groups would have the tendency to spent time and energy to gothrough a process that saves times and brings a new experience. However, guests whoenjoyperson-to-person interactions or who finds the smartphone key access application isan unnecessary solution to a problem that does not exist in the first place, would be out ofreach for this new trend. Thus, in order to avoid the favoritism by guests who prefer theold fashion method, to enhance the advantages to the smartphone key access applicationwould make the marketing of this piece of technology application more attractive, andmost importantly, more practical to the all kinds of customers. Besides the hospitality industry, the world of commerce or generally allbusinesses and enterprises. Such applications could derive other similar smartphoneapplication using the same engines and principles to eliminate inefficient part of theestablished procedure. This principle does not confine itself to business to customerrelationship. But business to business, as well as customer to customer would have agreat potential to borrow. Therefore I personally believe that outside of the hospitalityand tourism industry, the technology would find itself useful in many cases. OpenWays technology is technology for the present and the future. It has thepotential to stay ahead in the market for quite a long time. The use of Near FieldCommunication, or NFC, can have a great impact on how effective this application is,and it can help OpenWays stay ahead of its competitors. The technology can also be usedin various other business types, such as airline companies and car rental services. An innovative technology, such as OpenWays, can potentially impact allbusinesses, especially hospitality businesses. The needs of customers are changing from a“service” industry to a “self-service” industry. Most customers these days want servicefast, and if the service can be done by themselves, all the better. In a news articlepublished recently entitled, “Mobile Services Top Airlines’ Priority Lists; To MeetTravelers’ Expectations, Hotels Need to Invest in the Same”, Andrew Sanders states: “Because of the convenience and flexibility that mobile devices afford consumers, many -- especially Generation Y (consumers age 18 to 32 who spend approximately $200 billion on travel annually) -- will never be caught without a cell phone. They love instant gratification and are notorious for not being willing to wait in line and hate being delayed or their progress restricted. Just as travelers are eager to board their planes, they are equally as anxious to get into their hotel rooms.” (Sanders). This new generation of customers is changing the way in which people travel,which also changes the way in which hotel companies need to provide services. TheOpenWays application can help hotels offer better service to their customers by givingthem the resources to serve themselves. Starting now and into the future, mobile 4 University of Wisconsin Stout | School of Hospitality |
  5. 5. HT 344-Hospitality and Tourism Marketing and Salesapplications for service will be the new way of travel. As Sanders points out, “Mobiletransactions too are gaining momentum. Google reports that 70 percent of businesstravelers will check into their flights/hotel with their mobile device; almost one in fourhotel queries come from a mobile phone; and more than 50% of travelers are currentlyusing their mobile phone or device for travel-related information.” (Sanders). Companiesand, especially, hospitality services that fail to start integrating mobile technology intotheir service will be left behind as technologically savvy businesses take their customers.OpenWays can help ease the transition into technology for most hotels. The technology of OpenWays, itself, is far from “behind the times”. OpenWaysuses Near Field Communication, or NFC. This technology allows the application to beused on every smartphone brand and company, not just selected phone types. Thisuniversality ensures that the application will not have to be updated or changed to allowother users to use it. More specifically, this technology will be the front runner in thebusiness world, because it is the technology used in securely opening the hotel roomdoors. This secure technology could expand to other areas of travel, including rental carcompanies. Customers could potentially use this application to open rental car doors orstart the engine from their phone. It could also be used in downloading computer data orexchanging information with other phones. This “bump” technology, where NFC devicescommunicate by just touching each other, can provide endless possibilities in a multitudeof business types. In order for OpenWays to continue to grow and to be successful, it is importantfor OpenWays to stay ahead of its competitors. In this ever-changing service world, it isnot uncommon for companies to see a technology or product and decide to use it in abetter or more efficient way. OpenWays must be aware of its competitors, as well asahead of them. Right now, it is clear that they have the advantage. As RFID blog states,“OpenWays has pioneered front desk bypass solutions, and with the only actualdeployments, is the leading solution of its kind, chosen by international and nationalchains, and leading independent hotels as their standard for enabling guests to skipwaiting in line when they arrive at their hotel and head straight to their rooms.” (RFID-Blog). OpenWays is “ahead of the game”, so to speak, but in order for them to stay there,they must ensure that this application is free from glitches and provides all the basiccontent for customers to use it effectively, but not overwhelm the customers. Theapplication must also have the ability to update information quickly and easily so that theinformation is relevant to its customers. If the application is too cluttered withinformation, customers will become frustrated. Getting hotels interested in the product isalso another concern for the technology. If implementing this new technology is tooexpensive or difficult, hotels will be reluctant to add it to their room doors. Mostimportantly, the application will need to include other uses besides just hotel room doors.By including airline check-in, or car rental technology, the application could become auniversal application for traveling, and as long as it is the first application to do so, it willbecome very successful. OpenWays is a technology that has the potential to be highly successful andhighly useful. Customers appreciate convenience and accessibility, and OpenWays canprovide just that. It is important for OpenWays to continue changing in order to satisfy itscustomers’ needs, as well as stay ahead of its competitors. If OpenWays can insure that 5 University of Wisconsin Stout | School of Hospitality
  6. 6. HT 344-Hospitality and Tourism Marketing and Salesthey stay in the lead, there is no telling what it could do for the hospitality industry atlarge. The possibilities of such a technology are endless. 6 University of Wisconsin Stout | School of Hospitality |
  7. 7. HT 344-Hospitality and Tourism Marketing and SalesReferences: Worcester, B. (2009, November). 100% of the world cell phones to open.Retrieved from http://www.openways.com/pdf/Openways is HERE 11 03 09.pdf Worcester , B. (2010, November). Hotel online . Retrieved fromhttp://www.hotel-online.com/News/PR2010_4th/Nov10_ASanders.html New iphone 5 allows hotel guests worldwide to check in and open their room lock.(2012, September). Retrieved from http://www.hospitalitynet.org/news/4057676.html Openways announcing: Mobile key dual© with pure nfc™ in cooperation withnordic choice hotels, nokia and nxp. (2012, January). Retrieved fromhttp://www.hospitalitynet.org/news/154000320/4054482.html Mobile services top airlines priority lists; to meet travelers expectations, hotelsneed to invest in the same. (2012, August). Retrieved fromhttp://www.bluemaumau.org/mobile_services_top Hotelmanagement.net, Oklahoma hotel offers phone-activated door locks, Sept th25 , 2012. Retrieved fromhttp://www.hotelmanagement.net/technology/oklahoma-hotel-offers-phone-activated-door-locks-17738 Hospitality Technology.com, Hotel Enhances In-Room Dining Experience withiPad ordering. Aug 20th, 2012. Retrieved fromhttp://hospitalitytechnology.edgl.com/news/Hotel-Enhances-In-Room-Dining-Experience-with-iPad-Ordering81755 Openways’ Mobile Key Allows Customers to Open Hotel Rooms with Phones.RFID- Blog. Retrieved fromhttp://www.rfid-blog.com/?p=461. Sanders, Andrew. (2012 August 8). Mobile Services Top Airlines’ Priority Lists;To Meet Travelers’ Expectations, Hotels Need to Invest in the Same.HospitalityNet.Retrievedfrom http://www.hospitalitynet.org/news/4057222.html. 7 University of Wisconsin Stout | School of Hospitality

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