Case Study 3 Choice Hotels International By CIS505 C.docx

Case Study 3: Choice Hotels International
By
CIS505: Communications Technologies
Instructor:
Feb 27, 2019
Assess the two distinct networking functions.
There are two distinct networking functions in the hospitality
industry. Choice Hotels
International does not own any hotels but has a network that
supports the franchisees. It is one of
the most successful lodging companies in the world. For the
customer, Choice Hotels have a
central reservation system. It is known as the Profit Manager
and helps customers find the most
appropriate hotel based on wanted location and price range and
rating. The Profit manager. For
the franchisees, they provide a service in return for royalty.
The services provided by Choice’s

networks to its franchisees include marketing, quality control,
and inventory management. The
networking functions for the customer is kept at a higher
performance for the network.
Analyze the issues Choice is likely to experience as it expands
its network to full global reach.
Provide a rationale for your answer.
In 1990 the company Choice Hotels International wanted to
provide state of the art global
reservations system. That system would service hotel customers
better by providing an online
booking application that allowed customers to see what was
available according to their needs
and even gave them a view of the room they are requesting. In
the same turn, this system
allowed for a faster process for hotels because customers could
now book themselves and all
room that where available can be booked. Before the system
would only allow 30 percent of the
available rooms to be available online. Once all rooms were
booked online at 30 percent, no
more online reservations can be made. Even if the hotel had
more rooms available, only 30
percent was allowed. This was because the synchronizations of

local and online reservations
were done manually. It was at the time, a telephone-based
central reservation system that
allowed managers to see and set bookings online. When they
became a Web-based system, it
allowed customers to see the listing for every room available to
them. Before the global
expansion, Choice had a local reservation system and a central
reservation system. Choice
provided every American hotel with a permanent connection to
the Central reservation system.
This now means that Choice need to have a networks were
coverage and reliability is criteria.
In the United States, there were only two choices that would
provide that coverage. Leased lines
is an expensive technology. It is a private bidirectional or
symmetric telecommunication circuit
between locations. A leased line is also a fiber optic, and you
are paying rent for the use of the
line.
The other choice was dependence on switched networks.
Switched networks do not always

provide good service. This service is only on a computer
network that uses only network
switches will provide connection to each work station. To
provide a world class state of the art
system for all customers and operations in American, Choice
needed a system that would
provide universal coverage that is more reliable. Satellites with
fixed dishes are dependable
technology for Choice.
Critique the Choice implementing free high-speed Internet
access for all guests in its Clarion
Hotels and Comfort Suites from the security point of view.
In the past Hotels would affordably provide Internet service at
a charge to guess requesting
Internet access. Choice however wished to avoid that action.
Hotels would charge due to the
high cost on an installation of cabling. Choice provides access
by having Wi-Fi that serves all of
the guest rooms using 3Com Wi-Fi network. The guest was
able to check email, exchange files
and browse the web up to 54 Mbps in speed. The installation
of Wi-Fi did not require
construction or installing cables to receive the service. Wi-Fi
just requires a controller in the

hotel. Choice Wi-Fi had encryption and support of security
options that help save guard data.
The Wi-Fi system could support up to 256 users at a time. In my
opinion, the offer of high-speed
Internet access attracts business minded customers who will
return to that hotel time and time
again to do business. Customers who often have a need for
access to the Internet are more likely
to go to one of Choice's hotels. Free Wi-Fi or high-speed
internet access helps bring the guest to
the hotel which in turn it the nature of the business. People
want to stay where they can get the
most for their money time and convince. Also, it is a free
marketing tool to give free Wi-Fi
because of Social Media. If a hotel is seen on Social Media,
being a place where a guest had a
great time and willing to come back. That guest will most
likely put it on Social media and send
it to all their friends who in turn will most likely be next to
visit the hotel.

Reference
� Mitchell, B. (2019, January 07). Definition of a Leased Line
in Networking. Retrieved
from https://www.lifewire.com/definition-of-leased-line-817871
� Free WiFi for hotel guests - Boon or a Bane? (2018, February
21). Retrieved March 2,
2019, from https://ezeeabsolute.com/blog/should-hoteliers-
offer-free-wifi-for-hotel-
guests/
� What is a CRS Central Reservation System? (n.d.). Retrieved
from
https://www.siteminder.com/crs-central-reservation-system-
definition/

SWOT Analysis Worksheet
In
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STRENGTHS WEAKNESSES
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OPPORTUNITIES THREATS
Strengths: Weaknesses: Opportunities: Threats:
Running head: CHOICE HOTELS INTERNATIONAL: CASE
STUDY 3

Choice Hotels International
CIS 505
March 8, 2019
Strayer University
Choice Hotels International 2
Access two distinct networking functions
Choice Hotels International supports two distinct networking
functions; In-house
networking functions, and Guest Internet Access functions.
Traditionally in the hospitality
industry companies separated networks that served guests and
those that served operations and
administration functions. Choice’s dedicated IP network was
supplied by two geostationary
satellites based at separate hub to support its North America
operations (Stallings, 2009). The

following is a breakdown of the company’s two distinct
networking functions:
� In-house networking – Choice franchises more than 6100
hotels and over 490,000 rooms.
To support its enterprise, Choice uses a central Web site which
allows customers the
ability to reserve rooms at any franchise online. Due to online
travel sales worldwide
increasing by double digits and online booking reaching
$189.62 billion in 2017
(Simunic, 2018), implementation of web booking was crucial
for the company to stay
competitive. The global reservation system was updated from a
manual synchronization
process with local reservations to a fully intergraded central
system. For the fully
intergraded system to function every U.S based hotel was
connected to a franchise-wide
IP network.
� Guest Internet services – In 2004 the company implemented
free high-speed Internet
access for its guest in some of its many hotels using 3Com
equipment. This service used

wireless and/or wired access. For wireless access the hotels
used 3Com Wi-Fi network
for its guests which provided Web speed up to 54 Mbps. Guest
using wired access were
able to plug into 3Com’s LAN working bridges for connectivity
(Stallings, 2009).
Choice Hotels International mandate was to consolidate
multiple functions that were
currently being provided by many single use services. The
company’s decision to implement
this consolidation in phases may have been attributed to several
factors; cost, operations
capability, and technology at the time. For example, the
company chose to use Wide and Spot
beam satellites, several ground-based hubs, and VSATs for
every hotel in its North America
operations. Today’s technology could provide the IP network
solution Choice needed for all its
hotels at a lower cost, more quickly, and less intrusive on daily
operations (Stallings, 2009).
Probable issues when expanding the network

Choice International chose to use a dedicated IP network using
two geostationary satellite
based at separate hub for its North America operations. Though
this structure may have sufficed
for U.S based operations, it would require additional resources
before it could have the global
reach the company needed. Some probable issues the company
would face in expanding its
network globally would have been deploying its current TCP/IP
private network globally.
The company’s U.S based IP network was straightforward and
provided the operational
means required. However, complexity arises when an
organization wants to interconnect with
the global Internet using the satellite - VSAT structure. This
complexity is due to the nature of
various routing protocols such as Border Gateway Protocol
(BGP) and Multi-Protocol Label
Switching (MPLS). BGP allows large intranets, which are
private TCP/IP networks, to
interconnect with one another without introducing undesirable
interactions and the potential for
instability and confusion with IP addresses. Because its US
operations did not have to contend

with this issue, the company had to configure best options for
global IP interconnections using it
existing platform (Bansal, 2004).
Another concern for Choice would be which type of hub
arrangement would be best for its
global operations. Users of VSAT star networks have two
avenues open to use: the dedicated hub
or the shared hub. The dedicated hub is owned by the network
user and operated solely for the
benefit of that user. The shared hub is owned and operated by
the service provider. The service
provided hub operates for the benefit of multiple user networks.
Establishing the hub structure
globally represented a major investment and commitment to
operate a complex
telecommunication facility. Choice International’s management
had to consider which operations
would be best for the duration of the network lifetime. (Bansal,
2004).
Security concerns of high-speed Internet for guest services

Choice Hotels International began offering free high-speed
Internet access for guest in
some of its hotels using 3Com equipment. This free service
offered built-in encryption and
support multiple security options to safeguard data over the
wireless network. Although this
built-in encryption offered some security, there are still many
flaws in their network topology
which could allow for exploitation by malicious users.
Research at the time indicated that about
one hotel in five used an antiquated hub-based network, a type
of arrangement that is inherently
flawed in terms of security, for guest-based services (Ogle,
2008). The most basic network
configuration is the use of a hub to handle traffic. Although this
is the least expensive method, it
is also the least secure.
Additional methods that could be employed to provide better
security for guest services
are virtual local area networks (VLANs), separate secure
routers, and firewalls. By setting up a
VLAN which works like an intranet within the internal network,
only computers on the network

are permits access. This would prevent any information from
another user’s network from passes
through guest of the hotel’s computer, minimizing the chances
for ARP spoofing and other
hacks.
References
Bansal, N. (2004). VSAT Networks for Interactive Applications
Retrieved from:
https://www.thesisscientist.com/docs/Dr.NaveenBansal/005d61f
8-0394-
4f26-b3ca-4da7ce54d5b3.pdf
Olge, J. (2008). Hotel Network Security: A Study of Computer
Networks in U.S. Hotels: Center
for Hospitality Research Publications
Retrieved from:
https://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article=
1104&context=chrpubs
Simunic, M. (2018). The Level of Hotel Reservation
Synchronization Processes Using

Information Technology Tools. ResearchGate
Retrieved from:
https://www.researchgate.net/publication/327393657_the_level_
of_hotel_reservation_sy
nchronization_processes_using_information_technology_tools
Stallings, W. (2009). Business Data Communications, 6th Ed.
Pearson Education, Inc., Prentice Hall, Upper Saddle River,
New Jersey 07458
C10-1
CASE STUDY 10
CHOICE HOTELS INTERNATIONAL
Within the hospitality industry, there has traditionally been a
division
between networks that serve guest functions and those that
serve
operations and administration, both with respect to data

transmission and
voice transmission. In recent years, most hotel and motel chains
have
moved in the direction of consolidating multiple functions on
networks that
used to be dedicated to one use. Tighter integration of voice and
data and of
guest and operations/administration networking is a fast-
growing trend.
Choice Hotels International (www.choice.com) is a good
example of this
trend.
Choice Hotels International (NYSE: CHH) is one of the largest
and most
successful lodging companies in the world. It franchises more
than 6,100
hotels, representing more than 490,000 rooms, in the United
States and
more than 30 countries and territories. The company's best
known brands
include Comfort Inn, Comfort Suites, Quality, Sleep Inn,
Clarion, Cambria
Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo
Lodge and

Rodeway Inn.
In-House Networking Functions
Choice supports two distinct networking functions. A central
Web site
enables customers to reserve rooms at any Choice franchise
http://www.choice.com/
C10-2
accommodation. The central reservation system, known as
Profit Manager,
automatically finds the most appropriate hotel based on
location, price
range, or standard. Individual hotels also take bookings, so
there needs to
be a way for hotels and the central system to remain
synchronized.
Choice networks also support its franchisees. Choice is in fact
a
relatively small company in terms of personnel (about 2000
employees) and
does not own or operate any hotels. All of the establishments
under its brand

names are independently owned and pay Choice licensing fees
and a royalty
on all sales. In return, they receive a variety of services,
including
marketing, quality control, and inventory management. Many of
these
services are offered via network, such as allowing managers to
order
supplies online and check booking status. This support network
is similar to a
corporate intranet but has a higher reliability requirement. The
6100 hotel
managers are, in effect, Choice's customers, not employees.
Thus, the
standards for reliability and performance of the network are
high.
In the late 1990s, Choice began to focus on providing a state-
of-the-art
global reservation system. At this point, the synchronization of
local and
online reservations was done manually. Each hotel provided
Choice with a
fixed block of inventory to sell over the central reservation
system, with an

average of 30% of capacity. Once that 30% was sold, Profit
Manager listed
the hotel as fully booked, even though there might be plenty of
rooms
available from the other 70%. The reverse problem also
occurred: If the
local reservation system had sold all available rooms except
those assigned
to Choice, the local staff had to refuse additional customers or
overbook.
Thus, the system was inherently inefficient.
Around this time, Choice moved from a purely telephone-based
central
reservation system to a Web-based system. Choice found, as did
many
companies, that letting customers serve themselves online saved
time and
money. Further, unlike many industries burned in the move to e-
commerce,
the travel sector is an ideal match for Web-based services. And
the benefits
C10-3

for travelers are striking. Customers can get an instant list of
every room
available with their chosen criteria. They can also view the
hotel and, in
some cases, the individual room. In addition, hotel rooms are a
typical
example of "distressed" products; like airline seats and theater
tickets, they
can't be stockpiled if left unsold. Thus, they are ideal for using
last-minute
special offers and promotions, which can be posted online or e-
mailed to
interested customers.
But all of these benefits require full integration between local
reservation systems and the central reservation system. Choice
decided to
implement a franchise-wide IP network that provided every
American hotel
with a permanent connection to the central Profit Manager
database. The
most important criteria for this network were coverage and
reliability. The
network needed to reach every franchise and needed to be
highly available.

Capacity was not a particular concern, because updates and
reservations use
little capacity.
To meet its needs, Choice decided to go with a satellite
network
[HARL02, DORN01, UHLA00]. Even within the United States,
reliable
universal coverage requires expensive leased lines or
dependence on
switched networks that may not always deliver. The situation is
far worse
internationally. Satellite networks provide the universal
coverage and are in
fact more reliable than the competition. Satellites that use fixed
dishes are a
mature, dependable technology. Downtime averages only
minutes each
year.
For its initial effort, Choice went to Hughes Network Systems,
which set
up a dedicated IP network using two geostationary satellites
based at
separate hubs (Figure C10.1). The hub is a ground-based control

center that
includes a number of switches and routers. At the hub, Hughes
separates
Choice's traffic from that of its other customers and routes it
accordingly.
The Los Angeles hub covers the entire United States via a
broad-beam
satellite service. The Germantown hub controls a number of
narrower spot
C10-4
beams that service Alaska and Hawaii and provides extra
capacity for major
cities. Each hotel is equipped with a VSAT (very small aperture
terminal)
dish.
The satellite system has worked well, and Choice has gradually
transitioned operational and administrative functions to the
network. For
example, data for settling accounts with travel agents and
tracking the
Choice Privilege frequent-stayer program are sent on the
satellite network.

Guest Internet Access
In 2004, Choice began implementing free high-speed Internet
access for all
guests in its Clarion Hotels and Comfort Suites, using 3Com
equipment. The
implementation uses an efficient combination of wireless and
wired access
within each hotel [3COM04, 3COM06].
C10-5
To be able to affordably provide Internet service, hotels have
traditionally invested in expensive and disruptive construction,
including the
installation of additional cabling and forcing the closing of
income-producing
rooms. To recover their costs, some hotels charge their guests
for Internet
access – which is exactly the situation Choice Hotels wished to
avoid. To

allow its franchises to affordably fulfill its mandate, Choice
Hotels needed a
powerful, low-cost network solution that could be installed
quickly and easily.
Access is provided in wireless and wired modes. For wireless
access,
each hotel implements Wi-Fi that serves all guest rooms. Using
the 3Com
Wi-Fi network, guests are able to check e-mail, exchange files,
and browse
the Web at speeds up to 54 Mbps. Built-in encryption and
support for
multiple security options help safeguard data as they travel over
the wireless
network. With each access point supporting up to 256 users,
setting up
conference room connectivity requires no additional wiring or
IT assistance
to provide ample bandwidth even to large groups.
Users without wireless capabilities can plug their laptops into
3Com
wireless LAN workgroup bridges in guest rooms and hotel data
centers for

immediate connectivity.
Free-to-Guest Television Services
In 2011, Choice International selected Bulk TV & Internet
(www.bulktv.com )
as its television services provider for franchise hotel owners of
the
company's 11 brands [PRNE11]. Bulk TV, headquartered in
Raleigh, NC
provides satellite TV, Internet services, and bulk TV
(Television plus Internet
services). The company serves hotels, nursing homes, hospitals,
correctional
facilities, fitness centers, and the collegiate housing market. In
addition to
television programming, the company offers high-speed Internet
access,
virus control, bandwidth throttling, VPN support, managed data
services,
http://www.bulktv.com/
C10-6
Bulk TV & Internet is the leading provider of DIRECTV
services to the

hospitality industry. DIRECTV is one of the largest satellite
television service
providers in the United States; the Dish Network is its major
competitor.
Choice International’s long-standing use of VSAT’s and
satellite-based
communication services contributed toward their choice of Bulk
TV &
Internet for free-to-guest in room television programming. The
wide range
of HD programming, a la carte programming, 4/7 technical
support,
competitive monthly rates were also attractive features.
Bulk TV & Internet custom builds and installs each of its
customers’
systems and uses several enterprise-grade solutions, including
fiber, T1,
DS3 and carrier Ethernet to satisfy their Internet needs. Most
of the
systems that they build include remote monitoring capabilities
that will notify
the Tech Support Department at Bulk TV & Internet about
connectivity
issues before guests or residents are aware of any problems.

Discussion Points
1. Perhaps the major drawback to a satellite-based system is
latency. The
delays can be noticeable on some online applications. Discuss
what
issues this might raise for the Choice suite of applications.
2. What issues is Choice likely to experience as it expands its
network to
full global reach?
3. Do some Internet research to identify the reasons why
providers like
Bulk TV & Internet use terrestrial circuits rather than satellite
links to
support Internet access for their customers. Why are terrestrial
connections preferred?
Sources
[3COM04] 3COM Corp. Choice Hotels International Teams Up
with 3COM to
Offer Free Wireless Internet Access at Clarion Hotels and
Comfort Suites.
3COM Press Release, February 18, 2004. http://www.3com.com/
http://www.3com.com/

C10-7
[3COM06] 3COM Corp. Case Study. Choice Hotels
International, Inc. U.S.
2006. http://www.3com.com/.
[DORN01] Dornan, A. “Hotel Chain Reserves Room on Space
Network.”
Network Magazine, January, 2001.
[HARL02] Harler, C. “Bring it On!” Hospitality Technology
Magazine,
January/February 2002.
[PRNE11 PRNewswire.com. “Bulk TV Awarded Qualified
Vendor Status
with Choice Hotels International. October 27, 2011. Retrieved
online
from: http://www.prnewswire.com/news-releases/bulk-tv-
awarded-
qualified-vendor-status-with-choice-hotels-international-
132689763.html.
[UHLA00] Uhland, V. “The Turbo-Charged Enterprise.”
Satellite
Broadband, November 2001.
http://www.3com.com/
http://www.prnewswire.com/news-releases/bulk-tv-awarded-
132689763.html
132689763.html

132689763.htmlCASE STUDY 10In-House Networking
FunctionsGuest Internet AccessFree-to-Guest Television
ServicesDiscussion PointsSources

Case Study 3 Choice Hotels International By CIS505 C.docx

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