Internet transforms operations

Many people confuse the terms "Internet" and "World Wide Web," using them interchangeably. Not people who work behind the scenes at a hotel.

As much as the Web has improved online booking and hotels' marketing efforts, it is the Internet—the global system of interconnected computer networks linked by cables and wireless connections—that has revolutionized how managers streamline operations.

The ability to transfer data instantaneously and store spreadsheets electronically means general managers who worked countless hours of overtime in the past can now be home in time for dinner.

"There are savings that you don't see immediately," said Colin Findley, VP of business development for ProfitSword, which develops Web-based financial management software for hotels. "Instead of having a GM keying data from one system to another, now they have time to do more training and time to spend with their associates. There are a lot of ways you will benefit that you can't put down on paper."

Technology alone has never run anyone's business. But if used correctly, the Internet can certainly push behind-the-scenes operations to the next level.

Maybe the most important thing the Internet allows hotels to do is network with each other. For example, a group of hotels managed or owned by a single operator can centralize data and implement new processes from a single location. Data between hotels, and between a hotel and its central controller, can be transferred in real time.

For example, SoftHotel provides Web-based software that gives a consolidated view of all revenue-management opportunities and guest service solutions.

"It provides a very, very strong workflow that you couldn't implement through a traditional property distribution," said Mike Kennedy, president of SoftHotel. "Before, there was no oversight on how property content got configured. Every install was a work of art and every property had its own way of describing its rate plans. Through a Web-based operation, it is possible to execute standards across multiple properties."

Software as a service

Nearly 10 years ago, the Internet led to the birth of a concept called software as a service, which today is known as SaaS. SaaS is a type of software deployment that allows an application to be hosted online and customers to access it via the Internet. Conceivably, SaaS alleviates the customer's burden of maintenance and support. In some cases, it saves space by relinquishing the need to house large servers and other hardware on site.

Early on, hotels began using the SaaS model to streamline everyday office duties, such as accounting, purchasing and inventory tracking.

"There are countless things you do on a daily basis that can be done on the Web, such as forecasting and budgeting, as well as consolidating a lot of spreadsheets that people used to keep on their desktops," Findley said.

Adoption of the SaaS model in the property-management field has made a major impact. With the advent of the Internet, hotels can now store their entire room inventory and control rates online. And because the information already is housed on a • two-way network, room availability can be shared with online booking sites.

Alaric Pratt has worked in the IT department at Campbell's Resort on Lake Chelan in Washington for 25 years. He helped the property rollout a new PMS around 2000.

"Guests are using it more because they don't want to interact," Pratt said. "The convenience of that is really nice."