Article

Huge potential for kiosk trial at Hilton hotels

The pilot on a kiosk deployment at two Hilton hotels is about three months away from beginning, and already Hilton is planning on its success.

September 15, 2004

The pilot on a kiosk deployment at two Hilton hotels is about three months away from beginning, and already Hilton is planning on its success.

Not only has the hospitality giant earmarked 2004 funds for an expanded rollout, but it is also investigating tie-in relationships with other industries, including the airlines.

Beverly Hills, Calif.-based Hilton Hotels Corp. will this December install and test guest self-service kiosks at two of its largest wholly owned properties: the 2,035-room Hilton New York and 1,544-room Hilton Chicago. The kiosks will provide a new approach to expediting the check-in/check-out process. Hilton is working with IBM to develop the kiosk hardware and software.

Hilton is also in discussions with multiple U.S. airlines with the goal of adding airline check-in and check-out to the hotel kiosks. Thomas Spitler, vice president of front office operations and systems for Hilton Hotels Corp., said, "We think that is a reasonable goal."

Rob Ranieri, practice lead for e-access for IBM Global Services, said IBM has helped to write the Common Use Self Service standard that will allow applications to span industries. "It would be a big benefit to travelers; one less touch point they would have to go through during the travel day," he said.

Eventually, Ranieri added, guests will be able to access concierge services on a touchscreen, or have checkout information or conference details sent to their PDAs.

During the three- to four-month pilot test at the Hilton Chicago and Hilton New York set to begin in December, travelers can check-in at one of several kiosks that will be placed at strategic points in each hotel's front lobby. Spitler said IBM is advising the hotels on kiosk placement.

Guests will insert a credit card for identification purposes, then follow a set of intuitive on-screen instructions and utilize the touchscreens to check-in to the hotel. The kiosk will display the traveler's reservation, select a room based on the customer's preferences, issue a room key and provide printed room directions and information.

At the end of the stay, the traveler can check-out at a kiosk in the same fashion by reviewing and confirming the bill and printing out a receipt. Members of the Hilton HHonors guest reward program will eventually have the opportunity to access their account and update their membership profiles.

Hilton anticipates that the majority of guests will be able to check in at self-service kiosks without assistance. However, hotel staff member will be dedicated per every three kiosks to answer questions and assist guests, Spitler said. The front desk will remain fully staffed. He said Hilton's return on investment is more of a customer-loyalty issue than a financial one.

IBM will supply the hardware, software, middleware, application development and project management for the deployment.

Spitler said his organization will be discussing budgets for 2004 during the pilot. "We will look at the deployment model. If it is as successful as we plan, there is already funding allocated for the future." Spitler said that is true of the Hilton brand, as well as the other families of brands.

The Hilton family of hotels features such brands as Hilton, Conrad, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton Inn & Suites, Hilton Garden Inn and Homewood Suites by Hilton.

Hilton had an ill-fated foray into check-in/out kiosks back in 1997. What will make this pilot a success? For one thing, Spitler said, Hilton was ahead of its time back then. "We've learned a lot from the airlines." For another, the hotel has since developed its OnQ technology platform that tracks customer preferences and loyalty information across global establishments.

Though IBM is not releasing information on business partners, New Haven, Conn.-based Practical Automation said it will provide printers to the Hilton/IBM kiosk deployment.

"Practical Automation is pleased to announce that its wide-format kiosk printers have been chosen by Hilton and IBM for the recently announced self-service kiosk strategy,"said a Practical press release.

Said Ranieri, "The kiosk will be built by IBM. It will be an IBM device supported and maintained by IBM. We work with other vendors, like key encoder vendors or touchscreen vendors, but we don't look at the device as just various parts.'

Brian Sikorski, sales and marketing manager at Practical, said, "We are excited because these discussions exemplify a true beta deployment. We are working out real issues." He said IBM and Hilton are still working on the style of the kiosk and how the printer fits into the design.

Sikorski said the Hilton deal could mean printer deployments into the 2,500 range. "This could represent our single largest deployment."

He said the fact that Hilton is making this announcement shows that "the kiosk industry is no longer boutique. We're hitting mainstream." He added, "Kiosks with a compelling business model will succeed."