Sheraton University City Hotel

Hotel Improves Guest Experience and Revenue Through Innovative Use of Technology

Located in downtown Philadelphia, Sheraton University City Hotel is in the midst of a major university and business center served by several hotels. To stay competitive, the hotel continuously improves the amenities that it offers its customers. The hotel wanted to provide more than just Internet service; it wanted to deliver in-room desktop resources and more entertainment options. To improve customer satisfaction, Sheraton implemented a solution from SuiteLinq that uses Microsoft® technology and integrates productivity software with entertainment and communication capabilities. The hotel has since improved its scores in customer satisfaction surveys, raised its average daily room rate and repeat customer business, and increased revenue. Sheraton now has more opportunities to interact with customers, and integration with new Microsoft technologies will further enhance the guest experience.

Situation

I was able to raise room rates from the moment that I installed eRoomsuite—by 18 percent the first year and by 12 percent the second year when the marketplace was increasing rates by about 6 percent.  Ken Kapikian General Manager Sheraton University City Hotel

Sheraton University City Hotel is located in downtown Philadelphia at the center of the city’s education district. The area is also a major medical and business hub, and the hotel’s customer base includes a mix of visiting academics, medical and business professionals, and families. The hotel has 316 customer rooms and more than 200 employees, and continuously strives to enhance the amenities that it offers business and leisure travelers.

The thriving community is home to other hotels that compete directly with Sheraton University City Hotel. To attract new guests and retain existing ones, the hotel worked hard to upgrade the quality of its rooms and services. In return, Sheraton was rewarded with high occupancy rates and scores on the Sheraton Customer Satisfaction Index customer survey.

But Sheraton thought that customer satisfaction could be further increased by improving the technology resources available in each room. The hotel wanted to offer more than just basic Internet service and television programs.

Many customers were using the most current technology at home and looked for similar resources when they traveled. Technology amenities such as a media center, computer hardware and software, and high-speed Internet access were particularly important to some of the hotel’s core customers. “A couple of our major accounts are consulting groups that work on IT systems at the hospitals and universities,” says Ken Kapikian, General Manager at Sheraton University City Hotel. “So we have these frequent customers who come in Sunday night or Monday morning, and then leave Friday. They’re here five days a week, and this goes on for years.”

Sheraton wanted to meet customer needs and keep up with new technology trends, but finding an effective solution wasn’t easy. It wasn’t enough to merely upgrade the existing Internet service. For instance, Kapikian knew that traveling through Philadelphia’s busy airport with a portable computer was difficult, so he tried installing computers in newly renovated rooms as an alternative. However, a computer system typically lasted only a few weeks before it was damaged and needed service.

To address its technology challenges, Sheraton needed a comprehensive and reliable solution to provide the tools and resources that customers were using in their homes and offices, including computers, familiar software, and fast Internet connections.

Solution

Sheraton University City Hotel began researching alternative solutions at the end of 2005, but few service providers in the hospitality industry offered the tools and resources that Kapikian and his management team envisioned. He decided to try the eRoomsuite solution from SuiteLinq, which delivers communication services, on-demand entertainment, and business productivity software through thin-client terminals installed in customer rooms. Kapikian was intrigued by the solution for two reasons: It could provide his customers with in-room computing resources, and it relied on Microsoft® software. “When you hear ‘Microsoft,’ you know you’re dealing with a proven technology,” he says.

When you hear ‘Microsoft,’ you know you’re dealing with a proven technology.  Ken Kapikian General Manager Sheraton University City Hotel

In early 2006, the hotel installed the eRoomsuite solution in 200 customer rooms, with plans to upgrade the remaining rooms as they are renovated. Sheraton expects to complete renovation and eRoomsuite implementation by April 2008.

SuiteLinq installed an HP thin-client device with a 17-inch flat-panel LCD monitor, stereo speakers, keyboard, and mouse in each room. Hotel customers connect through the SuiteLinq portal to the Internet, Microsoft Office programs, and entertainment content. In addition, Sheraton delivers customized hotel and local information through the portal to its guests.

The thin-client devices feature SuiteLinq client software running on Windows® XP Embedded. Most user-interface components are delivered as Web-based applications, which allows features to be changed quickly and easily. And because the devices’ flash disk is not writable, the chance of damage from viruses or other Internet-based threats is negligible.

In addition to the client systems installed in customer rooms, SuiteLinq also installed three server computers at the hotel running the Windows Server® 2003 Enterprise Edition operating system. One server runs Microsoft SQL Server® database software and also functions as a Web server with Internet Information Services. A second server running Windows Media® Services 9 Series streams movies and other pay-for-view media content to hotel customers, and a third server delivers Microsoft Office programs through Terminal Services. Guests are charged a small daily fee for using the Microsoft Office programs.

SuiteLinq manages most of the infrastructure remotely, with little administrative effort required from hotel staff. The SuiteLinq solution also integrates with the hotel’s property management system. From the moment that guests check in, the SuiteLinq network is activated in their rooms. When guests first use the SuiteLinq portal, they are greeted with a personalized welcome message along with information about the hotel property and services. From there, customers can choose entertainment channels, surf the Internet, or start working with Microsoft Office programs.

We get all eRoomsuite upgrades immediately, and we also communicate daily with SuiteLinq so that we can talk about getting the most recent customer requests into the package.  Ken Kapikian General Manager Sheraton University City Hotel

For hotel guests who need to stay productive while traveling, the SuiteLinq solution is much more versatile than the hotel’s previous offering. Before, customers needed to bring their own computers to connect to the hotel’s network. Now, customers can bring files on a USB flash drive or portable media player that plugs into a port on the thin-client device, or access files on Internet storage or collaboration sites. Customers who bring portable computers can connect (both wired and wireless) to the SuiteLinq network and the Internet.

With the new solution, customers can get help quickly when needed. Response time is typically less than seven minutes, and the recorded help sessions are delivered to the hotel for review. Kapikian and his team use the recordings to learn about customers’ IT needs to continually improve their experience and as a resource for training front-desk staff.

Sheraton and SuiteLinq continue to enhance the in-room solution, which now includes high-definition, flat-screen TVs in addition to the thin-client devices. By taking advantage of the flexible Microsoft .NET Framework, SuiteLinq developers quickly implement changes as Kapikian and his team identify new customer needs and opportunities. For example, because many of the hotel’s customers are international travelers, Kapikian decided to stream World Radio Network broadcasts. For a small fee, customers can have a 24-hour connection to radio stations in their home countries. SuiteLinq is also pursuing integration with other customer-relevant content and interactive services.

“We get all eRoomsuite upgrades immediately, and we also communicate daily with SuiteLinq so that we can talk about getting the most recent customer requests into the package,” Kapikian says.

Plans are underway to integrate the SuiteLinq solution with Microsoft BizTalk® Server 2006 Standard Edition, which will enable the solution to work with business intelligence software and other systems used by resorts and larger hotel properties. As a result, hotels will have even better insight into customer needs and behavior.

Benefits

By installing a comprehensive IT and entertainment solution in its guest rooms, Sheraton University City Hotel has increased customer satisfaction and revenue. The hotel has better tools for interacting with customers and can take advantage of new trends in technology.

Improves Customer Satisfaction and Loyalty

By installing a technology solution that meets multiple needs for communication, entertainment, and productivity, the hotel has improved the guest experience. Now Sheraton can deliver an immersive experience with multiple options for both families and corporate travelers instead of the basic television programs and Internet options found in most hotels.

When renovation is complete and eRoomsuite is fully implemented, we expect our guest survey scores to take us to the top of the class in the Sheraton Hotels chain.  Ken Kapikian General Manager Sheraton University City Hotel

“SuiteLinq is the right solution for us,” Kapikian says. “For example, on weekends we do a lot of family business, and the parents can lie in bed and watch a movie while the kids play a game or watch cartoons on the eRoomsuite computer. Or, someone can work with Microsoft Office programs while others use the TV. The solution has multiple uses.”

Customer satisfaction has increased and will only get better when the SuiteLinq solution is fully implemented in all rooms, says Kapikian. “We increased our Sheraton Guest Satisfaction Index score, and we are now in the top tier of customer satisfaction. When renovation is complete and eRoomsuite is fully implemented, we expect our guest survey scores to take us to the top of the class in the Sheraton Hotels chain.”

Guest surveys are just one gauge for measuring customer satisfaction; the hotel has also observed an increase in occupancy rates from returning guests. Kapikian has noticed that more guests request rooms that have the eRoomsuite solution, and estimates the hotel has sold up to 1,500 more rooms each year as a result. He says the repeat business is from customers who “would normally have stayed across the street at a competing hotel, but they’ve chosen to come back to us because we have eRoomsuite.”

Increases Revenue and Return on Investment

The Sheraton downtown location is a hub for multiple industries served by competing high-end hotels. Occupancy rates are already high in the area, and to increase revenue Sheraton had to do more than attract customers. By providing integrated communication, entertainment, and productivity technology as a standard part of in-room hospitality, the hotel was able to justify a rate increase at triple the marketplace average.

“By installing the SuiteLinq solution, I was able to justify charging customers more money than they would pay across the street,” says Kapikian. “I was able to raise room rates from the moment that I installed eRoomsuite—by 18 percent the first year and by 12 percent the second year when the marketplace was increasing rates by about 6 percent.”

Granted, the hotel is investing millions of dollars in renovations, but that’s not why Kapikian was able to successfully raise prices. “We’re under a complete renovation at the hotel, but I didn’t get the rate increase because of that,” he says. “I got the increase because I am giving customers an IT solution that is offered nowhere else.”

We’re under a complete renovation at the hotel, but I didn’t get the rate increase because of that. I got the increase because I am giving customers an IT solution that is offered nowhere else.  Ken Kapikian General Manager Sheraton University City Hotel

SuiteLinq implementations are available to hotels at very little cost in an advertising-supported revenue-sharing model. However, Sheraton decided not to take advantage of this option. Although the SuiteLinq solution has been implemented in only two-thirds of the hotel rooms so far, Sheraton has recouped its investment twice over in less than two years. In addition to revenue from rate increases, the hotel is seeing increasing revenue from premium services and content offered through the SuiteLinq network. The hotel had a U.S.$70,000 increase in revenue from premium services in the first year of implementation, and expects to increase that amount when the SuiteLinq solution is fully implemented and more services are added.

Enables More Interaction with Customers

The SuiteLinq solution enables the hotel to do more than provide guests with enhanced technology. Sheraton now has more ways than ever to interact with its guests in their rooms, to the mutual benefit of the hotel and the guests. For example, the hotel uses the SuiteLinq portal to deliver hotel information and marketing messages. Kapikian says, “When customers reach their room and sit down to the computer, they see a message from me welcoming them to the hotel and numbers to call if they need anything to help make their stay better.”

Customer interaction will move to the next level when a new version of eRoomsuite is deployed at the hotel in April 2008. SuiteLinq has integrated Windows Live™ Messenger with its solution, and Sheraton will be able to take advantage of instant messaging to respond more quickly to guest needs. In addition, the hotel will be able to send targeted messages, such as information about specific conventions, to groups of customers.

Takes Advantage of New Technology

SuiteLinq is planning further enhancements that will take advantage of new Microsoft technology, including Windows Server 2008 Hyper-V™ virtualization technology. Server virtualization, which enables multiple virtual servers to run on a single physical machine, will enable SuiteLinq to install fewer servers at a hotel property, thereby saving space, utility costs, and maintenance overhead. For Sheraton University City Hotel, server virtualization will help ensure business continuity and more effective disaster recovery. For example, Hyper-V supports volume shadow copy services, an automated backup feature that enables point-in-time backup of virtual machines without any interruption.

Although Sheraton has already seen impressive increases in guest satisfaction and revenue, Kapikian is equally pleased by the fact that, by investing in the SuiteLinq solution, he has invested in the future. “As technology becomes even more prevalent, we will have the capability to accommodate all hotel guests and all the high-tech tools that they travel with,” he says. “We’re the leader in the marketplace today in Philadelphia in terms of the IT solutions that we offer in our hotel. And as long as SuiteLinq keeps working with Microsoft, I only expect better things.”

For More Information

For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to:
www.microsoft.com

For more information about SuiteLinq products and services, call (610) 917-3863 or visit the Web site at:
www.suitelinq.com

For more information about Sheraton University City Hotel, call (215) 387-8000 or visit the Web site at:
sheraton.philadelphiasheraton.com

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Document published April 2008