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It has been acknowledged for inclusion in Communications of the Association for Information Devices by an official administrator of AIS Electronic Library (AISeL). For more information, make sure you contact [emailprotected] org. 102 Communications in the Association for facts Systems (Volume 15, 2005) 102-118 OUTRIGGER HOTELS AND RESORTS: A CASE STUDY Gabriele Piccoli University of Resort Administration Cornell University [emailprotected] edu FUZY This case identifies the history, approach, and current information systems infrastructure of a midsize, secretly owned food firm.

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The truth is designed to supply the substantial background information needed to indulge successfully in setting course for IS USUALLY resources and the use in Outrigger Resorts and Areas headquartered in Hawaii.

This enables learners to analyze the firm’s strategy thoroughly and assess it is current make use of information systems resources. With this examination as a beginning point, students can develop an appropriate IS vision, IS USUALLY architecture, and a strategic IS DEFINITELY plan for Outrigger Hotels and Resorts.

The truth was formerly designed to utilize the process of establishing direction pertaining to IS methods as referred to by Matn and acquaintances [2005], but is usually flexible enough to adapt to the structure of different approaches to planning for information systems use.

Keywords: CAN BE planning, IS USUALLY assessment, CAN BE visioning, facilities, hospitality. Editor’s Note: A teaching note is available from your author to school so demanding it which have been listed in the MISRC-ISWorld Teachers Directory. I actually am associated with every decision that senior management will take.

They look in my opinion for an IS slant to this ” if an IT solution can easily capitalize on opportunities or eliminate hazards. They also expect my group to independently develop a great IS approach that will further the business. May well Durocher, Older Vice President & CIO Every manager need to have an IT strategy. Weight loss delegate to technologists in support of worry about the allocated expense or what training the employees will need. You must understand how to be expert of your own destiny and be successful best for you. Too many managers still don’t get that. Rob Solomon, Senior Vice President Sales & Marketing Outrigger Hotel and Resorts: A Case Study by G.

Piccoli Communications from the Association for facts Systems (Volume 15, 2005)102-118 103 My spouse and i. INTRODUCTION Outrigger Hotels and Resorts, a mid-size accommodations firm centered on leisure visit the Hawaiian Islands as well as the South Pacific, uses Technology (IT) in numerous aspects of its operations and so must carefully engage in the data systems preparing process. Following analyzing Outrigger’s strategy and assessing the firm’s current use of info systems solutions, we can develop an appropriate IS DEFINITELY vision, IS DEFINITELY architecture, and a strategic CAN BE plan for Outrigger Hotels and Resorts.

On Black Friday, Sept. 2010 13, 1929, Roy C. Kelley found its way to Hawaii together with his wife Estelle. An builder by schooling, Mr. Kelley joined the firm of C. T. Dickey and was responsible for designing a lot of Honolulu’s landmark buildings, like the main building of the older Halekulani Motel and the Hawaii Theater in Kalakaua Avenue. Nine years later Kelley set out on his own, building quite a few homes, flat buildings, and hotels on the island of st. kitts of Oahu. In 1963, Kelley took over the terrain occupied by the old Outrigger Canoe Golf club.

Outrigger Resorts then became a reality together with the mission of bringing the desire a vacation in Paradise inside the reach with the middle-class traveller. Included in the contract were rents on three Waikiki plenty that afterwards became the Outrigger East, Outrigger West, and Coral reefs Reef resorts. The Outrigger Waikiki Resort was constructed on the site with the old kayak club, arguably the prime just right Waikiki beach, in 1967. Throughout the up coming two decades, Outrigger Hotels Beautiful hawaii, as the company was called, continued the expansion in Waikiki.

When ever in the 1970’s the housing code authority put a hat on fresh construction in Waikiki, Outrigger began to expand through acquisition rather than construction, ultimately becoming the largest sequence in the Point out of Hawaii, with over 7, 000 rooms and a total of 15 real estate concentrated in Waikiki. As a result of its clustered configuration, effortlessly its hotels located within just one rectangular mile, Outrigger was able to keep a central management structure fitting Mister. Kelley’s ‘management by strolling around’ design.

In 1989, Outrigger Resorts Hawaii, at this point under the leadership of Roy Kelley’s kid Dr . Rich Kelley, overtook management in the Royal Waikoloan Hotel around the Big Island of The hawaiian islands. When typhoon Iniki, heading for Waikiki in 1992, scarcely missed Honolulu and emaciated the island of Kauai, this provided further more impetus to get Outrigger’s geographical diversification strategy to and beyond neighboring island destinations. The organization, expanding in management deals with other owners, added properties upon Maui and Kauai and ultimately grew to a total of twenty six locations inside the Hawaiian Island destinations.

In mil novecentos e noventa e seis the organization made its first worldwide foray, opening the Outrigger Marshall Isle Resort in Majuro Atoll in the Republic of the Marshall Islands. Through partnerships, joint ventures, purchases, and new developments the firm continued to expand internationally, adding properties in Guam, Fiji, Tahiti, Quotes, and Fresh Zealand. When growing geographically, in 1990 Outrigger Hotels Hawaii began to diversify its product portfolio by adding condo resorts.

Because of ts physical and merchandise diversification, in 1995 Outrigger Hotels Hawaii islands changed its name to Outrigger Hotels and Resorts, and in 1999 re-branded fifteen of its hotels in Hawaii to launch a new motel brand named OHANA Accommodations of The hawaiian islands. We had a great identity problems because the industry moved up, we enhanced the onbeach properties exactly where we had larger demand and bought a few nice real estate in nearby islands. But we had large variation inside the portfolio”if you stayed in a budget home vs . a beach front home, you’d be very confused as to what an Outrigger was.

President and CEO, David Carey Outrigger Motel and Areas: A Case Analyze by G. Piccoli 104 Communications from the Association for Information Systems (Volume 15, 2005) 102-118 Determine 1: Outrigger Properties in Waikiki Figure 2: Outrigger Properties in the Hawaiian Destinations Outrigger Resort and Places: A Case Analyze by G. Piccoli Marketing communications of the Association for Information Systems (Volume 15, 2005)102-118 one zero five Figure several. Properties Been able by Outrigger Hotels and Resorts (International) The on-beach properties became upscale full-service hotels under the Outrigger manufacturer.

The condominiums, also typically on-beach upscale locations, maintained the Outrigger brand. On the other hand, the OHANA brand was positioned to cater to the budget traveler trying to find value in off-beach homes. Condominiums symbolized an increasingly essential share in the total profile of houses, even though the firm stumbled upon the chance that condos offered. Condos appealed to independent travellers who would carry out much research and thinking about their own. Condominiums were also sophisticated, unique items that travel companies and bulk suppliers found hard to sell.

Since condos were rarely built as businesses, but rather had been designed as primary or perhaps vacation homes for the tenants, that they offered little office or perhaps staging space for management companies to use in. They also lacked many of the typical resort services and departments including food and beverage, room service, laundry, and daily maid services. These problems notwithstanding, Outrigger found the condo organization appealing since it provided a means for development through administration contracts without having to acquire expensive properties.

By 2005, Outrigger was a large firm, with about 3, 600 personnel (of which about 230 were for corporate headquarters), a stock portfolio of real estate exceeding ALL OF US $1. some billion, and approximate income of US $45 million [Hotel On-Line, 2003]. Yet at the heart of its proper positioning a commitment remained to offering a ‘sense of place, ‘ an experience attuned to the lifestyle and the attributes of the destination, and to avoiding a standard approach. Our business is really about like a “window for an experience, not the experience on its own.

We are the enabler by which people can easily engage in the leisure knowledge they desire. All of us don’t try to export Beautiful hawaii when we go elsewhere, but we perform honor the same values inside the places we all operate resorts and places. David Carey Outrigger Motel and Places: A Case Study by G. Piccoli 106 Communications with the Association for Information Systems (Volume 15, 2005) 102-118 Outrigger’s senior management believed that its essential competencies lived in providing hospitality to guests browsing their houses and promoting those homes successfully through leisure division channels.

To check these simple competencies, Outrigger’s management developed what it considered to be a superior capability to manage in a multicultural environment, including modern and multi-lingual employees and guests. Aided by a proceeds rate in the single digits and an average of 25 years of employee tenure with the organization, Outrigger managed to be a mainly nonunion shop in the greatly unionized The hawaiian islands labor marketplace. We operate properties that have good locations, we have a very good travel syndication network, and our staff really offer hospitality in the heart.

That creates a differentiated product producing price less important. David Carey Outrigger was engaged to the accomplishment of its destination markets and to the well-being of airlines providing its destinations. If The hawaiian islands does very well, so do we. I spend a lot of time working with local travel authorities to further improve the benefit of the places we function in. Although airlines can be a bottleneck. We might not have obtainable lift when we need this. If the air carriers are full or they have decided inside their yield unit that they are going to only promote their best fares, there exists nothing we are able to do.

Coming from purely the hotels’ perspective, the best thing for people is a great airline cost war to Hawaii. David Carey III. THE RESORTS AND PLACES INDUSTRY While the 21st century dawned, a global lodging sector was approximated to exceed $295 billion in product sales (about 11% of the world’s economic output) and applied more than two hundred and fifty million personnel [Encyclopedia of Global Companies, 2003]. The leisure travel around segment made up about 45% of total volume [Horwath Worldwide, 2002]. THE HAWAIIAN LODGE MARKET In the Hawaiian marketplace, which was Outrigger’s traditional stronghold, 2004 info showed overall performance levels over a average with the global market.

Being quite isolated coming from any large population pool, Hawaii was a classic destination market with an exclusive fly-in customer base. The major feeders had been U. S i9000. westbound visitors and Western eastbound traffic. These market segments were considered to yield high return rates1″estimated by several to be around 50% westbound and over 65% eastbound. This trend made for a very location-savvy customer base. Peculiar to this industry was likewise the trend of multi-island keeps, with guests visiting more than one destination throughout the same trip. Table 1 )

Performance of Hawaii Lodge Market Occupancy Avg. Quantity of rooms Average Daily Rate2 Revenue* * Amounts every available area 72. 1% 706 $198. 41 $78, 488 Inside the hotel organization, return rate can be used to refer for the percentage of visitors who come back again for more than 1 visit to the same location. two Average Daily Rate (ADR), is the common of all rates charged on the given time for all areas sold that day. A yearly ADR can be calculated by hitting ADRs for a lot of days of 12 months. 1 Outrigger Hotel and Resorts: A Case Study by G. Piccoli

Communications from the Association for Information Systems (Volume 15, 2005)102-118 107 PRICING Because the Hawaii and Pacific cycles Rim market segments were distinctive destination market segments, the use of plans ” including air and accommodations ” was pervasive. Historically, deals were put together and offered by bulk suppliers and tour operators who purchased both surroundings and hotel rooms in bulk and re-marketed those to the vacationing public. While using widespread re-homing of the Internet, a new type of package was emerging beneath the leadership of large online travel and leisure agencies: energetic packages.

A dynamic deal was the one that enabled the guest to choose air, lodge, car rental, and activities, ticket them on their own, and then price them away as a pack. Dynamic plans were appealing to suppliers for the reason that price of each item had not been disclosed, making price comparison hard and improving commoditization anxieties. They were attractive to prospective travelers because they increased choice and fostered flexibility. Finally, they become a huge hit to on the web travel agents because they created upon all their value proposition”customer choice”and may potentially improve their margins.

COMPETITORS Like a mature vacation spot, Hawaii had been entered by many of the bigger branded food and resort companies. The greatest hospitality companies, such as Marriott International, Hilton Hotels and Resorts, and Starwood, developed a significant presence with 8-10, five, and eleven real estate respectively. Nevertheless the largest providers in Hawaii islands were geographically- and leisure-focused players including Outrigger, ASTON Hotels; Areas Hawaii (with twenty-eight properties), and Marc Resorts Hawaii islands (with 12 properties). IV.

OUTRIGGER CONSUMERS AND THE COMPETITION THE OUTRIGGER HOTELS AND RESORTS BUYERS Outrigger’s initial mission was going to bring the opportunity for a vacation in Paradise in the reach of middle-class families. As the firm started to diversify its portfolio, the profile of its customers and the competition also transformed. The typical guests staying with the premium company ” Outrigger ” was often a multigenerational customer having a sense of loyalty for the brand (about 25% of guests had been returning to Outrigger) and a income exceeding $75, 500. Outrigger guests were almost exclusively enjoyment travelers.

This customer base produced seasonality, with winter and summer getting the large seasons once properties just like the Outrigger Waikiki on the Seaside reached a great ADR of $260 and an overall occupancy around 90%. Our customers are independent-minded and look for an event that is even more regional and attuned towards the destination, however within their rut. They may keep with big brands in their road warrior ability, but that’s not what they are trying to find in a tropical destination. Take advantage of Solomon Table 2 . Outrigger’s Portfolio and Sample Competition Location Homes Rooms Least expensive Rate 5.

Outrigger Accommodations and Places Waikiki two 1, 383 $160 Starwood Hotels and Resorts Hawaii 4 some, 132 $150 Marriott Foreign Waikiki you 1, 297 $209 Hyatt Hotels and Resorts Waikiki 1 you, 230 $210 Outrigger Resorts and Resorts Guam & Fiji two 895 $203 Starwood Hotels and Resorts Guam & Fiji a few 995 $145 Hilton Hotels and Resorts Guam you 587 $110 *Rates pertaining to comparable rooms as they display on the company website, December 2004, for January 2005 stays Outrigger Resort and Resorts: A Case Study by G. Piccoli 108 Communications of the Association for Information Systems (Volume 15, 2005) 102-118

Competing for these consumers, Outrigger proceeded to go head-to-head with major brands that enjoyed identity recognition between the traveling public, a flow of customers redemption points, available capital, and availability of programs for employees such as discounted travel and leisure beyond Beautiful hawaii and the Pacific cycles region. In response, Outrigger leveraged its property: some of the top locations in the markets by which it taken part, strong name recognition, long lasting relationships with all the travel syndication network, a strategic focus on vacation destinations, a deep local knowledge and community connections, and very good employee contact.

THE OHANA HOTELS CONSUMERS The typical OHANA guest was obviously a value-minded and Hawaii-savvy leisure time traveler with income beneath $100k a year. Typically, OHANA guests experienced visited The hawaiian islands multiple times, remained longer than average, and visited more regularly. Business travel around was largely military workers and employees of corporations who controlled on multiple islands. Groups accounted for less that 10% of OHANA’s overall visitors. We have about 50% return guests. The first trip you want a beachfront hotel, the atmosphere, the ambiance”you need the full Beautiful hawaii experience.

At the time you come often, you still want the experience, however you look for more appeal and instead of spending $250-$300 a night for any beachfront you can stay much longer offbeach intended for $70-$80 per night. Chuck Shishido, OHANA Resorts VP of Operations With seasonality comparable to that of the full service Outrigger Hotels, OHANA Hotels commonly achieved an ADR around $66 and approximate occupancy levels of 73% over the 12 months. A number of small regional stores (such because Marc Resorts and Fort Resorts) and several off-beach impartial hotels been with us in the Waikiki market.

Prices for off-beach properties was much harder to manage due to commodity character of the resorts not enjoying a premium area. OHANA was the largest owner in Waikiki and the major Hawaii-owned user. Table 3. OHANA’s Profile and Sample Competitors Position Properties Rooms Lowest Rate * OHANA Waikiki 13 4564 $76 Marc Areas Waikiki four 314 $74 Castle Places Waikiki 6th N/A $75 * Prices for similar rooms because they appear on the corporation website, 12 , 2004, for January stays

CONDOMINIUMS CUSTOMERS Two types of shoppers typically remained at the real estate. On the weak of the $90, 000 to $160, 500 income mount were people visiting during school destroys, looking to control expenses, and control their particular vacation knowledge. They valued the full kitchen ” a typical in every product ” plus the two bed rooms and two baths. This assessment was substantiated by the fact that condos had several times numerous reservations coming direct from the web and maintained to recover faster after a gentle economy.

Within the upper end were ‘newlyweds’ and ‘nearly dead’ lovers who loved the level of privacy and space afforded by a condo. Because of the need to encourage individual keepers to join the pool of Outrigger managed units, the firm taken part with small local management companies and individual owners’ beliefs that they can could start a better work alone. This kind of idiosyncrasy of condominium functions amounted to dealing with two customers”the unit owners plus the guests. Everyone were unacquainted with the workings of property operations and looked for the similar level of services they would obtain at a resort.

Normally, a condominium with mainly two bedroom units would achieve a great ADR around $175, although properties with mostly facilities and one bedroom models would go for about $140. Outrigger Hotel and Resorts: An instance Study simply by G. Piccoli Communications from the Association for Information Systems (Volume 15, 2005)102-118 109 MARKETING AND DISTRIBUTION Outrigger operated a Central Booking Office (CRO) in Denver colorado, Colorado with anywhere from 40 to 75 reservationists (FTEs), mainly with regards to the volume of organization.

A corporate promoting staff of 12 persons, allocated about 6% of revenue, was responsible for controlling the brand as well as for going to market. An additional 2% of earnings was used to finance reservation and other distribution costs. Reservations were centralized for all properties in Hawaii; past Hawaii concerns were just taken at each property. Outrigger’s executives believed that syndication was a foundation of the business success, with about fifty percent of the business coming from wholesalers. Consumer immediate (via words or the Web), travel agents, govt and armed service, and corporate consumers made up the rest.

For foreign properties, the origin of business percentage via wholesalers was close to 80 percent and almost most reservations were faxed for the property. Versus. OUTRIGGER’S FIRM Outrigger Hotels and Areas was a management company totally owned by a holding company called Outrigger Enterprises. Showing its real estate development root base, Outrigger Enterprises also held a real estate control company referred to as Outrigger Homes. Figure four shows the Outrigger organization. Figure four. Organization Graph Outrigger Lodge and Resorts: A Case Study by G. Piccoli one hundred ten

Communications in the Association for Information Systems (Volume 15, 2005) 102-118 Outrigger Properties wrote and managed real estate contracts with other owners and supervised the owned assets (accounting for approximately a third of all properties inside the Outrigger portfolio), as well as the advancement, acquisition, and sale of real estate. Outrigger Hotels and Resorts, the operating arm of Outrigger Corporations, was responsible for the publishing of new management contracts, as well as for overseeing home renovations and operations with the managed hotels, resorts, and condos.

Outrigger Properties generally negotiated a base rent and a 3 percentage of revenue with tenants; profits from leased space were assigned towards the hosting property’s own P&L. Room earnings made up the bulk of each property’s revenue. Salary from rented space went from as low as 5% in resorts with very little retail space to as high as 20% in some of the most attractive locations. Additional more marginal revenue was derived from auto parking, in-room entertainment, telecommunications, and kids’ golf clubs operations. Outrigger Hotels and Resorts in the past maintained a very centralized company structure.

While the company grew in proportion and physical distribution a more distributed composition emerged, but , reflecting their roots, Outrigger Hotels and Resorts remained consolidated wherever possible. We have centralized solutions ” accounting, IT, fund, engineering, getting, special tasks ” that support each of the properties in Oahu, and also indirectly the neighboring islands. There is also a single executive housekeeper in charge of all properties. We run the OHANA Resorts like a four, 200 place distributed hotel. It is very useful.

Chuck Shishido As the firm extended internationally it probably is more decentralized, with areas in the Pacific Rim functioning much more like independent businesses and organized like traditional places. Recognizing the significant advantages made available from its central structure, Outrigger was taking a look at the possibility of adding its foreign resorts better. However , range presented new challenges: We require a booking solution intended for Australia, a real-time skill with a central reservation support. They are managed as person hotels; the central 800 number today is just changed to the accurate hotel.

A centralized system would present tremendous value because we have drive-in organization and significant potential cross-property traffic. Business VP and COO Perry Sorenseon, MIRE. OUTRIGGER IT INFRASTRUCTURE Joe Durocher, the CIO of Outrigger Enterprises, was appointed by David Carey in year 1986. Mr. Roy Kelly was obviously a hands-on administrator. He when told me this individual hated 2 things: computers and vice presidents. As the VP than it, I had two strikes against me. Yet, in 1986 I had been brought in to overhaul Outrigger’s IT infrastructure and we built Stellex”our bundled CRS/PMS. During the time all our houses were in Waikiki, inside one sq mile of each and every other. Joe Durocher From this type of arrangement the landlord receives a fixed repayment plus a percentage of the total sales manufactured by the renter business (e. g., restaurant, shop). some The CRS, Central Reservation System, may be the computer system employed by a motel chain to compliment call center businesses and, generally, its web site. The CRS holds chain-wide inventory and allows reservationists to sell room inventory at the hotels affiliated with the string.

The PMS, Property Management, is the “brain of motel operations. It’s the computer system which is used to manage the inventory of hotel rooms in an individual real estate. 3 Outrigger Hotel and Resorts: An instance Study by simply G. Piccoli Communications from the Association for facts Systems (Volume 15, 2005)102-118 111 Number 5. Timeline of Significant Infrastructure Advancements at Outrigger OUTRIGGER’S APPLICATION Stellex, where Durocher pertains, was introduced in 1987 as a COBOL application that guaranteed finish redundancy and 24 by 365 uptime.

These two properties are particularly crucial in the motel business, which will depends on to be able to make concerns at any time during the day and would like to make sure that its computer system is actually operational. For the officially minded, the application form ran on a Tandem non-stop platform and a exclusive Enscribe database software management system. five In 1992, Outrigger launched its 1st major revise to Stellex, Stellex 2 . 0, which usually ran on the Sun Microsystems UNIX program and offered revenue administration functionality and reservation center support.

Due to the unique need for substantial wholesale interaction, Outrigger engaged Gyvas, a software firm specializing in revenue management systems, 6th to build all their revenue administration module to get Stellex installment payments on your 0. Outrigger retained control of Opus’ source code7 and also the years produced substantial innovations, mainly to deal with wholesale human relationships. Outrigger executed JD Edwards ERP while the cornerstone of the back-office operations in 1990, years prior to ERP craze swept the corporate world. JD Edwards ran on an IBM SINCE 400″widely regarded as being a mature and stable program.

The organization felt that its central IT facilities was a supply of competitive benefits. Durocher talked about the trade-offs associated with centralized IT: Decentralizing IT would decrease our features while increasing overall costs. But central IT creates chaffing at times. When a hotel comes for example , the IT share may boost for additional properties. almost 8 Joe Durocher Stellex provided the anchor to which all the other operational devices connected, which includes telephone switches, call accounting, and in-room entertainment. Each of the properties in the Hawaiian Island destinations had usage of

Outrigger’s central IT devices, served through the Honolulu-based data center, throughout the firm’s private Wide Location Network. Stellex, for example , was accessed applying an OR NET model simply by all the properties in the Hawaiian Islands, the firm’s Denver-based Central Reservation Office, and the Portland, Oregon-based Web web servers, thereby greatly simplifying the achievement of single graphic inventory, devastation recovery, and overall THIS management. This kind of configuration empowered the real estate to operate with PCs (as few since 12 in a 5 Conjunction Computer Systems was bought up by Compaq in 97.

Compaq, in turn was purchased by HORSEPOWER. Enscribe is still in business in December 2005. 6 Gyvas was eventually bought by Micros-Fidelio, the dominant hospitality-focused software business. 7 ‘Source code’ identifies the original, human readable pc program. Simply by owning that, Outrigger can change it as they saw fit. Note that Microsoft, for example , guards its resource code jealously so that others can’t change Microsoft’s programs. 8 In lots of companies, just like Outrigger, THAT costs are allocated to users, such as resorts, on an twelve-monthly basis.

THIS cost is fairly fixed and never affected very much by the number of units this supports. When a property is sold, the set cost invested in all other real estate must therefore go up. Outrigger Hotel and Resorts: A Case Study simply by G. Piccoli 112 Communications of the Association for Information Systems (Volume 12-15, 2005) 102-118 Figure 6. Outrigger’s THIS Infrastructure standard 500-room property) and networking equipment. The actual of Revenue (POS) systems9 were not central, since Outrigger leased full and cafe space. This kind of state of affairs made some chaffing at times: The POS may be the computer software utilized to support full and cafe operations. This enables employees to keep track of revenue and accurately bill clients. Outrigger Resort and Places: A Case Study by G. Piccoli Communications of the Connection for Information Systems (Volume 12-15, 2005)102-118 113 We offer to interface their particular POSs to Stellex pay for cadre to automate room charges. But many of these POS will be old and can’t software, they must be upgraded initial. Restaurants have to write a manual charge voucher and walk it for the front desk for insight.

It’s not really a popular or perhaps efficient service it. VP of Real estate Technology, Allen White Due to the need for neighborhood support, the high telecommunication costs from Hawaii, as well as the unacceptable trustworthiness of international networks, Outrigger did not extend this central model to its procedures in Australia as well as the Pacific. The properties in Australia and New Zealand, every condominiums, applied a highly specialized PMS especially well suited for their very own condominium homes and their one of a kind tax code requirements.

Not one of the properties in Hawaii contains a server about property. In the outer areas we have standalone PMS’s and on-property bookings. We avoid even try to keep Stellex in sync, they merely open and close. When a date is getting full, they issue a stop-sell. Concerns that are taken centrally are automatically emailed. Joe Durocher APPLICATION DEVELOPMENT Beyond keeping and upgrading Stellex, Outrigger’s IT specialists engaged in little application development”mainly writing custom-made reports, and configuring and interfacing offthe-shelf applications.

The usage of outsourcing was limited to the Web site, developed and hosted with a third party in Portland, Oregon. Yet, in order to maintain the the usage of immediate channels, Stellex served because the reserving engine lurking behind Outrigger’s Web site. A key motivation for Outrigger was the advancement electronic interfaces with wholesalers. These interfaces were customdeveloped by the business’s IT group using XML. 10 With many wholesalers we have real-time electronic digital interfaces”they can check supply and we get their reservations immediately.

Without the user interface, if that they create a booking six or three months away, we don’t see it right up until reporting time, ten days out, once we receive a fernkopie and physically input it. It is almost impossible to revenue deal with like that. Many big brands have wonderful revenue administration systems, although don’t have current wholesaler info. Moreover, we could write low cost contracts brand-wide. Joe Durocher Outrigger sensed that its electronic interfaces afforded this a competitive advantage and preferential treatment from interface-enabled wholesalers, a relationship that proved particularly important during slow intervals or a very soft economy.

Digital interfaces generated substantial efficiencies, including programmed billing and invoicing with out human managing, lowering estimated costs for the functions to $0. 75 from around $10 to get manually taken care of ones. Although not all wholesalers were able or interested in robotizing reservation control. This lack interesting was specifically true for small functions or all those for whom Hawaii plus the Pacific showed a small percentage of business. The industry is known as a mess from a on-line standpoint.

Were fortunate that we get the in one facility expertise plus the recognition coming from senior management of how crucial this is. However, big companies generally don’t understand situations for success. The dirty small secret with the travel industry is that the fernkopie machine nonetheless rules. Take advantage of Solomon 10 XML means eXtensible Markup Language. It is a language utilized to create a process enabling computer applications of partnering firms to exchange information easily. Outrigger Resort and Places: A Case Study by G. Piccoli 114

Communications of the Association for facts Systems (Volume 15, 2005) 102-118 I spend 30-40 hours a week working with bulk suppliers on extrémité. There are many legacy systems out there; the fax is state of the art. We have built great improvement with the more advance wholesalers or those that upgraded lately. Alan White colored Outrigger located the Available Travel Alliance (OTA) XML standards, indicating common communication format and common articles, of great help. But the ability to pick the right partner, and prevent costly failures, remained the major challenge.

Whilst Outrigger felt it had been good to date, with an estimated 33% of total reservations received electronically through the various channels, it still handled more than half a million fax a year”about eight 100 a day from its largest wholesaler alone before that flower nurseries migrated for the electronic program. The organization felt which it had been capable to capitalize for the use of technology to increase circulation efficiencies when confronted with ever growing labor costs. Conversion rates on the Central Reservation Office better from twenty percent to 45%-50% with popular consumer adoption of the Internet.

The firm estimated that as much as 60 per cent of callers had currently researched the Outrigger website and made a selection decision but , as Solomon put it, “had one more issue.  So that you can provide support right on the web page, the company introduced chat functionalities and offered email confirmation to get significant savings in labor and nearly all costs. INFO MANAGEMENT In 2001, Outrigger acquired business intelligence (bi) software, an information mart, and analytical tools from 11 E. piphany running over a Windows 2000 platform. The info mart organised detailed data for three years, enabling evaluation down to the individual guest folio.

Data were consolidated after, enabling simply aggregate studies. While Electronic. piphany was a recent obtain, Outrigger have been disciplined in collecting data for some time. We had 10 years of top quality data from Stellex; our company is very rigid about data capture standardization just like room category, naming exhibitions, request unique codes, [and] what happens where. For instance , postal and country unique codes are required fields. Our employees’ extended tenure helps, and expert pressure is a wonderful asset” nobody wants to always be the one that ruins the value of these types of reports for any.

Alan White colored The data collected by Stellex, including source of business, stay information, and consumption, were extracted every evening by load programs that scrubbed (i. e., cleaned) them, and transferred those to the JD Edwards ERP system pertaining to accounting also to the Elizabeth. piphany program for analysis. Feeding famous data and forward searching availability and reservation activity, Outrigger learned to utilize the conditional power of Electronic. piphany to perform forecasts and generate business intelligence both on the source of business and at customer levels. We wish the marketing data. It can be stupid to experience a treasure trove like that but not use it.

We all mine it. We send thanks a lot letters to recurring guests, we can provide you with history upon who stopped at, how they acquired here, what in-flight publication we should hit. We marketed a resort once and in addition they figured they will have to work with 3 people to achieve physically what our reports offered them immediately. They actually set their rates based on E. piphany forecasts. Joe White The IT group served because custodian of the data, although any user with security distance had use of E. piphany data nevertheless a web software; the data utilized for advertising operational research (e. g., analysis of call habits to evaluate the appeal of Voice over IP solutions).

Combining the information into daily businesses was more challenging. Definitions of technical terms including Business Intelligence, Info Mart, Data Mining, and others used through this case examine can be found cost-free at http://www. whatis. com. 11 Outrigger Hotel and Resorts: A Case Study by G. Piccoli Communications with the Association for Information Systems (Volume 15, 2005)102-118 115 Outrigger found it tough to warrant a repeated guest program”with an average repurchase cycle intended for returning guests of 36 months, a every year purchase was considered high in Hawaii islands resort businesses.

Speaking about reputation programs, Specific properties get their own customer database and a strong informal recognition system. We haven’t been able to justify the investment technologically to do it manufacturer wide. It might be a natural extension of the acknowledgement we give the return friends, but it must be cost-effective. Perry Sorenson When a guest did not tell us he can returning when creating the booking, our current system does not have a database with guest record. Many times we recognize our frequent go back guests only at the door, or during check in at the front office.

We have particular programs (e. g., pertaining to honeymooners, wedding party anniversaries), but we need to know their history to properly acknowledge these types of returning friends. VP of Operations for Outrigger’s Hawaii Beachfront Resorts Kimberly Agas, a 2 decade veteran with the company, IT STAFFING AND ORGANIZATION Outrigger’s IT staff consisted of 21 full time employees. Of these, four data entry operators and 3 programmers were housed in a distinct limited liability company to assist Outrigger make the most of tax bonuses offered by your Hawaii.


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