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Radio Frequency Technology

Hospitality and Tourism Marketing and Sales – HT 344

Rachel Reber and ReemNasraddin

3 October 2012

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Overview:

Radio Frequency Identification or RFID has been around for over 40 years but has not

always been as refined as it is now. RFID is a way of automatically recognizing a specific object

by storing and remotely recovering data from small transponders which are called the RFID tags.

The tags have an antenna assembled into them which then allows the transmission and reception

of radio waves from the transceiver.

The technology of Radio Frequency Identification can be traced all the way back to

World War 2 when they had similar technology which was then called the Identification Friend

or Foe or IFF. The purpose of IFF was to recognize if an incoming aircraft was a friend or foe,

they would use coded radar signals. The coded signals would activate the planes transponder and

reply with a friendly military plane or a harmless civilian plane. After World War 2 ended

scientists and researchers started to discover the use of RFID to store and transmit data. The only

problem was that the scientists were having a hard time finding an appropriate power source. It

took around thirty years for the technology to be able to be created.

Radio Frequency Identification technology is a term that is used to describe any method

of identifying a unique item in the form of a serial number using radio waves. There are three

components of a basic RFID system they are the antenna, the transceiver and the transponder.

The transponder is electronically programmed with its specific and unique information. The

antenna releases radio signals to trigger the tag to read and write data to it. Then the reader

produces the radio waves in ranges which could be anywhere from one inch to 100 feet or it

could be more it just depends on the power output of the radio frequency that is being used.

When the tag goes through the electromagnetic zone it finds an activation signal. The chip then

decodes the data which is encoded into the tags incorporated chip and the data is passed to the

computer which then processes the information. Mobile RFID is opposite of traditional RFID

because instead of the reader being a fixed machine and the tags being moving parts, the reader

is installed on a mobile device and the tags are fixed.

The potential of Radio Frequency Identification is enormous. Wal-Mart is one of the

biggest believers in this technology. They have announced that most of their stores are now using

RFID with the company inventory. Since the introduction of RFID Wal-Mart will save a huge

amount of money in labor and product cost because it will be easier to track inventory and

market awareness will increase. A study done by the University of Arkansas displayed that the

Wal-Mart locations that did have the RFID tags had a larger success rate with customer

satisfaction because the availability of certain products.

Many other companies besides Wal-Mart have also taken hold of RFID technology. The

golf cart company Club Car has started to use RFID to improve productivity on their production

line. Another example is a small ski resort named Blue Hills Ski Area which is located in

Canton, Massachusetts just a few miles outside of Boston. Kristin Orozvitch the Ski Areas

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general manager and the chief operating officer Corie Stone decided to use a system called

SnowDAG. This system is a RFID ticketing and access-control solutionfor ski resorts. The use of

SnowDAG has helped Blue Hills Ski Area by reducing wait lines and making it more convenient

for guests. SnowDAG also has the option of being loaded with money so guests could use it to

make purchases at the retail store.

Examples:

Radio Frequency Technology has impacted the world of business as a whole. RFID can

help improve every business to be more efficient and help create even more guest satisfaction.

Starwood Hotels & Resorts Worldwide, Inc. has gone a less tradition route and instead of using

RFID as a method of tracking products Starwood has integrated it with their rewards program at

their tech savvy hotel line called Aloft. Being a Starwood Preferred Guest allows you to use a

new innovative idea called Smart Check-in; this process was generated for the new generations

of guests who are more interested in technology than personal one on one guest service. Smart

Check-in works by Starwood Preferred Guests members receiving an Aloft-branded RFID

keycard. On the day of check in a text messages is the sent to the guest’s cell phone with their

room number. When the guest arrives at the hotel they can skip the check in process and head

straight to their room because their keycard will already be activated and unlock the room. By

doing so this gives the guests full control of their check in experience. Eventually the Aloft-

branded RFID keycard will be able to act as an all-access pass allowing the guests to buy drinks

and food at the hotel’s restaurant as well as items in the gift shop. Aloft’s Smart Check-in is the

hospitality industries first RFID program and has simplified the guest’s experience. I really love

this idea; I believe that it maximizes the guest’s experience. I think this is such a wonderful idea

because Aloft caters to the younger generation who is always on the go and does not value the

one on one customer service that the older generation does. I think that the next step of Alofts

Smart Check-in is to be able to gain access to a room with just the cell phone and not needing a

specific keycard that can get lost. The Hilton and InterContinental are already testing this process

by allowing the doors to be unlocked with the cell phone which I think is a much smarter idea.

Another great example on how Radio Frequency Technology is being used in the

hospitality and tourism industry comes from The Ushuaia Beach Hotel located in Ibiza, an island

off of Spain. The Ushuaia Beach Hotel has just launched a new way to be connected to social

media when you are on vacation. The hotel is using the RFID technology to allow guests to

update their Facebook activity while in the real world. Guests can now tag pictures and share

their vacation experience with their profile without needing a computer or cell phone. The guest

simple needs to wear a wrist band that is hooked up with RFID technology thatthey receive at

check in and link it up with their Facebook account. The resort has set up specially made

Facebook kiosks that are located around the hotel. All the guest needs to do is simple swipe the

wrist band at the kiosk at it brings up their Facebook page. This is not only a great idea for the

guests who are staying at the resort but also for the company, this is a great free way to advertise.

The resort does not only get free advertising but the guests get to share the experience with their

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Facebook friends who might in the future book a room. Other business can also benefit from the

RFID social sharing. Some examples might be waterparks where you are not able to carry you

cell phone, as well as ski resorts, and amusement parks.

Radio Frequency Technology in the hotel industry does not only have the potential to

make simple processes that already exist more convenient like unlocking a door or sharing your

experiences with friends. It can also improve the guest experience by making it more interactive

and enjoyable for guests. RFID is not only great for the guests but also for the hotel by

providing free advertising.

Interview:

Radio Frequency Technology is being used in almost every industry today. According to

marketing expert Alicia Lundal, Director of School Relations at High Point Christian School

located in Madison Wisconsin. She believes that RFID could even be helpful in her small private

Christian school. Mrs. Alicia Lundal states “I think the RFID technology will begin to permeate

many areas of today's society. I also think something like this could be used in the private

education sector. Parents want to be "in the know" about all aspects of their children's education.

With the use of Internet communication between home and school already in place, RFID may

be the logical next step.Parents could have an ID card that could be scanned that would provide

them with, for example, the following:student grades, account balances, perhaps even making

payments, school news, classroom news, requesting teacher conferences, communication,

between parents and faculty, re-enrollment and many more possibilities.” I agree with her about

this, if parents are paying a large amount of money for their child to attend elementary and

middle school then they are obviously very involved with their child’s life. RFID would be just

another step to help make that possible and to provide the convenience these parents are looking

for. When I asked Mrs. Alicia Lundal about what her opinions of this technology being used in

the hospitality industry she stated “this seems like the next logical step in the hospitality

industry; especially for "preferred customers" or individuals who are already part of a

"member/honors/reward" program.People would be able to seamlessly make reservations for

both personal and professional use.” I also agree with her statement on how it is the logical step

for hotels to start pairing with RFID and give their preferred customers something special that

sets that above the rest of the hotels guests.

When I asked Mrs. Alicia Lundal for some of her person opinions about the new and upcoming

technology this is what she told me “It is important for businesses in all areas, whether it be

hospitality or health care, to be continually thinking of better ways to create a process that

provides additional assistance or ease to their customers. Being customer-driven is not only a key

to aggressive marketing, but taking a business to the next level of success. It is also important to

think about one's internal customers.For example, in the hospitality industry, could the

housekeeping service have part in RFID? Perhaps a hotel room door could be scanned to advise

whether a customer has checked out and whether a room needs to be completely set up for the

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next guest.More and more people will be able to conduct many facets of their personal and

professional lives from mobile devices.” Mrs. Lundals idea and opinions I thought were

excellent and really made me think of the infinite possibilities RFID is capable of. RFID is very

compatible with every industry and business.

Using my expert opinion I believe this trend will impact the business landscape enormously.

Radio Frequency Identification technology has the capability to make businesses more attractive.

It allows for better customer service by being more convenient. Guests I believe will choose

companies that use RFID over companies that do not because it is easier. For example in the

hotel business a guest who travels a lot does not want to wait in line to check-in, rather the guest

would like to simply walk up to the room and relax after a long day of travel. In the future RFID

will become more prevalent in every industry. Some examples will be when shopping you can

carry a RFID tag that contains your personal information and when you walk by hangers the

clothing that has your preference match will light up. Another great example is smart appliances;

your washing machine will choose the correct cycle depending on the tag information. Smart

refrigerators will take an inventory and alert you when your food has expired, the fridge will also

create shopping lists and browse the internet to find recipes that contain the ingredients that are

located inside. There are limitless opportunities for RFID to improve our quality of life and

better our companies. The companies that look forward into the future and who grasp this idea

will succeed. RFID will be widely accepted and will be in the norm. Instead of businesses using

a separate key or card to hold the RFID tag it will be implanted in each of our cell phones so it

will be extremely convenient. RFID will be aimed towards all ages, especially the elderly

because it will make their life much easier. A company in Europe is testing a RFID equipped

online medicine cabinet which can alert users if they have chosen the incorrect medicine. The

companies that use the older generation’sfaults to their benefit will have the greatest competitive

advantage

Overall, Radio Frequency Identificationtechnology is an up and coming idea. In the years

to come we will start to see in become more wide spread. It will be in every industry and

customer service will be at an all-time high. RFID will be for every age group and will great

improve our quality of life. RFID is just starting out but will soon be everywhere.

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References

(2011). Rfid, a vision of the future. Retrieved from

http://www.rsa.com/rsalabs/node.asp?id=2117

Aim global. (2012). Retrieved from

http://www.aimglobal.org/technologies/RFID/what_is_rfid.asp

Beal, V. (05-1). All about rfid. Retrieved from

http://www.webopedia.com/DidYouKnow/Computer_Science/2005/rfid.asp

Rfid for small ski resorts. (2012). Retrieved from

http://www.rfidjournal.com/article/purchase/9399

Check out this hotel's facebook obsessed rfid campaign inibiza. (2011). Retrieved from

http://thenextweb.com/socialmedia/2011/08/01/check-out-this-hotels-facebook-obsessed-

rfid-campaign-in-ibiza/

Aloft opens door to "smart check-in" at more hotels. (2011). Retrieved from

http://www.starwoodhotels.com/alofthotels/newsevents/news/detail.html?mode=pressRel

easesDetail&id=EAME11052011