Presentation given at IBM forum in Hong Kong, November 2009

1. Monetizing the Hotel Room with
New Technologies
October 2009
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2. The Dawn of a New Generation
• Agents of Change: “Millennials”
– Forcing transformation of
communications and entertainment
sectors, creating unprecedented
implications for businesses
– First generation to be raised on the
Internet and is united across borders
and cultures by their digital media
preferences
– 80% of Millennials are regularly
searching, downloading and listening to
music over the Internet
– 73% are also regularly socializing online
(via social networking sites, chat rooms
or message boards)
• Meeting Millenials’ needs means companies need
to utilize effective technological solutions to aide in
multi-platform distribution and value-add services
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3. Ready for the Next Generation
Traveler?
“There is now a segment of the population that is so
comfortable with technology that it’s routine and expected in
most areas of life – especially throughout the travel process.”
• Emerging technology has re-shaped the attitudes
and behavior of contemporary travelers
• Highly educated, affluent
• Active users of the latest computer,
entertainment or consumer technology
• Spend over 50% more on travel services
annually than their less tech-savvy counterparts.
PhoCusWright March 2008 NEXTgen Traveler survey of 2,559 adults
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4. …and what do they want?
• “Technology is not only the way many people
find their hotels, it can make or break whether a
hotel is chosen. “ Source: Synovate
– 47% of people agree that a hotel must cater to their
technology needs before they book it
– Wi-Fi internet access is becoming a requirement for
many guests
• Nearly one in ten people say they will not stay at a
hotel unless it has an environmental policy.
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5. Challenges to revPAR
• VoD and adult content revenue eroding
– Guests increasingly using personal communications
devices such as laptops, i-Phone, etc. to access content
– Internet usage in hotel rooms has gone up from single
digits to 25% within 7 years.
• Increasingly sophisticated expectations for high
technology standards
• Need for HD content not met by VOD/TV service
providers
– Content still mostly SD quality for both broadcast
channels and VOD content due to cost reasons
How to utilize effective technological solutions
to maintain and increase revPAR?
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6. Opportunities
• Transform/update technology into a major
selling point
– Technology upgrade is a must to stay abreast of today’s
consumer expectation
– Now is the time to upgrade with minimal interruption at
maximum equipment price advantage
• Leverage new technologies intelligently
– IPTV services are best equipped to meet challenges now
and into the future
– IPTV provides the quickest and most cost effectives way
to upgrade to HD content
• Provide technology to converge touch
points for customer interaction
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7. Recent Guest Room Technology
Innovations
• i-Pod cradles
• Wi-Fi access
• Flat panel TVs / HDTV sets
• IP phones
• Plug-in technology allowing digital
devices to be connected to the
room television
• Integrated social networking to
engage and enhance customer
relationships
• New Mobile Travel and Location-
Based Applications to enhance the
travel experience
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8. Example1 : Innovative Technology to
Enhance Guests’ Experience
Native Video Turnaround (NVT)
• Bringing HD Content finally within Reach of Hotels (& Guests).
• Delivery of all digital content in original quality without expensive
enterprise-class encoders.
• SD and HD content with zero loss of quality and at a fraction of the
usual cost.
• Based on open standards which allows for best-of-breed technology
integration and optimum price/performance ratio tailored to customers’
individual needs.
• Meets guests’ expectations for
high quality content
• Increases guests’ comfort and
loyalty
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9. Conventional Set Up
• One encoder per channel
• Separate server set up for
rest of head end equipment
• Large equipment footprint
NVT Set Up
• High-capacity NVT
design
• All head end
equipment integrated
in middleware
• Very small equipment
footprint
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10. The Hotel “Arms Race” Dilemma
• Competition fuels drive to differentiate
• Advantages short lived
• Services mostly add to comfort
& loyalty, not revPAR
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11. How to “Leap” ahead
• Innovative value added services to
replace the vanishing revPAR
• Implement applications that increase
incidental spending inside hotels
– Capture the dollar patrons normally
spend outside the hotel
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12. Example2: Increasing revPAR
BNS Touch and The Wiz
• Online service and entertainment system that marries the
familiarity of printed catalogues with the information-rich online
world
• Increases revPAR and offers new revenue streams for hotels
and greater convenience for their guests
• Wireless pen-like device connects to IPTV STB and uses a small
infra-red camera to read invisible dot codes on printed material
to bring the information to live on the TV screen
• Can be used for guest facing services such as in-room dining,
VoD selection and hotel facilities bookings
• Flexible to be tailored for backroom operations such as
streamlining housekeeping operations.
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13. Examples for BNS Touch Applications
•Increases revPAR/on-
premise spending
•Saves resources
through automating
services
•Eliminates language
barrier through
direct and visual
communication
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14. About BNS
• Long-standing and proven experience with
telco-grade IP- entertainment, automation
and AV systems
– Telco and Hospitality focus
• Extensive content expertise
• Open platform philosophy guarantees
future proofing of technology
• Understanding the needs and expectations
of the “i-Pod generation” (access
anywhere, over any device)
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15. • Blue Chip Client Base
• Regional Focus
Regional office
Customer deployments
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16. The BNS Products and
Solutions Portfolio
(BNS Touch)
(BNS Touch)
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17. Globally Renowned Partners
Encoder
Encoder
Video
Video
Server
Server
CA/DRM
CA/DRM
M/W
M/W
Network
Network
Equip.
Equip.
Codec
Codec
STB
STB
Others
Others
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18. Thank You
29/F, Siu On Centre
188 Lockhart Road
Wanchai, Hong Kong
Ph: +852 2180 9918
www.bnsltd.com Fax: +852 2180 9919
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