5 Reasons to Add AV Management Software to a Hotel’s 2019 Capital Budget
Recent reports are showing that the meetings segment of hospitality is flourishing, and technology is of critical importance to event planners in venue selection. Meeting facilities with lodging – which hosted 87% of meetings in 2016 according to the PwC Conference Center Report – need to put more focus on managing their built-in and portable audiovisual equipment to meet planners’ expectations in 2019. Inventory management, break/fix ticketing, cost accounting and expense management of a hotel’s event technologies is often overlooked. However, when properly orchestrated via cloud-based software and a mobile app, a hotel can turn AV into the second most profitable department in a hotel, behind rooms.
“PwC reports that ‘centers of all sizes are focused on developing flexible space that can easily adapt to meeting organizer needs,’” said Jeff Loether, president of Electro-Media Design, a consultancy for meeting, entertainment, and event technologies and acoustics and creator of AVaStar, a Software as a Service (SaaS) platform for AV services. “While large centers are budgeting to increase the size of meeting-room and pre-function spaces, create grand entrances, and add natural lighting, small- and mid-sized centers are planning to enhance the attendee experience with technology. It’s these smaller meeting facilities with lodging that typically self-manage their AV and lack any type of resource or support system that provides a professional template. They typically struggle through the process and sacrifice potential revenue and profit.”
Eric Bracht, AVaStar managing director, agrees.
“If you operate a meeting facility, and you use non-technical, in-house staff (like the catering or banquet manager) to oversee AV services for these events on top of their normal, everyday duties, it’s exhausting your resources," Bracht said. "Chances are, these staffers are not comfortable with the added responsibility, planners aren’t happy because their planning contact lacks the knowledge to support their technical requirements, and owners aren’t happy because revenue is falling through the cracks."
Here are 5 reasons why operators need to budget for AV Management software in 2019:
1. Maximize Revenues with Scripted Sales for Non-Technical Staff
When staff do not understand AV technologies, it makes it difficult for them to sell – or upsell alternatives – to event planners. Within AVaStar, venue-specific service packages are created and customized to drive sales and eliminate errors and omissions in equipment orders. This decision-tree process prompts staff to ask specific questions. Depending on the planners’ answers, the sales person then moves on to the next question. It’s an easy-to-use analytical tool that builds a billable package of AV technologies.
2. Ensure Equipment Performance by Tracking AV Equipment Lifecycle in Micro Detail
When the person managing AV processes is also responsible for other tasks, managing inventory often takes a back seat. It’s not enough to just know which systems are in-house (built in), which are portable, and what can be brought in from a third party. What is sorely lacking is the ability to track AV equipment across its lifecycle. When was the equipment purchased and from whom? How much did it cost? Is it still under warranty? If it is under warranty, who holds the service contract? How many times has the equipment been repaired? Who repaired it? How many times has it failed? What did it cost to repair? Where is the equipment stored? How often is it used? At best, hoteliers use sticky-notes, index cards, white boards, and maybe excel spreadsheets to answer just a few of these questions. AVaStar gives operators an at-a-glance synopsis of each piece of equipment in micro detail, enabling even the most novice sales person to ensure planners are using equipment that works each time, every time.
3. Ensure Proper Service Ticketing of Broken/Fixed Equipment
Preventive maintenance procedures are in place at most hotels to ensure that capital expenses are functioning properly. Unfortunately, many hoteliers fail to add AV technology to their PM schedules. The best way to ensure that AV equipment will work prior to an event is to implement a service-ticketing program. If equipment is malfunctioning and needs serviced, a ticketing system (that includes barcode labeling and scanning, or inventory asset tags) will let staff know where the item is in the repair cycle. AVaStar tracks where the equipment was sent for repair (internally or externally); how long the item is out of service; when the repair was completed, and if the item was put back into inventory; if the item needs replaced; or if staff needs to find other workarounds to meet the planners needs.
4. Manage Expenses by Tracking Costs and Revenues of AV Equipment, Even Equipment and Services Provided by Third-Party AV Services Vendors
Once hotel teams begin driving revenues from AV equipment, they will need the ability to measure and manage those revenues as well as associated costs. AVaStar is built to do just that and more. While tracking revenues is important, AVaStar also identifies the sources of revenue. Did the money come from equipment the hotel owns or rents? How much labor was paid for staff to manage the equipment? Did you need to hire outside labor to run the technology? Was additional equipment like rigging, Internet, or electric services required? What did the labor cost for that endeavor? How much money is spent on equipment rental? Can the hotel reduce its expenses if equipment was purchased vs. rented? If yes, how much and how quickly? AVaStar is designed to make hoteliers more efficient with their spending. It identifies top line revenues and bottom line costs quickly. And it helps ensure that all AV related costs are allocated properly, not falling into the “Banquet-Other” category by mistake. Even when outsourced third-party vendor equipment and services are needed, AVaStar will help manage them as well.
5. Access AV Data on the Fly via Mobile App
Operations staff – who are usually not tied to their desks – can manage most of the above via the AVaStar Mobile App. It brings AVaStar’s desktop functionality to staff’s fingertips.