Technology

The business case for digital signage

13 Mar, 2012 By: Andrew Sheivachman

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During an economic downturn that left operators strapped for CapEx dollars, digital signage in public areas tended to be a low priority for most hoteliers. Recent reductions in the cost of TVs, in addition to shifting guest expectations, mean that brands are putting a new focus on exploring the opportunities presented by digital signage as a touch point and potential revenue generator.

“Ninety-five percent of LG’s revenue comes from the consumer product stream, so it drives availability of technology,” said Dan Smith, director of digital signage for LG. “Smart TVs are starting to come into their own on the retail level for consumers. In general, something similar to what a tablet does today is what TVs will do in coming years. But when we’re talking about this all in one solution, there are limits.”

New models from vendors such as LG and Samsung include limited built-in slideshow technology that can allow a hotelier to simply display information or slideshows on screen. “The high-end industrial devices have twice the life expectancy and require a separate media player,” said Smith. “They need video rendering, where they can render live video or Flash video. Our system is not designed to layer and render multiple layers of video; I don’t think they’re going to get that far because it adds too much cost to panel.”

Despite the increased costs of a high-quality screen and a separate media player, digital signage investment gives hotels a more robust set of tools to reach guests. “The hotel industry is doing much better financially, so now many chains are looking to improve branding and the customer experience at the same time,” said Smith. “Anything dynamic is far more exciting for the customer. Instead of looking through pamphlets, guests can see videos and do some interactive delving into actual things. From the hotel side or owner side, their intent is to create branding to drive loyalty and repeat visits. It’s far more compelling to present a concept via digital signage, and more effective than trying to train people behind the desk. The message will always be the same.”

Topic : TVs, Digital signage
External Source : Hotel Management