In 2017 and 2018, the National Club Association (NCA®) and Hospitality Financial and Technology Professionals (HFTP®) conducted two studies that investigated club technology. The first survey concentrated on information technology (IT) decision criteria for purchases, decision makers and how clubs are managing the security of their systems.
The second study on the state of club technology and timing of technology upgrades concentrated on the criticality, value creation, usage and performance of club information systems and their features—how clubs view technology in helping them to create value for their stakeholders.
Following are some of the key findings from the studies, which was conducted by Agnes DeFranco, EdD, CHAE and Cristian Morosan, PhD, Conrad N. Hilton College of Hotel & Restaurant Management, University of Houston.
Table 1
Decision-Making Process on IT Purchases – 2017
|
Rank |
Strategies |
Scores |
|
1 |
We are following a clear general strategy in our club |
3.85 |
|
2 |
Generally, in terms of keeping up with current IT, our club is innovative |
3.66 |
|
3 |
Our club IT department has a strategic plan regarding the use of IT |
3.53 |
|
4 |
We are generally cautious in trying new/different information systems |
3.46 |
|
5 |
We never buy something we do not know about at the risk of making a mistake |
3.36 |
|
6 |
Our club would rather stay with a brand that we usually buy then try something we are not very sure of |
3.24 |
Note: “1” is “Strongly Disagree” and “5” is “Strongly Agree.”
Table 2
Most Influential in Purchasing Decisions – 2017
|
Rank |
Where the Power Lies |
Score |
|
1 |
General Manager |
4.16 |
|
2 |
IT Manager |
4.01 |
|
3 |
Club Staff |
3.95 |
|
4 |
Word of Mouth |
3.73 |
|
5 |
Industry Communities |
3.67 |
|
6 |
Vendor Demos |
3.66 |
|
7 |
Board of Directors |
3.32 |
|
8 |
Vendor Sales Staff |
3.21 |
|
9 |
Consultants |
3.20 |
|
10 |
Online Forum |
2.97 |
|
11 |
Others |
2.92 |
|
12 |
Trade Shows |
2.89 |
|
13 |
Vendor Websites |
2.88 |
|
14 |
Third Party Websites |
2.63 |
|
15 |
Unsolicited Advertising |
2.15 |
Note: “1” is “Not Influential” and “5” is “Very Influential.”
Table 3
Security Practices – 2017
|
Rank |
Current Practices
|
Score |
|
1 |
Protects all systems against malware and regularly update anti-virus software or program |
4.65 |
|
2 |
Installs and maintains a firewall configuration to protect cardholder data |
4.50 |
|
3 |
Identifies and authenticates access to system components |
4.49 |
|
4 |
Develops and maintains secure systems and applications |
4.46 |
|
5 |
Does not use vendor-supplied defaults for system passwords and other security parameters |
4.44 |
|
6 |
Restricts access to cardholder data by business “need to know” |
4.37 |
|
7 |
Protects stored cardholder data |
4.36 |
|
8 |
Restricts physical access to cardholder data |
4.28 |
|
9 |
Encrypts transmission of cardholder data across open, public networks |
4.24 |
|
10 |
Tests security systems and processes regularly |
4.15 |
|
11 |
Maintains a policy that addresses information security for all personnel |
4.10 |
|
12 |
Tracks and monitors all access to network resources and cardholder data |
4.03 |
|
Rank |
Future Practices
|
Score |
|
1 |
We intend to take backup measures to recover data stored if our system(s)/device(s)/data gets lost or compromised |
4.76 |
|
2 |
We intend to take measures to remedy the damages caused if our system(s)/device(s)/data get lost or compromised |
4.71 |
|
3 |
We intend to take measures to stop others from accessing confidential club data |
4.58 |
|
4 |
We intend to take measures to prevent unauthorized access to our services/devices |
4.58 |
Note: “1” is “Strongly Disagree” and “5” is “Strongly Agree.”
Table 4 & 5
CRM – 2018
Table 6 & 7
Website – 2018
To Technology and Beyond
One survey respondent best summed up the present and future of IT in clubs when she shared what she terms as the two “roadblocks” within the club industry. First, technology is an expensive proposition. Faced with limited budgets and yet a never-ending list of new systems and gadgets, if a club postpones an update or installation, its technology will simply fall behind. As an industry, clubs value personal service to their members to the extent to which they view technology as an intrusion. Certain clubs still ban cell phones in their dining rooms. However, hotels and restaurants use technology extensively from marketing to in-house upselling, ordering for services and products, and even payment. Therefore, besides falling behind in IT as an individual club, the industry itself can also fall behind relative to other hospitality industries.
Second, not only are club personnel multi-generational, club members also span many generations. From a workforce and management standpoint, while the younger workforce is more tech savvy and embraces IT use, the more seasoned colleagues might deny technology upgrade requests, viewing them as “unnecessary.” Sometimes, these decisions might come from a board whose members are more resistant to technology changes and still prefer hard copies of all documents. If such practices persist, the club industry will fall behind as technology evolves. Furthermore, employees with more foresight may see the club industry as a deterrent to their career growth and may simply move to other hospitality industries such as hotels, restaurants, cruise ships or even join the vendor side of the business. A loss of human talent is surely not desirable.
From the members’ standpoint, using the cellphone ban example, if mobile phones are banned in the dining room or by the pool, the younger generation who like to snap pictures and post them to social media would not enjoy the club experience as much when coming to the club with their “older” family members. They may opt to dine at a restaurant instead, and the food and beverage revenues of clubs may suffer.
While best practices recommend careful use of club social media channels, members post images of their activities at the club to their own social media accounts—illustrating to friends and family positive experiences like the club’s Mother’s Day Brunch or July 4th celebrations. However, restricted use of cell phones to capture these events hinders sharing of fantastic club activities. Clubs should find ways to create a perfect blend of legacy and contemporary club experiences that wow all members and guests. Technology is only going forward. So should clubs.
Agnes DeFranco, EdD, CHAE is a distinguished chair and professor at the Conrad N. Hilton College of Hotel & Restaurant Management, University of Houston. She can be reached at [email protected]. Cristian Morosan, PhD, is an associate professor at the Conrad N. Hilton College of Hotel & Restaurant Management, University of Houston. He can be reached at [email protected]. This information is based on a study commissioned by Hospitality Financial and Technology Professionals (HFTP); learn more about the association at hftp.org.
Club Trends Summer 2018