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000-M43 exam Dumps Source : IBM SUT Intermediate even Technical(R) Sales Mastery Test V1.0

Test Code : 000-M43
Test name : IBM SUT Intermediate even Technical(R) Sales Mastery Test V1.0
Vendor name : IBM
: 52 true Questions

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IBM IBM SUT Intermediate Level

Indegy Industrial Cybersecurity Suite accessible on IBM security App change | killexams.com true Questions and Pass4sure dumps

Indegy, a leader in industrial cyber protection, nowadays announced the combination between its Indegy Industrial Cybersecurity Suite and IBM’s QRadar protection Intelligence Platform, which bridges the visibility cavity between commercial enterprise suggestions expertise (IT) environments and industrial, operational technology (OT) environments.

recent assaults similar to TRITON, Dragonfly 2.0, and CrashOverride/Industroyer accommodate shown that these days’s Industrial control methods (ICS), lots of which at the flash are linked to commerce IT systems, are not any longer remoted from cyber threats. in the meantime, traditional IT security options are unable to video display the really expert systems utilized in OT environments to establish dangers. The aggregate of the Indegy Industrial Cybersecurity Suite and IBM QRadar offers the deep visibility, protection and ply required to nigh the blind spot between commercial enterprise IT and industrial ICS networks.

The Indegy Industrial Cybersecurity Suite which parses OT movements and converts them to a criterion taxonomy structure that can too exist displayed during the QRadar interface is available now on IBM security App change. As threats are evolving quicker than ever, collaborative construction amongst the safety community will assist businesses accommodate perquisite away and pace innovation in the fight in opposition t cybercrime.

“IBM QRadar is trusted via heaps of firms to monitor cyber security threats of their IT environments,” referred to Barak Perelman, Co-founder and CEO of Indegy. “by using combining their unmatched visibility into both industrial community and device stage activity, with IBM QRadar, we're featuring consumers with holistic insurance scheme that spans their IT/OT infrastructures and might become watchful of threats that try to stream laterally between them.”

Closing the IT/OT Visibility gap

The Indegy Industrial Cybersecurity Suite is purpose-developed to give true-time situational focus and visibility into ICS networks. It combines behavioral anomaly detection with policy based mostly rules for complete probability detection and mitigation, and entertaining visibility into the asset inventory. Industrial facilities together with essential infrastructures, utilities, water, power, pharmaceutical and manufacturing groups utilize Indegy to automate operational oversight processes, establish human errors akin to misconfigurations and failed renovation, and give protection to towards malware, cyber assaults, and insider threats.

The IBM QRadar safety Intelligence Platform integrates safety assistance and experience management (SIEM), log administration, anomaly detection, community evaluation, consumer habits analytics and vulnerability administration to research statistics in true-time throughout an organization’s commercial enterprise IT infrastructure to detect and prioritize skills safety threats.

The combined Indegy-IBM retort offers joint clients here advantages and capabilities:

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  • Behavioral and superior heuristics
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    Indegy Joins IBM safety App exchange group to assist Industrial groups Bridge IT/OT Cyber haphazard gap | killexams.com true Questions and Pass4sure dumps

    Indegy, a frontrunner in industrial cyber security, nowadays announced the combination between its Indegy Industrial Cybersecurity Suite and IBM’s QRadar protection Intelligence Platform, which bridges the visibility cavity between commerce guidance know-how (IT) environments and industrial, operational technology (OT) environments.

    contemporary attacks equivalent to TRITON, Dragonfly 2.0, and CrashOverride/Industroyer accommodate proven that today’s Industrial control methods (ICS), many of which at the flash are connected to commerce IT systems, aren't any longer isolated from cyber threats. in the meantime, traditional IT protection options are unable to display screen the really expedient techniques used in OT environments to identify dangers. The combination of the Indegy Industrial Cybersecurity Suite and IBM QRadar provides the deep visibility, protection and ply required to nigh the blind spot between commerce IT and industrial ICS networks.

    The Indegy Industrial Cybersecurity Suite which parses OT movements and converts them to a criterion taxonomy layout that can too exist displayed throughout the QRadar interface is attainable now on IBM security App alternate. As threats are evolving quicker than ever, collaborative development amongst the security community will back companies accommodate rapidly and pace innovation in the battle in opposition t cybercrime.

    “IBM QRadar is relied on by passage of thousands of organisations to video display cyber safety threats in their IT environments,” observed Barak Perelman, Co-founder and CEO of Indegy. “via combining their unmatched visibility into both industrial network and device stage endeavor, with IBM QRadar, they are providing customers with holistic protection that spans their IT/OT infrastructures and can notice threats that try to circulate laterally between them.”

    Closing the IT/OT Visibility gap

    The Indegy Industrial Cybersecurity Suite is goal-developed to deliver actual-time situational cognizance and visibility into ICS networks. It combines behavioral anomaly detection with policy primarily based guidelines for finished hazard detection and mitigation, and enjoyable visibility into the asset stock. Industrial amenities including vital infrastructures, utilities, water, power, pharmaceutical and manufacturing agencies utilize Indegy to automate operational oversight procedures, establish human mistake such as misconfigurations and failed protection, and give protection to against malware, cyber attacks, and insider threats.

    The IBM [®] QRadar [®] protection Intelligence Platform integrates safety suggestions and event management (SIEM), log administration, anomaly detection, community evaluation, user conduct analytics and vulnerability administration to research statistics in true-time throughout an organization’s commercial enterprise IT infrastructure to determine and prioritize expertise protection threats.

    The combined Indegy-IBM solution offers joint consumers perquisite here advantages and capabilities:

  • Visibility across IT and OT environments
  • Behavioral and superior heuristics
  • coverage primarily based controls
  • Identification of vulnerabilities
  • complete and precise-time device stock
  • Asset monitoring
  • Proactive protection and compliance reporting
  • About IndegyIndegy, a frontrunner in industrial cyber protection, protects industrial ply equipment (ICS) networks from cyber threats, malicious insiders and human error. The Indegy Industrial Cybersecurity Suite fingers protection and operations groups with plenary visibility, safety and manage of ICS exercise and threats by passage of combining hybrid, coverage-based monitoring and community anomaly detection with exciting machine integrity exams. Indegy solutions are installed in manufacturing, pharmaceutical, power, water and other industrial businesses around the globe. For more tips visit www.indegy.com and comply with us on Twitter and LinkedIn.

    View supply edition on businesswire.com: https://www.businesswire.com/news/domestic/20190131005109/en/

    supply: Indegy"> <Property FormalName="PrimaryTwitterHandle" price="@IndegyCom

    Marc GendronMarc Gendron PR for Indegy781-237-0341marc@mgpr.net

    Copyright company Wire 2019


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    RESTful Web Services: A Quick-Start How-to usher - fraction 2 | killexams.com true questions and Pass4sure dumps

    Part 2 of "RESTful Web Services: A Quick-Start How-To Guide" explores foundational issues in coding RESTful operations, including Basic Authentication and Exception handling. Along the passage I'll participate with you multiple real-world coding tips and workarounds.

    IntroductionAs a teenager, one of my favorite TV shows was "The Wild Wild West." The show's description goes relish this, "... a 60 minute western action sequence on CBS that was relish no other. Special Agents James West and Artemus Gordon were spies for President Ulysses S. award shortly after the civil war. In every other way, they could exist easily confused with James Bond of the 20th century. They had a "high-tech" (for its day) railroad car stocked with a compliment of advanced weapons. James West especially seemed to woo every exquisite woman he encountered. The agents' typical mission involved saving the United States from some disaster or from being taken over by some evil genius." Just in case you're curious or are a fan relish me, here's a link to the first fraction of a plenary episode on YouTube.

    What execute RESTful services accommodate to execute with the Wild Wild West? In my mind, lots. First, there's the "wildness" part. As even a brief comparison between service provider APIs will note you, sum RESTful services are not created equal. Each service provider, while loosely conforming to the condition representation paradigm, creates requests and responses in formats that suit their individual styles and predilections. The onus for implementing the client side of the service falls on the developer. Then there's the inventive side of things. Just relish special agent Artemus Gordon, a RESTful client developer needs gadgets, inventiveness, and a perpetual awareness that she's dealing with an informal (enemy) specification. Plus, on the PowerBuilder side, there's no direct back for integrating with DataWindow technology (yet), so you'll accommodate to invent ways to score data into and out of a display. There's too a requisite to protect your app against outside issues by wrapping calls in confiscate try enmesh blocks to ply workable HTTP exceptions in order to withhold your app responsive and stable.

    In my opinion, without a formal schema and metadata description support, configuring RESTful condition service clients will remain an art. I accommodate to admit that I stumbled many times during experiments while writing this article. I tried calling services whose communication format didn't quite match the generally expected format. One service provider expected parameters to exist passed and results returned in line-separated text values in the message corpse instead of formatting data as XML or JSON. After quite a bit of poking and debugging it became manifest PowerBuilder will only generate and interpret message corpse content formatted as JSON and XML. There is no passage to translate from any other format. sum the low-level details are handled internally and there is no passage to score inside the message to change the format. Another service provider showed their API in terms of JSON data sets, but after hours of experimentation and a diminutive assist from engineering, they discovered that the service needed multipart/form-data with the JSON sent as a shape parameter. This is not a supported format. So e caveat emptor, invent sure the service provider has a ‘traditional' shape of RESTful API. Luckily, I believe most of the ‘big boys' with widely used APIs do.

    Oh, Those Project Objects!Before getting into details, a few words about RESTful project objects and generated code. RESTful project objects are designed to exist relish sole shot Derringer pistols; fire one shot, then you accommodate to reload. Each project kick is capable of generating one proxy kick for one method, period. That means if you are interacting with multiple web methods (GET, POST, region and DELETE) you're going to accommodate multiple proxy objects. In addition, each operation, depending on its type, can accommodate up to two referenced .NET value objects, one for the request and one for the response. One nice thing I noticed is that if multiple services reckon on the selfsame parameter sets, you can reuse referenced value objects instead of generating supererogatory carbon copies. design 1 shows how you'd configure the project painter to reference an already-generated assembly. Each reference kick is placed in its own assembly inside an identically named namespace. Unfortunately it seems relish you can't accommodate multiple value objects in a sole assembly or namespace. design 2 shows how reference kick assemblies show in the Solution Explorer. design 3 shows you the wizard view when choosing an existing value kick assembly.

    Figure 1: Reusing an already referenced assembly

    Figure 2: Referenced kick in Solution Explorer

    Figure 3: Wizard View: Choosing and existing assembly

    Here are a sequence of tips that I discovered while building my application:

    Tip 1: The project kick owns its generated proxy object. That means that any modifications you invent to it will exist lost if you regenerate the proxy. Because I needed to invent modifications to the generated code, I adapted the strategy of using project kick generation as a starting point only. Once the proxy objects were generated to my liking, I deleted the project kick to avoid accidentally nuking my code.

    Tip 2: If you accommodate several services that utilize an identical request kick or recur the selfsame result structure, you can reuse your value kick definitions. Generate once, utilize many. Just pick them on the wizard or in the project object.

    Tip 3: The only door into a unique project kick is in via the Wizard. This is unlike Classic where there were two doorways into a unique project (Wizard or vacuous project painter page).

    Tip 4: Here are a yoke of trim XML sample data parsing features: First, if an XML factor in the sample dataset has attributes, the advert values are returned as fraction of the generated value object. design 4 shows a sample response dataset containing attributes; design 5 note the corresponding generated value object. Second, as you can remark from design 6 that nested XML structures becomes divide objects within the generated assembly.

    Figure 4: Sample DataSet with Atributes

    Figure 5: Value kick generated from sample dataset

    Figure 6: Nested XML object

    With these project kick details behind us they can now trudge on to two essential runtime housekeeping needs: recur status checking and exception handling.

    Checking recur StatusSome services betoken their outcome by returning data in a specific and constant format. Other services betoken their outcome by returning an HTTP status code instead of an XML or JSON embedded status message. still other services recur status conditions wrapped in specially formatted XML or JSON structures. If you requisite to check a HTTP recur status code outcome you'll requisite to score the status code from the Response object. Here's how: The response kick is returned to the proxy in the shape of a PBWebHttp.WebMessage object. This kick has a StatusCode property of character MessageStatus that holds the response outcome. You can test StatusCode against enumerated values of the WebResponseStatusCode class and fork accordingly. design 7 shows a partial list of MessageStatus codes and their corresponding meaning. For a complete listing of HTTP 1.1 code remark http://www.w3.org/Protocols/HTTP/HTRESP.html. Listing 1 shows an illustration of testing a proxy fashion convoke status code.

    PBWebHttp.WebMessage msg   //generated codePBWebHttp.MessageStatus l_msg_status     //my custom additionTrymsg = m_service.GetMessage()//an exception was not thrown - check the status of the outcomel_msg_status= msg.Statusif l_msg_status.StatusCode = PBWebHttp.WebResponseStatusCode.OK! thenMessageBox('Success! ','call returned OK')end if.....

    Listing 1: Testing Result Staus Code

    Figure 7: MessageStatus codes

    Exception HandlingWizard-generated proxy code does not accommodate any exception handling logic. Any exceptions that occur are thrown up to the caller for processing. Unhandled, these exceptions become system errors. In the web world, Response status codes in the 400 orbit betoken client errors; those in the 500 orbit signal server errors. In WCF 400 and 500 codes raise exceptions.

    Best coding practices mandate robust exception handling. Depending on the even of detail you requisite to report on, you can ply exceptions either at the proxy fashion caller even or within the proxy fashion convoke itself.

    RESTful service methods, predicated on HTTP, usually fling a System.Net.WebException.  Although the common System.Exception forefather property Message contains a description of what went wrong, it's more useful to directly test the value of the returned status code.  Luckily the WebException contains a reference to the returned Response kick which holds the status code.  Listing 2 shows an illustration of testing the status code when a convoke fails.

    catch (System.Net.WebException webex)System.Net.HttpWebResponse l_respl_resp = webex.Response                //Get the response objectif l_resp.StatusCode = System.Net.HttpStatusCode.Unauthorized! then         //check its status codeMessageBox('Your Credentials Are Invalid', 'Uid=' + uid + '~r~nPwd=' + pwd )return Resultend if

    Listing 2: Testing the status code

    Now that you are watchful of housekeeping issues, let's hold a glance at security concerns.

    Basic AuthenticationWCF supports various forms of authentication ranging from nonexistent up to Digital Certificates. When using Basic Authentication you region your credentials in the user ID and password in request header fields. If HTTP is used, the credentials are encrypted within in a modest text header (however, freely available programs such as Fidder can decrypt SSL). If HTTPS is used, then SSL encryption is applied to sum transferred packets. The client/server negotiation algorithm is: (1) Client makes a request; (2) Server responds with a 401 unauthorized response; (3) Client responds with a request including a login header containing a user id and password; (4) The client automatically includes the header in sum requests for the duration of the exchange. design 8 note the conversation as revealed by Fiddler. For a more detailed discussion remark http://www.4guysfromrolla.com/articles/031204-1.aspx

    Figure 8: HTTP Authorization Conversation

    From the PB WCF perspective, your programming job is to set up the credentials for the exchange. The low-level runtime exchange process is handled internally by the infrastructure. A minor challenge is that from the PowerBuilder coding perspective you're navigating into partially uncharted waters. There is no PowerBuilder documentation on the members of the Sybase.PowerBuilder.WCF.Runtime assembly. However, armed with a basic understanding of WCF and a few minutes to examine the members of the referenced assembly I imagine that you will exist able to design out what to do. Here's the basic algorithm:

  • In the constructor of your proxy class, instantiate a WebClientCredential kick and set your credentials and authentication character into it. design 9 shows the WebClientCredential class and its members (it's just a value object).a.  Set a value for the AuthenticationMode using a value from the AuthenticationMode enumeration. In their case they set the value to Basic!b. Provide your user ID and password.
  • Assign your WebClientCredential kick to your WebConnection object. The WebConnection is already instantiated and has the identifier name restConnectionObject. design 9 shows this kick with the essential property.
  • Call your service as usual. exist sure to involve exception handling code that tests for the 401 HTTP error.
  • Figure 9: WebClientCredential class

    Listing 3 shows a sample RESTful service configured to utilize Basic authentication.

    //  vvvvv----Project Generated Code----vvvvm_service = create PBWebHttp.RestService("http://phprestsql.sourceforge.net/tutorial/user?firstname={p_first}&surname={p_last}&email={p_email}&company_uid={p_id}", PBWebHttp.WebMessageFormat.Xml!, PBWebHttp.WebMessageFormat.Xml!)

    restConnectionObject = create PBWebHttp.WebConnectionrestConnectionObject.Endpoint = http://phprestsql.sourceforge.net/tutorial/user?firstname={p_first}&surname={p_last}&email={p_email}&company_uid={p_id}

    restConnectionObject.RequestMessageFormat = PBWebHttp.WebMessageFormat.Xml!restConnectionObject.ResponseMessageFormat = PBWebHttp.WebMessageFormat.Xml!

    //  vvvvv----Custom Authentication Code----vvvvPBWebHttp.WebClientCredential lsCredential             //configure credentialslsCredential = create PBWebHttp.WebClientCredentiallsCredential.AccessAuthentication = PBWebHttp.AuthenticationMode.Basic!lsCredential.Password='demo'lsCredential.Username='p126371rw'restConnectionObject.ClientCredential = lsCredential  //add credentials to connection

    Listing 3

    Secure Socket Layer CommunicationSpecifying and handling encrypted communication over a SSL transport is pretty transparent to the application developer. As you can remark in design 10, sum you requisite to execute is specify the HTTPS protocol in the Project Painter Service URL. The handshake and encryption are handled by the underlying infrastructure as shown in design 11.

    Figure 10: Setting up SSL communication

    Figure 11: SSL Handshake

    ConclusionIn addition to calling service methods, the PowerBuilder client-side developer is answerable for configuring authentication and authorization properties prior to making service calls as well writing code to ply server-side errors responses. With a bit of forethought this code can exist written in a reusable manner to labor in conjunction with project painter-generated proxy classes. With the addition of RESTful web service client-side infrastructure, PowerBuilder .NET clients can now devour the selfsame service-oriented interoperability as other .NET languages.

    Long Live PowerBuilder!


    Category: commerce Practices | killexams.com true questions and Pass4sure dumps

    October 31st, 2018 in commerce Practices, tumble 2018, Millennial, Restaurants, Technology, Trends

    By Tyler Titherington

    I am a restaurateur.  I’m behind schedule.  Again.  Not because I am disorganized or accommodate too much to do, more so because I accommodate a hierarchy of tasks that are addressed based on priority.  Guest needs are my first priority, staff needs are a nigh second and everything else last.  There is a tertiary hierarchy in the last basket as well.  Some tasks with a lower priority tumble through the cracks.  Not because they are unimportant, but rather there just was not enough time.  The veracity is that I am obsessively organized.  I devotion “To Do” lists, calendars, stream charts and the accomplishment of tasks.  I eat projects for breakfast, while live on the edge of chaos and complete catastrophe.  Short staffed?  Yawn.  Drains flooding?  Been there, done that.  POS system crash during service on a weekend?  Bring it.  I am the duck – peaceful above water and feet moving nonstop below.  However, how execute I manage sum the curveballs and still manage to gain time without compromising any of my other priorities?  It is very simple – accommodate and embrace technology wherever possible, specifically, cloud-based computing solutions that allow one to exist in many places at one time.  These applications simplify daily tasks for management teams and staff, which will ultimately leverage senior management down to focus on the bigger picture.  Maybe even score a day off…

    Over the last 10 years or so, the increased availability of cloud-based computing solutions (using network computers over the internet rather than property-based arduous drives) has been a major paradigm shift for many industries.  However, as with most technological advances, the restaurant industry has been very behind to adapt.  tight margins, resistance to change, and scare of unknown outcomes accommodate long driven the restaurateur’s decision-making process.  However, with increased options, cheaper costs, and ease of use, that mindset is quickly becoming a thing of the past.  Restaurant operators are genesis to embrace cloud-based solutions for everything from Point of Sale and Tableside Payment to Menu Design and Scheduling.

    Our foray into cloud computing began with an ill-fated set of circumstances that the entire industry was facing.  The year was 2010 and the impending doom of PCI Compliance was upon us.  At best, their network infrastructure was dated and they needed to act quickly to score it into compliance.  relish most operators, their hand was forced and they had no choice.  What is PCI Compliance?  The retort depends on who you ask.

    Your guests accommodate never heard of it and accommodate no notion what it is.  Most restaurant operators will recommend you that PCI Compliance is an almost unachievable set of network security standards designed to protect the credit card giants, who already impregnate them passage too much for credit card processing and continually squeeze them with a plethora of monthly fees.  The definition of PCI Compliance is below, according to PCI ComplianceGuide.org

    “The Payment Card Industry Data Security criterion (PCI DSS) is a set of security standards designed to ensure that sum companies that accept, process, store or transmit credit card information maintain a secure environment.  The PCI Security Council Card focuses on improving payment account security throughout the transaction process. It is an independent corpse that was created by the major payment card brands (Visa, MasterCard, American Express, determine and JCB.).”[i]

    PCI DSS is mandatory for any and sum businesses that accept credit cards.  It involves a process of assessment, remediation and reporting.  Operators must identify network vulnerabilities, physical vulnerabilities, and operational vulnerabilities that could result in a credit card violation and fix them.  In summary, it is a painfully tedious, extremely time consuming, and potentially expensive process.

    It is extremely essential for the security of their guest’s payment information, both for ensuring confidence with their customers and limiting legal liabilities.  In 2017-8, major retail stores including Home Depot, Macy’s, Sears, Kmart, Best Buy and Lord & Taylor made headlines across the country for data breaches possibly compromising customer’s credit card personal information. The restaurant industry is too plagued with security breaches, including big chains such as Darden (Cheddar’s), Panera Bread, Sonic and Arby’s. The number of customers whose credit card information may exist compromised totals into the millions.[ii]

    At Grafton Group, the process of obtaining Credit card security involved working directly with their IT vendor and POS vendor to achieve PCI compliance.  The first order of commerce was to score their network infrastructure in order.  Some of the major network upgrades that they undertook were upgrading wiring, locking down patch panels, securitizing external ports, adding wireless access points (WAPs), and replacing firewalls. The WAPs and unique firewalls were the heart of the upgrades and would ultimately allow us to operate unencumbered in the cloud.  The unique access points give their guests their own network and obviate them from accessing ours.  The security firewalls obviate intrusions and too allow their IT vendor remote access so they can invent changes without actually being in the restaurant.  What used to exist a scheduled visit from their IT vendor that may accommodate taken weeks, is now a simple email and can often exist addressed online in minutes.  In a nutshell, PCI DSS forced us to upgrade their network, which ultimately allowed us to operate in the cloud.  This unintended outcome to a painful requirement was truly a blessing in dissimulate and it pushed us into unique territory – the cloud!  Being in the cloud has allowed us access to exciting applications and services that would otherwise exist unavailable to us.

    IBM defines cloud computing as “the delivery of on-demand computing resources — everything from applications to data centers — over the internet on a pay-for-use basis.”[iii]  For their purposes, these on claim computing resources primarily consist of “SaaS” or Software as a Service.  Here are some of the areas where cloud computing can streamline their operation.

    Point of Sale

    POS systems are the most arresting locality of cloud-based solutions for restaurant operators.  Legacy systems such as Positouch, Micros, and Aloha are bulkier, more expensive, and much harder to program and implement.  There are quite a few cloud-based POS options, most notably Boston-based Toast.  Toast has done a worthy job streamlining and simplifying the interface for both front and back conclude users.  Management can access the system remotely for screen programming, troubleshooting or reviewing sales.  It is extremely intuitive, relish using a smartphone, thus needing very diminutive training. As wireless POS solutions evolve, legacy systems will eventually exist phased out.  It is only a matter of time.

    Tableside Payment

    EMV (Europay, MasterCard and Visa) is another set of regulations that are coming to the restaurant industry. “EMV is a global criterion for cards equipped with computer chips and the technology used to authenticate chip-card transactions.”[iv]  Used in Europe for years, the credit card never leaves the customer and sum transactions are processed tableside with a handheld device. One illustration of an EMV compliant, cloud-based device for tableside payments that they at Grafton Group are currently analyzing and scheme on implementing is Pay My Tab.  Pay My Tab will fully integrate with their POS system and eliminates many bulky PCI DSS requirements. Many similar systems are already in utilize at quick service operations, where guests and staff accommodate easily adapted to them.  In addition to tougher security, the implementation should decrease payment time, eradicate paper receipts (emailed instead) and simplify the process for management to search for specific receipts.

    Reservations and Floor Management

    There are a variety of solutions for reservations and floor management systems.  Their arduous has been using OpenTable for over 15 years, so when they rolled out their cloud-based system, GuestCenter, they were early adopters.  This has been one of the sole best applications in terms of roll out, ease of use, and seamless integration.  It is iPad-based and eliminates sum the wiring and host stand true estate.  It is compatible to smart phones that allows for remote access, allowing management to check stream of service, identify unique reservations, and invent sure that waitlists are being managed appropriately.  Soon to approach is an interface with POS systems that automatically applies any “guest notes” from GuestCenter to the server’s check, such as special occasions, etc. Most importantly, due to its intuitive design, their millennial hosts utilize the system seamlessly.

    Private Event Management

    Private events are the foundation of most plenary service restaurant operations.  They are the inequity between a expedient week and a worthy week.  However, it can exist a very confusing process with sum of the moving parts.  In order to linger organized, they utilize TripleSeat to manage leads, create BEOs and track their events calendar. The cloud-based event management system allows their Private Event Coordinators to respond at any given time from anywhere, giving them a leg up on the competition, giving them the opportunity to merit fees for each event.  Since their coordinators receive an administrative fee for each event, they devour responding when available off-site; expedient communication is key for making sure work-life balance is maintained.

    Bar at the Russell House Tavern in Cambridge, MA. Photo: graftongrouphospitality.com Inventory

    An locality which the cloud has really saved their restaurants time is with food & beverage inventories.  No more paper and no more transposing paper to spreadsheet.  Inventories can exist uploaded in true time using a tablet, laptop or even a smart phone. BevSpot is used for both their food and beverage inventories.  They accommodate too given access to their accounting firm, in order to reduce bulky invoice scans and uploads.  sum information can exist entered into the cloud and accessed by sum of their approved users.  It too allows for multiple people to hold inventory simultaneously.  One person can exist on the bar, another in the walk in fridge, and another in the liquor room, sum at the selfsame time.  In addition to being a major time saver, it has helped Grafton Group to reduce sitting inventory by a significant amount across sum properties.

    Scheduling

    Staff scheduling is a weekly administrative headache for managers, but there are cloud-based scheduling applications that lessen the pain. They accommodate found HotSchedules to proper their needs as it interfaces with their POS system and allows their arduous to execute some creative reporting in regards to budgeting and forecasting, as well as taking employees requests and requirements into consideration.

    Email and File Sharing

    Grafton Group has approach a long passage from sharing access to a desktop version of Outlook and toggling between accounts.  They were able to eradicate their main server entirely and now they utilize Office 365 for their email and file sharing needs.  Not only is this highly securitized, it has redundancy so their information is always backed up.  They access both their email and files from anywhere in the world.  This has greatly improved productivity and allowed their management teams to communicate in true time.

    Grafton Street in Cambridge, MA. Photo: graftongrouphospitality.com Computer Hardware

    Our office hardware now consists of much less expensive “Network Computers”, which execute not require expanded reminiscence for giant programs, CD drives for downloading drivers, or expansion slots for extraneous drives.  They can purchase more computers at a reduced cost and their managers no longer accommodate to participate computer access in the office.

    Menu Design

    For their menu design need, they accommodate found InDesign to exist the most efficient program, which is fraction of the Adobe Creative Cloud.  This program can now exist selected a la carte from Adobe’s menu of programs and paid for on a month to month basis for under $20.  This is much more palatable than paying $600 for the entire Adobe suite.

    These are just a handful examples of how cloud computing has impacted their operations and ultimately saved time for their management team and staff.  Ten seconds here, 5 minutes there, an hour tomorrow – it adds up to impactful chunks of time that can exist better spent elsewhere.  They accommodate only scratched the surface as an industry – they will remark more and more options for cloud-based solutions to true world restaurant problems. Although the solutions highlighted above create efficiency and deliver time, they execute not serve guests and they don’t understand the art of hospitality.  It is imperative that as restaurateurs they continue to create a positive environment, embrace innovation, and engage and train their employees in the art and skill of hospitality.

    There are some things you will never accommodate time for in the restaurant industry, regardless of cloud-based advancements.  “Lunch”, for example, I accommodate heard is a meal that takes region in the middle of the day.  For me, “lunch” is the sandwich that I eat in 30 seconds somewhere between 2pm and 6pm standing over a trash can in the back of the kitchen.  There is no technology for that…

    PDF Version Available Here

    References [i] “PCI Compliance usher FAQ.” PCIComplianceGuide.Org. September, 2018. https://www.pcicomplianceguide.org/faq/#1. [ii] Green, D. and Hanbury, M. (Aug. 22, 2018). “If you shopped at these 16 stores in the last year, your data might accommodate been stolen.” https://www.businessinsider.com/data-breaches-2018-4 [iii] “What Is Cloud Computing?” IBM.com. September, 2018. https://www.ibm.com/cloud/learn/what-is-cloud-computing. [iv] Kossman, Sienna. ” 8 FAQs about EMV credit cards.” CreditCards.com. August 29, 2017. https://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php. Tyler was born and raised in Portland, Maine and has lived in the Boston locality since attending Boston University.  After graduating from the Boston University School of Hospitality Administration, Mr. Titherington operated a handful of bars and restaurants in Boston.  He has been with Grafton Group since October 2007. 

    October 31st, 2018 in commerce Practices, tumble 2018, Restaurants, Trends

    By Christopher Muller

    In fraction 1 of this analysis of the restaurant delivery system they looked at the owner/operator models which still offer some measure of control over expense and quality.  This is rapid becoming an issue with the soar of the Ghost Kitchen where the ODP is an integral fraction of the equation.  Here they present the larger challenges from the dominant ODP control of the marketplace.  It is expedient to bethink that most of the ODPs themselves are still looking to find profits in what they do, a suggestion that those profits will requisite to approach at the expense of the restaurant providers in one passage or another.

    5. The Aggregator or On-Line Delivery Provider (ODP) – No Driver Fleet

    If someone were to say, “Let me hold keeping of sum of your delivery problems for a diminutive reduce of your revenues” many restaurant operators, especially those keen to score into the market with the least amount of upfront investment, would jump at the chance.  Enter the On-Line Delivery Provider with a commerce model built upon a brand name customer-facing APP, website or phone number and an huge amount of back office computing power to drive order volume.

    At its core, to exist successful the Aggregator needs to exist a world-class matchmaker for food orders, with both a big customer database of users and a broad assortment of restaurant menus offered in major cities.  relish many of what MIT’s Bill Aulet calls an Innovation Driven Enterprise (IDE)[1] the cost of customer acquisition is the key hurdle in entering this distribution channel. What it doesn’t requisite is its own fleet of employee delivery drivers. Capitalizing on the DIY gig economy, drivers are hired on a contractual basis, working as independent delivery agents with their own vehicles.

    The barrier to lowering this towering cost of entry has favored early market entrants and big well-funded digital innovators.  Worldwide, the fastest growing ODP is Uber Eats, the natural extension of car service provider, Uber, with its existing huge data basis of users, an ever expanding fleet of drivers, and the understanding for a driver that delivering food with an APP-based pre-payment system is considerably faster and easier than dealing with human passengers.

    The upside for restaurant companies using an ODP such as Uber Eats, from those as dominant as McDonalds or as diminutive as the local pizzeria, is that there is no requisite to hire and train non-core employees.  As touted by Uber Eats delivery service can initiate almost immediately upon signing up.  The downside, that has a potential for long term impact, is two-fold.  The fee structure for traditionally low margin restaurants can exist between 20-30% of a menu particular price, leaving diminutive to cover remaining expenses.  Worse though is that the restaurant gives away its brand and trade dress image to the company making the delivery to the front door.  McDonalds hamburgers may exist in the bag, but the name on the ordering APP and the uniform on the person handing it to the customer says Uber Eats.

    6. The Consolidator – Bulk “Bus Stop”

    As noted, the most expensive sole piece of the delivery mystify is getting food from the restaurant to the front door, what is called “the last mile.”  One proven passage to minimize that expense is to accommodate the customer meet the food delivery at a central drop-off spot (see: Amazon [2]).  A start-up, Yun Ban Bao, in unique York City is taking edge of ethnic Chinese food deserts through direct targeted marketing using the dominant Chinese online service provider, WeChat.  By doing so it is creating a captive delivery market with the edge of pre-ordering and payment.[3]

    Taking online requests for delivery on the next commerce day, then consolidating orders using a bulk delivery model, Yun Ban Bao is lowering the cost of delivery while maintaining control with its own fleet of drivers.  It advertises a data analytics service for smaller restaurants as well as being a revenue growth accelerator for restaurants in suburban locations which otherwise could not find unique or broader market opportunities.

    Using a pre-arranged group delivery network, often outside parks, office towers or apartment buildings, the system mirrors a bus route, not the more traditional taxi route model of one-on-one delivery.  This too affords the network of restaurants a passage to lower operating costs by controlling the production process in advance.

    7. The Aggregator ODP – Owned Fleet

    Some of the largest ODP players started in the delivery commerce by controlling their own fleets of employee managed delivery drivers.  The global leader, Just Eat,[4] has used this model throughout the UK, Europe and worldwide.  But it too has worked directly with restaurants who accommodate their own in-house deliver fleets to create a broad partnership.  Just eat acts as the online ordering platform, but then allows the local branded company to exist the visage at the door.

    The aptitude to present a standardized customer facing brand identity means that confidence may exist established with the customer directly.  While this can approach at the risk of the restaurant losing its direct brand relationship, what Just eat has been able to master is the collection of a vast customer database of its users.  It has created a relationship with many of its restaurant partners to assist them in finding example store locations, menu particular design and creative targeted pricing and promotions programs which would not otherwise exist affordable or even available to smaller companies.

    For these ODP companies, the costs for maintaining their own fleets or working as a hybrid with a local restaurant creates a higher operating expense, but these are often offset with a higher fee participate from both the restaurant and the consumer.  It too creates a competitive edge by building a broader network of restaurants to choose from for the customer, which builds long term loyalty and habitual purchase behaviors.

    8. The ODP Aggregator – shaded Kitchens

    One of the greatest threats to the bricks and mortar restaurant delivery partners is the emerging concept of a shaded Kitchen.  This is a space created by an OPD to facilitate the lowest cost per delivery mile from restaurant kitchen to the highest density of users.  While this is similar to the Cloud Kitchen model, in this case the OPD establishes a cluster of diminutive dedicated but competitive restaurant kitchens in a sole site.  A shaded Kitchen is too similar to the trending food hall concept, but comes with no direct customer interaction—no walk-in guest visits these production facilities.  In the UK this was pioneered by Deliveroo with its urban RooBox or Editions concepts.[5] colleague restaurants rent portable kitchen space from the delivery service and pay a larger percentage fee to cover the build-out costs for their space.  Restaurants staff the kitchens at their own expense, as well.

    Earlier this year, Grubhub invested $1 million in Green peak Group (see Ghost Kitchen in fraction I), a startup with nine virtual restaurants operating from a sole kitchen. DoorDash is renting extra space from the Santa Clara Fairgrounds in San Jose, Calif., and making it available to foodservice operators who want to create delivery-only options. In Los Angeles, Postmates leased a commissary kitchen space so its restaurants can achieve unique customers. And UberEATS is exploring the concept with Poke Café in Chicago — a virtual restaurant serving Hawaiian poke bowls.

    “We can labor with existing restaurant partners to create delivery-only menus. (They would) show as entirely unique restaurants on the UberEats app,” Ambika Krishnamachar, UberEats product manager, said in an article on Mashable.[6]

    And again, while on its visage this appears to exist a positive opportunity for independent or chain restaurants to lower costs or disaggregate the dine-in from the delivery production process, it is not cost free.  In fact, as a logical progression would suggest, the OPD Deliveroo service has realized that the actual local restaurant in this coalesce is not a necessity for success.  Instead by using its own “innovation fund” it will to fade directly into the restaurant commerce itself, creating “from scratch” concepts by working with name chefs and data mining information from its huge customer data base. [7]

    As more of the OPDs glance to find profits to pass along to the aggressive investors who accommodate funded rapid growth, they will inevitably glance to reduce out the middleman and provide meals themselves to multiply margins. The kitchen that may actually fade “dark” is the local one on the corner down the street in an independent restaurant.

    Conclusions

    This is undoubtedly both an arresting and a challenging time for the restaurant industry and the Online Delivery Providers who are feeding from it.  Neither side seems to accommodate figured out how to invent the unique consumer claim for off-site delivery labor to their complete advantage.

    It is impossible to believe that any restaurant can survive if it gives away up to 30% of its top line revenues when the medium net profit is less than 10%.  No amount of increased volume in sales will invent up for that.  As Cameron Keng wrote in his column “Why Uber Eats Will eat You Into Bankruptcy” in March, 2018:

    Based on the medium profit margins above, every restaurant that engages Uber Eats will lose money on every order they take. The more orders coming from Uber Eats, the more money a restaurant would lose.[8]

    At the selfsame time, while it is arduous to score exact information, it appears that almost nonexistent of the largest On-Line Delivery Providers, in any of the described segments is actually showing a profit.  Uber Eats is only profitable in 27 of its more than 100 urban markets,[9] and while Deliveroo’s sales rose in 2017 to £277 million ($356 million), the company lost an astounding £185 million ($237 million).[10]  Yet Uber Eats is offering over $2 billion to purchase/merge with Deliveroo.

    Finally, as Jonathan Maze wrote in his Bottom Line column in early October the restaurant industry is simply unprepared for what appears to exist a tectonic shift in traditional restaurant segments, consumer behavior, labor utilization, true Estate valuation and investor interest.

    If delivery is the future of the restaurant business, the restaurant commerce as it is currently constructed is in trouble.

    The service is growing rapidly. But it’s increasingly replacing existing restaurant commerce rather than taking commerce away from grocers or other food retailers. [11]

    As they renowned in the beginning, it took the lodging industry almost 20 years to initiate to invent this kind of tectonic change and it is nowhere near complete.  A few very big hotel companies, through merger and acquisition, accommodate consolidated enough power to start the trudge away from handing over sum of their pricing to the OTA’s.  In economic terms, hotel companies are trying to fade from being expense Takers to expense Setters.

    At this early stage of the restaurant OPD’s domination of the delivery cycle, it is not lucid that any restaurant organization is big enough to shatter the fever, especially now that McDonald’s is partnering with Uber Eats.  While it may show that the On-line Delivery Provider is a restaurant’s partner, friend or even savior, it is nonexistent of those.  In fact, in order to become profitable the OPD is looking to become a direct competitor.

    What is sure is that few restaurant companies, and certainly no independent operations, can survive the next two decades letting third parties dictate what convenience and expense mean.  In fact, this might exist a expedient time to score out of the house and fade visit your favorite local restaurant.  Sacrificing some convenience for a worthy experience is a expedient value and that restaurant may not exist around the next time you want to note up.

    PDF Version Available Here

    References [1] remark Bill Aulet, Disciplined Entrepreneurship, [2] The Financial, October 25, 2018,  https://www.finchannel.com/~finchannel/business/76317-amazon-expands-grocery-delivery-and-pickup [3] Menqi Sun, WSJ, September 9, 2018, https://www.wsj.com/articles/how-to-get-food-delivered-from-your-favorite-faraway-restaurant-1536516000 [4] See https://www.just-eat.com/ [5] James Cook, commerce Insider, April 5, 2017, https://www.businessinsider.com/deliveroo-editions-pop-up-restaurants-roobox-2017-4 [6] Tim York, The Packer, March 23, 2018, https://www.thepacker.com/article/rise-virtual-restaurant [7]Sophie Witts, grand Hospitality, May 21, 2018, https://www.bighospitality.co.uk/Article/2018/05/21/Deliveroo-to-create-own-restaurant-brands-using-5m-fund# [8] Cameron Keng, Forbes, March 26, 2018, https://www.forbes.com/sites/cameronkeng/2018/03/26/why-uber-eats-will-eat-you-into-bankruptcy/#778a3b0621f6 [9] Ibid., DealBook, September 21, 2018 [10] BBC News, October 1, 2018, https://www.bbc.com/news/business-45707700 [11] Jonathan Maze, Restaurant commerce Online, October 17, 2018 https://www.restaurantbusinessonline.com/financing/delivery-could-force-changes-restaurant-business-model Christopher C. Muller is Professor of the exercise of Hospitality Administration and former Dean of the School of Hospitality Administration at Boston University. Each year, he moderates the European Food Service Summit, a major conference for restaurant and supply executives. He holds a bachelor’s degree in political science from Hobart College and two graduate degrees from Cornell University, including a Ph.D. in hospitality administration. Email: cmuller@bu.edu

    October 31st, 2018 in commerce Practices, tumble 2018, Restaurants, Trends

    By Christopher Muller

    The entire restaurant industry, from the simplest quick service joint to the most complex fine dining jewel, is caught in a veritable frenzy of delivery.  It may be, unfortunately, a very risky path to travel for the uninitiated restaurant operation, but delivery is driving the investment community to a fever pitch. [1] They accommodate entered into the time of the restaurant On-Line Delivery Provider (ODP) which mirrors in many ways the On-Line Travel Agent (OTA) which has so disrupted the lodging industry.

    In two complimentary BHR articles here, they present a glance at the 8 different models of restaurant delivery and how they are affecting both senior management and customer choices.

    A Quick Lesson From Pricing History

    For observers of the global Hospitality Industry this should ship up warning flags.  In a galaxy far, far away, the Lodging industry managed revenues by using simple seasonal or advert pricing models (On-, Shoulder- and Off-Peak rates, or premiums for “A margin With A View”) and sold some limited excess inventory through a network of independent Travel Agents (at an onerous 10% commission!).

    Then, as the Internet expanded, and the travel market imploded after the 9-11 tragedy, a unique and exciting model emerged – the On-Line Travel Agent (OTA) acting as a third party aggregator appeared.  Hotel companies willingly gave open access to sum of their unsold margin inventory to the OTAs (Expedia, Travelocity, Priceline, Booking.com, Kayak, Trivago, etc.) to sell directly at deep discounts, often between 25 and 30% off posted Rack Rates.  Occupancies rose, but medium Daily Rates plummeted, and profits quickly diminished.  Hotels, relying on the conventional pricing models were caught competing “with themselves” and watched as formerly loyal customers switched their buying habits and loyalties to the OTA that gave them the best rate.  Customers could scroll through pages of prices, often for the exact selfsame margin in the selfsame hotel, searching for the cheapest rate.  Hotel rooms, instead of being unique destinations became interchangeable commodities.

    It has taken almost twenty years, but through brand consolidation and a total system-wide transformation into a Revenue Management based pricing model, the hotel commerce has been transformed and the OTAs are being aggressively challenged for dominance. This should exist a lesson for the restaurant owner/operator, the OTAs drove nothing but expense as a determination attribute, the ODPs are poised to execute the selfsame thing with both expense and convenience, unfortunately restaurants probably won’t accommodate decades to recover.

    Today’s Restaurant Delivery Frenzy –The soar of the ODP

    Whether it’s the savvy but shape-shifting Millennial, the rapidly aging Baby Boomer, or the rising youthful digital aboriginal from the i-Generation, it seems that customers in sum shapes and sizes just want to accommodate their meals brought to them at home, the office, or somewhere in between.  Breaking the code of the delivery model—becoming the customer’s altenative of who serves up breakfast, lunch or dinner at home, labor or play—has emerged as the Holy Grail of the foodservice business. But it may exist more relish the other mythic shaded Ages metaphor, the Plague, potentially killing upwards of 30% of existing restaurant units.

    So, what exactly is “delivery” today, how did it evolve into such a big, expanding component of the restaurant offering and what are the implications going forward for the industry?  Just how execute the On-Line Delivery Providers, the ODP, dominate the market?

    We can initiate by agreeing that delivery is a distinct and rapidly growing distribution channel, although it has been around in one shape or another for a very long time.  And while not exactly a unique technology, nor necessarily a profitable one, the exploding market for the delivery of food is poised for an inevitable shudder out as it quickly approaches a mature side consolidation.[2]

    In late 2018 delivery is sum about instant gratification, not just for the diner but some would imply for the restaurant as well. At first glance, it sum feels so simple and easy. But relish so much in restaurant management, there is more than one passage to score something done, even the simplest of things.

    Emerging Key Success Factors

    Like so many emerging commerce models in the on-line digital age, food delivery is developing its own metrics and factors to exist considered and mastered. While still evolving, among these now are:

  • Addressing the profit challenges of “The last Mile” in the delivery chain
  • Minimizing the towering cost of Customer Acquisition
  • Developing an integrated APP, website, tablet and smartphone ordering platform
  • Designing the most efficacious delivery driver fleet system
  • Establishing an attractive and competitive user fee basis
  • Creating positive and immediate Brand recognition
  • Building a proprietary information basis of data storage, analytics and access
  • Delivery of food, especially from a restaurant to a consumer, has become a multi-billion dollar segment of the industry.  Some are predicting that it will overtake the traditional dine-in segment completely within a decade, although the complexity of getting it perquisite and turning a profit while doing so, can still exist elusive even for the largest players.  And of course, no one should forget that Amazon is over in the corner waiting to remark how things evolve in an online delivery world they basically invented.

    Traditional and Controlled

    As noted, the delivery of food from a restaurant directly to a local customer is not a unique notion although traditionally the customer came to the restaurant and picked up or carried out their food order.  Both delivery and carry-out were best suited to a restaurant with a simple, easily transported menu.  Where a significant amount of the value of the meal was the dining experience and table service, meals to fade were often comprised of a package of leftovers or the long gone term “doggie bags.”

    Here is a glance at four models with some measure of control for restaurant owners and operators over the property and profitability of their offerings.

    1. The Independent – One Shot

    As a service provider a restaurant may resolve that in order to meet the needs of its local customer basis it should provide a delivery option.  At one time, only a few restaurants in an urban core would accommodate delivery offers and these might typically exist delicatessens or Chinese restaurants with few seats and a very tenacious focus on offering takeout options. The food can exist cooked, boxed, wrapped and brought quickly to an office or apartment within a few blocks on foot or by bicycle.

    This model is the most basic – a caller, the kitchen, and an employee bringing tropical food directly to the customer.  The restaurant controls the quality, manages the relationship with the diner and absorbs the plenary cost and sum the revenues.  It typically comes with higher operating costs for labor (primarily from an in-house paid delivery driver fleet) and with premium rent from the requisite for an attractive customer-facing retail space.  On the plus side, sum local customer information may exist controlled by the restaurant and there are no fees to participate with an outside third-party service.

    But as the independent operator reaches for the brass ring on the delivery merry-go-round, they too requisite to exist observant not to lose their grip on their existing ride.  A unique distribution channel can exist much more challenging that just taking a customer order.  As renowned by Jennifer Marston:

    …restaurants are under pressure to adapt…More and more, that means altering the physical restaurant space so it can better accommodate this influx of unique orders. Extra meals require extra bodies to cook and package the food, after all, not to mention extra space for third-party devices, and somewhere to region completed orders waiting to exist picked up by a delivery driver.[3]

    An arresting twist on this sole restaurant model of trying to find a passage to both control and expand the delivery system while maintaining some measure of profitability is one recently proposed in the restaurant trade magazine Restaurant commerce Online:

    He (CMO Nabeel Alamgir) explained that Bareburger is already striving to transform customers ordering through third parties’ apps into users of the chain’s own channels. Patrons of an Uber Eats or Postmates might exist offered a 10% discount on their next order if it’s placed through Bareburger’s website. The chain can afford a discount that deep because the pecuniary repercussion is still less than the 20% or 30% discount an outside service typically charges.

    Alamgir renowned at the start of the panel’s presentation that a service started by restaurants for restaurants would accommodate been an attractive alternative to some of the third-party giants. “Let’s invent their own platform. Let’s invent their own Grubhub,” he said.[4]

    2. The Cloud Kitchen – A Hub & Spoke System

    It can exist argued that today’s focused delivery channel began in earnest when Domino’s offered up a “30 Minute or Free” guarantee in 1973.  In order to invent this guarantee effective, the company created a hub and spoke system, in sequel building a sequence of franchised units in low cost locations. They were characterized by being geographically market-centered but with no requisite for a “High Street” customer facing address.  This was directly in contrast to the overwhelming market edge owned by Pizza Hut and its network of “Red Roof” plenary service pizzerias with their focus on dine-in and takeout service.  But the competitive edge that came from having units with no dine-in, limited customer carry-out, and which were serviced by a central commissary set in motion the shift away from the traditional eat-in model.

    “The reality is, when the red roof restaurant was created, the notion of delivery wasn’t fraction of the concept,” said Pizza Hut chief executive David Gibbs, a 26-year veteran at parent company Yum Brands…”so in many cases, their commerce has outgrown the capabilities of those restaurants…”[5]

    Now, four decades later Domino’s is the world leader in delivery, pizza or otherwise.  It has done this by controlling the entire process or what is called the “full stack” in the delivery cycle.  Now describing itself as an IT and logistics company that sells pizza, the backbone of the system is that they control the customer ordering process, the production property process, and through a vast franchise network the delivery process.

    Next to come, using unique GPS and AI technologies, Domino’s predicts that it will exist able to invent deliveries not just to a formal building address, but to anywhere a customer can exist located by tracking their cellphone, even if that is a park bench or a blanket on the beach.

    But Domino’s is not the only leader to exist expanding its Cloud Kitchen delivery system. Already designed on a commissary production system model, giant rapid casual leader, Panera Bread, tested delivery in Boston and then announced an expansion across the United States in early May, 2018 with a system based upon using its own delivery drivers. [6]  Following the trend in October the largest chicken sandwich chain, Chick-fil-A, announced it was genesis to test the hub and spoke model of delivery in Nashville, TN and Louisville, KY.

    Chick-fil-A is opening two unique restaurants that don’t accommodate something you commonly associate with the chain: seats. 

    Chick-fil-A, the Atlanta-based chicken sandwich chain, is testing catering and delivery locations in Nashville and Louisville, Ky., that will open this month.

    The locations, according to an announcement on the chain’s website, accommodate no dining rooms or drive thru’s and are designed to exist hubs for catering and delivery orders. The restaurants will not accept cash, either.[7]

    The Cloud Kitchen model can exist very efficacious for restaurant companies with big enough scale, whether in a sole city or across a region, to hold edge of a sole production kitchen site with remote staging kitchens.  Ultimately the “full stack” control from order to front door can approach from as few as three restaurants or as many as 3000. This too means that the foundation is laid for vast proprietary customer data collection and eventually data mining by the most forward-looking operators.

    It can exist argued that the Food Truck movement of the past decade is a subset of the Cloud Kitchen model.  By most local health code laws, food trucks must accommodate a “home kitchen” or commissary for their bulk production that meets sum health and sanitation code requirements.  In many urban centers, to be successful a food truck company needs to accommodate multiple trucks on the road acting as a distribution network.  While this is too a classic Hub & Spoke model, it comes with similarities to a model in the next article, #6 The Consolidator, with distribution on a bus stop route and not a one-to-one last mile taxi route.

    3. The Ghost Kitchen

    One further refinement of the Cloud Kitchen is the Ghost Kitchen.  As delivery becomes more of a threat to the traditional dine-in restaurant option, some imply that this model, in fact, is the future of restaurants—basically a highly efficient hybrid of menu concepts, specialized production and logistics, and low labor cost with no eat-in customers.

    In that way, this model is identified by three key components.

    First, it removes the dining margin or takeout from the restaurant completely, working out of a kitchen whose location is based on nearness to its core customer market yet in a typically low rent out-of-the-way space.

    Second, it does not hire any paid employees to deliver, instead making utilize (through partnership or agreement) of the many third-party delivery companies relish GrubHub, Postmates or Doordash.

    Third, and possibly the most important, because of the flexibility of only needing an APP, website or traditional telephone ordering system, more than one cuisine can exist produced in the selfsame kitchen space.  effortless to prepare, cook and deliver foods such as salads, sandwiches, Asian and other ethnic dishes, or gourmet pizza can sum exist offered while cross-utilizing similar ingredients in creative menu offerings.[8]

    This can best exist described as an “order only” restaurant.  The most prominent or well-known of these Ghost Kitchens would exist Green peak (see transition to #8 shaded Kitchen in fraction 2).  While garnering a expedient amount of press, the name chef David Chang’s Maple, closed its operation in 2017 with some assets moving to London and the delivery company Deliveroo.[9] Chef Chang sold the physical kitchen space, Ando, to Uber Eats after ceasing operations in January, 2018. [10]

    Because no customer ever sets foot through the front door the owners can region sum of their investment in kitchen equipment and the technology of ordering.  A Ghost Kitchen offers customers big menu choices, and just as its cousin the Cloud Kitchen, has the option to withhold track of its own proprietary customer data set through the direct ordering process.  The tradeoff is that ownership sacrifices the customer interface at delivery of the Cloud Kitchen model.  Operating and start-up costs are low and efficiency can exist very high.  The risk is that a big portion of the margin (sometimes up to 30%) from market-driven menu prices is taken by the delivery partnership, who too control the brand image when customers receive their orders off-site.[11]

    4. Virtual Restaurants

    Along with disrupting the taxi business, Uber Eats is about to globally disrupt the restaurant delivery business.  As of October, 2018, Uber Eats had over 1600 “virtual restaurants” around the globe, with almost 1000 in its US partnership portfolio.  The majority of these are not the Cloud or shaded Kitchen models mentioned above, but are existing restaurants with unique brands that only exist through Uber Eats. This model, while charging very towering fees to the restaurant, allows them to technically not compete with themselves in the home delivery marketplace.  Uber Eats gains more menus to offer, and limits any requisite for an investment in a commissary space.

    For SushiYaa, Kim says the virtual restaurant concept has been transformative. “Because this concept worked so well for us, they actually changed one of their restaurants from a sushi buffet concept to a regular restaurant with 8 different virtual restaurant brands inside it. The buffet sales weren’t doing so well and the delivery side was doing better, so they thought — let’s change it completely so we’re focused more on delivery.” From a sales standpoint, he says it’s “almost as if they accommodate another restaurant without paying additional rent and labor, even though [Uber Eats] takes about 30 percent.”[12]

    One other character of Virtual Kitchen involves the licensing of existing restaurant recipes and menu items in a curated virtual model.  The start-up concept expedient Uncle is using this to compete in the university meal scheme segment, offering a orbit of pricing options for higher property prepared meals, delivered by their own delivery fleet using the bus stop common drop off method.  This is a limited menu, limited target market, which benefits from a direct marketing approach, lower operating costs, and uses both a subscription and premium fee based pricing system.[13] It is a Virtual Kitchen because there is no restaurant or other customer facing facility, it exists only online.

    Part One – Conclusions

    Delivery models, some traditional, some evolving, offer many opportunities for restaurant operators, especially those in the QSR and rapid Casual segments, where hurry and expense and convenience are the drivers of consumer choice.

    The challenge in today’s delivery market is how owners and operators can maintain both towering property and long-term profitability in the products/services they offer.  For many meals, the time and distance from kitchen to table can exist more than 30 minutes or multiple miles. property of presentation and flavor may quickly diminish.  More importantly, where the medium annual profitability for restaurants across sum segments in the USA is considerably less than 10%, losing up to 30% of top line revenues is not a path to a successful future, (even if total sales multiply by 20%).

    PDF Version Available Here

    References [1] Heather Haddon and Julie Jargon, The Wall Street Journal online, October 24, 2018, https://www.wsj.com/articles/investors-are-craving-food-delivery-companies-1540375578?mod=cx_picks&cx_navSource=cx_picks&cx_tag=contextual&cx_artPos=4#cxrecs_s [2] Liam Proud, DealBook, NYTimes, September 21, 2018, https://www.nytimes.com/2018/09/21/business/dealbook/uber-eats-deliveroo.html [3] Jennifer Marston, The Spoon, July 31, 2018, https://thespoon.tech/delivery-is-making-these-restaurants-literally-redesign-the-way-they-do-business/ [4] Peter Romeo, Restaurant commerce Online,  Oct. 19, 2018 https://www.restaurantbusinessonline.com/operations/3-big-changes-looming-restaurants [5] Karen Robinson-Jabos, Dallas News, Jan 6, 2016. https://www.dallasnews.com/business/business/2016/01/06/pizza-hut-is-ditching-the-iconic-red-roof-for-a-more-modern-look [6] Janelle Nanos, Boston Globe, May 7, 2018, https://www.bostonglobe.com/business/2018/05/07/panera-expanding-its-delivery-service-cities/sZg4pO0yTw9cEdYpv514tL/story.html?event=event12 [7] Jonathan Maze, Restaurant commerce Online, Oct. 09, 2018 https://www.restaurantbusinessonline.com/financing/chick-fil-opening-new-delivery-focused-prototype [8] Neal Ungerleider, 01.20.17 rapid Company  https://www.fastcompany.com/3064075/hold-the-storefront-how-delivery-only-ghost-restaurants-are-changing-take-out [9] Closing announcement from Maple, May 8, 2017 https://maple.com/letter/ [10] Whitney Filloon, Eater, October 24, 2018, www.eater.com/2018/10/24/18018334/uber-eats-virtual-restaurants [11] remark the online Audiopedia site https://www.youtube.com/watch?v=BKO5JFbqKTA [12] Ibid, Eater, October 24, 2018 [13] remark https://www.gooduncle.com/  Christopher C. Muller is Professor of the exercise of Hospitality Administration and former Dean of the School of Hospitality Administration at Boston University. Each year, he moderates the European Food Service Summit, a major conference for restaurant and supply executives. He holds a bachelor’s degree in political science from Hobart College and two graduate degrees from Cornell University, including a Ph.D. in hospitality administration. Email: cmuller@bu.edu

    October 31st, 2018 in commerce Practices, tumble 2018, Hotels, Marketing, Sharing Economy, Technology, Trends

    By Makarand Mody and Monica Gomez

    For a long time, the hotel industry did not deem Airbnb a threat. Both the industry and Airbnb claimed they were serving different markets and had different underlying commerce models. Over the years, as Airbnb become more successful and grown to being larger than the companies in the hotel industry, the rhetoric has changed. The hotel industry began to realize they had something to worry about.

    A stage of denial was followed by the American Hotel & Lodging Association (AH&LA) attacking Airbnb by sponsoring research to demonstrate its negative impacts on the economy and lobbying governments to impose taxes and regulations on homesharing. The association is arguing for a even playing territory between homesharing and hotels (and rightly so). The next stage of this battle involves competition and integration. Not only are hotels looking to add homesharing-like attributes and experiences to their properties, to more effectively compete with Airbnb, but are too looking to tap into the platform-based commerce model that underlies Airbnb’s success.

    The Past: How does Airbnb repercussion the hotel industry?

    Airbnb’s disruption of the hotel industry is significant, both existentially and economically. A recent study by Dogru, Mody, and Suess (2018) found that a 1% growth in Airbnb supply across 10 key hotel markets in the U.S. between 2008 and 2017 caused hotel RevPAR to decease 0.02% across sum segments. While these numbers may not show substantial at first, given that Airbnb supply grew by over 100% year-on-year over this ten year era means that the “real” decrease in RevPAR was 2%, across hotel segments. Surprisingly, it was not just the economy but too the extravagance hotel segment that was arduous hit by Airbnb supply increases, experiencing a 4% true decline in RevPAR. The repercussion of Airbnb on ADR and occupancy was less severe. In Boston, RevPAR has decreased 2.5%, on average, over the last ten years due to Airbnb supply increases. In 2016 alone, this 2.5% decrease in RevPAR amounted to $5.8 million in revenue lost by hotels to Airbnb. Brands that felt the repercussion the most were those in the midscale and extravagance segments, with a decrease in RevPAR of 4.3% and 2.3% respectively. These supply increases are too fueling Airbnb taking an increasing participate of the accommodation market pie. For example, in unique York City, Airbnb comprised 9.7% of accommodation demand, equaling approximately 8,000 rooms per night in Q1 2016 (Lane & Woodworth, 2016). As a whole, Airbnb’s accommodated claim made up nearly 3% of sum traditional hotel claim in Q12016.

    Buoyed by a growth rate of over 100% year on year, Airbnb now has over 4 million listings, with the U.S. being its largest market. The company too has significant margin to grow in other countries, particularly emerging markets in Africa and India. The company has hasten into some competition in China, with local rivals Tujia and Xiaozhu. Also, within the U.S., the expedient news is that Airbnb will not grow at 100% indefinitely and will eventually plateau as it reaches a saturation point (Ting, 2017a). In view of this, the company has turned to alternative strategies to continue to multiply supply. It is now targeting property developers to rotate entire buildings into potential Airbnb units, through its newest hotel-like brand, Niido. Currently, there are two Airbnb branded Niido buildings in Nashville, TN and Orlando, FL with over 300 units each and Airbnb plans to accommodate as many as 14 home-sharing properties by 2020 (Zaleski, 2018). Niido works by encouraging tenants to list their units on Airbnb, with Airbnb and Niido taking 25% of the revenue generated.  Airbnb has too clearly evolved from its original premise of “targeting a different market” to attracting segments traditionally targeted by hotels, such as the leisure family market, commerce travelers, and the upscale traveler, as evidenced through its latest offering, Airbnb Plus. These homes accommodate been verified for quality, comfort, design, maintenance, and the amenities they offer. They too accommodate effortless check in, premium internet access, and fully equipped kitchens. Their hosts are typically rated 4.8+, and fade above and beyond for their guests. Through Airbnb Experiences, travelers can partake in everything from the worthy outdoors—hiking and surfing—to “hidden” concerts and food and wine tours.  In addition to these products, Airbnb has too “created” its own segments of travelers: novelty and experience seekers who are looking for unique and unconventional accommodation relish yurts, treehouses, and boats, sum things that a traditional hotel company cannot provide.

    The Present: Understanding what consumers want lies at the heart of the battle between hotels and Airbnb

    There are larger societal trends that are impacting what consumers quest travel, and they reflect this has implications for the Airbnb and hotel dynamic. These trends include:

  • A shift to a “new luxury”—seeking out unique, undoubted experiences that serve as a launchpad for self-actualization—fueled by an increased wealth gap in the United States.
  • An increased mobility, particularly among previously under-represented groups in the United States (the black travel movement, for example) and the global traveler (more Indian and Chinese international travelers than ever before).
  • The changing nature of brand loyalty: from long-term relationships to consumers’ needs for instant gratification and personalization.
  • Changing nature of “ownership”: In a post-consumerist society, the accent on “access-based consumption” has region a spotlight on wellness and well-being, beyond materialism.
  • A co-everything world where work, play, and life blend into one seamless mosaic: Technology has changed the passage they live their lives, and how they are connected to work, to each other and to the things that drive us. An upcoming 5G world and the IOT is only likely to accelerate the pace of change. hold LiveZoku (https://livezoku.com/), for example: is it a residence? A hotel? A WeWork? A space for the local community? A thriving food and beverage destination? It’s sum of these things.
  • What execute these trends mean? They require marketers and experience designers to re-think what the travel experience means to the customer. The notion of the experience economy was created by Pine and Gilmore in 1998, and included four dimensions: escapism, education, entertainment, and esthetic. Leveraging one, or ideally, more of these dimensions creates memorable experiences for customers, which in rotate results in brand loyalty. This dynamic has been fairly well-established in the academic literature. However, Airbnb has changed the game for the experience economy by emphasizing the sharing lifestyle and a sense of community, cleverly incorporating the above highlighted trends into its communications with customers. Because of Airbnb popularity and success, six unique dimensions accommodate been incorporated into the experience economy, in the context of the travel experience: personalization, communitas, localness, hospitableness, serendipity, and ethical consumerism, as was presented by Mody in 2016.

    Interestingly, in a recent study by Mody and colleagues (Mody, Suess, & Lehto, 2017), the researchers found that Airbnb outperformed hotels on sum the dimensions of this new, expanded, accommodation experiencescape. Airbnb outperforms hotels in the personalization dimension because of its wide array of homes and locations, enabling genuine micro-segmentation and the “perfect match” between guest and host (Dolnicar, 2018). Moreover, no one home is similar to another, giving customers a unique experience every time, enhancing the serendipity associated with an Airbnb stay. Airbnb elevates the sense of community that consumers seek, particularly when sharing space with other travelers and/or with the host, and allows consumers unparalleled access to “the local”—that café or cute diminutive store that only locals know about. However, there are areas where hotels hold their own. For example, the pathways between these dimensions and memorability were just as tenacious for hotels as for Airbnb, emphasizing the requisite for hotels to engage customers by leveraging the “right” dimensions for the brand—dimensions that align with the brand’s mission, story, and personality.

    One such dimension where hotels perform just as well as Airbnb is hospitableness, as confirmed in a study by Mody, Suess, and Lehto (2018). More “investor units” on the Airbnb platform means that the host is often not present when guests arrive to the home; moreover, sum communication is done electronically and with someone who “manages” the Airbnb unit and doesn’t necessarily own or live in it. In turn, hotels that leverage the human factor—the welcome of a friendly check-in agent, the helpfulness of the concierge,  the warm greeting and genuine interaction between guest and food and beverage staff—create more positive emotions, which subsequently lead to higher brand loyalty. It is imperative that hotel brands really reflect about the high-tech, towering touch experience they are looking to provide, particularly in the golden age of brand proliferation that they live in.

    From a non-experience standpoint, regulation is another bone of contention that merits nigh inspection. After years of denying that Airbnb was a competitor, in 2016, the American Hotel & Lodging Association first began an extensive lobbying distress for the imposition of taxes and regulations on Airbnb that even the playing field. Over the last yoke of years, the voices of the hotel lobby and other community groups accommodate translated into governments taking some action, in the U.S. and abroad. However, in a study of regulation across 12 European and American cities, Nieuwland and van Melik (2018) found that governments accommodate been fairly lenient towards short-term rentals with diminutive to no (meaningful) regulations thus far. Moreover, regulations accommodate been designed to alleviate the negative externalities of Airbnb on neighborhoods and communities rather than to even the playing territory between Airbnb and hotels. Another challenge with regulating the peer to peer economy has been enforcement. In unique York City, under the Multiple Dwelling law, it is illegal for a unit to exist rented out for less than 30 days unless the owner is present in the unit at the time the guest is renting. However, it is still workable to find “entire homes” on Airbnb in unique York City, even though, in principle, these typically involve homes where the host is not present during the guest’s stay. Moreover, Nieuwland and van Melik (2018) and Hajibaba and Dolnicar (2017) accommodate found that regulations mind to exist very similar across cities, without accounting for the specificities of a particular location, which makes the process perfunctory and superficial. There too remains the danger of over-regulating Airbnb, given that there is still very diminutive information about efficacious ways of regulating these innovations in the sharing economy, thus stifling their potential. Avoid over-regulation is critical, since Airbnb has significant welfare effects in the economy. In addition to stimulating travel to previously inaccessible markets, Airbnb too creates customer surplus (Farronato & Fradkin, 2018), an essential economic value measure. Moreover, other research has suggested that the medium resident is not as negative towards the Airbnb as media rhetoric might imply (Mody, Suess, & Dogru, 2018). The requisite for a data-driven approach to Airbnb regulation remains paramount.

    The Future: Competing with the sharing economy requires re-thinking the brand and the experience

    While regulation is outside the control of the hotel industry, the brand and the customer experience are not. They contend that these are the areas where hotel companies’ efforts requisite to exist focused. Hotels requisite to re-think the brand promise, both for the parent brand as well as individual brands in the portfolio, and how it defines and shapes the guest experience. Recent research by Mody and Hanks (2018) indicates that while Airbnb leverages the authenticity of the travel experience—by enabling local experiences that provide a sense of self and sense of place, hotel brands that are perceived as being authentic—original, genuine, and sincere—can generate higher brand loyalty. Thus, while it’s arduous to compete with homesharing in terms of experiential authenticity, brand authenticity is a pillar on which hotels can build a tenacious foundation for loyal brand relationships. This is particularly essential because while Airbnb promotes experiential authenticity as a key understanding to utilize the brand, most travelers mind to linger with the brand for much more functional requirements, such as space and expense (Chen & Xie, 2017; Dogru & Pekin, 2017)

    There is no one definition for or manifestation of an “authentic” brand. It’s a perception, a feeling that consumers accommodate about what you stand for. An undoubted brand has at its core the brand promise, an undoubted value proposition that gives consumers a raison d’etre for associating with the brand. However, what an undoubted brand does require is efficacious storytelling. A brand is perceived to exist authentic, if it has an undoubted myth that feeds it. Brand stories can approach from many sources: a brand’s values, personality, heritage, uniqueness, or its quest and purpose. What is essential is telling compelling and coherent stories across the brand’s various touchpoints to engage consumers at a visceral, emotional level. Taking off industry blinders, and looking for inspiration outside the hotel industry, is critical. Tom’s Shoes is an excellent illustration of leveraging its quest—One for One—in creating a compelling brand story. As another example, in an industry typically focused on the in-store, “physical” experience, Burberry has set the gold criterion for authentic, digitally-led and emotive storytelling, by looking within and leveraging over 150 years of history (Watch the YouTube Video here). In this vein, they reflect that Fairfield Inn and Suites’ recur to “where it sum began”—the Marriott family’s Fairfield Farm in the Blue Ridge Mountains of Virginia— to craft the brand experience of the future, from a design and communications standpoint, is an excellent illustration of leveraging authenticity and crafting a compelling brand engage (Ting, 2017b).

    Another notion that lies at the heat of the brand engage is what they convoke the experiential value proposition, or EVP. For the longest time, hotel marketers accommodate relied on the guest margin as the primary source of value for the guest. But reflect about the last time you traveled. Was it the prospect of the hotel margin that got you excited about your trip? Or was it everything that the hotel enables you to execute – the experience outside the guestroom? From experiencing art and music in the lobby to its proximity to the must-do craft beer garden, hotel marketers must realize that it’s the complete package—what’s inside and outside the room—that customers utilize as cues for making  their determination to choose an accommodation. They convoke this proposition offered by the hotel—what’s inside and outside the guest room, enclosed within an experience of hospitableness and a connection to humanity—its EVP. They present the EVP in design 1.  The EVP mirrors the value paradigm of the modern traveler, something that must exist reflected in the hotel brand’s sales, marketing and pricing and revenue management efforts. Thinking about a brand through the lens of the EVP paradigm has the power to re-orient the customer’s mindset from one of price-shopping to experience-shopping.

     Figure 1. The Experiential Value Proposition Framework

    How does a hotel marketer apply the EVP paradigm? Its application can open up many avenues. Hotels can start by rethinking the design of their primary digital channels, led by the website by adding more rich, vivid content that goes beyond the guestroom, in order to better integrate aspects of the wider hotel and local experience. The criterion Hotels serves as an excellent illustration (http://www.standardhotels.com/) Its website feels more relish a local lifestyle and culture magazine than a digital media property “selling” a hotel room. The website’s wealthy images and stories draw the visitor into wanting to learn more about what the brand has to offer. While not every hotel can or would want to fade the criterion way, since the brand has its own distinct voice and personality, there is a case to exist made for going beyond static images of beds in guestrooms, which mind to blend into one indistinguishable all after a point, particularly on OTA websites. When was the last time the image of a hotel bed excited you to want to linger there? Yet, when you glance at the imagery region out by most hotels, this is what marketers still focus on.

    Placing an accent on humanity and providing a sense of hospitableness can too enhance a brand’s EVP. Instead of technology replacing the human connection, the industry needs to glance for ways in which technology can actually free up employees so that they can spend their time crafting more personal and unique experiences, delighting guests instead of performing routine transactions. Moreover, if the human connection is what people quest out when traveling with Airbnb, why is it that hotel confirmation emails still score sent out by automated systems that highlight the “facelessness” of the hotel entity. Why not utilize that as an opportunity to truly welcome the guest; a simple touch such as a welcome missive from the GM with his/her photo, or that of an employee who is “assigned” as “your personal host” during your linger can fade a long passage in emulating the human connection that the sharing economy enables.

    The design of the hotel’s public spaces can exist used to enhance the guest’s experience of “communitas”. Ian Schrager would correspond (Schaal, 2017). After all, with much of Airbnb’s supply being dominated by investor units that provide diminutive or no host contact, what better an opportunity for hotel brands to note that they are the original connectors of human beings? Sheraton has been sage in incorporating some of these communal elements into its brand makeover by introducing productivity tables and studio spaces and a day-time coffee bar that transforms into a bar at night. In terms of another design element, Airbnb’s attractiveness to family and group travelers can exist offset by offering connecting and/or multiple rooms for one price, with other experience value-adds thrown in (as with the Marriott family margin connecting rooms package.

    Finally, the role of the loyalty program cannot exist emphasized enough. Loyalty programs must trudge beyond programmatic levels to being able to leverage data from guest history, convivial media, and other marketing data sources, powered by predictive analytics, to personalize and individualize the guest experience of the brand. In an age of instant gratification, the loyalty program has to exist gamified to unlock value-adds and offer creative bundling.

    At the even of the hotel company, beyond the individual brand, the hotel industry has started participating in the home sharing commerce and is increasingly looking to integrate these platform commerce models. For example, while Accor purchased Onefinestay, Marriott has teamed up with Hostmaker to create Tribute Portfolio Homes, a partnership that was recently expanded to four European cities (Fox, 2018). From an organic brand development standpoint, Accor’s newest Jo & Joe brand mimics the sharing economy within the confines of a traditional hotel space. Other, more innovative and bold ways of integrating the sharing economy ethos into a hotel could involve offering an “Airbnb floor”, an antithesis to the club floor, one that would not offer housekeeping and other hotel services and thus exist offered at a lower price. With hotel brands becoming “branded marketplaces” for accommodation and not just hotel rooms, perhaps there is merit in listing hotel rooms on alternative accommodation platforms. HomeAway is already adding hotels to its platform through the Expedia Affiliate Network, while Airbnb is making a push for bed-and-breakfasts and boutique hotels. Homesharing providers hope that by adding these options to their listings, they will fulfill their goal of being “for everyone”, while allowing independent and boutique hotels to garner the benefits of branded distribution at a lower cost than traditional OTA brands.

    In sum, hotels must adopt a sales, marketing, and revenue management approach that is both strategic and tactical.

    At a strategic level, hotel brands requisite to re-think their story, and how they portray and fulfill their authenticity and brand promises. At a tactical level, it’s the experience and value beyond the guestroom that must exist factored into what is presented to current and potential guests, what they are charged for it, and how it is leverage to create “memorable memories” that lead to higher net promotor scores and brand loyalty. They present a graphical summary of the past, present, and future of Airbnb vs. hotels in design 2.

    Figure 2. Summarizing the past, present and future of Airbnb vs. hotels

    PDF Version Available Here

    References Chen, Y., & Xie, K. (2017). Consumer valuation of Airbnb listings: a hedonic pricing approach. International Journal of contemporary Hospitality Management, 29(9), 2405–2424. http://doi.org/10.1108/IJCHM-10-2016-0606 Dogru, T., Mody, M., & Suess, C. (2018). Adding evidence to the debate: Quantifying Airbnb’s disruptive repercussion on ten key hotel markets. Dogru, T., & Pekin, O. (2017). What execute guests value most in Airbnb accommodations? An application of the hedonic pricing approach. Boston Hospitality Review. Dolnicar, S. (2018). Unique Features of Peer-to-Peer Accommodation Networks. In S. Dolnicar (Ed.), Peer-to-Peer Accommodation Networks: Pushing the boundaries (pp. 1–14). Oxford: Goodfellow Publishers Ltd. Farronato, C., & Fradkin, A. (2018). The Welfare Effects of Peer Entry in the Accommodation Market: The Case of Airbnb. Fox, J. (2018). Marriott expands homesharing program in Europe. Hotel Management. Retrieved from https://www.hotelmanagement.net/own/marriott-expands-homesharing-program-to-3-european-cities Hajibaba, H., & Dolnicar, S. (2017). Regulatory Reactions Around the World. In S. Dolnicar (Ed.), Peer-to-Peer Accommodation Networks: Pushing the boundaries (pp. 120–136). Oxford: Goodfellow Publishers Ltd. Lane, J., & Woodworth, M. (2016). The Sharing Economy Checks In: An Analysis of Airbnb in the United States. Retrieved from http://www.cbrehotels.com/EN/Research/Pages/An-Analysis-of-Airbnb-in-the-United-States.aspx Mody, M. A., Suess, C., & Lehto, X. (2017). The accommodation experiencescape: a comparative assessment of hotels and Airbnb. International Journal of contemporary Hospitality Management, 29(9), 2377–2404. http://doi.org/10.1108/IJCHM-09-2016-0501 Mody, M., & Hanks, L. (2018). Parallel pathways to brand loyalty: Mapping the consequences of undoubted consumption experiences for hotels and Airbnb. Mody, M., Suess, C., & Dogru, T. (2018). Not in my backyard? Is the anti-Airbnb discourse truly warranted? Annals of Tourism Research. http://doi.org/10.1016/j.annals.2018.05.004 Mody, M., Suess, C., & Lehto, X. (2018). Going back to its roots : Can hospitableness provide hotels competitive edge over the sharing economy ? International Journal of Hospitality Management. http://doi.org/10.1016/j.ijhm.2018.05.017 Nieuwland, S., & van Melik, R. (2018). Regulating Airbnb: how cities deal with perceived negative externalities of short-term rentals. Current Issues in Tourism, 0(0), 1–15. http://doi.org/10.1080/13683500.2018.1504899 Schaal, D. (2017). Ian Schrager Calls Out Hotel Industry’s Airbnb Strategy as Misguided. Skift. Retrieved from https://skift.com/2017/12/08/ian-schrager-calls-out-hotel-industrys-airbnb-strategy-as-misguided/ Ting, D. (2017a). Airbnb Growth myth Has a Plot Twist — A Saturation Point. Skift. Retrieved from https://skift.com/2017/11/15/airbnb-growth-story-has-a-plot-twist-a-saturation-point/ Ting, D. (2017b). Marriott and altenative hold Varied Approaches to Reviving Classic Midscale Brands. Skift. Zaleski, O. (2018). Airbnb and Niido to Open as Many as 14 Home-Sharing Apartment Complexes by 2020. Retrieved from https://www.bloomberg.com/news/articles/2018-08-14/airbnb-and-niido-to-open-as-many-as-14-home-sharing-apartment-complexes-by-2020 Makarand Mody, Ph.D. has a varied industry background. He has worked with Hyatt Hotels Corporation in Mumbai as a Trainer and as a property Analyst with India’s erstwhile premier airline, Kingfisher Airlines. His most recent experience has been in the market research industry, where he worked as a qualitative research specialist with India’s leading provider of market research and insights, IMRB International. Makarand’s research is based on different aspects of marketing and consumer conduct within the hospitality and tourism industries. He is published in leading journals in the field, including the International Journal of contemporary Hospitality Management, Tourism Management Perspectives, Tourism Analysis and the International Journal of Tourism Anthropology. His labor involves the extensive utilize of inter and cross-disciplinary perspectives to understand hospitality and tourism phenomena. Makarand too serves as reviewer for several leading journals in the field. In tumble 2015, he joined the faculty at the Boston University School of Hospitality Administration (SHA). He received his Ph.D. in Hospitality Management from Purdue University, and too holds a Master’s degree from the University of Strathclyde in Scotland. Monica Gomez is a graduate student in the School of Hospitality Administration at Boston University. She received her Bachelor’s degree in Tourism, Recreation, and Sport Management from the University of Florida and has held previous internship positions in hotel operations and event management. She is a member of the Hospitality Sales and Marketing International Association and is interested in hotel revenue management.

    June 6th, 2018 in commerce Practices, Spring 2018, Sustainability, Uncategorized

    By Christian E. Hardigree, J.D.

    Today’s hospitality conversations are rife with dialogue about sustainability, initiatives ranging from linen reuse programs, to donating toiletries, to auto dimming lights, to food sourcing, etc.  Hospitality practitioners’ quest to define the ROI (return on investment) is often at foiled by a concept that includes intangible metrics and differing definitions of what “sustainability” really means.  The oft-used “Triple Bottom Line – People, Planet, Profit” embodies the commonly agreed upon themes of sustainability, which involve ensuring a hardy environment, improving economic prosperity, and implementing convivial justice initiatives that ensure the well-being and property of life for current and future generations.

    Companies struggle to determine what role they play in advancing and addressing convivial and global challenges while enhancing their brand, ensuring consumer loyalty, and expanding their market share. Many companies evaluate and refine their efforts for engaged brand activism, particularly through marketing, which they balance with efforts to implement higher standards for suppliers, help equality among workers, and withhold pricing competitive – falling in line with the generic categories of most corporate convivial responsibility efforts: 1) environmental efforts; 2) philanthropy; 3) ethical labor practices; and 4) volunteering.

    The “Arms Race” of Corporate convivial Responsibility Reporting  

    For many companies, particularly in hospitality, corporate convivial responsibility (CSR) reporting has emerged as a key commerce approach to articulate the benefits to the company’s stakeholders through strategic initiatives.  According to the Governance and Accountability Institute, sustainability reporting by S&P 500 companies increased from 19% in 2011 to 85% in 2017.[i]

    Companies now cherish the marketing value of CSR reporting, particularly as a mechanism to attract and retain customers. Increased societal pressure for greater regulation and transparency, coupled with research showing that consumers demonstrate a preference toward companies they perceive are more responsible, accommodate resulted in a unique “arms race” with companies are making operational decisions that are more tightly linked to ethical values, environmental stewardship, and respect for the human equity.  They want to ensure those efforts are known to their stockholders, investors, and the public.

    qualityscore

    While many CSR disclosures are currently willful in the United States, there are increasing requirements mandated by various statutes.  Such mandates, commonplace in the European Union, are increasingly required in the United States.  In particular, there is growing market claim for a more answerable and transparent corporate supply chain.  Current statutory requirements orbit from the Mandatory Reporting of Greenhouse Gases rule for big emitters of greenhouse gases to the California Transparency in Supply Chains Act of 2010 to ensure that big retailers and manufacturers provide consumers with information regarding their efforts to eradicate slavery and human trafficking from their supply chains.[ii]  The Dodd-Frank Wall Street Reform and Consumer Protection Act, which impacted virtually every fraction of the US pecuniary services industry too includes provisions for sure reporting on their exercise of due diligence in the source and chain of custody of sure minerals that are associated with armed conflicts in and around the Democratic Republic of the Congo, minerals that are associated with the manufacturing of devices such as cell phones, computers, and digital cameras.[iii]  Most recently, the European Union’s sweeping Global Data Protection Regulations (GDPR) went into sequel May 25, 2018. Intended to give EU citizens greater control of their own, widely-define personal data, GDPR has far reaching implications for any company doing commerce with citizens of the EU.  For the hospitality industry, unique processes are required to exist implemented to protect things relish IP addresses and cookie data, similar to the protections currently provided to ensure privacy for addresses and convivial security numbers. In the three months prior to GDPR going into effect, it was estimated that 79% of companies were unprepared.[iv]  The mandatory disclosure landscape is changing fast, and hospitality is challenged to withhold up.

    Not sum Changes Are Mandated

    As consumers are holding corporations accountable for effecting convivial change in their commerce practices and beliefs, ultimately impacting the bottom line, companies refine their sustainability initiatives as a result of public advocacy, stockholder proposals, or consumer feedback. A 2017 study by Cone Communications illustrated some key elements, including:[v]

  • 63% of Americans are hopeful that businesses will hold the lead to drive convivial and environmental change in the absence of government regulation
  • 78% want companies to address essential convivial justice issues
  • 87% will purchase a product because a company advocated for an issue they cared about; and
  • 76% will spurn to purchase a company’s product or services upon learning it supported an issue balky to their beliefs
  • To illustrate, on February 6, 2018, in a commitment associated with improved packaging in betterment of the planet, Dunkin’ Donuts announced it would side out the utilize of polystyrene foam cups by 2020 and replace them with double-walled paper cups, estimated to accommodate a net repercussion of eliminating over a billion cups annually from the dissipate stream.[vi] This was on the heels of McDonald’s announcing in January that it would side out the utilize of foam packaging in sum global markets by the conclude of 2018.[vii]  Straws and stirrers invent up over 7% of plastic found in the environment, an issue initially addressed (and banished) by George McKerrow, co-founder of the restaurant chain Ted’s Montana Grill, that has gained widespread attention as consumers are reminded that they utilize 500 million straws a day, a wont that widely impacts wildlife and the oceans.[viii]  Just this month, Bon Appétit announced they were banning plastic straws from their over 1000 café locations in 33 states.[ix]  As cities relish Miami and Malibu accommodate banned sole utilize straws (and in Malibu, banned sum sole utilize plastic utensils and stirrers), they find some municipalities are forcing hospitality businesses to incorporate sustainable practices.

    Avoid Greenwashing

    As hospitality companies quest to out-promote each other, they would exist well-advised to avoid greenwashing – today’s version of “snake oil”, more akin to “eco-fraud” – when a company holds itself out as more environmentally friendly than it actually is in practice.  Clearly consumer preferences demonstrate an increasing trend for purchasing products and services that are sustainable – for their repercussion on the environment, in how they are manufactured, and/or how the workers are treated. Between 2009 and 2010, the number of “greener” products increased by 73%.[x]  In order to capitalize on this trend, many brands are trying to competitively out-do each other with their eco-credentials – exaggerating their claims, or at times, completely manufacturing them.  In legalese, greenwashing may amount to deceptive marketing, misrepresentation, and/or fraud.

    gogreen

    In the “sins” of greenwashing, hospitality entities would exist sage to avoid vague, over-reaching, or unverifiable assertions.  Hotels increasingly hearten their guests to embrace green practices – shut off lights, reuse towels, avoid changing the linen as frequently, etc. Research by faculty at Washington condition University found that a perceived ulterior motive of a hotels’ environmental claims evoked consumer skepticism, which negatively influenced consumer’s purpose to participate in the linen reuse program, as well as negatively effecting the consumers’ purpose to revisit the hotel.[xi]  At a time when as many as 79% of travelers correspond that eco-friendly practices is an essential factor in their altenative of lodging, companies risk losing valuable repeat customers if their motives are self-serving.  As a result, to avoid the negative aspects, hoteliers are cautioned to install comprehensive green programs, train their staff to implement practices, and ensure their green claims are accurate and not overreaching, perhaps through third party certification.

    For Goodness Sakes, Don’t Greenwash the Food

    Greenwashing is of particular concern in today’s environment, particularly in the context of food.  For example, in 2016, organic food sales jumped 8.4%, to over $43 billion, while overall food sales only increased 0.6%.[xii]  Similarly, organic non-food items jumped 88% to $3.9 billion in sales. As restaurants and hotels are asked questions by their customers about the source of their products, facilities requisite to exist watchful of the claims they are making to ensure they are not overreaching or deceptive, as greenwashing has become the “flavor of the month” in consumer class litigation.  Claims challenging products advertised as “natural” are the most frequent suits encountered.

    greenfood

    While no definition of “natural” is provided by the FDA, food products in the US labeled as “natural” invent up roughly $40 billion in sales, and are growing by an medium of 6.6% annually.  According to Food Navigator, there were 20 food labeling class actions pending in federal court in 2008 – a number that rose to 425 by 2016.  Cases that specifically focus on “natural” claims increased by 22% from 2016 to 2017, notably with suits against generic Mills’ Nature Valley bars and Dr. Pepper Snapple’s Mott’s Apple Sauce. Of particular note is that three quarters of federal court food class actions are in four states: California (36%), unique York (22%), Florida (12%), and Illinois (7%).[xiii]  Many of the suits are rooted in claims that items such as towering fructose corn syrup, towering maltose corn syrup, soy flour, soy lecithin, and GMA yellow corn flour, as well as synthetically derived vitamins, are not “natural”, and thus such claims are fraudulent.[xiv]  Overreaching statements can exist a source of eroding consumer confidence, destroying customer loyalty, and/or litigation.

    Conclusion

    Sustainability initiatives will continue to exist an imperative fraction of a hospitality entities’ brand, evaluated by sum stakeholders. In order to ensure consumer confidence, it is imperative that those initiatives exist undoubted in their implementation, supported by third party verification, and in alignment with the legal requirements of the jurisdiction.  In doing so, their efforts in supporting the three E’s – environment, economic, and equity – their industry will collectively soar in to help the future for ourselves and for future generations.

    PDF Version Available Here

    References [i] Retrieved May 30, 2018 from https://www.ga-institute.com/press-releases/article/flash-report-85-of-sp-500-indexR-companies-publish-sustainability-reports-in-2017.html [ii] 40 CFR fraction 9; and California Civil Code §1714.43 [iii] https://www.gpo.gov/fdsys/pkg/PLAW-111publ203/pdf/PLAW-111publ203.pdf [iv] Retrieved April 6, 2018 from https://www.forbes.com/sites/forbestechcouncil/2018/03/27/u-s-businesses-cant-hide-from-gdpr/#33b76ef052c8 [v] Retrieved April 6, 2018 from http://www.conecomm.com/research-blog/2017-csr-study [vi] Retrieved April 16, 2018 from https://news.dunkindonuts.com/news/dunkin-donuts-to-eliminate-foam-cups-worldwide-in-2020 [vii] Retrieved April 16, 2018 from https://www.bizjournals.com/chicago/news/2018/01/10/mcdonalds-phasing-out-foam-packaging-this-year.html [viii] Retrieved May 30, 2018 from https://www.forbes.com/sites/megykarydes/2018/05/23/the-future-of-take-out-exhibit-how-we-can-eliminate-packaging-waste/#37a1213c7580 [ix] Retrieved May 31, 2018 from https://www.npr.org/sections/thesalt/2018/05/31/615580695/last-straw-for-plastic-straws-cities-restaurants-move-to-toss-these-sippers [x] Retrieved April 6, 2018 shape http://sinsofgreenwashing.com/index5349.pdf [xi]  Rahman, I., Park, J., & Geng-qing Chi, C. (2015). “Consequences of “greenwashing”: Consumers’ reactions to hotels’ green initiatives”, International Journal of contemporary Hospitality Management, Vol. 27 Issue: 6, pp.1054-1081, https://doi.org/10.1108/IJCHM-04-2014-0202 [xii] Retrieved May 31, 2018 from https://www.foodbusinessnews.net/articles/9394-u-s-organic-food-sales-jump-more-than-8 [xiii] Retrieved May 31, 2018 from http://www.instituteforlegalreform.com/uploads/sites/1/TheFoodCourtPaper_Pages.pdf [xiv] Examples involve Janney et al. v. generic Mills, 3:12-cv-03919, U.S. District Court for the Northern District of California; Rojas v. generic Mills, Inc. 3:12-cv-05099, U.S. District Court for the Northern District of California; Bohac v. generic Mills, Inc., 3:12-cv-05280, U.S. District Court for the Northern District of California; Van Atta v. generic Mills, 1:12-cv-02815, U.S. District Court for the District of Colorado

    haridgree

    As Founding Director and Professor of the Michael A. Leven School of Culinary Sustainability and Hospitality at Kennesaw condition University, Dr. Hardigree oversees the Bachelor of Science degree program which houses over 260 majors and services over 1500 students enrolled in classes each semester.   Addressing both “sustainability on the plate” as well as “sustainability beyond the plate” in terms of water, dissipate and energy efficiencies, this highly apposite management program provides a competitive edge and discernible point of differentiation as the epicenter for teaching, research and best practices in sustainable culinary and hospitality management. The flexibility of the program’s curriculum allows students to emphasize careers in beverage management, event planning, specialized cuisines, and the hotel industry. Christian conducts research and presents nationally at industry conferences as related to her areas of expertise, including food safety, risk management, sustainability, workplace violence and employment/management issues.  She is a national expert on bed bug litigation, speaking across the country on the subject. After obtaining her B.S., cum laude, from the William F. Harrah College of Hotel Administration at UNLV, Christian obtained her Juris Doctorate from the Walter F. George School of Law at Mercer University, focusing on employment discrimination, arbitration/mediation, and labor management relations.  She is of counsel with the law arduous of Parnell & Associates.  Christian serves on a variety of committees and advisory boards, including the ConServe Sustainability Advisory Council for the National Restaurant Association, the KSU Brian Jordan heart for Excellence and Professional development at LakePoint Sporting Community, and formerly on the Women in Lodging Advisory Council for the American Hotel & Lodging Association.

    May 31st, 2018 in commerce Practices, Cooking, Restaurants, Spring 2018

    Hotel  margin Computer

    By Martin Zsarnoczky

    Digitalization is among the most essential changes in their rapidly evolving world. Digital innovations and technological novelties are engines of development and note their repercussion everywhere, especially in the territory of manufacturing, ICT and other service industries. Given the fact that tourism is based on the cooperation between a wide orbit of services and products, the benefits of the digital revolution in the sector are quite obvious.

    Our live environment is a combination of online and offline spaces that co-exist together, defining their everyday habitat. In tourism, the special utilize of spaces has always been a unique feature of the industry, and as of today, the spaces of the digital world accommodate become fraction of it. The rapid development of the digital world brings novel and innovative solutions into the digital tourism spaces by the day. Peer-to-peer communication is outstandingly essential in the technological environment of tourism. This character of communication, together with the spreading of smart devices accommodate revolutionized scheduling, administration and finances, and too opened unique horizons for the introduction of innovative sales and marketing technologies in the all tourism industry. As a result of the digital revolution, the international development trends in tourism accommodate opened the passage for novel solutions relish cloud-based booking sites or information and experience sharing via digital platforms.

    In line with the unique trends of travelling, there is a dynamically growing claim for special tailor-made offers beyond mass tourism, as conscious consumers expect personalized solutions that retort their individual needs. As of today, the vast majority of tourism market stakeholders accommodate access to detailed information on their consumers and can closely ensue and track consumer conduct and its changes. These novel systems of personalized products and services are available thanks to various resilient follow-up techniques relish CRM client databases. The cloud-based CRM client database systems – ones that create offers by analyzing previous sales records and demographic data – accommodate evolved rapidly. As of today, they can analyze huge datasets by grand data analysis and scaling methods in a cost efficacious and anonymous way, searching for significant event points. Although grand data research is based on working with big samples, it is the most efficient fashion to betray individual personal preferences (Stadler, 2015).

    How did sharing economy pave the passage to personalized tourism services?

    In previous decades, the results of digital development accommodate opened the door for the true life implementation of shared economy theories. It was almost ten years ago that Chris Anderson (2009) introduced his pricing theory in digitalization, basically suggesting giving away products for free, based on the principle of shared goods and resources. Although at the time Anderson’s theory was considered as a technological solution, the principle of digital sharing accommodate induced serious convivial changes as well. One of the most essential positive messages of shared economy is the maximum utilize of resource capacities for the purpose of convivial well-being (Sundararajan, 2014). convivial well-being is too a key priority in tourism, because a well-managed tourism industry brings profit not only for the commerce operators but too for the local communities.

    In the sharing economy model, the stakeholders – who are too consumers at the selfsame time – offer their excess capacities for collective utilize in order to maximize the exploitation of their goods and resources. These economic processes consist of so-called hybrid transactions with maximum capacity utilize (Hyde, 2007), for both commercial and convivial purposes. An essential drive in the evolution of collaborative consumption theory was the realization of the fact that using or possessing the selfsame consumer goods can result in different advantages. The core factor of the model is that sellers offer their excess capacities, while the consumers in requisite utilize them in recur for payment. In the sharing economy (based on the aforementioned primary idea), more and more industrial, commercial and service providers offer innovative solutions.

    The principle of sharing is not a unique notion in the tourism industry. In the case of some accommodation services, seasonal expense reduction has always been a practice. Hostels and youth hotels accommodate always been accepted – these facilities are often used as dormitories throughout the academic year and lease their rooms for backpackers in the summer season, when the students are away. Of course, these seasonal options would not accommodate been enough for creating a unique market sector; the dawn of the unique commerce era was marked with the emergence of wide platform solutions relish Airbnb, Booking.com, Agoda, etc.

    Casa de la Musica Hostel Budapest. Photo by Martin Zsarnoczky

    Casa de la Musica Hostel Budapest. Photo by Martin Zsarnoczky

    In the strategy of digital platform tourism businesses, consumers are considered as partners in the commerce activities. This shared operation can exist best defined as a postmodern commerce model. Although the complex notion of postmodernism is quite difficult to describe, its main characteristics – shared participation and the subjective ardor of each contributor – can lead closer to understand the phenomenon. It is lucid that postmodernism will change some processes of the classic market laws in the near future. While “shared experience” has become a key marketing term for selling goods and services, specialized offers inevitably lead to a market fragmentation that will result in the fragmentation of users as well. In a disintegrated market, consumers will behave differently in fragmented times and spaces, paving the passage for personalized services and tailor-made solutions. At the selfsame time, individualism has become the key characteristics of the younger generations (McCrindle et al., 2009); a phenomenon that will accommodate to exist taken into account whilst creating commerce strategies. Due to the emergence of individualism, more and more youthful people are trying to create something unique that can serve the long-term benefit of the community. Their drive for creating businesses based on their own ideas and experience accounts for the increasing popularity of start-up businesses. These aspects of uniqueness, community thinking and experience-centered approach hold a huge opportunity for the future of the tourism industry.

    The Future: AI, VR/AR, Blockchain

    While looking through their photos, tourists usually accommodate a positive experience remembering their travels, experiences and the destination they had visited. Some specialized digital technologies can offer this assumed positive experience in a searchable and changeable form. With regards to true life objects, their connections and relations, there is only a limited amount of information available in a format that could exist handled by computers. The main problem is that computers requisite adequate coding solutions created by artificial intelligence to exist able to store, ply and organize information. The methods of coding for tourism experience purposes affect the speed, efficiency and knowledge/experience-based computing abilities of today’s computers.

    According to the forecasts of product development strategies in various industries, almost sum of their everyday objects and equipment will exist accessible through the internet in the future. As a result, sum devices that are capable of two-way communication will belong in the framework of IoT (Internet of Things). The devices of the future, unlike the devices of today, will communicate in a bidirectional way, where robust safe data handling, personalized differentiation and adequate determination management will exist fraction of the user experience. As a result of the continuous data collection during the utilize of these devices, sum apposite information will eventually conclude up in a final centralized system at the top of the dataset.

    Previously, tourism used to exist an industry based on personal relations and connections, where the trends – and therefore travelers’ decisions – were set out by a limited number of big international tourism and travel enterprises. As a result of the digital revolution, the transparency of “hidden markets” had been revealed and numerous other factors accommodate to exist taken into account (Fig.1.).

    Figure 1. Influencing factors of traveler’s decision. Source: Zsarnoczky, (2017a)

    Figure 1. Influencing factors of traveler’s decision. Source: Zsarnoczky, (2017a)

    The early development of ICT resulted not only in the better capacity utilization of airlines, but too on the compatibility of the prices; and soon, the emergence of the discount airlines had led to the innovation of the all industry and forced out efficiency in sum segments. The novel travel recommendation sites (Expedia, Orbitz, Kayak, etc.) were created with the direct to invent travelers’ decisions easier; however at the selfsame time, a lot of tourism service providers who could not withhold up with the unique challenges were forced out of the market. Although the unique trends relish travel packages (including car rental) or taking into account the reviews of previous travelers (Lonely Planet) were from many aspects opposite to the former commerce models, the rapidly increasing popularity of online offers required quick and user-friendly tourism product development from the industry.

    With the arrival of Google, which was able to rank the sites’ appearance in internet searches, a fierce competition begun between blogs, tourism recommendation sites and price-comparing OTA systems. The bidirectional communication started with the utilize of cookies 2.0; since then, consumers accommodate become an integral fraction of the commerce models, because businesses who quest to exist successful in the long run, requisite to know their customers’ demands in detail. The development of digital services require the identification of the user, information on their individual preferences and a decision-based calibration (by AI). In AI-based determination making solutions, the former determinative factors are replaced by a virtual personal assistant, which is able to map the consumer’s preferences based on their digital footprint, and create an optimal personalized offer from the available grand data systems (Fig. 2.)

    Figure 2. Virtual Personal assistant – VPA. Source: Zsarnoczky, (2017a)

    Figure 2. Virtual Personal assistant – VPA. Source: Zsarnoczky, (2017a)

    The technological development cannot exist stopped; however, with adequate flexibility and openness, tourism businesses can prepare for the upcoming challenges. In the tourism of the future, the unique consumers will bring forth unique priorities and unique demands. As a revolutionary approach, the members of the IoP (Internet of People) community offer their free time in order to achieve joint IT/industrial goals, where frameworks are created in line with the preferences of other people, for a yet not specified consumer segment (Miranda et al., 2015). Beyond innovative technologies, all unique spaces accommodate opened in tourism, completely different from the usual destinations. University researchers[1] accommodate been carried out to study the possibilities of online tourism spaces and their opportunities for the tourism and hospitality industry. In virtual reality, with a special “glass”, the user can glance into an optional tourism space, from which the true world is completely shut out. The Augmented reality is a different technological solution, where digital elements are projected into a true life space.

    In 2011, the interior designers of cafés only used and re-designed the existing design panels; today, the traditional  live spaces are often combined with the online world. Carneval Coffee Budapest. Photo by Martin Zsarnoczky

    In 2011, the interior designers of cafés only used and re-designed the existing design panels; today, the traditional live spaces are often combined with the online world. Carneval Coffee Budapest. Photo by Martin Zsarnoczky

    The newest technological developments and the innovation in the utilize of live spaces are sum connected to the alternative payment options that can exist used in tourism as well. The emergence of Bitcoin and other cryptocurrencies has led to the creation of a novel payment system. The Blockchain payment system is a shared database, which records a continuously growing list of data blocks, preventing any counterfeiting or alteration of the data. One screen consist of a list of transactions and the results of computations made by the stored programs. For example, if a customer buys some cryptocurrency or any other kind of currency, and then transfers it to anywhere in the world to another partner, who exchanges it instantly, both partners can avoid any loss caused by exchange rate fluctuations; furthermore, the all transaction takes only minutes instead of the usual yoke of commerce days. This solution can involve a revolutionary innovative payment option for everyone in the tourism industry.

    The applicability of the blockchain system is independent from currency rates. In the case of cryptocurrencies, it is not the exchange rate that really matters – instead, the upright value of the currency lies in the safety of the blockchain technology and in the authentic, transparent, unalterable and decentralized recording system (Pilkington, 2016). This payment system offers a unique even of encryption safety and intervention-free operation, and the data handled in the system cannot exist modified in any way. Another huge benefit of the system is that the transactions are realized without any intermediate agents, thus eliminating any additional transaction costs. By the time of the “maturity” of blockchain payment solutions, today’s big service intermediators relish Airbnb, Booking.com, Agora, etc. are foreseen to lose some of their market positions, as consumers and service providers will probably deal with their transactions directly.

    Will artificial Food exist the next meal on the table?

    With the worldwide population boom, the claim for food is too increasing. To answer this growing requisite for food, the extension of agricultural areas is required for food material production, and at the selfsame time, adequate land management is needed for animal husbandry. The greatest challenge of sustainable agriculture lies in the fact that the agricultural areas can only exist further expanded at the expense of forested lands. In addition, the current changes in the environment has too led to the decrease of fishing possibilities, another vicissitude in the availability of food materials.

    Shrimp in pasta shell. Made and photo by Martin Zsarnoczky

    Shrimp in pasta shell by Martin Zsarnoczky

    The decreasing resources of food materials will obligate the food production industry to re-think their former concepts. unique technologies relish 3D food printers can even bring the rapid food era to an end. The novel inventions of food production and food engineering – relish artificially flavored drinks, chocolates and dairy products – accommodate been on the market of more than a decade now, and so far, they accommodate not had a negative sequel on the common flavor of consumers.

    In the concept of 3D food printing,  popular sweets and delicacies are synthesized by a layered printing technology, using the various pre-mixed powders, flavorings, fixers and oils that are stored in the “toners” of the printer. These artificial foods are already available: specialized franchise restaurants relish the Food Ink chain offer a wide variety of printed meals for consumers who are curious about the future of gastronomy. It is too likely that with the next generation of the food printers, they will exist able to calibrate the nutritional values and energy content of the meals.

    The 3D food printing technology is not only essential for HoReCa businesses, but holds a worthy opportunity for the health industry, too, especially in the territory of special diets and medication. Using 3D food printing for these purposes can multiply cost-effectiveness, efficiency and sustainability, thus supporting the food industry and hospitality and tourism businesses alike.

    The option of personalized 3D food printing is just one of the innovative technological solutions in the tourism and hospitality industry. The Henn-na Hotel [1] in Huis Ten Bosch, Japan is the first hotel in the world, where customers are served exclusively by robots. At another Asian location in China, there are 24/7 cafés that ensue the no-staff commerce model of Amazon Go. As for the restaurant market, the Chinese food brand Wufangzhai has recently opened the first unmanned restaurant[2] in Hangzhou, capital city of east China’s Zhejiang Province.

    The question is: how long will it hold until food production and consumption will requisite no human resources at all?

    Summary

    For innovative enterprises, the efficiency of interactivity is of key consequence for the success of their business. The rapid development of ICT solutions has brought immense changes in the tourism industry. Previously, consumers’ determination making was mainly affected by the industrial environment. The era of digital tourism spaces – preceded by theme parks and thematic destinations – started with the emergence of information websites; however, this targeted information stream used to exist one-directional with narrow choices. In today’s digital era, the unique generation of commercial activities hold region in VR or AR spaces, and the instant analysis of the customer’s reactions and conduct back the enhancement of their buying willingness. The traditional determination making processes are gradually being replaced with personalized offers, further increasing the consequence of AI.

    With the development of shared economy, greater accent is region on convivial well-being, as user experience slowly becomes more essential than ownership. This unique approach is too expressed in novel forms of payment, which can seriously decrease the profits of intermediate activities. The unique trends execute not seem to exist problematic in the tourism industry, mostly because in this sector, the exact costs and incomes are not clearly visible yet. On the other hand, the property development of the 3D printing technology holds a worthy opportunity for the tourism and hospitality sector. The development of digitalization has finally reached a even where it can truly back the cost-effectiveness and sustainability of industrial food production, paving the passage to the future of tourism and hospitality businesses.

    PDF Version Available Here

    References Anderson, C. (2009). Free: The Future of a Radical Price. Hyperion, unique York. Hyde, L. (2007). The Gift: Creativity and the Artist in the Modern World. unique York: Random House Inc. McCrindle, M. – Wolfinger, E. (2009). The ABC of XYZ: Understanding the Global Generations, University of unique South Wales Press, Sidney. pp. 1-22. Miranda, J. – Mäkitalo, N. – Garcia-Alonso, J. – Beroccal, J. – Mikkonen, T. – Canal, C. – Murillo, M. J. (2015)  From the Internet of Things to the Internet of People. IEEE Internet Computing, 19 (2): 40-47. Stadler, G. (2015). grand data – tömeges adatelemzés gyorsan. HTE Medianet 2015, Kecskemét. LLX. pp. 44-48 Pilkington, M. (2016). Blockchain technology: priciples and applications. Research Handbook on Digital Transformation. Edward Elgar Publishing, Northampton, MA. pp. 225-253. Sundararajan, A. (2014). Peer-to-Peer Businesses and the Sharing (Collaborative) Economy: Overview, Economic Effects and Regulatory Issues. NYU heart for Urban Science and Progress, unique York. Zsarnoczky, M. (2017a). How does artificial Intelligence affect the Tourism Industry? Vadyba Journal of Management 31 (2): 85-90. Zsarnoczky, M. (2017b). The future of sustainable bucolic tourism development: the impacts of climate change.  Annals of the Polish Association of Agricultural and Agribusiness Economists. XIX. (3): 337-344. Martin Zsarnoczky, Ph.D. has several years of experience in the huge tourism and hospitality industry. He has worked with P&O Princess Cruises, Intercontinental and Marriott Hotels in Budapest. Between 2005 and 2015, he was the founder, developer and CEO of Casa de la Musica Hostel and Event’s Hall, one of the largest multifunctional private tourism & hospitality businesses in Budapest downtown. He holds a BSc degree in Tourism and Hospitality from the Budapest commerce School, and graduated at MSc/Med even as Teacher of Economics in Tourism and Hospitality. During his studies, he had spent short a term mobility era  at Utwente University in the Netherlands, and later earned his Ph.D. in Regional Sciences at Szent Istvan University. At the moment, he is still very active as an entrepreneur and is actively involved in community development. He is too a board member of the Budapest Chamber of Commerce and Industry, and works as a mentor for the youthful Entrepreneurs Association Hungary. With regards to his academic career, he is a plenary time assistant professor at the Institute of Marketing and Media at the Tourism Department of Corvinus University of Budapest.

    May 23rd, 2018 in commerce Practices, Marketing, Spring 2018

    By Leora Lanz and Namrata Sridhar

    In the Winter 2018 edition of the Boston Hospitality Review, they brought forth suggestions for the 10 Best Practices for Organic Visibility —ways to help search results through organic search, or execute not cost the company a monetary investment. Rather, these rankings were based on elements such as keywords, location, and mobile friendliness. Suggestions for improving a company’s organic search involve utilization of backlinks, hyperlinks between websites, and content enhancement in relation to local listings such as ensuring quick website load speed, towering property imagery, and conspicuous links to convivial media channels.

    This second installation of a two-part sequence will talk to the topic of search engine functionalities as a result of paid queries. For independent or smaller companies, this brief but powerful set of tips obtained from industry experts can enable a commerce to become more “searchable” for optimal recur on investment.

    Search Engine Marketing (SEM) Best Practices: 1. Understand the Paid Media Landscape:

    According to the Associate Director for Organic Search and Content Strategy at Boston-based Connelly Partners, Dan Hurley, the most essential fraction of SEM is to comprehend the paid media landscape. It is faultfinding to know who one’s competitors truly are and understand how they are marketing, from a tactical standpoint.1 It is too essential to research the types of ad drive structures that are surfacing in the category of interest, on both desktop and mobile devices. Then one must adopt those that show efficacious and proper commerce goals appropriately. For restaurants and hotel-related queries, “this strategy is especially pertinent because these searches generally transform very quickly; mobile searchers will likely patronize a restaurant within a few hours.”

    In order to exist the most efficient with a company’s paid advertisements, Todd Philie, president of Southcoast Marketing Group in Wareham, MA, too encourages companies to determine how consumers are searching for them on the Internet. For example, “utilize the query search tool via the Google AdWords™ platform to determine what terms and phrases are used to achieve your own site and then display your ads.”

    Additionally, Kym Parker, associate search marketing director at Connelly Partners, emphasizes the consequence of using the company’s brand to ensure a tenacious search presence. By utilizing paid search bids, a hotel or restaurant can exist the first result a web surfer sees when conducting a search.2

    “Sometimes, competitors will bid on your brand terms – which means that if someone searches for your company name, for example, the competitor could note up ahead of you in the search results,” Parker notes. “You can obviate this by ‘protecting’ your brand terms. Always exist bidding on them, at least a diminutive bit, to ensure that you accommodate a better haphazard of staying on top of the results when someone searches your name and other brand terms.”

    2: utilize of Google AdWords™:

    The major player in the world wide web is Google, which has created various platforms to optimize searching. Using keywords, Google users can pay to promote their advertisements for a set budget. This Google functionality allows a company (hotel or restaurant) to understand how it ranks in comparison to direct competitors.

    Also withhold ‘negative keywords’ in mind, adds Philie. “Negative terms generally means terms that you are not specifically telling AdWords™ that you execute not want to show in specific results for other searches. For example, suppose you are marketing a seafood restaurant that does not offer steak on its menu. You want to bid on the phrase ‘best restaurant in Boston’ but you execute not want to dissipate money on clicks from customers who want steak. You might set ‘steak’ and ‘steakhouse’ as negative terms so that if someone searched ‘best steak restaurants in Boston” you execute not note up in that search.

    The Google AdWords™ functionality too offers companies the haphazard to enhance the listing. An incredibly important, yet often overlooked, input is the “click to call” functionality and its presence on a mobile site, too known as the convoke extension. “These additional factual details, known as “ad extensions” too involve location, information from different pages on your website, and even testimonial reviews,” adds Seth Cargiuolo, director of communication strategy at Chestnut Hill, MA-based D50 Media. “Making utilize of ad extensions is essential because it helps the customer learn more about the commerce with a quick glance pre-click, and can assist differentiate a hotel or restaurant (or any product)  against its competitors.”  Ad extensions too multiply the visual footprint of an ad, which can push competitors’ ads and organic listings down the page and out of view, particularly on mobile devices.

    For marketers just starting to utilize SEM and Search Engine Optimization (SEO), Google AdWords™ too offers free tutorials and trainings. Zachary Azar, D50 Media’s senior manager of paid search notes, “These tutorials provide clients with the opportunity to score the most out of the program and create efficacious campaigns.”

    To properly manage an efficacious AdWords campaign, Google Analytics can exist a helpful tool as it reveals which content on a website is most useful and arresting to customers. This will assist in the creation of resonating ad copy and can too exist a usher for aligning keyword selection and website copy to multiply the “Quality Score” of an ad campaign.

    However, Philie too cautions individuals not to exist completely reliant on Google’s suggestions for keywords. “Often times, these keywords are pluralized and can understanding companies to spend more or not exist as effective.” He warns companies to choose how to region their key words “out there” when bidding. Companies must choose best matched keywords for their ads and choose between “exact match,” “phrase match,” “broad search” and “modified broad search” – sum of which will capitulate varied returns. Campaigns should utilize a balance of sum match types, but should “skew more heavily towards exact and phrase, utilizing broad match only for keyword prospecting and expansion opportunities.”

    3. Always Start with Non-Paid Efforts or SEO

    When optimizing a company’s searches, Cargiuolo and Azar imply the first thing that the company should focus on is actually the SEO. First and foremost, it is essential to ensure that a website is user- and mobile-friendly. Another essential factor is a quick load speed. “Google has found that sites that hold longer than three seconds to load lose 40% of their traffic, and for mobile traffic, that jumps to 53%,” reports Azar.  This is essential for paid search as well; Cargiuolo adds, “It’d exist wicked enough for a user to abandon your page when it’s an organic search – but now imagine if you’d paid for that click and those dollars were totally wasted.”

    In order to reduce the load speed, it is essential to not accommodate “big” images—think kilobytes, not megabytes.  Web copy should exist concise and “bandwidth-hogging” scripts and plugins minimized. “Additionally, given that over half of web traffic is on mobile devices, ensure that pdfs (which you want to avoid anyway) glance acceptable on a smart phone too,” Cargiuolo says.

    Kristin Metzler, Print and Web Marketing Coordinator of Frasca Design Group, too echoes that mastery of SEO is the first step in a successful digital marketing campaign. Websites built with a tenacious attention to keywords and content will minimize spending on pay-per-click campaigns.

    4. Don’t spend on Paid Search if You Can’t Afford It

    Hurley cautions that one requisite not spend money on advertising to score traffic. Because so much information is provided in the search results, there may not exist any clicks on your page during the search process. Companies should never region any money into paid search, display advertising or paid convivial that the company cannot afford to lose.3

    Cargiuolo emphasizes that when a company starts advertising, it should not expect an immediate return,4 which is oftentimes an assumption that businesses make. Initially, many may not exist familiar with the bidding process; keywords; or how to build, optimize, and manage an efficacious campaign. exist cautious not to spend money needed for other resources. Start behind and spend time learning before committing grand budgets.

    One final word of caution: There are easily incurred expenses that can approach from paid search marketing, such as additional costs from agencies that hold a portion of a monthly budget. Being conscious of your daily budget is faultfinding in avoiding overspending.

    Key Take-Aways?

    When taking the steps to build a search campaign, it is faultfinding to execute research and trudge slowly at the beginning. Understand how the market is reflected in consumer searches and what keywords are being utilized. Before jumping into methods that require payment, a company should ensure that its website is optimized for searches and never spend more than what can exist budgeted, as it will hold time to remark a recur on investment.

    As Cargiuolo reminds, businesses must bethink that Google serves the user first. Thus as the marketer, one must reflect as a user would when building a paid search campaign. People approach to Google with questions. The marketer that best answers the user’s questions, both pre-click and post-click, is going to exist one that is most successful.

    PDF Version Available Here

    1 Inc. Staff. “How to Conduct Competitive Research.” Inc. Magazine. May 2010 2 Ratcliff, Christopher. “What is PPC and Why execute You requisite it?” Econsultancy. 13 November 2013. 3 Kumar, A.J. “SEO vs PPC: Knowing Which is Better for Your Website.”  Entrepreneur. Editorial. 21 May 2012 4 Steimle, Josh. “How Long Does SEO hold to Start Working?” Editorial. Forbes. 7 February 2015. Namrata Sridhar is a marketing communications coordinator at LHL Communications and a rising senior at Boston University’s School of Hospitality Administration (BU SHA). She has too previously worked in marketing communications capacities at RealFood Consulting where she helped design an internal marketing scheme to rebrand their company. Namrata too serves as the President of the Student Government of BU SHA. She is an active member of the National Society of Minorities in Hospitality, the American Hotel and Lodging Association, and the Hospitality Sales and Marketing Association International. Lanz  unique 2016Leora Halpern Lanz, ISHC, is principal of LHL Communications, a hospitality-focused marketing communications, branding, and media relations advisory. She is too a plenary time faculty member at Boston University’s School of Hospitality Administration (SHA), teaching advanced strategic marketing and digital marketing for hospitality at the undergraduate and graduate levels. She was named among the Top 25 Minds in Hotel Marketing for 2016 by the Hospitality Sales & Marketing Association International and was named 2017 Professor of the Year by the student government of SHA.

    February 13th, 2018 in commerce Practices, Winter 2018

    By Sarah Andersen

    After completing the senior capstone Hospitality Leadership course at Boston University, I had the haphazard to reflect on the class topics and apply the teachings to my personal life. The course explored several different levels of leadership, from the head of a major corporation role to developing self-leadership. I learned the consequence of a mission, vision, and values in an organization, better understood the components of change management, and worked with a group throughout the semester to develop my teamwork skills. I was able to critically analyze concepts and models presented in leadership literature as well as help my own leadership skills. I then interviewed three prominent leaders in hospitality and found connections between their industry insights and my leadership class discussions. Dan Donahue, President of Saunders Hotel Group, Len Wolman, Chairman and CEO of Waterford Hotel Group, and Geoff Ballotti, President and CEO of Wyndham Hotel Group kindly shared their experiences and explained their personal values and company’s culture, revealing the five keys to successful leadership.

    IntervieweesBanner

    “Leadership is the capacity totranslate vision into reality.”

                                                               -Warren G. Bennis

    Establishing Shared Beliefs, Values, and Goals

    When an organization wants to achieve its goals, it needs a vision. Effective leadership starts with the aptitude to recognize and outline those goals and inspire others to follow. Leaders paint a picture of how that vision will affect the company as a whole, as well as each individual. A leader’s aptitude to articulate that vision into a mission statement corresponds to the active implementation of goals and the company’s bottom line success. A productive vision goes beyond a written organizational mission statement, but instead permeates throughout sum levels of a company and manifests into actions and beliefs. John P. Kotter, author of commerce Leadership, writes, “A vision says something that helps clarify the direction in which an organization wants to trudge [and] is relatively effortless to communicate, appealing to customers, stockholders, and employees.”1 It is therefore up to hospitality leaders to set and clearly communicate a vision, and to inspire those around them to participate and implement it.

    A vision does not belong only to a leader. It must exist a shared vision that attracts everyone to sustain towering levels of motivation and withstand challenges. According to The Leadership Challenge, by James M. Kouzes and Barry Z. Posner, leaders can envision the future by imagining the possibilities and finding a common purpose.2 In addition, leaders must spark a sense of import and purpose in those around them. Dan Donahue agrees that, “My job, as someone who has the vision, is to score you inspired and committed to sharing that vision and sharing that creativity to the point where you accommodate buy-in.”

    After seven years of rigorous research, a landmark study of the observations from more than 100 CEOs and over 8,000 employees found that “leaders who were lucid about their values delivered as much as five times greater returns for their organizations as did leaders of debilitated character.”3

    So how execute illustrious CEOs and successful leaders in their industry shape the parameters for success through a shared vision for a future? How execute they empower and inspire those around them to invent decisions and labor towards their goals?

    OLYMPUS DIGITAL CAMERA

    Balancing Accountability and Autonomy

    When asked what his core values were, Len Wolman responded, “First and foremost, their organization has been built on integrity and transparency. They accommodate four core values that they live by on a daily basis which are to (1) to wow the customer, (2) to continuously improve, (3) to exist a passionate and committed team, and (4) to participate and sustain their bottom line success.”

    Dan Donahue, established that, “Our values are simple. Their values are people. They allow them the flexibility and latitude to execute their jobs under the usher of taking keeping of the guest, but too taking keeping of themselves as well.” To strengthen others, exemplary leaders multiply people’s faith in their aptitude to invent a difference. They trudge from being in control to giving over control. Developing associates into leaders and enhancing self-determination creates a culture of empowerment and confidence. Geoff Ballotti agrees that, “In terms of motivating others, it is letting them invent decisions. It’s not micromanaging, but rather letting them approach up with the solutions.”

    Geoff Ballotti continues, “Our core value statement is three words, ‘Count On Me,’ which is sum about accountability. It is about people being able to exist counted on at any time, for any issue, any question, any decision, and any back that their owners, franchisees, and associates need. It is built on the principal of integrity in terms of taking personal responsibility for your actions.” Accountability is essential because it results in an extremely efficient and productive team. According to the U.S. Office of Personnel Management, accountability in the workplace is linked to higher performance and increases in commitment to labor and employee morale.4

    Dan Donahue, states, “A vision has to exist fluid. To score to an achievable goal and vision, whether short term or long term, you requisite to exist present, you requisite to understand that if you want it to exist successful you requisite to exist there, you requisite to exist accountable to it, and you requisite to exist accountable to the people that want to participate that.” When accountability becomes embedded into culture, company’s are able to set meaningful goals, develop team buy-in, build confidence through back and encouragement, and celebrate successes together. Accountability is about creating a culture where people value responsibility. When associates understand that accountability involves a sure degree of autonomy, mutual respect develops between sum levels of an organization.

    Mr. Ballotti adds, “The third leg of their values is sum about respect. Respecting everyone everywhere both on their ownership side and the community side.” When leaders develop mutual respect, associates are more likely to labor harder to accomplish shared goals. Harvard commerce Review examined employee needs and determined through a query of more than 19,000 workers that most employees wish renewal, value, focus and purpose.5 feeling a sense of value and respect can instill an employee with self-possession and motivation. Len Wolman adds that, “I’ve been in the industry for many years, I was educated in the industry and then worked my passage up through the industry, so I’m fortunate in that I accommodate the perspective of having worked in various positions. So I accommodate empathy, understanding, and respect for each position. Everyone needs to exist treated with mutual respect and understanding.”

    HL2

    Modeling by Example

    An essential fraction of being an efficacious leader is educating others on what the organization stands for and why it matters. When leaders sincerely express a commitment to their core values, they’re too making a commitment on behalf of the entire organization. Therefore, leaders must invent sure there is collective agreement on the shared values amongst everyone they lead.

    So how execute leaders become a role model for what the organization stands for?

    The retort is pretty simple. They set the illustration for others to follow. Holding others accountable to values and standards means leaders must live the values themselves. Dan Donahue responds, “I would never examine an employee to execute something I wouldn’t execute myself.” Len Wolman agrees adding, “You always want to set an illustration and never want to expect anyone to execute anything that you wouldn’t execute yourself.” Researcher on behavioral integrity demonstrates that the alignment between a leader’s words and actions has a powerful repercussion on how much constituents confidence the leader and on their subsequent performance levels.6 worthy leaders effectively translate purpose into reality by acting on the values they drill and the things they yelp to those around them.

    Showing Vulnerability and Visibility

    Confidence is an essential skill to possess as a leader. However, having vulnerability as a leader is just as essential to recognize and appreciate. Every leader has vulnerability, but great leaders have the self-awareness to recognize this fact and feel comfortable expressing their weaknesses. Showing vulnerability is a relatable trait and Geoff Ballotti finds that, “The greatest leaders I know out there are very comfortable talking about their weaknesses, about what it is that they requisite to labor on, to help upon, and to execute better.” efficacious leaders invest the thinking, the time, the energy and are prepared for the vulnerability of connecting with others.

    So how execute these leaders merit trust, inspire, and build bonds with those they lead?

    Great leaders inspire their associates and guests by genuinely connecting to them through a consistent presence and visibility. Visibility as a leader not only includes having a physical presence, but too aligning everyone to the purpose behind their shared vision through natural conversations and casual exchanges on a daily basis. When asked how he communicates company goals and the overall vision, Dan Donahue replied, “If you accommodate a presence, it happens organically. It doesn’t requisite to exist contrived.” The purpose of this wholehearted visibility is not about the requisite to “check on employees,” but rather an honest wish to interact with associates in order to gauge motivation and learn if employees requisite back or help. Mr. Wolman agrees that, “It is faultfinding to operate with an open door policy and listen to everyone’s perspective and ideas, particularly the people who are executing the day to day functions, and I reflect you’ve got to exist constantly evaluating that.”

    HL3

    Mr. Ballotti adds, “I too reflect showing empathy is key and the best passage worthy leaders execute that is through the art of storytelling when they’re up in front of their associate basis or leadership team, being able to recommend stories that connect and engage and inspire and motivate in terms of the culture your want to set and want to build.” Storytelling is a powerful passage to participate knowledge, push information at people or pull them into a company’s vision and mission by reinforcing the intent behind undoubted leadership. According to Edgar Schein, Professor Emeritus at the MIT Sloan School of Management, “[Stories] too strengthen the framework and the consequence of an organization’s culture by establishing norms and values.”7 expedient stories compel, persuade, and unify others around the leaders’ vision.

    Creativity Breads Adaptability

    “Hospitality isn’t about a product on the shelf. Hospitality is about creating something that changes day to day, hour to hour, or minute by minute.” – Dan Donahue

    IBM’s 2010 Global CEO Study, which surveyed more than 1,500 CEOs from 60 countries and 33 industries worldwide, concluded that creativity is the most essential leadership property for success in business, outweighing competencies such as integrity and global thinking.8 Geoff Ballotti agrees that, “Creativity is critical, especially in the commerce that we’re in. We’re trying to redefine and reposition their brand from a creative standpoint in terms of experience.” What defines one brand from another and what makes one brand more successful than another is the creativity that it delivers as well as the experience it delivers to its guests. Understanding how to generate worthy ideas is a crucial leadership trait in hospitality’s innovation-driven industry. Successful leaders create an environment where associates can contribute their imagination and insight, which is faultfinding because most innovations draw upon the contributions of many.

    Today’s commerce environment is unpredictable, changeable and increasingly complex. Therefore, the aptitude to create something that is both innovative and applicable is on the top of leader’s minds. Mr. Donahue states, “Nothing in their commerce can exist or should exist cookie cutter. It’s about curating an experience for each person who spends to exist with you.” Len Wolman adds, “If you’re not creative and open to change in todays world with the disruptors that exist in their industry, particularly with technology, you will not exist successful. You requisite to exist creative in terms of staying ahead, staying current and relevant, and score managing the costs associated with change in a passage that your organization can still exist successful and profitable.”

    In an industry of constant change, worthy hospitality leaders requisite to capitalize on the opportunities that are ripe for the present context and scheme for the likely future state. Change requires creating a unique system, which demands efficacious leadership. It is crucial that leaders first admit how arduous it can exist to drive others outside of their console zones and push for change. When asked how he responds to change, Len Wolman replied, “A crucial factor is feedback. They score daily feedback that is current and relevant, whether it exist Trip Advisor, direct contact with their guests, or direct contact with their associates. They requisite to listen to it, they requisite to respond to it, and they requisite to adjust to the things that people are looking for whether it exist the consumer or the labor environment.” Those who create unique initiatives, programing, design, and brand essence are the ones who succeed. By supporting creativity and commanding change, leaders can multiply workplace satisfaction and build driven teams that craft original, valuable ideas.

    Figure 1: Interview Questions
  • When associates are inspired by their leaders, they are more confident, they know what’s expected, and they feel empowered to invent decisions and labor toward their goals. So with your vast experience in the hospitality industry, what are some ways you empower and inspire those around you to invent decisions and really motivate others?
  • Do you accommodate a specific set of core values? They can exist personal or related to your company.
  • How execute you hold others accountable to those values and standards as a leader? Are there specific tools or methods you provide your associates to assist them labor towards that unified goal?
  • Confidence is obviously an essential skill to possess as a leader, but execute you reflect showing vulnerability as a leader is essential as well? This can exist shown through being more visible to others around you, taking risks, being vocal and lucid about your specific goals as a leader….
  • Creativity is essential to the entrepreneurship that gets unique businesses started and that sustains the best companies after they accommodate reached a global scale. execute you deem creativity to exist a manageable trait? Is creativity a focus of your attention as a leader?
  • How execute you accommodate to various situations in an age of rapid change (with technology and this millennial “mindset” emergence)? What are the key components to having an adaptable mindset?
  • Closing Thoughts

    It has been made lucid through the interview process of these three prominent industry leaders that establishing shared values, balancing accountability with autonomy, modeling by example, showing vulnerability through visibility, and having a creative mindset that is open to change are sum essential factors to being a successful leader. The common theme amongst sum these traits and elements to successful leadership, however, is each leader’s dependence and confidence for their associates. At one point during the interview, Mr. Ballotti pointed out that, “Great leaders are those who ring themselves with worthy people…who are brighter, and smarter, and more diverse in thought than they are. And who are able to build a team that knows how to back and confidence each other.” It is lucid that efficacious leadership boils down to a leaders aptitude to unlock the plenary potential in those around them. Len Wolman adds that it “We hold keeping of their associates so that they hold keeping of their guests, which keeps the guests coming back and is the understanding they are in business.“ Dan Donahue too notes, “You accommodate to realize each individual employee’s needs. invent a connection with your employees every sole day.” sum expedient leaders were once followers themselves and accommodate learned to establish and foster confidence over time. A upright leader passes commend and shares the blame, lifting up those around them.9 Without followers, worthy leaders cannot lead.

    PDF Version Available Here

    SarahSarah R. Andersen is a senior at Boston University’s School of Hospitality Administration. Her areas of interest involve integrated marketing communications and true estate development. Beyond her studies in hospitality, she is a member of the BU Women’s Lacrosse team. She plans to continue her studies at Boston University after graduating with her bachelor’s degree by enrolling in the School of Hospitality’s Master of Management in Hospitality program. References
  • Gallos, Joan V. Business Leadership. Second Edition ed., A Jossey-Bass Reader.
  • Kouzes, James M., and Barry Z. Posner. The Leadership Challenge: How to invent Extraordinary Things occur in Organizations. Sixth Edition ed., Wiley, 2017.
  • Carson, and E. A. Phelps, “Regulating the Expectation of Reward,” Nature Neuroscience 11, no.8 (2008):880-881
  • “Performance Management: Accountability Can accommodate Positive Results.” U.S. Office of Personnel Management. Web.
  • Porath, Tony SchwartzChristine. “The Power of Meeting Your Employees’ Needs.” Harvard commerce Review, 6 Dec. 2017.
  • C. M. Shea and J.M. Howell, “Charismatic Leadership and chore Feedback: A Laboratory Study of Their Effects on Self-Efficacy and chore Performance,” Leadership Quarterly 10, no. 3 (1999)
  • Marshall, John, and Matthew Adamic. “The myth Is the Message: Shaping Corporate Culture.” Journal of commerce Strategy, vol. 31, no. 2, 2010, pp. 18–23.
  • “Creativity Selected as Most Crucial Factor for Future Success.” IBM 2010 Global CEO Study, 18 May 2010.
  • Henderson, Aaron M. Building efficacious Leadership from the Ground Up. Llumina Press, 2004.
  • February 13th, 2018 in commerce Practices, Marketing, Winter 2018

    By Juan Lesmes and Leora Lanz

    It wasn’t that long ago when digital marketing surfaced as essential exercise for the hospitality industry. As time moved forward, hotel marketing departments established roles to manage the digital positioning and visibility of the property. Thus, they witnessed hospitality brands which were ‘present’ on convivial media outlets, adopting paid search as a permanent component of their marketing coalesce and abiding by well-known website best practices. They advert to this era as side I of the Hospitality Digital Marketing Revolution.

    Phase II quickly blossomed, and hotels realized that the competition to penetrate the digital space was tenacious and arduous. Brands started focusing on and investing in the internet user-experience (UX), negotiating partnerships with online travel agencies (OTAs), understanding the landscape of search engine result pages (SERPs), separating high-value budgets exclusively for search engine marketing (SEM), and delving into the intricacies of search engine optimization (SEO) for their own websites. convivial media served as a competitive edge and quickly escalated as paramount for marketing, branding, reputation management, and organic visibility. Paid search, via Google AdWords platform, is not to exist confused with the organic approaches detailed here.

    As they delve into 2018, side III emerges clearly. OTAs dominate and in some instances preoccupy Google searches with first page results. Consequently, hotels are realizing that digital marketing efforts should exist shifted from a haphazard online presence to one that is strategic – one that capitalizes on each micro-moment of the guest travel planning journey (most of which, if not all, occurs on the web). As convivial media forces Instagram and Facebook solidify their roles as prominent search engines, paid ‘posts’ within users’ ‘feeds’ continue to convey the power of personalized sponsored content.

    With a myriad of stakeholders now involved in the simple act of searching for hotel rooms, is it a battle worth fighting? The retort is absolutely. But before addressing the how, it is crucial to identify and differentiate the digital marketing scope of branded and non-branded hotels. Branded hotels, especially those flagged with hospitality powerhouses, benefit from a more powerful domain authority coming from the parent chain, making it easier for them to rank higher on the SERPs. hold Marriott.com/hotel vs. hotelname.com for example. Domain authority is the overall power of the domain name considering traffic size, popularity, and number of links to the site (backlinks). It is too a top ranking factor for Google.

    Branded hotels too mind to accommodate significant budgets to spend on Pay-Per-Click (PPC) and paid search, ensuring top first page visibility for valuable destination and branded queries. In addition, branded hotels accommodate wider access to digital partnerships, including listings, local directories, event sponsorships, travel influencers, and online features – sum of which provide authoritative backlinks to the hotel’s site, further contributing to its domain authority.

    Because independent and small-scale hotels rarely benefit from domain authority, maintaining and monitoring digital marketing best practices to boost Google rankings should exist a requirement, not merely a recommendation. Digital marketing practices command their own dedicated efforts. Yet online marketing should exist well-equipped with its own strategy and utilize expertise in the nuances and intricacies of hotels, restaurants, leisure activities, and attractions – overall, hospitality.

    Photo1

    The question then becomes, how can hotels strive for visibility in this Wild West of a digital landscape, particularly if they are competing against each other, the OTAs, and a powerful sharing economy?

    1. Execute a Carefully Crafted Keyword Strategy

    Optimizing for search queries, too known as keywords, is perhaps the core of any digital marketing tactic aiming to build visibility – both organic and paid. Identifying those keywords with the highest search volume, such as ‘Miami hotels,’ is the intuitive process. Presence on Google’s first page for towering search-volume keywords requires a robust SEM budget, an ongoing and long-term SEO strategy, or both. This puts independent and small-scale properties, which often execute not accommodate the necessary budget and fundamental team,  at a notable disadvantage.

    However, niche keywords present a different scenario. These queries are typically ’long-tail’ import they accommodate more than four words. Though niche keywords execute not accommodate the highest search popularities, it is much easier to actually capture their search volume, which then results in higher click-through rates (CTR). Hotels can leverage niche keywords by identifying their unique amenities and value propositions, and turning them into valuable keywords. For example, ‘Miami hotels with a rooftop bar,’ ‘Miami hotels with free breakfast’ and ‘Miami hotels with nightclubs’ are terms to utilize as they leverage a more specific travel purpose that easily turns into conversions (booked business).  It is crucial to reflect as the customer would.

    Some independent hotels, because of the virtue of their uniqueness and often niche-market, can accommodate the upper hand in this situation. A property which positions itself as a go for health and well-being could therefore pursue niche terms such as ‘wellness resorts’ and ‘fitness getaways.’ The key is to identify the brand’s top performing unique selling propositions (USPs) and translate them into humanized search queries, sum while keeping the guests’ travel planning journeys in mind.

    Finding a balanced coalesce of both high-search volume terms and niche queries secures strategic keywords. Nevertheless, actually optimizing for them by ensuring they are naturally or comfortably present throughout the website’s titles, content, metadata and bidding efforts too assist secure a carefully crafted keyword strategy.

    2. Optimize for Local Search

    Our termed “Phase II” too region the spotlight on search engine commerce directories such as Google My commerce and Bing Places for Business. In side III, hotel listings on these directories is no longer a recommendation, it is a necessity. Optimizing for local search entails driving the visibility of a property’s commerce listing via a two-part process:

  • Ensure the listing’s content is precise and optimal. For a hotel’s listing to exist effective, it needs to exist correct. This means not only having a consistent name, address, and phone number (NAP) across the web, but too sharing additional commerce attributes such as commerce hours, property images, contact e-information, and commerce category. Because Google understands that local users are better served by businesses that outline sum the information they need, it ranks complete, accurate, and consistent listings higher than those that are partial. If your hotel has a divide restaurant, spa, or in-house shop, each should accommodate a divide online commerce listing.
  • Utilize keywords with universal search integrations – sure keywords mind to trigger significantly more universal search results, which includes a blended combination of Carousel, Local 3-Pack, Images, and Maps. (The former two are Google features found on search pages, displaying images and contact information to assist users with specific searches). Because they are primarily location-based, they present yet another opportunity to drive the hotel’s local commerce listing. Keywords such as ‘Miami hotels near American Airlines Arena’ or ‘Downtown Miami hotels,’ for example, accommodate powerful local search integrations since they allude to a local locality within a larger market. As a result, incorporating these styles of keywords into the hotel’s website and local listings is a passage to let Google know that the property is not only highly apposite to the query, but too a local commerce to exist recognized.
  • Photo2

    3. Attain and Maintain a Star Rating on Google

    One of the key components of local search results is the Star Rating associated with a commerce listing. In fact, star reviews on SERPs are an efficacious passage for hotels to multiply digital visibility by standing out from the competition. Star ratings assist multiply the site’s CTR and provide an influential benchmark for online reputation management (ORM). Once an exclusive advert for paid results, star ratings now too show on organic results through Google’s ‘Rich Snippets.’ These snippets are a shape of structured data which Google extracts from multiple websites and presents it as a ‘preview’ in search results, too known as Google’s information Graph.

    Therefore, obtaining and retaining star ratings involves safeguarding reviews on trusted and authoritative review sites. Google then aggregates this rating data and displays an medium star rating. Hotels (restaurants, attractions, etc.) should hearten satisfied guests to submit reviews to their booking channel (i.e. Expedia) because they are by default ‘trusted’ sites. However, they should too hearten reviews for their own Google My commerce listing in an attempt to multiply the hotel’s chances of being featured on local search results.

    It is essential to clarify that there is a technical component to obtaining a Google star rating. Codes region onto the website to assist search engines recur more informative results to users. Hotels requisite to ensure that their web developers too involve star rating information within the markup code.

    4. Enhance Content on Local Listings

    A hotel’s content for its local listings should exist strategically optimized. Whether it is in Foursquare, CitySearch, or any other listing, valuable keywords should exist incorporated throughout the copy – including local search ‘near’ queries such as ‘hotel in Miami near Brickell’. If the brand image is waggish and tongue-in-cheek, the content on local listings should too reflect that. Some listings even allow for a featured message. Rather than a generic ‘Welcome!’ hotels can utilize this space to promote current offers or highlight special amenities (complimentary champagne, sunset yoga, free breakfast).

    Other content elements such as images should exist of the highest quality, showcasing provocative yet realistic visuals of the property’s exterior, interior, and overall ambiance. Links to sum the property’s convivial media channels should exist present in the listings, which allows the user to access other hotel assets including brand personality and online reputation.

    5. Optimize for Voice Search

    With increasing utilization of smart personal assistants such as Alexa and Google Home, voice search is a prime topic of conversion within the digital marketing realm. In order to exist visible in results derived from these devices, hotels requisite to ensure they are optimizing their site and keyword strategy for voice search too. Since users are more likely to utilize longer natural queries via voice, employing niche, long-tail keywords is an efficacious fashion to optimize for this trend.

    Long-tail keywords are fruitless without the apposite content on a hotel or restaurant’s website. Hotels requisite to accommodate specific landing pages that parallel the niche keywords. If a hotel seeks ‘Hotels in Miami with rooftop pools’—a keyword likely used by the voice search user—it must show in the apposite landing page.

    Incorporating questions and answers within the site, perhaps via the ever-popular Frequently Asked Questions (FAQ) page, is another efficacious passage to accommodate voice search. With this strategy, hotels can provide answers not only about the property itself, but too about their destination and local attractions as a result of quick detection by voice-activated devices.

    It is essential to note that recently, numerous hotel properties and companies accommodate been contacted by law firms representing travel consumers with disabilities. These law firms report that websites are not abiding by accessibility guidelines in accordance with the Americans with Disabilities Act (ADA). If a guest is unable to utilize a hotel website to find information or invent a reservation, hotels can in fact exist fined. Today hotel websites must enable these assistive technologies to allow travel consumers with disabilities to score the information they requisite and complete any necessary transactions.

    6. Adopt a ‘Mobile First’ Mantra

    Much has been said about Google’s ‘mobile first’ index. This means Google will start to rank its search results based on the mobile version of the content, even in desktop search listings. If one thing is certain, websites requisite to exist optimized to exist mobile-friendly (responsive). Hotels requisite to ensure they launch a fully-responsive website that serves users of any device the selfsame consistent content. The more ‘mobile-friendly’ a site’s user experience is, including factors such as typography, navigation map, and website design, the higher the site will rank on Google’s search.

    7. Leverage Google Hotel Ads

    Google Hotel expense Ads (HPA) showcases a hotel’s real-time (dynamic) rates on Google search across sum devices. Users will remark the hotel’s ad when they are actively looking to bespeak a margin in the area. However, the hotel only pays when the ad generates a click or a booking.

    Google has recently introduced a unique call-to-action (CTA) button for booking hotels in its search results. A keyword can trigger a ‘BOOK A ROOM’ button to appear. Clicking this will activate a sub-menu to browse sum enlisted HPAs for the hotel, which includes booking direct and via OTAs.

    googleleora

    This feature, which too appears in Mobile and Maps, demonstrates Google’s determination to grow its expense Ads service. The increased exposure provides more incentive for hotels to capitalize on this shape of pay-per-click in order to promote direct bookings.

    8. multiply Backlinks, Actively

    A backlink is as simple as a hyperlink to a website from another website. Yet, it carries a lot of weight when it comes to a hotel’s organic digital visibility. Each backlink tells the search engine that a hotel website has a ‘vote’ from another entity, which in recur builds credibility and domain authority. Branded hotels accommodate the upper hand here since the company usually has a corporate parent site that a plethora of other websites will link to (such as Marriott.com or IHG.com).

    There are technicalities to backlinks, including the property of the backlink determined by elements such as anchor text and link context. These technical factors play a role in the algorithm the search engine uses to determine the value of a backlink. In theory, the more property backlinks a hotel website has, the more chances to rank higher on search engines.

    Actively pursuing apposite backlinks should exist imperative for hotels to obtain first page ‘real-estate’. Obtaining links from local directories, current hotel vendors, editorial publications, and .EDU and .GOV sites should exist the gateway for enhancing the site’s link equity. However, to continuously grow the number of backlinks, hotels requisite to exist generating quality, shareable content that interlinks with convivial media initiatives.

    9. bethink Optimal convivial Media = (Quality + Authenticity) x Engagement

    Much has been contemplated about what comprises a successful convivial media strategy. Although there is no ultimate recipe for the faultless convivial media post, three factors that boost performance are quality, authenticity, and engagement. Optimal convivial Media = (Quality + Authenticity) x Engagement. Each piece of content maximizes visibility, both organic and paid. When posts are undoubted and of towering quality, users are more likely to relate and validate them. When posts are authentic, of towering quality, and facilitate some character of user engagement, the content becomes shareable.

    When content generates more likes, followers, and overall visibility it establishes an influential ranking factor. Therefore, search engines mind to rank higher those brands that accommodate a robust organic convivial media basis (not paid or ‘spammy’ followers). This is why it is essential for hotels to intertwine their convivial media strategy with their SEO efforts by creating quality, authentic, and engaging content that increases overall digital exposure.

    10. deem the Technicalities of SEO

    Technical SEO is a science of its own and deserves its own team of specialists, budget, and time. Technical SEO means optimizing a website so search engines can successfully crawl and index its content. It lays a powerful foundation to give a hotel’s website the best haphazard it can to rank higher for apposite keywords. Technical factors involve site speed, removing unnecessary tags, cleansing duplicate metadata, adding tags to images, and implementing proper redirects to maximize the site’s link equity. Whether there is a one-man team or a staff of professionals continually optimizing the website, there are tools to assist provide the technical support.

    Hotels, restaurants, museums, attractions, and leisure activities sum requisite to assertively compete online to grab the attention of potential guests. Those who mind to the organic visibility accommodate a notable competitive. This and integrated paid search campaigns that mutually back organic search strategies will assist secure first page visibility. Overall, while the requisite to upkeep search engines’ potent algorithms and ranking methodologies will always remain, an understanding of the process will assist smaller or independent hospitality businesses reduce through the clutter in today’s complicated digital landscape.

    PDF Version Available Here

    JuanHeadshotJuan Lesmes is a digital marketing strategist specializing in SEO at HEBS Digital the leading hospitality technology, full-service digital marketing and website design firm. A 2017 graduate of Boston University’s School of Hospitality Administration (SHA), Juan’s previous experience includes labor at hospitality marketing advisory LHL Communications, The Ritz London, and Lets score Weddy in London. Since his time at SHA, Juan has been recognized as a thought leader in hospitality marketing, with active contributions to the Boston Hospitality Review, HotelOnline and HospitalityNet. Lanz  unique 2016Leora Halpern Lanz, ISHC, is principal of LHL Communications, a hospitality-focused marketing communications, branding, and media relations advisory. She is too plenary time faculty at Boston University’s School of Hospitality Administration (SHA), teaching advanced strategic marketing and digital marketing for hospitality at the undergraduate and graduate levels. She was named among the Top 25 Minds in Hotel Marketing for 2016 by the Hospitality Sales & Marketing Association International and was named 2017 Professor of the Year by the student government of SHA.

    June 7th, 2017 in commerce Practices, Hotels, Marketing, Spring 2017, Technology, Uncategorized

    The TripAdvisor Inc. application is demonstrated on an Apple Inc. iPhone for a photograph in Washington, D.C., U.S., on Friday, May 5, 2017. TripAdvisor is scheduled to released earnings figures on May 9. Photographer: Andrew Harrer/Bloomberg via Getty Images

    Photo Source: Andrew Harrer/Bloomberg via Getty Images

    By Nick Cohen

    The year is 2001, and the world is still recovering from the tragedy of September 11th.  The travel industry is in a downward spiral as fears of flying and terrorism ripple across the United States and beyond, and hotels accommodate lost significant occupancy due to a decrease in demand.

    Simultaneously, a fledgling technology is emerging which will eventually hold edge of the internet explosion, as well as hotel management’s desperation to fill rooms. It will reshape their industry forever, and this platform now commonly referred to as Online Travel Agencies, or OTAs, will allow hotels to easily sell their rooms on the internet through unique consumer facing websites such as Expedia, Travelocity and Orbitz.

    Fast forward to 2017. The OTA’s accommodate gained the majority of market participate for online reservations, and digital platforms relish Booking.com and Ctrip.com accommodate loyal member volumes that far surpass brand websites.  In many cases, the OTA companies are valued well beyond traditional hotel brands (as of May 2017, Priceline Group has a market capitalization of nearly USD 92 Billion).  They accommodate too helped to create a unique concept as they grew in popularity and scale over the last number of years, and it was the precedent of transparency. Pricing that was once hidden to the everyday user, could now exist exposed to the all world, publicly, with a few clicks online. As OTA channels grew enormously with time, so did the access to true time rates and availability for virtually every hotel around the world.

    With this concept in mind, from the OTA’s they accommodate seen the rapid expansion of ‘meta search’ channels. These are one-stop expense comparison platforms where a customer can view a expense for a sole hotel margin across multiple websites (without having to browse those websites one-by-one). Sites within this category involve Kayak, Trivago, TripAdvisor, Qunar and Google, and they are sum working to simplify the travel research process for consumers.

    OTA

    Featured above are some of the most accepted meta search channels

    With the OTA channels continuing to grow through massive marketing efforts and superior technology, and with meta search sites following their lead, a relatively unique challenge has emerged for hoteliers. It represents a very complex dynamic between one of the most traditional ways to sell a hotel room, and one of the most modern ways to sell a hotel room. This once again sum comes back to the concept of expense transparency. Wholesale has been a core commerce driver in hotels for many years, helping properties build basis commerce through private negotiated rates and partnerships. Historically, these wholesalers would sell their inventory offline to their own private networks of contacts. Even though the pricing would typically exist lower than publicly available RACK rates, it was a dependable foundation of occupancy for hotels to build off of.

    As technology has become more sophisticated with Application Programming Interfaces (APIs) readily available, they accommodate seen the rapid growth of wholesale rates being sold publicly, online, through some of the powerful meta search channels mentioned above.  This means that wholesalers are selling discounted rates, which directly undercut brand websites and OTAs, to anyone who has access to the internet.  Beyond just meta search, some OTA websites are now even positioning themselves as ‘online marketplaces,’ where they too will sell wholesale inventory directly instead of the inventory provided by the hotels. To remain competitive and multiply market share, online channels want to sell the lowest expense possible, even if it means reducing their own margins by selling a cheaper margin to the customer.

    OTA Meta search

    Meta Search Websites such as HotelsCombined (shown above) showcase wholesale aggregator sites relish Amoma.com and HotelQuickly.com which accommodate prices that undercut the brand’s direct website and other OTA channels

    You would reflect that hoteliers would want to fix this problem immediately. Online wholesale commerce undercuts channels which are much more profitable such as their direct brand website.  This issue however is multi-layered and is not effortless to remedy for the following key reasons:

    Hotels still want wholesale business!

    Hotels still maintain tenacious relationships with a number of wholesale partners, grand and small, and they reckon on these partnerships to generate basis business. Turning off these channels would potentially involve the loss of significant revenues, at least in the short term.  Although wholesale channels can undercut other websites when sold online, they too still generate incremental commerce when sold offline through the traditional method

    Finding the source of all commerce online can exist very difficult

    When wholesale rates appears online, it’s generally very difficult to know which wholesaler specifically is providing that inventory. The wholesale partners themselves don’t generally sell rooms through their own websites, but sell their rates through wholesale aggregation channels such as Amoma.com.  It’s channels relish Amoma who then sell the rates online through their own interface, and promote their rates through larger meta search intermediaries such as Trivago and TripAdvisor.  Generally the only passage to find the upright source is to invent a test booking online, and then track how that reservation comes into the hotel’s central reservation system (each reservation is typically flagged with an inventory source).  Many hotels are reluctant to execute this since a booking requires utilize of a credit card and sometimes even pre-payment, and then cancellation of that test booking is not always effortless to do. The test booking process is both cumbersome to manage at scale, and is too financially risky for a hotel if those booking cannot exist cancelled.

    Room bookings can  exist made through Amoma.com and other wholesale aggregator websites by anyone online. However, the back  conclude wholesale source for each booking from Amoma and other channels  relish it can  exist very challenging for a hotel to identify

    Room bookings can exist made through Amoma.com and other wholesale aggregator websites by anyone online. However, the back conclude wholesale source for each booking from Amoma and other channels relish it can exist very challenging for a hotel to identify.

    Employee incentives are at stake

    Within hotel sales departments, team members are still incentivized to drive wholesale volume, regardless of where that volume is being sold (offline or online). Wholesale partners generally don’t provide specifics on how they are selling their inventory, and as long as margin allotments are sold, the answerable sales team members are satisfied. This is creating an unavoidable rift between the direction of some sales leaders with the revenue management and digital strategy teams.

    So what’s next?

    Hotel companies are dealing with this situation in a variety of ways. Some are cutting off wholesale altogether since they simply can’t control where their inventory is ending up. Others are maintaining the partnerships, but are working to trudge away from static margin allotments and over to dynamic pricing and availability where the hotels accommodate more control over the inventory they ship to the wholesalers. This is a major problem facing the industry that very much remains unsolved.

    If they hold ourselves back to the 2001, expense transparency was a challenge for hoteliers. Properties simply didn’t accommodate direct access to a big enough segment of customers, therefore traditional partnerships relish wholesale was an absolute necessity. With the growth of the OTAs though, and the emergence of unique technologies such as meta search, that access is no longer an issue. The world is accessible for each hotel with a few quick key strokes on a computer. It is now only a matter of time until hoteliers invent one of the following decisions:

  • Utilize wholesalers purely as another online distribution channel, selling rates that are parity with every other website (brand.com and OTAs)
  • Remove wholesale out of the channel coalesce altogether, realizing that margin inventory can exist be sold among the legion of websites and digital platforms already available
  • PDF Version Available Here

    Nick Cohen HeadshotNick Cohen is based in Hong Kong and leads digital strategy for Hyatt Hotels in Asia Pacific.  He oversees online marketing efforts for sum Hyatt brands and properties across the region, and manages a variety of e-Commerce and digital platform projects to assist multiply online revenues for the company. Prior to joining Hyatt, Nick held senior e-Commerce and digital marketing roles at Langham Hospitality Group, Mandarin Oriental Hotel Group and Sabre Hospitality Solutions.  Earlier in his career, working on-property for various hotels he developed extensive information in operations, along with Sales & Marketing and Revenue Management expertise. Nick too holds a graduate diploma in Hotel and Tourism commerce Management from Boston University.   Sources:

    Cloud Is More Secure | killexams.com true questions and Pass4sure dumps

    Cloud Infrastructure as a Service (IaaS) provides compelling cost and strategic benefits. These involve scalability with reduced capital expenditure, more efficient utilize of IT resources, and the aptitude for an organization to focus on their enterprise's core competency. Despite fears to the contrary, many well-established security technologies and procedures can exist applied cloud computing and provide enterprise-class security. In many cases the cloud vendor may even provide better security in a virtualized environment than the individual enterprise can achieve in a purely physical architecture.[1]

    The most efficacious security is a comprehensive, layered defense based on a framework. A cloud platform can leverage specialized tools to protect the integrity of virtual machines and Internet communications. Virtualization creates logical abstraction layers that allow for multi-tier security policies in order to provide upright defense in depth. Enterprises with limited IT resources may not exist able to afford the selfsame security measures as a cloud provider and remain competitive. Deploying cloud-based IaaS represents an opportunity for the enterprise to build in security from the ground up.

    Increasing Demands on IT Require Security FrameworksIT must become more responsive to commerce drivers originating beyond IT, such as a greater role in meeting compliance requirements. Compliance legislation for different commerce types, even departments within the enterprise, will dictate some security requirements: FISMA/NIST guidelines for US Federal agencies, Sarbanes-Oxley reporting for publicly held companies, PCI DSS or HIPAA for those dealing with Personally Identifiable Information (PII) - the list goes on.

    The better passage to approach security is working within a comprehensive framework. Though virtualization does present some unique threat surfaces, defensive layers using unique tools must exist organized within these frameworks.

    Platform HardeningHypervisors provide a consolidated, logical view of multiple virtual machines (VMs). VMs running on the selfsame physical machines must exist guaranteed to remain isolated from one another, through omission, mis-configuration, or intentional breach.

    The heart for Internet Security and the Defense Information Systems Agency (DISA), as well as hypervisor vendors, publish "hardening" guidelines. Hardening examples involve how to correctly protect reminiscence segmentation using container rings, and familiar steps relish best-practice configurations, deploying the latest patches, and proper cleaning up of de-provisioned virtual machines and resources.

    A virtual network switch can provide further layers of platform defense to the selfsame even as a physical switch. An "intelligent" switch can "lock down" Machine Access Codes (MAC), and perform dynamic inspections of the Address Resolution Protocols (ARP). Used with other authentication protocols, they mitigate man-in-the-middle attacks and ARP cache poisoning.

    Hardening helps guarantee virtual machine isolation and challenges penetration from without. Properly hardened hypervisor layers obviate IaaS conclude users from inadvertently mapping IP addresses across virtual machines, IP spoofing, or intentionally leveraging Network Address Table (NAT) mapping to hijack communications. Hardening makes it difficult to install "eavesdropping programs" to monitor virtual machine reminiscence space.

    The hypervisor can too rapidly propagate unique configurations, patches, or layered security policies across the infrastructure. Employed correctly, this even of abstraction can strengthen IaaS security.

    Identity Management and Administrative Access ControlIdentity management takes on increased urgency in the virtual environment; administrative access control is crucial. Best practices involve multi-factor authentication and role-based access management. Role-based access instantiates existing written policies, and provides an additional layer of user discrimination - and detection - in system access.

    Segregation of duties for the server, network, and security administration is required. Strict employee screening and qualification is key. It's faultfinding to manage access of privileged third parties; best practices accommodate sum third-party activity monitored by your staff.

    Ideally you should deploy Privileged Identity Management (PIM) software. A PIM application can enforce administrative access rules throughout a virtual environment - greatly mitigating the risk of undocumented or malicious access.

    PIM software can too back Information Technology Infrastructure Library (ITIL) best practices, such as audit trails required for compliance regulations SOX, FISMA, PCI-DSS and HIPAA. The more advanced packages can perform continuous discovery across unique hardware and software applications, and can rapidly and comprehensively propagate changed passwords after third-party access or staff turnover.[2]

    Network Segmentation and Traffic ProtectionIt is faultfinding to segregate and protect the data flowing through virtual or private virtual LANs (VLANs or PVLANs). The hardening process secures machine access code (MAC) assignments and Network Address Translation (NAT) mapping. Further inter-VLAN protection comes from firewalls between VLANs (over and above port-forwarding within a VLAN).

    Application firewalls should exist placed monitoring web application traffic. Application firewall functions such as cookie consistency, buffer overflow protection, and HTML checks permit only defined application conduct (at least in regards to web traffic). Besides faultfinding application protection, they provide fundamental IaaS defense against distributed denial of service (DDoS) attacks.

    Security can exist configured into a virtual IaaS by using application firewalls to "lock down" data entry by web users. An illustration would exist monitoring credit card number entries on a shopping cart payment page. The application firewall can exist "trained" to recognize a set number of numeric characters only - any other data is prevented from reaching the web server. Locking down data entry prevents "cross-sight scripts" from penetrating the IaaS.

    Proactive System ManagementThe biggest risks to enterprise security approach not from virtualized architecture but are operational, usually involve mis-configuration (or configuration not aligned with the security framework), and impoverished change management resulting in out of date patches.

    Systematically mitigating such vulnerabilities is another benefit of working within a time-tested security framework. Where vulnerability due to mistake or omission can proliferate rapidly across VMs, tenacious change management is crucial. Leverage guidelines provided by a service management framework such as ITIL.

    The compulsory entry of change data should exist fraction of the user interface wherever possible. Logging change data - not just patches, but to firewalls, provisioning of machines, IP addresses, NAT mapping, administrative access, etc., is imperative for the tracking of incidents, errors and process improvement. More and more compliance requirements require the aptitude to audit system changes.

    The strongest defense is proactive system management. A tenacious security pose has never been a static endeavor. You must continue to invest in ongoing system and security training. A proactive security pose includes a documented, standards-based (like ITIL) incident escalation and notification procedure. Regular automated vulnerability scans and third-party penetration testing, file-integrity software, and anti-virus software - sum provide preemptive layers of security - and not just in virtual environments.

    SummaryThe cost benefits of virtual IaaS continue to drive enterprises to cloud deployments. Mid-size and big enterprises can devour the commerce advantages of elasticity and leverage the security investment and expertise of the vendor.

    The most efficacious security is still a layered defense based on a framework. Security technology and procedures are augmenting security frameworks to accommodate virtual architectures. There is the opportunity for the enterprise to build in security from the ground up. Properly configured and managed, security in the cloud from an experienced vendor will exist better than what could exist achieved in-house.

    References

  • See "Security Compliance in a Virtual World: Best Practices to Build a Solid Foundation", RSA Security Brief, 2009.
  • See "Privileged Identity Management in the Cloud", Steve Staso, pgs 19-20, April, 2010.
  • Further Resources



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