Some systems use manual instead of technical methods. For example, for a hotel using manual methods, employees can track everything from the initial reservation to checkout using paper logs. Although hard to believe, that’s how it was done about 20 years ago. If the process is manual, there are two primary asset values:

• Written records—The guest log is a handwritten log that records when guests check in and check out. Managers use this log to bill the customer.
• Knowledge of the process—Employees would know how to create the bill from the available records. Once the payment has been received, there would be a separate process to deposit the money. If the hotel is a small mom-and-pop business, possibly only the owners and one or two employees know the entire process.

In this example, the value is the written records and the personnel with the knowledge of the process. Although visiting a hotel today that uses only manual methods is unlikely, working at a company that uses manual internal company processes is possible.

A hotel may be able to automate many of its processes. Because it is part of a service industry, the hotel will still include some human interaction. The following example shows how a hotel could automate the majority of its processes.

Customers could register online, and many hotels prefer that they do. Some hotels give discounts for users who do register online. Customers would be able to see which days are available and what the costs are for each day. They can pick their days and make deposits or payments. Online registration reduces the cost of labor for the hotel.

The reservation would then be in the system when the customers arrive. They would check in with a friendly receptionist, who would check the details via the automated system. The receptionist would confirm the details, and the customers would soon be on their way to the room, perhaps with the bell staff towing their luggage.

Some hotels offer convenience bars, which are often automated, that include snacks and refreshments. When the customer picks anything up, the convenience bar senses the change in weight, and the front desk is alerted upon checkout that the customer may owe something. The charge for this convenience is often very high. For example, a candy bar purchased for $.75 elsewhere may cost $5.00.

Many hotels often include a TV channel showing the customer’s bill. This bill is updated automatically when a customer charges a bill at a restaurant or retrieves a cold bottle of water from the convenience bar. When the customer is ready to check out, he or she accesses the TV channel to pay the bill. Soon the customer is heading to the airport and home sweet home.

When evaluating this type of automated method, several other things need to be considered, such as the following:

• Value to the customers—These automated methods are often considered valuable to the customers. If the registration process is clear and streamlined, customers are more likely to use it. If the checkout process is error free, the chaos is taken out of checking out. The benefits may be difficult to quantify, but these types of services may result in more return visits and word-of-mouth advertising.
• Value to the company—Any process that can be automated requires less labor to use, and less labor results in lower costs and higher profit. The reduced labor needs to be balanced with the cost to implement and maintain the system. Ten lower-paid service people may be replaced with one higher-paid information technology (IT) professional, still saving plenty on salary costs.
• Ensuring process stays up—Ensuring the process is available when the customer wants to access it is important, which includes the reservation system available on the Internet and the automated customer checkout system.
• Protecting data—Instead of just protecting a guest book to check people in and out, large databases will need to be maintained. These databases include personally identifiable information (PII), such as customer names, credit card data, addresses, and phone numbers. If this data is compromised, the company may be liable for customer losses due to identity theft.

The important point to remember is that assets are more than just things. They can also be the processes that provide the services.