Hospitality & Travel:<BR>I.T. Lets Companies Say 'Be Our Guest'Hospitality & Travel:<BR>I.T. Lets Companies Say 'Be Our Guest'

Carlson also sees the value of reengineering business processes. That's why it has established its Great Works program, under which managers regularly evaluate their processes using the Six Sigma methodology of business-process improvement, which relies on an understanding of customer requirements and the elimination of defects from existing processes, products, services, and plants.

For example, Carlson is deploying human-resources software from PeopleSoft Inc. that it hopes will help improve the way it manages people. "We've looked from top to bottom at all the processes in managing human capital--everything from the employee, back--and evaluated what our current processes are and how we can change those processes to exploit the technology," says Joe Dehler, senior director of Six Sigma Quality at Carlson. The company deploys a microcosm of employees, from managers to HR professionals to staffers, to evaluate the changes that should be made.

Improving the quality of the work experience is also a priority for Cendant. Employees can reap the benefits of the company's communal atmosphere and further their technical skills and business knowledge by working on diverse projects. "There might be a talented individual whose skills could be used on a project that another one of our companies is undertaking," Kinder says. "We can leverage those skills." The strategy not only helps foster collaboration and save money, it also encourages a more-satisfying work environment. For instance, Cendant is deploying collaboration software within some of its companies to let technology professionals discuss technical issues with one another and collaborate on common trouble spots.

Cutting costs has also been a major priority for the hotel industry. Wyndham is deploying a business-hosted accounting system that will also keep track of the free long-distance calls it's offering frequent travelers. By hosting applications for its hotels, Wyndham doesn't have to keep an IT staff in each one, Hedley says. Last month, it rolled out a dynamic billing system that's integrated with the company's PBX phone system and its loyalty-program software. "The system can recognize if you're a loyalty member and if you're supposed to get the free long-distance calls and then automatically deducts those charges from the bill," Hedley says.

The industry hopes a boost in business and leisure travel is on the way. One indicator suggests an improvement: Restaurants' receipts in June were up 5.6% year over year. They hope the menus left customers hungry for more.

Photo of Larry Kinder by Seth Kushner