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Bruce Whitfield:
We have got the World Cup 2006 next month. Well, what about a cashless World Cup in 2010 in South Africa. It sounds ambitious, but there are some fairly serious efforts in the hotel industry, at least, to cut out as much cash handling as possible to minimise fraud.
A new concept which will be launched at the World Tours Indaba this month, using cellphone technology to facilitate purchases by customers at hotels. Brett Dungan is the chairman at Fedhasa, which is the organisation which represents the interests of hotels in South Africa. It is all kind of a bit sci-fi, Brett, isn’t it?
Brett Dungan:
No, it is a reality now Bruce and we are very excited about it. The technology is here, and it is just convincing people to
adapt to it and look forward to making it a success in 2010.
Bruce Whitfield:
Before we talk about the technology itself, just take me through the process in hotels at the moment and where the holes are, where the gaps are where money actually goes missing in this chain of events, where somebody orders a coke from room service for example.
Brett Dungan:
I think the big issue is obviously around cash. The moment you have got cashiers and cash ups, and that process, the opportunities are all there. So, what we are looking at is just identifying to everyone that there is no cash available, so there are no targets, and look at promoting this whole cashless society.
Bruce Whitfield:
How exactly then does the cellphone technology work in the hotel context? Do I then dial down to room service and say could I have a coke please, and then they say please input details into your cellphone? How does that
work?
Brett Dungan:
The phone will actually belong to the hotel. The phone will replace the point of sale device that, you presently give your card to the waiter and they walk away from the table, that is where most of the fraud happens at the moment, in that process.
So the waiter will have a phone, you will read him your card details, the card will never leave your hand, and the process will be the same. There will be no inconvenience for the guest, and we just see that that is the success of the whole system. It must not be any different to the current situation. Everyone must be in a better position.
Bruce Whitfield:
How does it actually work though? The fact is that if I hand over my credit card, I am vulnerable, but if I give my credit card details to anybody, I am also potentially vulnerable as well, they can still call a call centre and still order stuff over the telephone if they have my credit card
number.
Brett Dungan:
You need people who, on a regular basis, need to remember 35 digits in order, sequentially all the time.
Bruce Whitfield:
But the hand held device, the cellphone device does not actually store the number itself?
Brett Dungan:
No, by the banking rules, we are not able to do that. So, the records of the transaction would have the first four digits of your credit card, and the last four and the rest would be blanked out. So that would really become very difficult. And in the event that someone actually managed to do that, you would have an absolute tracking order trail to work out who was using that card again.
Bruce Whitfield:
So hotels of the 21st century seem to be getting less personal, if you like. Because if you have got this system going, theoretically, I don’t need to check out the next morning, I just pack my bags and leave, and everything
has already been charged using this device.
Brett Dungan:
Yes, in fact, the whole methodology behind it is to get the hospitality industry to be hospitable. So, you are right, there won’t be any checkouts, but what will happen now, is the people in the hotel will have more time with the guests.
Bruce Whitfield:
Won’t hotels just cut down on people and save costs? It is a wonderful tool.
Brett Dungan:
No, we don’t see that happening. We really are trying to make an impression and the whole idea is not about cutting costs, cutting staff. It is just better productivity, better sales, because we have to be professional at royal standard.
Bruce Whitfield:
About the World Tours Indaba, is it this weekend or next weekend?
Brett Dungan:
Yes, it starts on Friday and runs through to Tuesday and South African Tourism has done a phenomenal job, it is
now the third largest show in the world, tourism wise. So, we are very excited, and it seems to be the largest ever.
Bruce Whitfield:
From the hotels perspectives, what are the big issues you are concerned about in terms of the tourism market in this country?
Brett Dungan:
I think the big thing obviously is dealing with the systems and the whole empowerment situation. Our industry faces the tourism charter. We have commitments to the minister for 2009 and transformation of an industry is not an easy task.
Bruce Whitfield:
And is the indaba the place where you are able to tackle these sorts of issues? Meet up with your colleagues in the sector, and say, right, what is bothering you at the moment, and it is really a good strong talk shop to take things forward.
Brett Dungan:
Yes, I think it does not matter the size of the business, or where it is situated. Most of the
challenges are the same. So, what we do is we talk through them, and obviously look at solutions, and if we come up with something that everyone’s backing, that obviously makes it easier to implement as a standard for the industry.
Bruce Whitfield:
Brett Dungan thanks for talking to us this evening. The big tourism indaba in Durban, starting on Friday.