Erdigroup

Erdigroup checks into the cloud, and improves guest satisfaction as a result.

Established in the early 1980s, Erdigroup accommodates 1,215 guests across eight hotels, within four cities throughout Australia. Erdigroup services a range of clients across all their hotels, including business travellers and tourists.

In order to derive value for their guests, as well as reduce costs, Erdigroup partnered with Data Solutions Group (DSG) to migrate to Amazon Web Services (AWS) and provide ongoing support for this public cloud infrastructure solution. Building upon this relationship, Erdigroup selected DSG to also converge their guest and corporate networks, creating a complete, singular, public cloud strategy.

Ian Craig, Director of Finance for Erdigroup says, “we believed that moving to public cloud infrastructure would eliminate the need for costly capital expenditure on
computer equipment.”

Challenges

  • Upgrade data centre technology without large CAPEX outlay
  • Achieve cost-effective scalability
  • Reduce monthly costs for network and support

Erdigroup were facing an upgrade of their Oracle Micros Property Management System (PMS). “This upgrade provided us with the opportunity to improve our solution, but obsolete data centre technology meant that we were facing the significant cost of a complete hardware refresh.”

Erdigroup were also operating corporate and guest Internet networks separately. “This caused financial inefficiency as we were paying suppliers twice, or two different suppliers, for the same service.”

Financial inefficiency wasn’t the only concern when it came to guest internet usage. Erdigroup were experiencing reduced revenue from guest Internet usage, as more guests chose to connect through their own devices. “We had found that many of our competitors were providing guest Internet for free. This resulted in a loss of revenue from the tourism market, preferring to stay with hotels that supplied free guest Internet.”

The knock on effect was that Erdigroup were experiencing lowering guest satisfaction rates and an increase in guest complaints, due to the expectation of free guest Wi-Fi. “Complaints impose extra costs upon Erdigroup, as our reception staff are required to take time to deal with the guest. It also meant Erdigroup were losing potential future revenue from repeat stays and referrals. We needed to find a more flexible solution that could also lower costs and increase guest satisfaction.”


  • 64% of Hotels offer free Wi-Fi
  • 57% of travellers report that free Wi-Fi is a critical factor in selecting a hotel

Source: The 2013 HotelChatter Hotel WiFi Report. (2013, April 30).


The process

As Erdigroup wanted to upgrade their Oracle Micros PMS, they want to find a modern, flexible, lower cost IT infrastructure solution. As Craig explains, it was important to Erdigroup that they reduce capital expenditure and monthly costs for network and support, and increase guest satisfaction rates by supplying free guest Wi-Fi. “Ultimately we wanted the ability to innovate and be ready for changes within both the IT and hospitality industries.”

The solution was for DSG to migrate all applications from the legacy Data Centre technology at Erdigroup’s Co-lo to Amazon Web Services (AWS). DSG also migrated Erdigroup’s email to Microsoft Office 365 and replaced multiple Wide Area Networks (WAN) per site to a single WAN with failover. To help solve any guest internet issues, DSG provided 12×5 support for both the corporate and guest networks.

The results

Deploying Erdigroup’s PMS to the cloud eliminated the need for costly capital
expenditure on computer equipment. “We experienced a 55.5% reduction on monthly costs for Internet and guest support.”

Guests are also happy that Erdigroup is now able to offer free Wi-Fi. “As well as increasing sales this has eliminated complaints, which has improved staff productivity and boosted guest satisfaction.”

Final thoughts?

“The solution is future proof with a lower operating cost which is great. Going to AWS also means we can change our server infrastructure without needing to buy more equipment, which opens the door to things like automated check-in and better wireless networks in the future, all of which will be appreciated by our guests.”

  • Services Delivered

  • Cloud Migration
  • Cloud Strategy