Monday, April 23, 2012

LodgeNet Reports Accelerating Adoption of Its New Four Screen Services Strategy During the First Quarter

LodgeNet Interactive Corporation (NASDAQ: LNET), the leading provider of interactive media and connectivity services to hospitality and healthcare businesses and the consumers they serve, today reported continued and accelerating adoption of its new 'four screen' services strategy and its interactive platforms during the first quarter of 2012. 

Interactive TV Platform Increases Momentum
Rooms contracted for Envision, LodgeNet's latest generation, high-definition iTV platform, numbered 71,000 at March 31, 2012 – a 75% increase over year-end 2011. This includes the 7,100 rooms at The Venetian – the largest casino/resort complex in Las Vegas and the company's largest Envision installation – as well as more than 13,000 rooms at over 30 properties in the Omni Hotels & Resorts portfolio. Other Envision installations announced since the beginning of this year include the flagship Sheraton Stamford (CT) hotel, The Ritz-Carlton Los Angeles and JW Marriott Los Angeles L.A. LIVE hotels in downtown Los Angeles, and the nearly 2,000 room Hilton New York. The cloud-connected Envision platform connects guests to essential hotel services and information about local attractions as well as delivering the best in-room entertainment options. Hotels focused on delivering consistent brand messages and engaging their guests can customize Envision to support the identity and services unique to their brands and individual properties.

Advanced App Adoption Exceeds Expectations
Further enhancing the value of Envision are LodgeNet's Advanced Apps, which include eCompendium (information about hotel services and facilities), eDining (on-site food and beverage ordering through the TV), and eGuest Requests (towel replacement, maintenance requests, etc.). "Hotel subscriptions to the Advanced Apps are exceeding our initial expectations," said Scott C. Petersen, LodgeNet Chairman and CEO.  "Of the Envision sites installed at quarter's end, more than 40% of the rooms are subscribing to an Advanced App, and those Apps are generating approximately $4.00 of revenue per room per month for us. We are particularly pleased with the high rate of Advanced App adoption because this is a 'software as a service' offering that generates a steady stream of recurring revenues."

Interactive Mobile Platform Extends Hotel Connection Through Personal Technologies
In January LodgeNet launched the LodgeNet Mobile App, expanding the company's relationship with the core traveler beyond the guest room television. In the first three months of this year, the company's mobile enabled base has expanded to serve over 570,000 guest rooms across more than 2,400 North American hotels.

Travelers who download the app to their iPhone®, Android™  smartphone or iPad® can customize their experience in everything from the in-room movies they watch, to the restaurants they dine in, to the hotel services and local entertainment options they choose. In addition to providing full control over the in-room iTV experience, the app incorporates additional features that meet travelers' diverse needs throughout the course of their trip (including the just-launched mCheckout feature). In just three months, the LodgeNet Mobile App has become a traveler favorite by providing them with a fun, fast and easy-to-use way to connect to the things they value most when they're away from home. For hoteliers, the app provides a powerful and flexible vehicle to connect with their guests through a device that is "always on" and central to their travel experience.

"These first-quarter iTV and mobile achievements validate our 'four-screen' strategy, which focuses on helping hoteliers enhance their economics and guest relationships through not only the in-room television but the laptops, smartphones and tablet devices that are traveling with guests wherever they go," said Petersen. "In addition, the potential for engaging with guests before, during and after the stay – through the technologies they're using every day – is clearly resonating with the consumer.  At the heart of our four-screen services is our PowerPortal™, which allows single step, simultaneous publishing of promotional and informational media to all four screens. This powerful new cloud-based tool increases guest satisfaction while requiring only minor resources to deploy. We look forward to reporting further successes as we continue helping our customers maximize the opportunities of a multi-device world."