While most major international hotel groups have started to ensure their systems are 2000 compliant', independent and smaller operators tend to be less well prepared.  "Many people are still unaware of the implications, but one thing is sure - business processes will fail if not corrected," said IH&RA president Eric Pfeffer. 

The IH&RA campaign takes the form of a series of news briefs designed to let independent operators know the risks involved - and how to avoid them.  Each issue tackles a different aspect 
of the Year 2000 problem: taking an inventory, testing hard- and software, managing a Y2K team, 
preparing contingency plans and dealing with the legal aspects. 

"Our aim is to convey the urgency of acting now, before it's too late, provide practical advice on how to achieve Y2K compliance and list the information resources available," said Pfeffer.  "The risk is not limited to January 1, 2000 - failures are already happening."  The Year 2000 problem is estimated to cost businesses worldwide anywhere between US$200 billion and US$600 billion to correct, with additional unknown costs related to litigation issues. 

The issue is also not limited to potential failure or malfunction of the property�s technology, but includes Y2K�s impact on suppliers� ability to provide services, and the threat that customers will go elsewhere if they are not confident of a hotel�s ability to prevent disruption.  The 
bulletins offer practical help on evaluating a property's overall exposure to Y2K problems, and guidance on how to reduce it. 

In a parallel development, the IH&RA�s Euro Task Force - set up to study the impact of the euro currency on the international hospitality industry - is urging European members whose systems are not Y2K-compliant to carry out upgrades for the transition to the euro and Y2K at the same time, as a more cost-effective solution.  The euro is due to come into effect January 1, 1999, and totally replace national currencies in 2002. 

"The phased-in introduction of the Euro gives people time to prepare. But with the countdown to the Year 2000, we're literally buying time," warns François-Xavier Baudin, project controller Europe for Starwood Hotels & Resorts and member of the Task Force.  "The closer we get to 
December 31, 1999, the harder it will be to find experts available to make the modifications, and the more expensive the man-hours and software will become.  Y2K and the Euro offer a major opportunity to overhaul IT systems," said Baudin. 

To ensure a smooth changeover to the new millennium, hoteliers and restaurateurs are advised to take the following steps: 

• Undertake careful, enterprise-wide planning to determine the potential impact of the problem.
• Assign a project leader to co-ordinate efforts and raise awareness.
• Set up Y2K teams with representatives from the different departments involved.
• Exploit as many different sources of information on the issue as possible.
• Take stock: conduct an inventory of hardware and software applications, and any equipment that might contain embedded control chips.
• Assess each system and prioritise in order of importance.
• Test, test, test: run Year 2000 simulations to ensure all systems are fault-free
• Correct or replace systems: ensure that new and corrected systems are compatible with existing ones.
• Make sure your, customers and service providers are ready.  Their failure could mean the property�s failure.
• Develop a contingency plan.  Aim for the best, prepare for the worst.
• Don't overlook the legal implications.  Get written Year 2000 assurances from suppliers, demonstrate due diligence by documenting Y2K progress and consider taking out business interruption insurance.

Don't miss the international hospitality event of the year - the 36th IH&RA Annual Congress, 22 - 26 October 1998, Manila, Philippines. This year's theme: 'One to One: Marketing in the Interactive Age'.