In a bid to diversify its operation, renowned ATM manufacturer
NCR Corp
(
NCR
) has come up with a new hotel check-in kiosk named NCR Express
Key. The new kiosk is expected to facilitate the process of hotel
check-in for guests who have checked in online or through mobile,
wherein they can collect their room key without having to queue at
the reception.
NCR Express Key is an initiative of NCR Travel, a division of
NCR that is currently focused on developing solutions to tap the
potential in the travel market.
The Express Key, a part of its advanced hotel check-in solution
portfolio, allows guests who have checked in online or through
mobile channels to obtain room keys by scanning printed or
mobile-delivered confirmation barcodes, NFC-enabled mobile devices
or mobile acoustic keys. The unpretentious kiosks may be
strategically placed across various locations in a hotel, providing
more options to guests in case of loss or misplacement of keys.
NCR has taken the help of a research firm Opinion Research
Corporation (ORC) to gauge the demand of this service. The study
revealed that about 76% of the people said being able to check-in
ahead of time would minimize potential frustration, while around
41% of the total population surveyed stated that they are more
likely to select a hotel that has a better IT infrastructure
offering web check-in or check in through mobile device.
Moreover, we remain highly positive on NCR Corp.'s ATM
footprint. According to a study published by Retail Banking
Research, NCR has been the world's largest supplier of multi-vendor
ATM middleware and applications for 25 consecutive years. We
believe that NCR Corp.'s commitment to protect the trust and
integrity of the ATM channel has been inspiring banks and a host of
other financial institutions to choose its services.
In February, the largest retail bank in South Africa Absa Group
Limited opted for NCR Corp.'s integrated ATM solutions for
overhauling its entire ATM network across South Africa over a
three-year period.
We are also encouraged by the company's association with leading
banks, such as
Barclays Bank plc
(
BCS
) and UniCredit Bank, which have upgraded their ATMs with advanced
NCR banking solutions.
This apart, some industry experts are of the opinion that large
ATM manufacturers like NCR Corporation and Diebold, Incorporated
are likely to benefit from strong momentum from different banks, as
banks are focusing on better security needs and ADA compliance.
Moreover, NCR has also witnessed growth in the Latin American
region. It is also expected that unit volumes in Asia are expected
to improve as demand from several markets here is on a
recovery.
On the other hand, NCR's sales are affected to a certain extent
by seasonality, with the first quarter bringing lower revenue and
the fourth quarter generating higher revenue each year. Such
seasonal nature of the business leads to fluctuation in cash flows
and makes it difficult for the company to predict its working
capital requirements accurately, thereby resulting in inaccurate
cash projection.
The company has improved its operating performance and is
managing its expenses well. Although the restructuring initiatives
have started impacting results, we believe that the company should
reduce its debt balance to further improve its operating
performance, and must come up with new strategies to compete
against
Diebold Inc.
(
DBD
).
The company has a Zacks #1 Rank, implying a short-term Strong
Buy rating.
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