Business Printing Technologies Report
April 1999

Kiosks: A Lane of Opportunity on the Information Superhighway

With all the talk about the Information Superhighway over the past decade and the hype over the Internet, did you ever wonder how your business could maximize the stream of benefits predicted in the new millennium?

One under-discussed but growing arena is the world of kiosks, those ubiquitous structures that dispense everything these days from restaurant recommendations in hotel lobbies to directions at car rental counters to transit tickets at the local train station to receipts at the gas pump. Designed to automate repetitious tasks and provide a simple interaction between machine and people of varying comfort levels with automated services, the modern kiosk is a logical solution for reducing personnel requirements while continuing to provide reliable service.

Public statements on the web site underscore predictions for the increased use of kiosks in the years to come. Robert Chomentowski, a market analyst with Frost & Sullivan, an international marketing and consultant firm in Mountain View, Calif., said, "The interactive kiosk market is growing at a formidable pace. In 1996, the U.S. interactive kiosk market grew to $369.7 million. And the market is expected to grow to $2.94 billion in 2003..." Additionally, he noted, "...about 20,000 kiosks were shipped in 1997 and...about 68,000 will be shipped in 2000 from a variety of suppliers across the United States."

Probe Research backed up those figures by stating that "the number of kiosks will jump from 150,000 in 1996 to 990,000 by end of 2001." Chomentowski added that the average cost of a standalone kiosk is a little more than $7000.

It has been said in the industry that the Information Superhighway is paved with print jobs, and kiosks are a great example of this phenomenon. Since most kiosks provide the user with some form of printed material, the applications are limitless. Whether it is written directions, a sample menu, or a transaction record, kiosks could be a gold mine for those willing to supply the required paper consumables like plain or preprinted paper rolls, tickets, tags, labels, forms, ribbons, and toner cartridges.

The following discussion explores the kiosk environment and the general requirements of kiosk printers. Each individual vendor, machine, and application will have specific stock, size, pinfeed spacing, coating, and ink needs.

What Is A Kiosk?
Kiosks appear in all shapes and sizes, from the familiar bank extensions of the automatic teller machine to the space age, obelisk-like structures in convention centers, airports, and shopping malls. Computer-connected systems, these kiosks are intended to advertise a product, provide or collect specific information, or transact a certain type of business. They employ a variety of technologies to accomplish their designated task, offering video, animation, sound, and interactive keyboards, buttons or touch screens to the user, and a storehouse of information via a network server or CD-ROM technology. Most provide the user with a printed piece to carry away for later reference.

General Printer Requirements
The primary requirements of a kiosk printer are that it is compact, simple to use, and fast. A complicated set up, paper installation, or repair procedure nullifies its use in the kiosk environment because a kiosk is intended to be a self-sufficient structure that requires little human intervention to make it successful. According to a 1995 technological report on kiosks distributed by a research team at the Los Alamos National Laboratory in N.M., the four most common printers used in the kiosk environment are laser, impact dot matrix, direct thermal, and thermal transfer. The selection depends on the purpose and size constraints of the kiosk and the intended deliverable to the user.

Laser printers, for example, are capable of providing black and white or color detailed letter-quality images. In general, these printers can be expensive to buy and maintain. The consumables cost for toner and paper remain relatively high over the long-term.

Dot matrix printers can deliver near letter quality documents, and are the right choice if the output requirement is a multipart form or a continuous form. Dot matrix printers begin at very competitive prices; consumables for these printers would be ribbons, printheads, and paper.

According to Cap Ventures, 95% of newer kiosks incorporate some form of thermal printing, whether direct thermal or thermal transfer. Direct thermal printing employs a special coated paper that turns black when heated by a stylus; no ribbon is used. Direct thermal is the preferred technology because no ribbon is used and therefore less maintenance and fewer consumable elements are required. Thermal transfer, on the other hand, employs a ribbon that, when heated, deposits ink onto a coated substrate. Generally, thermal printers are the most popular choice in the kiosk environment because they have been marketed in a variety of small sizes specifically for the kiosk, they have simple, dependable internal mechanisms, and their consumables are limited.

Much of the paper required for these kiosk printers is supplied in roll formats (other formats include fanfold or cut sheet) to meet the demands of frequent use in unsupervised settings.

The Future
The "on-demand" interactive kiosk has definitely gained ground in the1990s and, if predictions hold true, will only become more indispensable in the next decade. When, for example, was the last time you went inside your bank lobby simply to get cash? As consumers become more comfortable with this style of doing business, and retailers and information providers come to the conclusion that, in the long run, these kiosk stations can be more reliable and less work than minimum wage personnel, distributors who can provide paper and other supplies for a wide variety of machines will have all the business they can handle.

Kiosks: Opportunities At A Glance
The following is just a sample of the many ways in which kiosk technology is popping up everywhere. Take a look at this list for some ideas, then take a look around — you'll discover that the field is wide open!

• Don't know how to cook that orange roughy? Turn to the recipe suggestion kiosk at the supermarket and leave with a printed recipe, instructions, and recommendations for tasty side dishes.

• Is the line moving too slowly in the post office? Maximize your time at the stamp dispensers, which are programmed to provide stamps in various combinations along with a receipt for reimbursement.

• Are you out of the office without your notebook computer and need to access the Internet? Self-serve Internet kiosks are appearing in malls, hotels, and other places that people gather.

• Are you a regular traveler who knows the ropes and does not wish to stand in line at the ticket counter? Use the E-ticket kiosk at the airport and you're on your way.

• Attending a sporting event and the line is too long? Charge your admission ticket at the appropriate kiosk and enjoy the game.

• Need cash, want to transfer money, or feel like you should check your balance? The automatic teller machine (ATM) introduced the world to the kiosk concept.

• Traveling the toll road and have exact change? Toss in your money and get your receipt. Did you forget about the toll and only have a dime on you? No problem. Go to the appropriate lane, use your credit card to pay the toll, grab your receipt, and you're back on the road.

• Taking a train somewhere? Insert your money in the kiosk at the station, get your ticket, and you're on your way.

• Feeling lucky? Get your lottery tickets at the kiosk rather than standing in line with those folks wanting to buy bread and milk.

• Wonder if there's a discount in your purchasing future? Coupon dispensers help push shoppers into specific brands where lots of choices exist.

• Need to buy something from a vending machine? More retailers are installing vending machines that accept credit cards for that purchase.

• Running low on fuel? Modern gas pumps accept your credit card at the pump and provide a receipt for your records. No more waiting in line at the cashier when you need to go.

• Renting a car but not sure where you are going? Find the road direction kiosk, punch in your destination, and out comes a set of detailed directions to your destination.

• Need general information about your local government? More government centers are installing information kiosks in their hallways to help make your life easier.

• Want to have some pictures blown up? Self-serve photo enlargement machines are a popular, immediate way of getting those photos reproduced now.

• Need further information on an exhibit in the museum, aquarium, or library? Punch in your request and out pops an answer tailored to your needs.

• Want to have something delivered to your home? More retailers are installing kiosks to enable the customer to enter the information to avoid delivery mistakes.

• Need sightseeing suggestions or recommendations for a good restaurant? Many hotels are installing concierge stations in their lobbies to help you get the information you need when you want it.

• Interested in suggestions for other authors, musicians, or movies? Book, music, and video stores are using kiosks to help customers browse for more information.

• Was your flight delayed and you need to pay that airport satellite parking garage fee on credit? More garages recognize that people don't always have a lot of cash at the end of a trip and need a credit option. Kiosks that can service people around the clock are helpful.