From property management systems to guest apps and revenue management software, there’s so much out there to help hotels digitise operations that the tech market is overwhelming decision-makers. But what are the three things hoteliers are really looking for in technology today?
Technology has changed the shape of the hospitality sector. And most would say it’s all the better for it. Time-consuming, manual processes can now happen in seconds. Online booking systems give guests the power to make bookings in a few clicks. And automated communications take the legwork out of managing the operational side of hotel stays.
The success of the global hotel and hospitality software market speaks volumes. It’s projected to rise from $2.54 billion in 2021, to $4.93 billion in 2032 (Business Research Insights).
But are all the technological offerings out there actually helpful for hotels? The honest answer is – probably not. Every hotel has such a unique set of circumstances – location, customer type, additional facilities – that investing in the ‘right’ new technology is something that becomes quite nuanced.
Gregor Ritchie from Optimum Hotel + Leisure Management is inspired by the author of The 7 Habits of Highly Effective People when it comes to making such decisions. “Stephen Covey said: ‘you’ve got to begin with the end inmind,’” Ritchie shared. “I think ‘the end in mind’ is that we need a profitable hotel – a profitable business.”
Ultimately, hoteliers are looking for technology to solve business challenges. And to do this, they’re interested in addressing three main areas.
- Nailing the customer journey
It’s a constant hot topic of discussion in hospitality circles. How do you seamlessly address your customer needs at every stage of their journey? Getting the touchpoints and communication just right is seen as a golden ticket to more bookings, customer loyalty, and increasing the potential profit from each guest.
When considering technology for Foxhills, Managing Director Tej Walia says this is a key challenge – and one that ultimately influences the future of the business. He said: “How can we make our customer journey easy – from the moment they think about us, to the moment they leave? That is about customer service. It’s also about the upsell opportunity at each customer touchpoint.”
Ritchie says conversations about the best technology for hotels should focus on effectiveness and efficiency. “You have to be effective in the guest journey, because that’s about relationships. You can only be effective with a person, but you can be efficient with systems and processes.” He also believes that customer retention should be a key part of technology decisions. “For technology, we’re looking at customer retention and lost booking analysis. We’ve got to figure out lost bookings. Why is it not converting?” If technology can help to solve specific pain points in the customer journey, it will quickly make the investment worth it.
- Improving staff productivity
As a sector beset with ongoing recruitment issues and a need to make budgets stretch further, getting the very best productivity from existing resources is front and centre of many hoteliers’ minds. A recent white paper found that automating repetitive tasks increased the productivity of front-desk hotel staff by 24%.
So when making decisions about technology to invest in, it absolutely must contribute to tangibly improved staff productivity like this. “Tech is not a cost saving exercise,” explained Mustafa Gokcen, Head of IT at Cheval Collection. “It’s a tool that allows us to focus on other priorities.”
Efficiency is everything when it comes to technology, and it’s important to make sure a system will help a hotel before installing it. Jon Siberry, Group Revenue Manager at Sarova Hotels, said: “We’ve tried systems in the past and they haven’t worked, so we’ve taken them out again. There’s a lot of stuff out there and they don’t all necessarily make the staff more efficient. There’s a whole new system for them to learn, and some people struggle with technology. It’s a big decision to make.”
Looking for technology that is intuitive and easy to use should be a fundamental requirement before committing to any new system. But looking at what business issues it actually helps to solve, and calculating how much staff time it will save, should also be factored into the decision making process.
- Maximising data opportunities
The final priority for hoteliers in their technology buying decisions is all about data. There is so much potential data out there now, relating to everything from detailed customer profiles, to the supply and demand of hotel rooms. Any technology investment should make data work harder for hotels.
“We’re looking for systems that help us streamline data,” explained Inna Nekrassova, Head of Revenue at The Lanesborough. “We have to connect a lot of data. It’s a matter of finding the right providers that talk to each other, that can give us insights like customer lifelong values. It’s very much looking at tools that will allow for more data-driven decision-making within the revenue and reservation departments.”
Used by savvy management teams and individuals who are able to effectively analyse data, technology has the potential to consistently improve the trajectory of a hotel business. Ritchie said: “We’re recruiting a team that can look at the data to say, for example, let’s chase only high value last-minute bookings, because they’re the most profitable.”
Hoteliers are also looking towards technology providers who are constantly innovating and adapting to new needs. Rob McGlynn, Regional General Manager of SuperCity UK, says technology companies must be willing to innovate. “Tech in hospitality is very much like your iPhone – all these apps and systems have to be able to plug in,” he said. “You’ve got to be always willing to find out what your customers are looking for and allow a business to create a customisable system.”
It’s clear that hoteliers and accommodation providers are looking for ways to focus their teams on the guest journey. And technology is a tool to address the pain points around collecting guest data, managing reservations, and more. For most hoteliers, technology is not to replace the human, but to aid efficiency. So it’s imperative that suppliers are able to integrate with key systems and share the right level of data to support automation. With the help of thoughtfully selected technology, a positive and lasting ripple effect can come from solving issues in the guest journey.
Ryan Haynes
Director | Lead Consultant
Haynes MarComs Ltd
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