Due to multiple uncertainties, the hotel industry is currently navigating through many ups and downs. After a horrible 2020, we saw a few promising signs in 2021. But then we are probably staring at another round of complications with the omicron variant.
However, one undeniable fact is that technology is the only way to sustain any damages that might threaten the hospitality ecosystem again. It has allowed hotels to regain their charm in 2021 and is preparing them for 2022.
ALL EYES MUST BE ON TECHNOLOGY
This point has been eloquently stressed on for quite a long time now – hotels must relook at their IT budget and give the technology its fair share of allocation. For example – according to Hospitality Technology’s 2020 Lodging Technology Study, in 2019, hotels’ IT budget stood at 4.6% of the total revenue.
Our experience says that less than 1% is being allocated towards it. The difference is huge and has translated into the kind of outcome a hotel business can witness – be it the kind of guest experience they can deliver or the kind of operational efficiency they can achieve. And above all, the sort of impact it may have on a hotel’s revenue.
The last two years have changed the industry’s outlook towards technology. The mind-set of adopting a run-of-the-mill system that barely addresses the core issue is fast-changing, and hoteliers are now looking at cutting-edge tech solutions to drive business growth.
The role of technology has grown beyond that to ensure comprehensive automation, top-notch guest service and sustainable revenue growth. Hotels should split technology investments into two categories. First, they should invest in base technology to automate operations. And secondly, they should look at ROI-based technology investment that directly impacts their brand positioning, efficiency, and growth.
BETTER OPERATIONAL AUTOMATION
With a lack of experienced personnel on the property due to the recent workforce restructuring and most non-guest-facing staff working remotely, the need for cloud-based Hotel PMS has gone up. It has the power to automate the entire operation without the need to deal with IT infrastructure related overheads. Plus, it allows remote staff to access all the critical reports and hotel positions via any device.
Hotels will continue to face a shortage of personnel for the next couple of years, and they can’t allow this to impact daily operations negatively. That’s why investing in a cloud-based Hotel PMS will help them wade through 2022 and beyond.
TOUCH ME NOT
The year gone by has underlined how guests are worried about contamination and infection from surface areas. This has boosted the entire shift towards on touchless or touch free solutions.
Hotels need to consider spending more on this technology as it is the only way they can offer contactless services to their guests. Yes, there is no other option as 100% of today’s guests want to know if a hotel can allow them to check-in, unlock the doors, control in-room amenities, order room services, raise complaints, make payments, and checkout through their smartphones.
This is how they want to ensure that hotels take their health safety with lots of seriousness. We all know this trend of offering touchless guest services is not a stopgap arrangement. Instead, this is here to stay, and this will be the norm.
EFFICIENT MULTI-PROPERTY MANAGEMENT
Call it ‘conversion from unbranded to branded’ or ‘portfolio consolidation’, many established chain or group hotel brands are now rapidly acquiring standalone properties, especially in developing geographies like India. This trend was there even before the pandemic. But it got fast-tracked as the pandemic made it difficult for many unbranded independent properties to survive. According to a recent media article, from 2017 to 2020, over 10,000 standalone hotel rooms were transformed into branded ones.
This is where we see a rise in demand for cloud-based multi-property management solutions. With increased properties across locations, they would need something robust to manage operations with a centralised, single sign-on. Moreover, it would enable them to access the centralised guest history, group-wide business-critical reports, and central reservation office to make and accept bookings for all the properties from their central call centre.
This ‘portfolio consolidation’ process by chain or group hospitality entities will continue as they are looking for ways to expand faster by significantly reducing the turnaround time of the project development. And that’s why it is advisable to earmark more budget towards technology adoption.
THE FUTURE IS BRIGHT
With a stronger appetite to bounce back, the hotel industry has done everything possible to stay attractive in 2021. Now, with 2021 coming to an end, it is getting ready to enter 2022 with much hope and optimism.
Nobody knows how events will turn out in the future. But as always, I am sure about one thing – only the adoption of the right technology at the right time coupled with a well-planned strategy can alleviate the fear of any further turmoil.
