Hospitality and tech experts agree that there are several reasons why hotel operations require technological assistance, from new corporate standards to replacing expensive or outdated applications, meeting evolving guest preferences to satisfying updated security requirements. Whether you’re implementing technology to increase efficiency, give your hotel a competitive advantage, pursue innovation in your offerings or build resilience against potential disruption, tech adoption is critical.
“Simply put,” stated Nicki Dehler, vice president of product at Stayntouch, “every key system that a hotel uses today should already be in the cloud.”
Where to Begin?
To best determine which areas of a hotel requires technological assistance, Kasa Founder and CEO Roman Pedan suggests looking for ways to centralize and streamline operations to reduce costs. “These typically focus on the most labor-intensive aspects of hospitality: the front desk, back office (accounting, customer service, finance, etc.), and housekeeping,” he said. Kasa’s proprietary operating system offers “a steady stream of data to identify the biggest pain points and opportunities and measure whether our solutions are working.”
Dehler offered a relatable guest-facing approach: “If your associates are stuck behind the front desk, a cloud-based PMS platform that can run on a tablet will allow them to freely interact with guests.” And sometimes, out-of-the-box thinking yields a new perspective.
“We review all of our technologies approximately four times a year, and also research other hotels and industries,” noted Springboard Hospitality President and CEO Ben Rafter. “If we like the experience a technology offers in, say, retail, we can see whether we can apply it to hotels.”
Bottlenecks to Success
The list of potential challenges to adopting new tech is long: ensuring data security, transitioning from legacy systems, potentially increased maintenance costs, limited budgets and expertise, complexity of implementation, training, and time to adapt. Steve Green, principal solutions engineer for IDeaS Revenue Solutions, added that staff buy-in and overall understanding can also impede tech adoption.
“New hotel technology or systems can be incredibly powerful, but that power is directly influenced by those who use it. It’s important for hoteliers to not get departmental tunnel vision when rolling out new systems. Data is often shared between these systems and end users need to understand how the inputs in their day-to-day work influence the business beyond their departmental focus,” Green said. “For example, front office staff need to be educated on why the different rate codes they select for a market segment matter—the granular detail captured by them in the property management system might not have a huge influence on their role, but it can greatly influence how their revenue management system handles forecasting, and that ultimately influences profitability.”
Thankfully, said Dehler, hotels need not become tech experts; instead, choosing a reliable vendor capable of handling technology maintenance, scalability and change management allows them to focus on their core strengths and objectives. “Hotels should look for technology vendors that view their relationship as a strategic partnership, rather than a one-off transaction,” she advised.
Pedan agreed, stating what we all know to be true: the hospitality industry has been notoriously slow to adopt new technology, highlighting “the thin margins that traditional hotels often run on make it difficult to support the time or money that may be required for implementation and R&D.”
Adoption Drivers
Evolving guest and consumer demands are driving hospitality tech adoption, whether the travel is for business, pleasure or both.
"As business travelers seek more experiences that mirror the convenience and comfort of their own homes, the hotels they stay at must adopt technologies that satisfy these high expectations," said Kimberly Twiggs, associate vice president, market development for DIRECTV for Business. “This focus on more personalized and flexible entertainment options is indicative of broader consumer behaviors where convenience, choice and control are of the utmost importance.”
“In many ways, consumers still want the same things they have always wanted from a delightful guest experience: a personalized and efficient or frictionless stay. The real change is in how technology has evolved to level up the experience on both fronts in a cost-effective way,” Pedan added.
Dehler observed that the rise of hybrid experiences, such as with extended-stay aparthotels and remote coworking spaces, is driving hotels to adopt more flexible PMS systems that can manage different types of inventory (e.g., nightly, hourly and extended-stay) while integrating seamlessly with an expansive tech stack. “Evolving guest demands push hotels to innovate with tech-enabled solutions like self-service kiosks, mobile booking platforms for on-the-go stays and integrated digital ecosystems that seamlessly blend work, leisure and travel for a more holistic guest journey,” she said.
Take Your Time
Once a hotel has decided to implement a new technology, experts caution against rushing the process. A “speedy” adoption process for new technology varies widely depending on the specific system and the readiness of the hotel team, Dehler added. “It's crucial not to rush adoption but rather to allow sufficient time for adaptation and comfort with new processes and systems. The key to successful adoption is achieving buy-in from the entire team; when everyone is on board with tech decisions, the transition tends to be smoother and faster. While there's no set timeframe for adoption, prioritizing team alignment and comfort can expedite the process effectively.”
Richard Wagner, director of certification and compliance at Nomadix, observed that as a hotel brand grows, generally more and more processes and procedures are put in place prior to the implementation of any new technology, which can understandably slow implementation. Rafter offered the most succinct advice, saying, “I’d suggest taking the estimate and doubling it. Then doubling it again. Time is the real enemy.”
Tech-Centric vs. People-Focused
Technology is transformative, no doubt—but how much is too much, or is there such as thing as too much tech? Twiggs emphasized the human touch that is essential to a people-centric industry such as hospitality. “While tech solutions can enhance efficiency and guest satisfaction, it's crucial that they do not overshadow the personal interactions that define hospitality,” she said.
Dehler agreed, saying that hoteliers must balance embracing innovative tech solutions while providing sufficient training and support to give hoteliers “more freedom in sourcing talent and empowering staff to spend more time interacting with guests and less time buried in their screens.”
“The biggest challenge is often determining how tech can best complement versus replace the human experience,” Pedan observed. “In scenarios where technology is being used in lieu of a human interaction (e.g., in self-service check-in), the experience has to be nearly perfect to be good enough ... When tech is implemented most effectively, it enables hotels to redistribute the staff effort spent on these sorts of administrative and automatable tasks toward the most impactful ways to personalize the guest experience.”