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Vietnamese The rapid development of technology continues to reshape the hospitality industry, with innovations like cloud-based software and mobile apps driving a new era of hyperautomation and hyperpersonalisation.
This not only enhances the guest experience with seamless check-in and check-out processes but also demands that hoteliers and their teams remain adaptable and agile to stay competitive in this dynamic landscape.
Let's explore key technology trends that are rapidly gaining traction and becoming increasingly embraced within the Hospitality industry in today's article.
Read more: The New Face of Hospitality: Creating a Contactless Guest Experience
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5 technologies that are gaining traction in the hospitality sector
5 technologies that are gaining traction in the hospitality sector
1. Software as a Service (SaaS)
Software as a Service (SaaS) has gone mainstream in many industries, with its adoption rate escalating annually. Projections indicate that spending on SaaS cloud hardware and infrastructure software is set to soar to US$55 billion in 20261.
There are two overall drivers for this global phenomenon. Firstly, the investment is perceived to be low since there is no need for any hardware investment or all of the associated full-time, in-house IT staff. Secondly, businesses do not want to get overly bothered with IT-related concerns, so they can focus on their core business and services and their day-to-day business.
Read more: Fundamentals of Cloud | Public v Private, SaaS v Hosted, Multitenancy
One of the key reasons why hoteliers are increasingly adopting SaaS solutions is their ability to scale upon demands and deliver information seamlessly and quickly within the property and throughout the chain, ultimately enhancing guest service and satisfaction. While the cost savings are significant, the true value lies in ensuring happy guests, collecting data to meet their needs, encouraging repeat visits, and boosting overall revenue.
Distribution in the hospitality sector has always been SaaS by nature, but cloud/SaaS is also becoming more common in several other departments, from HR to back-office accounting, customer service, front-office reception, point of sale, etc.
The switch from on-premise to SaaS is not only changing the investment dynamics of solutions but also changing which solutions a property uses and how such solutions are deployed and maintained in the absence of fewer or any in-house technical expertise.
2. Mobility
Today's world is heavily dependent on mobile devices. Take a look at how frequently you check your smartphone during the day. It is hard to imagine a life without a smartphone in our hands or our pockets.
The global smartphone user base is projected to see a steady increase from 2024 to 2029, with a total growth of 1.5 billion users (+30.6 per cent)2. In the United States, mobile phone ownership is nearly universal, with 97% of Americans having a device. This equates to approximately 325.4 million individuals3.
Mobile technology has already entered food and beverage operations and hotels for many years.
Hotel staff members can now engage with guests at any time and from any place by utilising mobility innovation, and they can access the most recent guest information on their devices. Customers now may engage with various mobile technologies during their stay, such as an app or kiosk for grab-and-go services or a pay-at-the-table device for full-service dining establishments.
Read more: Cloud Property Management Systems: Does Your Hotel Need One?
Mobile apps are not nice to have; they are necessary, just like other physical in-room amenities offered by hotels. Customers expect hotels to have an app or at least a seamless check-in/check-out experience aided by digital solutions for enhanced convenience.
These apps enable customers to self-service instead of having to personally ask the attendants for every little detail, from wifi passwords to facility bookings, trip reservations, etc.
On the hotelier's side, many of the property management solutions (PMS) nowadays come with their own mobile app. The app allows them to monitor their hotel performance while on the fly at any hour of the day, review reports, approve budgets, or book any last-minute request for a VVIP guest.
3. Social media
Social media has evolved into a vital marketing tool for many companies, not just businesses in the hospitality industry. These platforms offer a range of benefits, ranging from enhancing exposure and reach to developing brand identity, presenting experiences, and encouraging visitor engagement.
With 49% of hoteliers ranking social media as their second most essential sales and marketing approach (2021)4, social media becomes even more crucial for the hospitality industry, which depends heavily on reviews and word-of-mouth.
Read more: Hotels in a Cloud-first, Mobile-first World
Rich Newman, General Manager of Sonesta Suites Scottsdale Gainey Ranch, said that thanks to social media, hotels have more freedom in creating online promotions. With a booking link from social media, the traffic coming to the main hotel website has increased, driving more reservations.
InterContinental Hotels Group has seen a significant shift towards mobile bookings, with half of all digital reservations now being made through mobile devices. Their latest app, launched in 2022, has garnered an impressive 13 million monthly users, showcasing the growing trend towards mobile convenience in the hospitality industry.
Furthermore, the company has made strategic enhancements to its WeChat channel in China, introducing a new user interface that has led to a remarkable 200% increase in revenue and a 33% rise in booking conversions year-over-year5. These advancements demonstrate the power of leveraging technology to drive business growth and enhance the guest experience.
Effective use of social media by hospitality companies can help hoteliers engage with their target market, encourage travel, and build enduring relationships with their clients. In the fast-paced hospitality industry, marketing plans must embrace social media as a necessary component to stay competitive and grow.
4. Personalisation
In the hospitality industry, personalisation refers to adjusting services and experiences to meet the requirements and preferences of individual guests.
Who wouldn’t like a personalised experience: welcome messages, fruit baskets, cookies, welcome drinks, cooling towels, and fresh flowers in the guestrooms? More hotels are now doing this, making customers who travel a lot begin to expect this to be the norm!
It is necessary to understand and predict their expectations. In this manner, hotels may provide a very unique and unforgettable experience. But rather than randomly doing this, going one step further to uniquely tailor this data to individual customers and capturing it all with the hotel systems is what Nirvana Hoteliers seek.
Read more: 3 Ways A.I. is Providing Personalised Experience to Hotel Guests
However, personalisation extends far beyond the usual welcome cookies, drinks, or even handwritten messages that hotels traditionally provide. With the constant stream of Netflix and endless offers from Amazon in today's world, travellers are now seeking a much higher level of expectation.
Imagine walking into a hotel that already knows your preferred room temperature, your dietary restrictions, or even your favourite artist. This magic lies in data-driven systems that collect information from various sources, such as booking histories of rooms, amenities, and activities; loyalty programs; social media; and mobile app interactions. By analysing this data, hotels can craft customised greetings, recommend tailored experiences, or even offer dynamic pricing.
Personalisation is a powerful tool; however, it is crucial to wield it responsibly. Transparency and data privacy are key. Travellers need to be comfortable with how their information is used and have control over what is shared.
5. Integration
Hotels have to manage multiple functional areas: rooms, F&B, gym, and spa. Each can typically be operated via different software systems, creating a cumbersome and messy system. These systems often do not communicate with each other, making it difficult for hoteliers to get a complete view of their operations.
Integration technology can help connect these systems, providing a more holistic view for decision-makers.
By connecting disparate systems, integration empowers hotels to gain a unified view, streamline operations, boost guest satisfaction, optimise revenue, and enhance security and compliance. Additionally, the integrated system also offers “revenue management” opportunities across all areas. Critically, it aligns the marketing-based personalised offering with the financial outcome of the revenue secured.
But integration is not a one-size-fits-all solution. Different hotels have varied needs and existing systems. The key lies in choosing the right technology partner and a flexible integration platform that can adapt to evolving needs.
These are just a few of the many technological inventions that are changing the hospitality industry. By embracing these new technologies, hotels can improve their operations, provide a better guest experience, and stay ahead of the competition.
