Most people have probably heard the inspirational business mantra:
NB: This is an article from Right Revenue, one of our Expert Partners
CFO: What happens if we invest in staff and they leave?
CEO: What happens if we don’t, and they stay?
The sentiment could very easily be applied to the adoption of hotel technology… In the current climate and with the economic headwinds being felt in the UK, some hotels may be tempted to reign in their spending and pause projects.
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Yet ADR in UK hotels is still growing, business on the books remains strong and travel sentiment from consumers is positive. The fundamentals of the industry aren’t showing any signs of decline.
Meanwhile on the ground and where it really matters, hotels face a crippling staff shortage along with increased guest expectations.Smart hoteliers are considering how technology might be able to help alleviate some these pressures.
To borrow the mantra from above, and twist for this purpose, the conversation might look something like this:
CFO: What happens if we invest in tech to improve our efficiency and demand decreases?
GM: What happens if we don’t, and it increases?
If your hotel is not currently considering including new technology in the 2023 budget, below are 5 things you may wish to consider – plus an added bonus: 1 reason NOT to adopt new technology.
1. 2023 is time to do less with more.
Your hotel will probably be operating with less staff than it did in 2019 and profit margins will absolutely be put under more pressure – 2023 is the time to do more with less.
Reception team understaffed? Perhaps self check in technology could alleviate some of the pressures. (Speak to your PMS about that)
Reservations Manager doesn’t have time to update rates daily? A Revenue Management solution can take some of the workload there. (Speak to us here at Right Revenue about that!) But with less team members, trying to cover more roles, savvy hoteliers are reviewing how they can use tech to support their teams, save time and allow these valuable team members to do the ‘smart stuff’ – the ‘stuff’ that actually makes a difference to either the bottom line or the guest experience (or both!).
2. Guests are embracing tech
Hotel technology is often guest facing and the modern traveller will expect some level of technology and automation during their experience with you. Of course, the level of expectation will vary hugely depending on the guest, market and hotel. However, it is well documented that guests are increasingly expecting to encounter technology during their experience, and many even seek it out.
One thing is clear: All guests will be happy if you have used technology to improve their experience.
Not all hotel guests will be impressed by a Smart TV, voice-controlled lights or a check in kiosk, but most guests would probably be happy to hear that their time at reception will be streamlined by the automation of the credit card authorisation and payment process – especially if that frees up time for the receptionist to engage with them and offer great service.
3. Retain more staff… Keep them happy
Guest satisfaction is obviously crucially important to the hotel, but, arguably just as important is the happiness of your team…
Your team members are more valuable than ever, so why not try to make sure they are happy. Cake on their birthday and flexible working patterns are great, but team members also want to have the tools they need to do their job. They don’t want to feel frustrated and bored. They don’t want to complete manual and repetitive tasks.
Ask your team what they need and include their wish list in your budget considerations. It might just make the difference between a fulfilled, engaged staff member approaching the 2023 budget with gusto, and the team member who starts to look around at job vacancies.
4. There is tech for everyone
One of the wonderful things about working in the hotel industry is the variety. Every hotel is different, and they often have a different set of needs.
In the last 10 years the number of Hotel technology companies has exploded. The greater variety of products on the market means that it is much more likely now, that a savvy hotelier can find a product that is well suited to their specific set of requirements.
Hotels should no longer be asking ‘What is the best product on the market’, but instead ‘what is the best product for my hotel’. The choice is out there.
5. It might cost less than you think
The overall cost of implementing new technology may well be less than you were expecting. Traditionally new, sophisticated technology was seen as a luxury that brands and large hotels could afford. However, the boom in the number of technology providers outlined above has meant that prices have been ‘squeezed’. The reality is that sophisticated Hotel technology is now more affordable than it was, even a few years ago, and is accessible to all providers.
Furthermore, charges by PMS providers for the integration has also ‘turned a corner’ with most PMS abolishing or significantly adapting their integration fees (and about time to!)
So… if you would expect a Revenue Management system with cutting edge AI technology to cost thousands to install and thousands per year… it might be worth getting in contact with us here at Right Revenue for a quick quote. Click here to enquire.
(Spoiler Alert: It will be less than you think!).
Or maybe not…
What about when you should not be considering technology?
The answer here is simple. When it is not right for your hotel. The adoption of technology should not be ‘for the sake of it’ or to ensure you have something new and shiny; no gimmicks and certainly no software’s that nobody ever logs into.
A good starting point could be these 2 very simple questions?
Does it make my staff happier and more efficient and therefore also improve my bottom line?
or
Does it improve the guest experience (considering the expectations of my guest profile)?
2023 is a year that will no doubt throw up challenges.
Costs up? Almost definitely. Margins under pressure? Perhaps.
Investing in hotel technology may not be the answer to all of your problems, but the forward thinking hotelier will be adopting tech in the right places, with the right partners at the right price to ensure their hotel is as efficient and profitable as possible and will certainly be considering the sentiment below….
CFO: What happens if we invest in tech to improve our efficiency and demand decreases?
GM: What happens if we don’t, and it increases.
Read more articles from Right Revenue
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