If hospitality tech is still a backburner issue in 2024, it may come as a surprise that customer frustration and competitor investment stand at an all-time high. Legacy hospitality technology is losing its luster, with outdated systems – and tech overcorrection – proving to be a cost (and loyalty) liability.
When 77.6% of hospitality brands plan to increase their hotel tech investment by 2025, and guest-facing tech is on its way to becoming a $6 billion category, no can afford to sit still – but there some trends are worth keeping in mind for those seeking to elevate, not exacerbate, through their tech game.
When Tech Becomes a Trust Indicator
In an age where reviews and recommendations rule the booking roost, technology has emerged as a silent indicator of trust. A hotel website that's smooth and responsive is more than just good design; it's a signal that the hotel cares for the guest experience from the ground up. The same applies to the online reservation process. A glitch-free, effortless booking system not only makes it easier for travelers to secure their accommodations but also silently reaffirms their faith in your brand's competence.
The Desire for Unseen Conveniences
Guest desire for manageability and ease of use with basic tech tools remains incredibly high, according to recent MODIV Mindset data. It’s also a powerful motivator in opening their wallets. Travelers crave the effortless, the unseen — the kind of technology that works like a well-oiled machine without needing to be in the spotlight. Take, for instance, the guest who values the technology that checks them in and out with the least number of taps. Or the high-flyer who loves the way their loyalty app has all travel arrangements, from flights to coffees in the lobby, synchronized, and seamlessly updated.
The Double-Edged Sword of OTAs
True, OTAs can funnel customers towards your property with the right tech alignments. But what about the colossal fees and the erosion of brand loyalty they bring with them? Pawning guests’ brand allegiance for a shot in the OTA's lottery is a risky game to play in the long run. Consider how your marketing tech is performing as a sales driver for those in the “dreamer phase” of the booking cycle. In a convenience-driven world, it's the brands that provide a seamless, tech-integrated experience that stand the highest chance of hooking guests back into their ecosystem, rather than letting them swan-dive into the enticing OTA waters. Read more here.
Loyalty is a Balancing Act
The crux of modern loyalty is the matrix of data and delight. Leveraging technology to mine invaluable insights from a sea of digital footprints can help craft experiences that speak profoundly to individual guests' preferences. However, it's crucial not to overdo it, as the line between personalized and pestering is a tightrope straddling delight and disgust.
The Cost of Incompatibility
Mismatched tech can turn even the most sophisticated hotel into a breeding ground for negative reviews and frustrated staff. It’s not just the initial investment that should haunt hoteliers, but the confluence of costly integration and lost efficiency resulting from desperate tech matches. When these glitches occur, guests don’t just notice the wrinkles in the service – they feel the burn on their credit cards.
Strategic Allegiances with Technology
Your partnership with technology should be akin to the finest of maitre d’s; discreet, responsive, and always one step ahead. Ensuring compatibility, listening intently to the wants of the guests while filtering the noise of tech novelties, and integrating feedback loops that polish personalization – these are alliances that every travel brand and hotelier should aspire to make.
Take the Point-of-Sale system as an example. A POS can be much more than a transaction endpoint; it’s a hub of data and insight that, when utilized thoughtfully, can steer a business towards profitability. The key is in unlocking the voice of the guests, gathered through a tech-optimized POS, and converting the insight into personalized experiences.
The FWD Move: Silhouetting Operational Excellence with Tech
It’s not about running to catch the proverbial tech train; it’s about building a smooth digital monorail that bolsters the behind-the-scenes choreography of the hotel.