What to Expect From the Hospitality Tech Sector in 2023
Over the last 50 years, technology has been fueling the hotel industry’s growth with the first-ever implementation of Hotel Property Management Systems in the 1970s. Plus, with the emergence of several other solutions, hotels have gone digital, gained agility, streamlined operations, reduced errors, saved costs, and increased revenues. They have been able to match their guests’ changing expectations with the right tools.
In 2021-2022, technology was one of the critical elements that helped hotels across sizes, segments, and regions come out of the Covid-induced grim phase. For example, it allowed their non-guest-facing staff to work remotely per the restrictions. It also enabled them to run the show by streamlining operations with a significantly reduced workforce. Most importantly, technology helped them to drive efficiencies, revenues and guest experience.
As the hotel industry enters 2023, dubbed as the most awaited transformative post-Covid era by industry pundits, technology companies, too, are getting ready to play their part. Here is how hospitality technology providers will help the industry succeed in 2023.
Mobile apps will continue driving hotels’ growth in two ways. Firstly, the hotel-facing aspect of it will empower users to execute various tasks on the go. For example, it will help the management see hotel positions and other critical data on their smartphones.
Secondly, we have this guest-facing aspect of it. With this, hotels can allow their guests to do everything, including reservation, post-booking communication, mobile check-in, unlocking the door, controlling in-room amenities, raising service requests and complaints, paying bills and checking out.
Mobile apps have become more imperative over the last few years with the rising demand for contactless services. Since guests love contactless services, as over 90% of them like it, we will see the rapid adoption of mobile apps in the hotel industry. And in line with this, solution providers are expected to do much in this technology segment.
The hotel industry undoubtedly possesses massive data about operations and guests’ preferences. We don’t have to stress more about how it helps hotels with an efficient forecast, automated revenue management, targeted marketing efforts, upselling and cross-selling, and improved guest services. Additionally, it has the potential to assist hotels in managing their online reputation by tracking what is being said about their brands on online platforms.
Everything boils down to this – data analytics will be essential for hotels to maintain a competitive advantage. And to achieve this, they will rely on technology providers who understand this whole data game and can help them with this. Technology providers will have to keep an eye on evolving data analytics trends to develop solutions that will drastically improve hotels’ decision-making capabilities.
With four types of data analysis capabilities, including descriptive, diagnostic, predictive, and prescriptive, hotels will know what happened, why it happened, what might happen in the future, and what needs to be done. This is where hotel technology solutions providers will play a prominent role in 2023.
Robust Technology Integration
One thing is clear – 2023 will see a rise in various technology adoption by hotels. They will use Hotel PMS, channel manager, revenue management solution, booking engine, online reputation management tool, accounting, ID scanner and many more across departments. Here comes the need for seamless integration among all of them for real-time data flow.
There is a rapid shift from monolithic on-premises solutions to cloud-based Hotel PMS. Sitting at the centre of the hotel operation, cloud-based Hotel PMS interacts with best-in-class solutions that are operationally imperative for all departments at a hotel. Hospitality technology providers will pay the utmost attention to this in 2023.
We expect significant efforts towards this by technology providers. They will be doing heavy weightlifting to develop plug-and-play solutions for properties looking at doing short-term business – be it going live for seasonal businesses or some prominent events.
Technology companies have realised that it has become challenging for independent hotels to source disparate solutions, deal with multiple tech vendors, and manage them without dedicated personnel. It will make them develop a solutions stack that is only needed to help these hotels sell more rooms at the best rate, increase occupancy, boost revenues and serve guests better. Similarly, hotel groups will buy technology solutions in a modular way that are on the cloud for every department. And for this, hospitality technology companies keep adding new features to their products and solutions to offer them centralised control over operations, inventory management, reports, etc.
It doesn’t end here. Technology providers will be at the centre of attention as enablers to an industry on the verge of finding its lost charm in 2023. Hotel owners, operators, and even guests will be looking at the tech sector about how it keeps fueling the industry’s growth in 2023 and beyond.