by Gregg Hopkins, Founder & Principal Consultant of Get Hoppy Consulting
Hospitality is about people helping people, a process that technology can enhance and support through robust infrastructure and tools the workforce can learn and enjoy using while delivering the experience guests have grown accustomed to when on vacation or a business trip.
It is essential for every hospitality organization to prioritize the evaluation of its current technology stack, process workflows, data infrastructure, and security. This is to ensure that they effectively support internal distribution, sales, operational controls, and the desired customer experience throughout the guest journey while also meeting today’s guest expectations.
Hospitality customers no longer accept the role of technology in their experiences and transactions; they demand it. The high adoption rates suggest that hospitality organizations that do not fully implement mobile, self-service, two-way messaging, and other technologies that today’s customers require are at a significant disadvantage. In addition, there is increased interest in artificial intelligence, biometrics, process automation, and voice-enabled technologies that seemed a little out of reach just a few years ago.
An effective hospitality technology stack should focus on the following seven (7) core areas of the guest journey while delivering a “data process flow” to facilitate the required operational capabilities that align with the hospitality provider’s desired guest experience with consideration for future requirements.
Each system in the technology stack should be assessed for critical capabilities across the following areas:
- Technology: Does the current system meet all security and privacy requirements? Can the current system easily integrate into other solutions via documented APIs?
- Data: Does the current technology stack capture the correct information within the individual applications and from integration with other solutions to provide KPIs to manage the operation effectively? Can the business fully leverage the value of its most valuable core asset – guest data and customer profiles?
- Process: How does the data flow between disparate systems? Does the data support operational processes? Are there any manual processes involved? Are there any labor efficiencies to be gained?
- Economics: How much does the existing system cost? What percentage of revenue is being spent on technology? Hospitality Technology’s 2023 Lodging Technology Study states, “… a substantial increase in IT budgets as a percentage of overall revenue is good news after years of consistent decline in this important metric. A year ago, it stood at under 3 percent. Today, it stands at more than 4 percent. While hotel tech leaders still cite insufficient IT budgets as a major challenge, we are tentatively optimistic that technology is increasingly recognized as a revenue driver. Further, 69 percent of respondents plan to increase IT budgets in 2024”.
Albert Einstein said, “We cannot solve our problems with the same thinking we used to create them.” While I am no Einstein, I begin each technology assessment by asking, “Are we merely re-platforming the existing processes and data, or are we embarking on a true guest transformation journey where we challenge the status quo?”
When performing a technology assessment, the overall objective is to arrive at an organizational consensus concerning:
- Systems that will likely remain suitable include identifying significant process and data shortcomings and operational gaps meriting attention.
- Systems that already are or will become unsuitable, including an indication of the possible urgency of replacement.
- Areas where a system would be highly beneficial but still need to be implemented.
- Prioritization and deployment timeframes of enhanced, upgraded, and recommended new systems.
The assessment should address the technology transformation and the impact of new and innovative technology. Time must be allocated to work with the organization’s key stakeholders to assess, refine, and optimize processes, workflows, management systems, and people affected by technology change and help ensure a smooth transition.
While a technology assessment may be conducted with internal personnel, I often discover that the expertise, experience, and relationships required for this initiative are absent, and an outside consultant is well served.
In today’s world of constant technological change, a technology consultant should provide you with an initial overview of the potential future technology stack and approach with reliable guidance on the necessary technology components, infrastructure, and costs to deliver operational efficiencies for an exceptional guest journey and effective distribution, sales and operational controls, and management analytics. A technology consultant will:
- Provide guidance and a roadmap that allows organizations to avoid common pitfalls and costly surprises.
- Help businesses gain a competitive edge by leveraging emerging technologies, reducing the risk of costly mistakes, increasing the likelihood of guest satisfaction, and making more informed decisions with data through analytics, artificial intelligence, and other data technologies.
- Work with existing technology vendors to mitigate current gaps and operational encumbrances.
- Identify technology waste and inefficiency, leading to cost savings and improved employee productivity.
- Mitigate cybersecurity risks, protecting sensitive data and ensuring compliance with relevant regulations.
Let’s examine some of the technology components in the guest journey.
INSPIRATION STAGE
During this stage, the customer is waiting and looking for inspiring ideas about the area they want to visit. This is your opportunity to produce content that will appeal to a new customer and provide a platform for ongoing communications with your existing customers between their last stay and their next booking.
The inspiration to travel derives from various sources, including:
- Social media plays a significant role, luring customers with gripping, illustrative, phenomenal, and highly visual travel blogs, write-ups, videos, slideshows, travelogues, etc. Recent studies by Lodging Interactive highlighted a significant trend: Gen Z (aged 18 – 24) is turning to social media for their travel searches. This age group bypasses Google in favor of visually driven platforms like Instagram (67%) and TikTok (62%) to find places to stay.
- Travel bloggers actively showcase their travel experiences through YouTube and TikTok videos, travelogues, and explainer videos, giving valuable tips on popular destinations, things to do, what to pack, what to expect, etc.
- Travel advertisements generated on social media showcasing breathtaking destinations and luxurious properties offering ‘4 Days-5 Nights Packages’ have the power to grab consumers’ attention. Platforms like Facebook and Instagram are well-known for generating personalized advertisements based on individual preferences and clicks on related pages and links.
- Also, the testimonials and guest reviews on various social media platforms and hotel websites inspire a reading traveler to give it a go. According to a study from TrustYou, the link between reviews and hotel conversion rates and pricing shows travelers are almost four times more likely to choose a hotel with higher review scores when the prices are the same, and 76 percent of travelers are willing to pay more for a hotel with higher review scores.
- ‘Word of Mouth’ can prod someone to undertake travel. In this connection, travel inspiration from a friend, relative, or colleague who has just returned from a vacation can also instill the inspiration to travel within the listener (your potential customer).
- Simultaneously, customers check the hotel website for prices and additional information aided by web chat to help answer travel-related queries.
Useful tools for Hotels at the Inspiration Stage:
- An effective Content Management System to ensure consistent branding and personalization across all digital mediums and to collect data about website visitors’ behavior and use those insights to enhance your website. You can also test different web pages to determine which options bring the most value to customers. This can help you decide on an exciting and functional personalization design.
- Connecting your Customer Relationship Management system to power website personalization and deliver consistent email marketing campaigns to loyal customers.
- Management of Google, OTAs, and other review sites by updating them with great pictures and content with review management across all channels to understand customer sentiments for making positive changes with timely responses to engage better with the customers, etc.
- Social media management and interaction with guests.
- Modern, fast website, preferably with fresh guest testimonials and fully functional web chat to assist potential customers and drive bookings.
- Digital advertising on GDS, OTA, Social Media, etc. channels, and Search Engine Marketing to drive customers to your website.
PURCHASING EXPERIENCE
Once your guests have decided to visit your hotel, they want to book their trip quickly and easily. A smooth, simple booking experience, including website navigation and payment processes, will give guests a great first impression and add to the overall guest experience. At this stage, guests also appreciate timely responses to queries and further inspiration for their upcoming trip.
People think about travel fundamentally differently than even ten years ago. Increasing numbers of travelers want to book their trips online. The emerging Gen Z and Millennial traveler markets make decisions based on ratings and reviews, recommendations from influencers, and whether or not the destination is “Instagrammable”. Another critical factor is flexibility with frequent last-minute travel plan changes, which is more important than ever.
Nearly two-thirds of total hotel chain revenue is now booked online. Online travel agencies (indirect third parties) still account for most of that, but direct bookings via the hotel’s Internet Booking Engine (“IBE”) are catching up.
According to PhocusWire, bookings through OTAs were down from 39% in 2022 to 34% in 2023, while direct bookings increased from 20% to 29% over the same period. The most significant decrease came in offline bookings, which accounted for barely one-fourth of overall bookings in 2023, down from one-third the prior year. PhocusWire credited “this amazing result” partly to “quality content on brand websites, loyalty offers, and an increasing customer focus using smart and agile systems.”
The advisory firm h2c reported in their 2023 Global Hospitality Distribution Survey that “record online direct bookings are driving innovation as guest data becomes more accessible through a growing base of loyal customers enrolled in loyalty or instant gratification membership programs. Data-driven customer insights are strongly supported by hotel chains’ mobile websites and proprietary apps, multiplying service and sales opportunities. While CRM systems were used by only 54% of respondents in h2c’s Global Hospitality Distribution Study in 2022, the share has grown to 76%, making it an essential tool for customer success”.
System integration remains the biggest challenge in digitizing operations. While revenue-generating systems, such as the Internet Booking Engine, have reached a high level of integration, more operations-related systems, such as spa, golf, and other service management systems, have the lowest level of integration. Integration into these systems is necessary for selling a complete offering to guests or dynamic packaging to include room plus golf for one price. The traditional booking process of selling the room first and offering ancillary services should be redesigned to allow guests to review and then book according to their priorities. For example, why would I want to stay at your resort if no tee times are available during my stay?
Hoteliers wanting to stand out need to be aware of the following:
- Travelers often seek specific data: helpful content that speaks to different questions and touchpoints; hoteliers can ensure online viewers find critical answers quickly—and on their site.
- Omnichannel experience: creating a consistent experience with similar content on every platform is critical.
- Personalization and localization: By tailoring content to specific audience needs and engaging with your audience, you can deliver a personalized experience.
- Influencer marketing and expert community building: people make more bookings based on recommendations from online influencers, so hoteliers should court influencers and their followers with high-quality, visual content.
Valuable tools for Hotels at the Purchasing Experience (in addition to the Internet Booking Engine mentioned above):
- Connecting your Customer Relationship Management system to power website Booking Engine and Call Center to deliver personalization and consistent service to loyal customers.
- As mentioned previously, approximately 25% of bookings are offline. An effective Call Center System is still a vital technology stack component. While humans are still best suited for call center operations, further adoption of artificial intelligence (“AI”) will help automate time-consuming tasks, improve performance, and provide better customer experiences. Instead of waiting in an endless queue, customers can get an answer or a solution faster and easier with AI-powered chatbots. You can also provide targeted recommendations tailored to each customer’s needs using AI technology.
- Central Reservation Systems gives hoteliers access to different booking channels, including the global distribution system (GDS) agency market and Internet booking websites. While a hotel technology provider gives you access to the channels you need, it does not provide you with help on how to use these channels best to optimize your distribution strategy. Correctly using booking channels to support your business needs can be complex and time-consuming. This is where a Hotel Representation Company comes in. A Hotel Representation Company aids with your distribution strategy to ensure you receive as many reservations as possible at a reasonable rate and an attractive cost of sale. A Hotel Representation Company can also add real and measurable value to your business through different demand-generation activities.
- A Channel Manager that allows hoteliers and property managers to update multiple online booking sites automatically every time a change in availability, pricing, or stay restriction occurs.
- Group Sales, Catering, and Events system to enable effective management and booking of group business, including capabilities to receive requests for proposals and event bookings via the hotel’s IBE.
- Strategic distribution and pricing tactics are used to sell perishable room inventory to guests at the right time, boosting revenue growth via an integrated Revenue Management System with all booking channels.
PRE-ARRIVAL AND ARRIVAL EXPERIENCE
A smooth, frictionless arrival experience, including seamless hotel app navigation, will differentiate hotels from the competition and increase guest loyalty.
Whether mobile or web-based, digital applications (hotel apps) are an increasingly important tool for meeting customers where they are and catering to their communications and engagement preferences. They drive guest selection and booking processes and can deepen loyalty among existing customers. Hotel apps can also activate new amenities, like keyless entry and contactless payments.
80% of hotel guests would download a hotel app that enabled them to check in, check out, and get all the information about the hotel when traveling, a 10% increase compared to March 2020. Based on these experiences, a hotel’s credibility increases, which is connected to improving the long-term relationships between hotels and guests.
So, if you’re wondering if you need an app for that … the answer is probably yes. Here are twelve ways digital properties connect with their guests through the hotel app:
- Booking. Users can make and manage reservations, share details, and add trips to their calendars. They can also save favorite hotels and room preferences for future bookings.
- Mobile check-in. Guests can use the hotel app to check in before their stay (sometimes up to 2 days) and arrive at the property. A popular feature found in a growing number of hotel apps is the ability for the guest to choose their room with the option to add specific attributes (e.g., fireplace, view, etc.) for an additional fee (think “attribute-based selling”). The hotel app sends a notification when rooms are ready, and guests can use a mobile key to skip the front desk if they choose. They can also get information about property amenities and opt out of housekeeping to “go green.” Some properties “reward” their guests for opting out with frequent flier miles or complimentary food and beverages.
- Mobile keys. Recent surveys revealed that 73 percent of guests would download and use a hotel app to open their room’s door. When a room is ready, a mobile key is delivered to a guest’s phone (or, with some brands, their Apple Watch). Mobile keys can enter sleeping rooms, parking garages, and other guest areas. The hotel app also includes maps and directions to help guests find their room.
- Chat. A chat feature connects guests to staff, or chatbots, for answers about the property and local area. This feature is also valuable for a common platform to enable staff-to-staff communications.
- Guest requests. The hotel app’s request feature gives guests a list of amenities to customize their stay, like extra blankets or pillows. The app also lets guests request housekeeping services, extra toiletries, or luggage assistance.
- Food and beverage. Guests can browse menus and order food—even if they’re not in their room. They can choose a delivery time and place, like a hotel conference room or poolside. The Criton survey also reported that 47% said they would be more likely to order in-room service or to go to the hotel restaurant if they could use a mobile app to place their order.
- Maximize revenues. Hotels can analyze user data and preferences to send personalized offers and promotions directly to app users. For example, if guests frequently book spa treatments, the hotel app can notify them about a discounted package or last-minute availability. These tailored offers generate additional revenue and create a sense of exclusivity and value for the guest. Other examples include late check-out, early check-in, upgraded room (e.g., rooms categories with a better view, larger suites, or in-room amenities like a soaker tub or balcony, in-room food, and beverage), specially stocked mini bar, chilled champagne, bottles of wine, or a fruit basket, and reservations for activities, golf, restaurants, and other property venues.
- Local travel. Live maps and traffic information help guests navigate their surroundings. Guests can also track airport shuttles and see estimated wait times.
- Language barriers. It is common for hotels to receive guests from all around the globe, and with a hotel app that supports various languages, it is possible to avoid miscommunication and help the staff deliver better service. It is sometimes complicated for international tourists to have a direct experience regarding their destinations, so they usually gather necessary information through web searches and social media insights. A hotel app provides a personalized space where guests would be privy to detailed destination information about their stay. Hotel app content can help international tourists customize their travel plans, and by introducing various tour package programs with pictures that encourage guests to experience local culture, foods, and historical sites, the application can encourage more international travel.
- Account management. Guests can edit and update their profiles in the hotel app. They can also manage email subscriptions and loyalty programs, see booking history, and request priority services or late checkouts.
- Loyalty management. The hotel app tracks a hotel brand’s guest loyalty program, too. Users can instantly earn and redeem points on the property or at participating restaurants.
- Upselling. When done well, upselling can benefit guests and the hotel. It allows guests to customize their stay while increasing the hotel’s average spending and revenue.
I often ask, “With all the advancements in hotel technology in the pre-arrival and arrival stage, why do we still have the traditional front desk? Is it time for hotels to rethink their purpose?”
Useful technology tools for Hotels at the Pre-Arrival and Arrival stages:
- Connected Customer Relationship Management system to your Property Management System and hotel app to deliver personalization, communications, and consistent service to loyal customers.
- Hotel apps are an extension of your front desk, concierge staff, booking agents, housekeeping, transportation, and food and beverage teams. They deliver a consistent, on-brand response and engage with guests exactly how and when they want to be served.
- Ability to reserve, in advance, hotel amenities such as restaurants, golf, spa, and other events and activities available at the property via an integrated Internet Booking Engine.
- The Property Management System (PMS) facilitates a hotel’s reservation management and administrative tasks. Critical functions include front-desk operations, reservations, channel management, housekeeping, rate and occupancy management, and payment processing.
STAY EXPERIENCE
A significant function technology covers for these stages is automating standard processes between guest service agents and their customers, effectively saving businesses time and resources and helping customers answer common queries and problems faster.
From a technology perspective, this stage is also the most crowded section of the guest journey. Due to this, a key consideration must be taken when integrating disparate systems. Integration in hotel technology is nothing but connecting data, applications, APIs, and devices to the existing technology stack. Integrations not only connect but also add value to the existing framework. They make the hotel technology more efficient, productive, and agile with the capabilities. Poor or improper integration can lead to operational inefficiencies, lost revenues, and unhappy customers.
Technology is essential in the hospitality industry because it improves operations and the customer experience. Without it, the workplace can be overwhelming. But when suitable systems are in place, the staff can provide stellar customer service. An optimized hotel guest technology experience ensures guests feel welcomed, satisfied, enriched, and valued for their money. It’s essential that the guest experience feels authentic and unique to every individual to create a lasting memory for the customer and encourage them to return once again.
Some examples of how technology can impact hotels include:
- Check-in and check-out. Technology can speed up these processes, reducing wait times and making things more convenient for guests.
- Automated services. Automated services, such as room delivery, customer surveys, and feedback systems, can make service delivery more efficient and cost-effective.
- Guest information. Guests can digitally access relevant information about their stay, like room amenities, local attractions, and service hours.
- Customer service. Hotels can use artificial intelligence (AI) to perform customer service tasks. AI can also help hotels learn more about travelers to tailor their experience to meet specific needs.
- Marketing. Hotels can use digital marketing strategies to reach potential guests online and optimize their marketing efforts.
- Sustainability. Modern consumers often want hotels to be as energy efficient as possible.
Useful technology tools for Hotels during the Stay stage:
- A connected Customer Relationship Management (CRM) system to your Property Management System and every other system in the technology stack containing a customer profile to deliver personalization, communications, and consistent service to loyal customers.
- Hotel apps, either mobile or web-based, are an extension of your front desk, concierge staff, booking agents, housekeeping, transportation, and food and beverage teams. The app should feature the ability to request services, order room service, and reserve hotel amenities such as restaurants, golf, spas, and other events and activities available at the property.
- The app should also feature Guest and Staff Communications, which allows guests to communicate with staff and staff to communicate with other staff.
- The Property Management System (PMS) facilitates a hotel’s reservation management and administrative tasks. Critical functions include front-desk operations, reservations, channel management, housekeeping, rate and occupancy management, and payment processing.
- If the PMS does not feature enhanced Housekeeping Management or Maintenance capabilities, these systems provide features including process management, room attendant assignment, work order management, and preventative maintenance.
- An Event Management System (or event management software) that streamlines the planning, organization, and execution of events. It encompasses a range of features such as event registration, banquet event orders, scheduling, attendee engagement, and post-event analysis.
- A Point-of-Sale (POS) system handles ordering and payments for food and beverage operations and the sale of other retail goods and services.
- In-room technology such as smart TVs, Wi-Fi access, and charging stations enhance guests’ comfort and convenience. These technologies enable guests to access entertainment options, stay connected, and charge their devices quickly. Guests can use voice commands or intuitive interfaces to control room amenities, lighting, and temperature. Rather than the guest contacting the front desk for service, a voice-enabled bot reached via an in-room tablet or mobile app can send an alert automatically to summon help faster. The data collected and stored in the CRM by these technologies can also help improve the guest experience during future visits.
REFLECTION STAGE
Guest satisfaction is an indicator of a hotel’s operations. Happy guests contribute positively to the bottom line through reviews, referrals, and repeat business. Consistently high guest satisfaction leads to increased customer retention rates, which minimize acquisition costs. Here are some ways hotels can improve guest satisfaction:
- Service quality. Providing quality service is the most critical factor in guest satisfaction. Exceptional customer support can help retain guests and make them feel delighted.
- Cleanliness. Well-kept rooms can increase the likelihood of guests choosing a hotel again.
- Loyalty programs. Rewarding loyal guests with special rates, offers, gifts, or promotions can help keep them coming back.
- Guest feedback. Asking for and listening to guest feedback is essential for improving customer retention. Simple forms or surveys are an excellent way for guests to share their experiences.
- Memorable experiences. Every aspect of a guest’s stay matters, from their interactions with staff to the details of their room.
- Quick response times. Addressing guest requests quickly, such as providing an extra pillow or responding to a complaint, can help keep customers happy.
To measure guest satisfaction effectively, it’s crucial to employ a multifaceted approach. This involves gathering insights through customer surveys, analyzing online reviews, and monitoring social media channels for guest feedback.
Useful technology tools for Hotels at the Reflection stage:
- A connected Customer Relationship Management (CRM) system to your Property Management System and every other system in the technology stack containing a customer profile to deliver pre-, during, and post-stay communications and surveys to guests with an effective tool to monitor their results. The CRM should also be the basis of the Loyalty Program for independent operations.
- Implementing an effective Reputation Management practice that influences guest perceptions and public conversations about your operation. This includes monitoring perceptions and conversations, responding to reputation threats, and proactively seizing opportunities to boost reputation.
- Effective Business Reporting and Analytics to gather and present data in a structured format such as dashboards, graphs, and tables. Organizing information in predefined KPIs and metrics makes it easier to understand what is happening and analyze your data to identify patterns and gain insights.
