The tumultuous years of conflict are now behind the Sri Lankan tourism and hospitality industry. Since 2009, the $400 million tourism industry has picked up and will soon revisit its days of glory. With projected growth in the industry high, technology will be a key asset as hotels prepare to tackle increasing demand while enhancing operational efficiency. Until recently, only hotel chains and large hotels leveraged technology. As technology gets more affordable and the sector matures, hotels, from small and standalone to chain and boutique should leverage technology to book guests, personalize their stay and get insights into guest requirements for future visits.

How technology aids Hospitality Industry

  • Define strategic hotel business priorities
  • Identify business drivers and enterprise value chain
  • Align business objectives
  • Improve control over processes
  • Improve guest experience
  • Reduce staffing requirement
  • Faster delivery of services
  • Guest loyalty
  • Cost saving
  • Maintenance of market leadership

Technology - The Game Changer in the Hospitality Sector
Until recently, only hotel chains and large hotels leveraged technology. As technology gets more affordable and the sector matures, hotels, from small and standalone to chain and boutique should leverage technology to book guests, personalize their stay and get insights into guest requirements for future visits. Technology has become a significant game changer for the hospitality sector world-wide. It is influencing the way customers access hospitality services and how this sector interacts and services guests. Sri Lanka needs to stay with the trend too.

Gadget savvy guests demand constant internet connectivity. They work, entertain and socialize on smart devices and demand facilities that are personalized, customized and propelled by technology. It is thus imperative that the hospitality sector stay visible on the internet, develop applications for smart phones, and adopt energy efficient solutions for discerning guests. On the other hand, hotels need to adopt technology to stay competitive, excel in a global economy and ensure world class service.

From guest management and property maintenance to employee monitoring, technology is playing a critical role in every aspect of hospitality. As a key driver of growth it reduces the use of manpower, enhances operational efficiency, provides guests a memorable experience and leads to higher loyalty and retention. For those skeptical, the advantages of technology far outweigh the costs. Hospitality enterprises across size and market segment need to grab the opportunity and leverage its benefits.

Locating Hospitality trends
With guests coming in from all over the world, the Sri Lankan hospitality industry has constant opportunity to highlight their growth and smart implementation of technology. In a highly dynamic environment which constantly evolves to guest requirements, there are four overarching technology trends that are currently shaping Sri Lanka's hospitality market.

1. Growing Role of Web in Travel Planning

Hotel Finder Tools
As travelers get technology savvy, an increasing number are turning to the web to plan their holidays, overseas trips, and book hotel rooms. This is also indicative from Google's recent foray into the hospitality segment with its Hotel Finder tool. The increasing traffic of international tourists to Sri Lanka makes Hotel Finder Tools a key method to access the market.

International statistics reveal that 30% of the world's travel sales will be conducted online by the end of 2012. According to PhoCusWright's Global Online Travel Overview Second Edition report, online leisure and unmanaged business travel bookings will grow twice as fast as the total market, to surpass US$ 313 billion by 2012.

Travelers are turning to online hotel booking tools like Hotel Finder due to their numerous advantages in locating best hotel rates, opportunity to compare hotels, and book the right hotels for one's needs.

In response to guests need to plan travel and virtually view stay options, the hospitality industry in the country can no longer wait for guests to come to them, but need to get closer to guests. Hotels, no matter their size, need to start turning to Global Distribution Systems and Internet Distribution System solutions that give them online visibility, allow guests to locate properties and book rooms immediately.

2. User Devices and Content

Mobile Application, Smart Phones, iPads & Social Media
It is hard to believe that smart devices have made their entrance only recently. Their ubiquity and ability to provide connectivity on-the-go have made them indispensible. Smart phones, iPads and tablets have tremendous potential to give guests quick and personalized service. They also offer hotels an invaluable opportunity for branding. The hospitality sector is now developing applications that let guest check-in, view hotel menu and services, make requests and place orders, and even access social networking sites all through applications specially designed for the purpose. The advantage of mobile applications and smart phones are that they allow hotels to communicate with the guests in their preferred language, thus putting guests at ease while ensuring a great experience.

Social media has become the go-to market tool for many businesses, including restaurants. From free drinks for Foursquare check-ins and Twitter notifications about happy hours, to Facebook messages about promotions, there is no shortage of social media applications for restaurants and hotels. With Sri Lanka's diverse Hospitality segment, this cheap and personalized option will help hoteliers engage with their guests in a cost effective manner.

Hotels now have the option of using iPads and smart phones to enhance customer facing activity, and increase internal efficiency. From reserving tables, to managing banquet halls; from responding to guest requests, to tracking cleaning staff, smarts devices can enable hotels to improve processes and increase efficiency while reducing manpower.

3. Convergence in Hospitality and Global Networks

Security, Energy Management, Hotel Infrastructure Maintenance
Until recently, hospitality properties relied on property management systems (PMS) and hotel enterprise resource planning (ERP) to consolidate their property management effort and access business intelligence. This process has gone a step ahead in sophistication with convergence of other areas in the hotel such as security, energy management and infrastructure maintenance.

Advantages of SaaS & cloud computing

  • Delivers faster time to value
  • Requires no up-front capital expense
  • Minimizes operational costs
  • Requires fewer technical resources
  • Simplifies integration
  • Delivers faster time to value

Today's guests are increasingly becoming environmentally conscious, even while energy costs are rising. Even though energy-efficient equipment may be costlier both in terms of installation and capital costs; the hospitality industry is acknowledging the long term benefits to be reaped in terms of reduced maintenance and increased energy saving. A growing number of hotels world-wide are turning to energy efficient lighting, heating, organic food, use of recycled paper, environmentally friendly solid waste management, rain water harvesting and other environmentally friendly options, to enhance their image and earn 'green' ratings. Joining the trend is the Kandalama Hotel at Damulla which received LEED certification for their five star property.

Security is also becoming a major concern and hotels need to have in-depth visibility into their internal security practices and guest security. Hotel infrastructure maintenance is getting more diverse and convergence in hospitality networks allows for a more comprehensive approach to management.

4. Cloud Computing and Software as a Service (SaaS)

Cloud computing and Software as a Service (SaaS) is the next big thing in the hospitality industry. The advantages of SaaS are many, especially for small and independent hospitality properties that are unable to commit large investment in technology. In a SaaS or cloud computing model, a hotel can access high quality technology and latest applications while still keeping investments at a minimum. Its on-demand, pay-as-you-use features can be accessed even from outside the hotel premises, is deployable in just weeks and has the benefit of highly trained network technicians to assist customers return, repair and customize applications.

In conclusion, technology in the hospitality sector is here to stay and while there may be barriers such as, like lack of funds, inability to quantify benefits or general resistance to change, the sector still needs to evaluate the long-term benefits of technology. The hotels in Sri Lanka can reap benefits of implementing technology and reduce mundane work, provide seamless service, offer business intelligence for future planning and enhance efficiency. With technology changing the way hospitality properties run their business and how guests access services, hoteliers need to adopt technology to have an edge over competition.

About IDS Next

Founded in 1987, IDS Next became India's largest hotel software company in its first decade of operations and Asia's largest in 2009.

Today, IDS Next is the leading provider of smart hotel software across Southeast Asia, the Indian Ocean, the Middle East, Africa, and Oceania, serving over 6,000 customers in 45 countries with $10 million in daily transactions and 300,000 daily check-ins.

With the goal to redefine the way hotels operate through smart software solutions, IDS Next has been a trusted technology partner and preferred supplier to the international hospitality industry.

From contactless check-in, front desk, guest request and housekeeping management to payroll, finance, inventory management and procurement, IDS Next's award-winning software automates and streamlines front and back-office hotel operations, making sure all departments are covered.

With an open API approach, IDS Next integrates with over 100 of the world's leading, best-in-breed technology partners to ensure hotel operations run smoothly and securely to complement a hotel's existing systems and solutions.

Available in single modules and as an all-in-one solution, IDS Next's smart hotel software is designed by hoteliers for hoteliers through the company's in-house development team comprising 135 hospitality technology professionals and supported 24/7 by 90 customer services agents in 30 languages.

With all software PA DSS certified, front-of-house solutions GDPR compliant, and the business ISO 27001 certified, IDS Next's smart software solutions are accredited, certified, and compliant with the industry's most stringent standards for data protection and security.

Solomon James
Vice President, IDS Networks Group
+91 9986011611
IDS NEXT

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