Technology

I don't believe that this is about Billions of dollars or even percentages of revenue. It's about a willingness to change, and unfortunately we are not very good at that. In our industry innovation or R&D does not have to be very technical and therefore does not have to be done by specialists.

Lots of us think that there is not enough investment in innovation in the hospitality industry. I disagree - at least as it relates to the investment by chains. When you include technology refurbishment and renewal, it is the independent properties and to a lesser extent the loosely managed brands such as Best Western individual member properties that fall behind.

Digitization means democratization. Today it is not the budget that decides but the competence of the management about success and failure. Hotels should invest first and foremost in the quality of management, in their continuous education and training.

Even though still in the Buzz word stage, AI will play a massive role in our industry. Most will state that it will be a customer facing technology. From concierge robots who can interact with guests to chatbots and messaging.

Revenue management systems (RMS) were once amongst the hottest technologies in our industry. Unfortunately, we have not made much progress beyond hurdle rates, last room availability and length of stay powered by basic algorithms that haven't changed much.

Artificial Intelligence is not new to the hospitality industry in the specifics of narrow intelligence. The industry has long had technology capable of providing decision support or executive information around specific and targeted sets of consolidated information.

Does anyone remember the NCR 4200. Used as the front desk and night audit posting machine? That dinosaur was replaced by what we thoughtlessly named the “PMS” (which would have been better named 'PMIS” for “information system.”) Well, it is about 46 years later and things surely have changed.

There will always be a system that is at 'the heart' of a hotel, whether we call it PMS, CRS, CRM, CRPMS or something else with a C or a P in it... We need a place where we can store inventory, rates and customers. Our problem today is that we don't have a single platform.

Hotels need to get back control of the data on their businesses and especially on their guest. the latter can be enabled by "service bus technology". Adding onto this the approach of working with SAAS platforms this starts to become possible.

The hospitality industry is definitely lagging behind other industries when it comes to technology. The check-in and check-out process for example has not fundamentally changed since, well ... ever ... In my opinion there are three main reasons (or should we say excuses?) for this, as well as many smaller ones.

A big part of this issue is due to the fragmented stakeholder situation in our industry. There is a) the brand (Franchisor) and their priorities to push the brand distribution and franchise fees. b) the management company that aims to maximize revenue and profit (as it will in most cases increase their income of management fees); and c) the owner or asset manager of the hotel who's priority is to maximize the EXIT value of the property.All these stakeholders compete for the available investments (FF&E) funds.

This is a two sided problem. Hoteliers are not investing enough into technology and will keep using it till it breaks or stops working. There are no or limited return on investment calculations that are used. Investment in technology is also too low and does not receive the priority that it should.