As we reach six months into the COVID-19 pandemic, the state of hospitality has remained the same. Our industry is the first to get hit and the last to recover. Some properties are partially open, others are temporarily closed, while a few have not survived and shut their doors permanently. For those hotels that are open, you may notice the guest experience has evolved.

The hospitality industry has shifted its focus from personal and hospitable interactions to a more distant and safeguarded experience. Mobile application technologies have flourished in the past few months. However, some hotels remain closed and are unwilling to adopt this new guest experience. I was interested to hear how other hospitality vendors were fairing during the pandemic. So, I turned to my friend, hospitality technology guru, and industry powerhouse, Michael Caruso, for his hospitality "state of the industry" climate thoughts.

Michael Caruso is a thought leader, influencer, and trusted advisor with over 20 years in the hospitality industry. Michael is a sales leader and works with major software companies, as well as being an entrepreneur helping hotels, casinos, and restaurants with digital transformation and meaningful growth strategies.

Let's get started!

Kal MacDonald: How have the pandemic and hotel closures affected the vendor side of hospitality and gaming?

Michael Caruso: There has been a noticeable effect on vendors delivering solutions in the hospitality industry. Since April, I have seen a few key changes that are worth noting. First, hotel closures have caused delays or cancellations of tech-related projects that were slated to move forward in the first half of 2020. The exception would be hotel and casino construction projects that are still moving forward, and owners are making technology purchases for these hotels. Second, solutions that were deemed "nice to have," such as mobile apps or text solutions, are now almost required by hotels to create a touchless guest experience as a safety protocol for both guests and employees. Companies that have these guest-facing solutions as part of their portfolio could have an advantage for new revenue opportunities and create value and safety for their customers. Most markets are slowly opening with the exception of New York City and Los Angeles, which remain on tight lockdowns. But the gaming industry has been hardest hit; with the global travel "guest supply chain" not bringing customers to gaming and convention cities like Las Vegas, casinos will see a slower recovery than hotels that don't rely on gaming, entertainment, or conventions.

Kal MacDonald: Will the guest experience adjust to a less hospitable interaction with hotel and casino staff? If so, how do you envision the new guest experience?

Michael Caruso: The new normal is digital and touchless guest interaction. How hotels pivot, especially five-star resorts and casinos, to manage this change will be challenging, but also offer new marketing opportunities to promote safety, technology, and a digital guest journey. Global brands have been working on or have delivered digital apps complete with features allowing reservations, check-in and out, and mobile key for years now. Most travelers coming to popular places, especially Las Vegas, would appreciate the ability to use a mobile key and bypass the front desk versus standing close together in long lines to register. I can only imagine a positive effect by providing guests access to these solutions. If marketed properly, especially by five-star hotels, the use of digital technology around the resort for in-room dining and guest service requests would only enhance the hotel experience.

Kal MacDonald: During this pandemic, what technology would you recommend to hotels and casinos to help bring back guests?

Michael Caruso: I struggle with this every day. I speak to hotel owners, management companies, and consultants about the best technology options to keep guests safe. The states and cities have to make the environment hospitable for guests to return; technology cannot help or change what is happening in places like New York City, Chicago, and Portland. The most valuable technology available will provide a touchless guest experience - that is easy to say, but when you research the available solutions on the market, not all handle an end-to-end guest journey. Also, for independent hotels and resorts, they need to invest in FF&E (Furniture, Fixtures, and Equipment) like Bluetooth locks that allow mobile apps to deliver a digital key directly to a guest's phone. The pandemic has exposed gaps in existing hotels technology, but also provides for opportunities for construction projects to ensure they build out infrastructure to accommodate touchless experiences that they can promote and drive a safe business environment for the guest.

Hospitality Influencer Michael Caruso— Source: PercipiaHospitality Influencer Michael Caruso— Source: Percipia
Hospitality Influencer Michael Caruso— Source: Percipia

Kal MacDonald: How will COVID-19 challenge vendors to evolve their solutions for this pandemic?

Michael Caruso: That's a very good question. Only time will tell which vendors can pivot fast enough to create value in their solutions around COVID restrictions. Do legacy companies build, buy, or partner to deliver features like ordering food and beverages from a device, mobile registrations from a phone, or mobile keys that take advantage of BLE technology? Can these technologies be easily integrated into native platforms or their operational systems? We will see how things unfold for our industry. It certainly can be a growth strategy if positioned correctly.

Kal MacDonald: How will a release of a vaccine affect the hospitality timeline? Do you think hotels will need to take a year or two to recoup lost income before spending on new technologies?

Michael Caruso: Having a vaccine will provide more confidence to the public that traveling is safe. I don't believe our industry can fully recover until the public sees a proven effective vaccine - then people will come back quickly. Why? Because traveling is vital for business and pleasure, it's part of our culture. Also, everyone has been cooped up for so long they are ready to get back to traveling, although those trips may be different or closer to home than previous years. I am concerned about traveling to European and Asian destinations, as those markets have been off-limits to Americans since the start of the pandemic and international markets may take longer to recover. There are also destination markets in the US that depend on visitors from these international locations; even with a vaccine, it may be some time until markets like Orlando, Las Vegas, and New York City return to pre-Coronavirus occupancy from overseas visitors. It will take rebuilding the pipeline of conventions as well, not just leisure travel, because convention business is booked years in advance and right now there is no date range when this market will recover. The loss of convention business alone is what is really hurting markets like Vegas.

I don't believe hotels, hotel management companies, or casinos will wait years to spend on new technologies. The new normal is digital experience solutions - we've been having conversations with owners about making these types of investments for years and now they understand these purchases are just as important as disinfecting supplies. Even with a vaccine, we should see a continued trend towards these investments so the public will feel comfortable using apps, texting, or in-room tablet or voice devices for every service level from making reservations, checking-in, and making service requests. I worry that hotels that have closed may not reopen, or companies with multiple hotels will consolidate to maintain recovery of their business revenues in key markets - in this case, the amount of spending could be affected due to fewer opportunities available.

Kal MacDonald: Do you have any words to your fellow vendor colleagues affected by hotel closures, furloughs, and layoffs?

Michael Caruso: Hang in there and focus on companies that want to make technology investments today. Ask the right questions that expose gaps in their business where these solutions can help. There are areas of our industry booming right now, such as national parks, campgrounds, beach resorts, and other middle America destinations that are open for business and need the technology our industry provides. Don't stop having conversations with hotels that are closed; find out what their timelines are for opening and be available when they are ready to move forward. Tell customers, now is the perfect time to re-tool their technology and to be ready for when they reopen, and guests return. There is no doubt that the pandemic has caused our industry to shrink ­- from cruises to airlines dealing with half the passenger count they did a year ago. Our industry was booming last summer and was on track for the best revenue records in 2020. What things look like on the other side is still unknown. We are all hanging on, but not sitting idle the second half of the year. We feel for all the colleagues and customers who have been laid off, especially those in the casino market. Anything we can do where technology can help drive business and allows everyone to get back to work would be welcomed by all.

This time next year, it will be exciting to see how the guest experience has evolved. While the hospitality industry's fate is still uncertain, we can find comfort that vendors have stepped up to adapt their solutions to get guests back into the door. It is apparent that hotels, casinos, resorts, convention centers, vendors, and consultants must come together to salvage as many employees and properties as possible. We must survive.

About Percipia

Headquartered in Chicago, Illinois, USA, Percipia's mission is to continue to be a respected leader in hospitality technology by delivering telephony and mobility solutions, software, and services in the most innovative and cost-effective way. Parallax application (formerly PTCE) was introduced 23 years ago, which enabled them to interface existing telephony systems with nearly all property management systems and third-party applications. Since then, Percipia has evolved its product offering to include a full-featured hospitality telephone system, custom mobile applications, and AI Voice platform, which enhances the guest experience and streamlines operations.

At Percipia, they pride themselves on their ability to provide reliable and exceptional service to their global partners, clients, and guests. The Percipia team works diligently to build next-generation innovative solutions based on hands-on knowledge of the industry. As a result, they have become a trusted and respected organization that always leads with hospitality.

For additional information about Percipia, call 800-806-0408 or visit www.percipia.com.

Kal MacDonald
COO
Percipia

View source