2022 Strategic Tech Trends That Will Shape the Future of the Hotel and Travel Industry — Source: Above Property LLC

Steve Jobs once said, “you can’t connect the dots looking forward; you can only connect them looking backward.” At the close of each year, industry leaders find themselves taking a moment to reflect on their critical business processes to identify what worked, and what didn’t, before turning their attention to the year ahead. From a technology perspective, this is a core aspect of smart business. Understandably, 2021 was a daunting year for hotel and travel brands as the pandemic ensured that “business as usual” was anything but. With an anticipated recovery period ahead, this year’s success will rely on leveraging new technologies that will act as catalysts for innovation and growth.

In the coming years, technology adoption stands to completely reshape the hotel and travel business. The era of digital transformation has begun; top executives are shifting away from legacy technological infrastructure to revamp and reconstruct their operations with integrated, cloud-based systems that are increasingly agile. A recent report states that 2 in 3 organizations shifted to more cloud-based business activities in response to COVID-19, with 97% now employing cloud technology and 78% having pivoted. And it’s becoming clear that cloud-based technology is only the beginning – now, more than ever before, hospitality and travel brands must embrace a more connected digital infrastructure, with scalable and flexible solutions that empower longterm innovation and accelerated business growth. From cloud native platforms to composable applications and increased automation, the hospitality industry is changing at a rapid and exciting pace.

Cloud Native Platforms

Cloud-native platforms are defined as a “modern approach to building and running software applications that exploits the flexibility, scalability, and resilience of cloud computing.” In simpler terms, cloud-native software developers are building applications “for the public cloud”, rather than traditional, legacy architectures that we relied on in the past for exclusively on-premise technology. To achieve this, applications are built as microservices on a “containerized platform,” which allows hoteliers to pick, choose, and build services and applications that meet their unique requirements for a truly customizable technology stack.

In this way, cloud native technology enables highly scalable and flexible solutions that can be updated with ease while sharing resources with other applications. Typically, this not only makes for a more “future-proof” digital backbone but also saves hoteliers money while increasing productivity and operational efficiencies and allowing hoteliers to take full advantage of the cloud. In fact, Garter reveals that by 2025, cloud-native platforms will serve as the foundation for more than 95% of new digital initiatives — up from less than 40% in 2021.

Composable Applications

As guest expectations continue to evolve, especially in the wake of the COVID-19 pandemic, hotel brands are expected to adapt quickly to offer enhanced personalization, convenience, peace of mind, and online and offline connection. This begs the question – how can hoteliers adapt quickly if the technology they rely on is, in itself, unable to adapt? Fortunately, this is where composable applications come in.

Think about the last time you purchased a song from iTunes – did you have to buy the entire album? This is precisely the idea that exists at the core of composable applications, better known as “a notion or idea that functional blocks of an application can be dissociated from the complete application or process.” Commonly described as a “modular approach,” composable applications allow hoteliers to innovate their tech stack and adapt applications rapidly and dynamically.

Once again, this taps into the emerging power of microservices architecture for hospitality and travel, moving hoteliers away from the one-size-fits-all legacy framework of the past to break large applications into individual business procedures and workflows. Finally, hoteliers can architect uniquely designed technology stacks that can reuse and repurpose capabilities from critical software to form new applications and piece together digital components like building blocks.

Welcome to the New Era of Automation

We hear a lot about digital automation – but what about hyperautomation? IBM defines hyperautomation simply as “the concept of automating everything in an organization that can be automated.” With this in mind, organizations that hyperautomate typically streamline processes using essential automation tools such as artificial intelligence (AI) and low-code development. To embrace this movement, hoteliers are encouraged to look at their operational framework and IT processes from a bird’s eye view; what can be streamlined and automated strategically? How can ‘digital synergy’ be better achieved to ensure more favorable and intelligent outcomes?

With hyperautomation, hotels can reduce the burden of repetitive tasks and processes while effectively reducing costs and better utilizing resources across their teams. To this effect, Gartner’s research recently revealed 85% of participants will “either increase or sustain their organization’s hyperautomation investments over the next 12 months, and over 56% already have four or more concurrent hyperautomation initiatives.

Looking ahead

As more travel and hospitality brands shift to the cloud technology and harness the power of microservices infrastructure, composable applications, and increased automation, the industry at large unlocks a truly limitless future. Finally, seamless platform upgrades, long-term scalability, precise functionality, increased productivity, and enhanced processing power are all possible - and will usher in a new and improved era of exceptional guest service. The best part? The cost of entry is far less than the cost of resistance.

While no one can predict what 2022 will bring, it’s safe to say technology will continue to be a catalyst for change in the hotel and travel markets. We’ll be there for you, tracking the latest trends and offering insights to help set you up for success.

About Above Property Services (APS™)

Above Property® is leading the charge to deliver innovative, scalable, and services-oriented platforms for the global travel industry and other related verticals. We think differently, and we are constantly innovating. Above Property Services (APS™) offers the only platform that can evolve seamlessly in response to industry demands, with credit to a microservices architecture that empowers continuous development and refinement.

Built from the ground up, the APS ecosystem empowers continuous development and refinement of your critical business processes via a unique microservice architecture. Designed for performance, flexibility, security, and stability, the future-proof framework is up and running quickly, delivering a scalable, cost-effective solution that can work with or replace your existing tools and investments. APS is a platform that adapts to you – not the other way around.

Powering both large and small companies, we understand the industry's challenges in the past, and we have developed a platform that is suited for the future.

Steve Lapekas
Above Property LLC

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