Digital transformation is more than disruption or technology. It’s about value innovation, a growth mindset, people, optimization, understanding every touchpoint in the customer experience, and the capability to rapidly adapt when such is needed through intelligent and cost-effective use of technologies and information.

In this article, we will lay out the ultimate digital transformation plan that will rescue any hotel, whether you have an exciting plan in place or not.

Are you ready to start a new unique digital transformation for your hotel? If yes then keep on reading.

Where do hotels stand with digitization today?

Here in the United States, we are now experiencing that businesses are starting to bounce back again. And people, in general, is eager to travel again.

Both business and leisure travel is picking up tractions again.

On the surface, this sounds like good news for the hotel or for that matter the hospitality industry. But the hotel industry now faces a new challenge in a labor shortage.

And several hotels tried both known and new tactics to attract employees back to the industry. People that previously worked in the hotel industry and either were laid off or furloughed don’t appear to be sympathetic enough to the industry’s current need. And other people have picked up on this sentiment, and rather prefer other industries.

You might ask what does this have to do with digitization?

Well, the short answer is everything.

The missing digital link

Digitization is built on several principles, but hotels have missed out on simple human-to-human principles.

And it is on the most basic principles where hotels are behind compared to brands that experience a smoother recovery from the pandemic. It will do you no good investing in tech and digital tools if your hotel just doesn’t get the most basic principles.

Hotels must start to create a culture of trust and commitment that motivates people to execute the agreed strategy, not to the letter, but the spirit!

It is key that hotels start to use the high-value resource as an employee to understand the importance of building a tribe that will grow into a high-value community with a large network. The community will drive a positive reputation for the hotel which they will share with their network.

Turn your employees into high-value dedicated hotel advocates that take ownership of helping customers understand the value of what the hotel brings to them.

Connectivity

Reimaging your new workplace starts with connectivity.

We want the future for hotels to be a smarter connected workplace. A smarter workplace is a dynamic digital transformation process.

The idea for your hotel is to become more effective and productive as a result of digital solutions helping employees become more confident and happier in their new workplace.

Today we must look at digital solutions that make it easy for the hotel to provide ongoing training programs that support the day-to-day operation. But in addition, also provide alternative courses that make cross-training in different departments easier.

Collaboration

Many experts today indicate that collaborations are the new competitive advantage. I will also argue that collaboration is what will allow your hotel to tap into new uncontested markets.

Innovative brands today provide meaningful and exciting rewards for their employees. Brands are starting to utilize more experimental rewards like a once-in-a-lifetime rewards.

The key behind these types of rewards is that they are extremely motivating and engaging.

As a result, the employee ends up becoming more connected to your hotel and will start sharing sentiments with their peer and network that will pay back the hotel in dividends.

Make your hotel employees part of critical decision-making processes that help your hotel bounce back to a new and bright future.

Embrace an innovative inclusive workplace.

Community

To create a rewarding community, you need to start by embracing a new culture for your hotel.

I already enlisted several steps that will lead your hotel up to this point.

Hotels need to involve employees in helping them create a new mission statement. The employees will feel they are working towards a goal that is bigger than themselves.

All the elements in this process focus on value innovation and a growth mindset.

You want your employees to become unique brand ambassadors for your hotel.

Since your hotels will implement new innovative connectivity ideas this will open the doors to implementing unique alternative training programs.

What if your employee wants to learn Scooba diving? Paragliding? Playing piano? Social media? AI programming?

If your hotel has done your homework, you should have a picture of your new ideal customers.

When introducing a new culture for your hotel also make sure you involve your employees in helping you to identify your new ideal customers.

You can trigger some ideas from the customers’ skillset to help employees engage with customers at a unique level.

Remember this is about building a community that will truly understand the value of making a direct booking with your hotel.

Digital Transformation mindset

Cultivating a digital transformation mindset has been a challenge for many leaders in the hotel industry.

For many hotel leaders, the environmental structures often define their strategy. Is the hotel industry growing or shrinking? Is the customer demand up or down?

And when faced with new challenges, declining demands, and increasing costs this will shape their actions.

A digital transformation focus on shaping new hotel industry conditions in their favor.

And instead of focusing on a highly competitive red ocean digital transformation focus on making the competition irrelevant.

With a digital transformation mindset leaders shift focus from fighting over existing customers to capturing and creating new demands.

Traditionally hotel leaders have focused on value-cost trade-offs either creating greater value for customers at a higher cost or creating reasonable value at a lower cost.

Digital transformation focuses on differentiation and low-cost simultaneous by creating a leap in value both for consumers and the hotel industry.

With a digital transformation mindset, hotel leaders adapt and respond well to transformations and disruptions. They are curious and committed to learning. Failures and concerns are seen as learning opportunities. They are comfortable with experimentation and iterations. And they incorporate sustainability, inclusiveness, diversity, and well-being processes for the greater good of the hotel industry.

Get Started with your Hotels Digital Transformation Plan

Source: Are Morch, Digital Transformation CoachSource: Are Morch, Digital Transformation Coach
Source: Are Morch, Digital Transformation Coach

A report from McKinsey & Company shows one trend in China that accelerated during COVID-19 is digitization. It has not only impacted business-to-consumer (B2C) applications and channels, but also the also less traditional digitized part of the economy, such as areas requiring physical contact, and business-to-business processes (B2B).

And the first wave of travelers is younger people that are more accustomed to using digital channels during all touchpoints of their customer journey.

Source: KhorosSource: Khoros
Source: Khoros

One extremely important point for hotels to understand with this trend is that the younger generation of travelers is looking for brands to lead the way and they want brands to create change with them, not just for them.

Don’t invest in digitalization just because of the trends or for the sake of just doing it. The purpose of the digital marketing funnel for Hotels is to help you make the best decision in a relevant context.

Digital Transformation Plan starter tips

Here are some tips before you start to outline your hotels’ digital transformation plan;

  • Start with your employee and then the customer. Build your plan around employee and customer insight and needs, not around your service offers and tactics.
  • Keep it flexible. It is essential today to be flexible with your plan and have the ability to adapt and change quickly.
  • Set realistic and smarter goals. Make sure your goals are understood by your employees, and that they buy into them.
  • Keep It Simple! Again it is important that everyone is on board and has understood the purpose of the digital transformation plan.
  • Keep the plan up to date. Review the plan together with your employees on a weekly, monthly, and quarterly basis to learn what is working and what is not working.
  • No plan is perfect. Don’t sweat or worry about perfections. Remember imperfect action can be adjusted.

Understand where your hotel is now

It is time to start mapping out where your hotel stands today.

SWOT Framework

When creating a digital marketing plan, SWOT (Strength – Weakness – Opportunities – Threats) analysis is an essential step.

The SWOT framework is a great way to get a better perspective of what you do well, address what you’re lacking, minimize risks, and take the greatest possible advantage of chances for success.

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Are Morch
Digital Transformation Coach
Are Morch, Digital Transformation Coach