Investing in Technology Innovation - How Much is Enough?
In the first viewpoint of this panel, several experts weighed in that the Hospitality Industry does not properly invest in technology innovation. Apple spent about $15 billion in research last year alone… or 5.5% of its annual gross revenue. We ask ourselves these questions: Is this level of investment purely in R&D also necessary in our industry, and is it possible to get that kind of money? What's your take?
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.
Above all, the CEOs themselves must understand the changing world. The necessary change processes have to be initiated and managed from the very top, the organizations have to be adapted, decision-making competencies are to be rethought and a central data management vision has to be defined and implemented. CEOs need to understand that the guest data and thus the guest must be the focus of the company, not the hardware, ie the hotel product itself.
When that's understood, the budgets are no longer a problem. Until then, the management will continue to invest in the product rather than future-proof the company.