Investing in Technology Innovation - How Much is Enough?
— 13 experts shared their view
view details of this viewpoint
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?
You should always overinvest in things that have compounding results. A good technology plan can support those results and therefore deserves a long-term investment commitment. For example, hotels which have had a strong direct booking strategy (where technology is a key piece) for a sustained period are now getting much better results than those who have been timid about investing on it.