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?
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.