World Panel
Viewpoint10 October 2019

Why are there so many hospitality technology vendors in our industry? (Part I)

Digital Marketing in Hospitality

— 12 experts shared their view

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This viewpoint was created by
Max Starkov, Adjunct Professor NYU Tisch Center for Hospitality and Hospitality & Online Travel Tech Consultant
Erik Muñozsupplier view
Chief Commercial Officer (CCO) at Lybra.tech

There are easily more than half a million hotels around the world, so there are naturally thousands and thousands of hotel tech suppliers servicing them. At the lower end of the scale, under 50 rooms, there are several suppliers who do indeed provide an 'all-in-one' solution, as defined by the basic requirements of that market segment. However, those basic requirements don't scale to the more advanced and detailed needs of larger hotel businesses.

Opera Hospitality became a global hotel tech giant when the American MICROS point of sale business bought the European Fidelio PMS business, however, they still don't have an all-in-one solution - but they could quite easily acquire the missing components one day - particularly as the parent company Oracle are already strong in ERP and CRM solutions. 

As the hospitality tech market matures and undergoes more consolidation, we can expect larger all-in-one suppliers to emerge, however, there will always be specialists in certain product categories, referred to as 'best-in-class'. The decision for the hotelier will then be a choice between the benefits of a 'one-stop-shop' versus integrating 'best-in-class' solutions. This is the same decision that businesses in other industries face today.

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