Why are there so many hospitality technology vendors in our industry? (Part I)
— 12 experts shared their view
(Digital Marketeers Perspective) Some hoteliers are rightfully disoriented in the current myriad of hospitality technology vendors and solutions and are dreaming of a one-stop-shop tech solution that will cover all of their PMS, RMS, CRS, Channel Manager, CRM, CMS and DMS needs. The question is, 1) is the one-stop solution already here?, 2) Will a future one-stop-shop solution be viable enough vs the current multitude of specialist hotel technology vendors... or 3) Will we never see such a solution.... and why? (also have a look at IT Professional Perspectives on this topic)
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.