Some hoteliers (brands & management companies) believe that developing tech solutions in-house is cheaper and provides better customization to the hotelier's concrete needs and control over the ongoing maintenance and performance. Another school of industry-thought believes that hoteliers should focus on their core competencies: providing the best customer experience and best returns possible to ownership and outsource technology applications, products and solutions to specialized vendors.

So the question is, in this era of rapid technological advancements and adoption of next-gen technologies such as AI, IoT, automation, robotics, blockchain, etc., should hoteliers keep technology developments in-house or outsource to specialized, well-funded vendors?

Max Starkov
Max Starkov
Hospitality & Online Travel Tech Consultant

I am a firm believer that hoteliers should stay focused on their core competencies to prosper in today's complex, hyper-dynamic environment. Unfortunately, technology is not and has never been one of hotelier's core competencies. Practically all of today's best-of-breed hotel tech solutions are provided by third-party tech vendors: from PMS, CRS, RMS, CRM, CMS, ORM, Smart Rooms, eConcierge, Self-Service Kiosks, etc.

Today's hospitality is being transformed into a 100% digital technology-enabled industry powered by online, mobile, cloud, IoT, AI and blockchain tools and applications. Digital technology is making its way into every aspect of the industry: hotel operations, guest services and communications, revenue management, distribution, CRM and marketing. Hoteliers need to invest in, understand and operate two categories of guest-facing digital technology:
  • Guest Engagement, Acquisition and Retention Technology – these are technology applications focused on engaging and bringing the guest to the property, continuing the conversation pre-, during and post-stay and eventually turning the guest into a loyal and repeat guest.
  • Guest Services Technology – these are on-property hardware devices and appliances, and software applications (on premises or cloud-based) that provide or enhance guest services, improve guest comfort and satisfaction and enable smart rooms, customer service and communications.

No wonder hoteliers are overwhelmed by the amount of technology, data and digital solutions and devices needed to operate today's property. Can hoteliers develop all of these technology solutions in-house? Definitely not! 

Due to the increasing complexity of hotel tech and the need to implement cutting edge technologies like AI, Internet of Things (IoT), Voice Assistants, Chat Bots, Robotics, and Blockchain, hoteliers would need significant investments to staff up, innovate and develop tech solutions in-house. As a result, I believe hoteliers will continue to outsource their tech needs to outside specialized tech vendors. 

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