What are the REALISTIC technology solutions with the greatest impact in 2022? STR just released some troubling data, clearly showing that IT spending in U.S. hospitality during the pandemic shrank significantly compared to 2019, dropping to as low as 50% in 2020 and rebounding slightly to 70% in 2021 of the pre-pandemic level. Even worse is the drop in payroll (wages and benefits) to hotel IT personnel throughout the pandemic, ending the year at 46% of the 2019 level. Technology spending in Europe and APAC follows a similar pattern.
Due to all the lingering pandemic-related uncertainties, I do not expect that hoteliers would double or triple their technology investments in 2022. I believe these are the more realistic top technology applications and solutions that can have the greatest impact in hospitality this year:
Contactless Guest Experience
Implementing contactless guest experience is the one of the few realistic ways this year to lessen the negative impact of the current labor shortages and unsustainable labor costs.
Great hospitality does not necessarily mean people-provided services. Let's stop crying about losing the human touch, the human component in customer service. One-third of total accommodation stays today are at short-term rentals where services are being delivered in a completely human-less, contactless guest experience fashion.
Investments in contactless technology are also necessitated by the exceedingly tech-savvy guests and their exceedingly high technology expectations, which are around self-service, so let's give the DIY-obsessed consumers what they want!
Contrary to what some in the industry believe, contactless guest experience DOES NOT mean only contactless check-in, but the full guest experience pre-, during- and post-stay: from mobile check-in and mobile keys or self check-in kiosks, issue resolution and guest communications via messaging, housekeeping-on-demand program, self-selection of room from digital floor plans similar to how you choose your airline seat, voice assistants in the room, virtual concierge, IoT- controlled utilities, self-ordering kiosks in F&B, self-service vending machines, chatbots on the property website, CRM technology to engage customers and keep the conversation going.
Example: You can reduce your front desk staff by 50% or more by introducing mobile check-in and mobile keys, self-check in kiosks, chatbot on the website to handle service and information requests, email reservation assistant app to handle email booking requests, an issue resolution technology applications and voice assistants in the rooms to handle customer service requests by stay-in guests. All of this at fraction of the payroll expenses.
Today's cloud PMS lime Opera Cloud, StayNTouch, Protel, CloudBeds, Mews, etc. all offer various mobile checking and all aspects of the contactless guest experience via native or third-party applications.
Guest messaging and issue resolution
The issue with calls is that when guests call the front desk, someone there - an understaffed, over-worked and under-paid front desk clerk has to pick up the phone and waste precious bandwidth to handle quite often mundane requests or issues. There over 4 billion users of messaging services worldwide, so no wonder that 64% of guests want to communicate with hotel staff via their own smartphones. Adopting guest messaging and issue resolution applications like Knowcross, Runtriz, Zingle, Guestware, Beekeeper, etc. via guests' own smartphones or voice assistants in the room like Volara and Intelity not only improve customer satisfaction and staff efficiency, but reduce the need for human customer service.
CRM technology
In the post-pandemic era, success in bringing repeat business will make or break the property. You cannot have a meaningful repeat business (15-20 times cheaper than acquiring new guests) without a CRM technology and program in place. Only a meaningful CRM technology application - as part of your hotel tech stack - can ensure deep engagement with your past and future guests.
CRM tech not only provides automated pre-, during- and post-stay communications, guest satisfaction surveys, guest retention marketing automation and drip marketing campaigns, but takes it a step further via guest recognition program management and loyalty marketing. All of these fully automated CRM initiatives keep “the conversation going” with your upcoming and past guests, keeps them engaged and steers them in the right direction: to book your hotel when it's time for them to visit your destination again. In addition, you can use your CRM first party data about your best guests to launch similar audiences marketing on Google, Facebook, Instagram, etc. to target potential customers with similar characteristics as your best guests.
CRM technology has become widely available and reasonably priced via hospitality-specialized vendors like Cendyn CRM, Revinate CRM, TravelCLICK GMS, etc., yet less than 10% of independent hotels have implemented CRM programs in place.
CRM initiatives in combination with ORM (Online Reputation Management) tech can turn your happy guests into brand ambassadors and avid social media influencers.
Chatbots on the property website
A chatbot on the hotel website like Asksuite allows the hotel to engage users, answer their questions and steer them toward making a booking 24/7. Over 60% of interactions with the chatbot happen outside of business hours and over the weekend, when the hotel is severely understaffed Chatbots provide users with information through text, images, video, audio, etc. and serve as your property's 24/7 virtual customer service department. Ex. Edward, the chatbot of Edwardian hotels in London responds in real-time and round-the-clock to inform on hotel services and amenities, make recommendations, handle customer complaints, etc., thus relieving the work load of the front desk.
The list goes on and on. Technologies that exist today can significantly reduce staffing needs and labor costs in all stages of service delivery, from pre-arrival customer engagements to on-property guest services and post-stay customer retention.