Every property goes through a cycle of renovating, updating and upgrading. Technology in particular has become more of a focus for property owners and operators. And, while many hoteliers are content to run legacy solutions on a property's original infrastructures, the adoption of new technologies, artificial intelligence in particular, are testing the limits of compatibility, staff abilities and processing speeds.
Though AI is bringing with it the promise of a revolution in bookings, guest engagement, and operations, it’s important for owners and operators to understand if they have the infrastructure in place to ensure that new technologies will have a safe and effective impact on their business.
Human first, technology second
The hospitality industry isn’t always at the forefront of technology adoption. This is understandable, because the heart of the industry is human interaction, satisfaction and property upkeep. But there are several reasons beyond this that have held back advancements:
● Most properties face tight margins, which means large-scale upfront investment in technology is difficult to support and can lead to negative outcomes if the investment fails.
● It’s very difficult to show the ROI on technologies that don’t directly impact guests (such as Wi-Fi) or provide immediate outcomes, meaning that hoteliers are likely to reserve capital for well known, more immediate returns.
● Conversely, bringing in too much technology can be overwhelming and can be difficult for staff to learn and manage, reducing the time they can spend with guests.
By deprioritizing system upgrades over the years, many properties won’t be where they need to be with regard to infrastructure. A lower investment in fundamental technologies that make things run means that properties are operating on systems that may be ill-suited, bifurcated, and disconnected from each other, posing security risks and potentially negating any ROI a new tool could offer.
ROI should lead adoption
AI is one of the top buzzwords in most industries. Solutions providers are fitting AI into products wherever they can, but when you look beyond the marketing it becomes clear many of these solutions aren’t providing anything new or different. Investing in new technology for the sake of it comes with costs and risks that can impact a business in the short term via financial, operational and reputational risks. It’s more important that products provide the right solution and a tangible ROI.
That being said, there are practical use cases for AI. It is here to stay and it will continue to evolve to offer new and impactful solutions for properties, allowing improved guest experiences and retention, and a reduced burden for staff. But, properties won’t fulfill the AI/AR promise by taking a legacy approach to technology.
This discussion needs to start at the foundation of the systems that will power these advanced applications, not jump directly to what new solutions can provide. If a property does not have solid fundamentals in place, the system will not be able to support advanced products.
The groundwork for new technologies
Before jumping into new investments, it’s important to take stock of a property’s current set up and then develop a long-term strategy to make sure that upgrades can continue to support new and more substantial software and connectivity needs. The following steps provide an overview of how hoteliers can ensure longevity and success for technology.
● Conduct an analysis of your current infrastructure. Make sure that technology is able to manage your current needs properly. Check for blindspots, failures or ongoing errors. Assess if all systems are connected and working together. If you have ongoing problems or have had to call in multiple technicians, the system needs attention.
● Understand your timeline. Most tech needs to be updated every 3-5 years to allow for the increasing bandwidth and software needs. If your system is older or just cutting it, you’ll need to update your system and make sure to monitor it moving forward.
● Budgets are tight, but don’t go with the lowest bidder. It’s easy to take the lowest bid when budgets are limited. But by taking shortcuts on wiring, system hardware and access points, the ability to expand and upgrade a system will be impacted, and more will be spent in the long run.
● Work with a partner that gets it. The more technology added, the more vendors needed to manage it, and the more difficult it becomes to keep all the disparate parts of a system running. By working with a partner that can assess, advise and own your end-to-end technology infrastructure, you can limit the time you and your staff spend on management and save money through strategic technology selection and management.
To keep up with the industries, hoteliers will need to embrace new technology solutions, but this needs to be done in a purposeful and strategic manner. By approaching advancement one step at a time and looking at the total cost of operation, ROI, the overall system performance, future benefits, and security and guest satisfaction, properties can ensure that they’re able to implement modern technology solutions and elevate the guest experience.
