DIGITAL TRANSFORMATION IN HOSPITALITY

On several occasions, we have talked about how technological trends have changed how production processes are carried out, how businesses are managed, and the approach to the consumer and the end user.

Tourism, or the hospitality industry, is no exception. In the last decade, we have witnessed how things as simple as reservation systems have evolved to give way to immediate response systems with little or no human intervention. The data collected from users sets trends in this sector.

The Internet of Things (IoT), mobile platforms, and Artificial Intelligence allow the hotel industry and platforms such as Airbnb to be much more efficient, save day-to-day operating costs, and provide guests with unique experiences.

Basic transformation tools

When the information is available in real-time, and you have the right tools to analyze it, important decisions can be made. This is one of the bases of the IoT, and then we will talk about its different applications.

Tools focused on the guest experience

  • Reservation-based analytics: Online reservations, or through different websites, not only allow a direct experience for the user, but they also allow hotels to carry out adequate planning of the resources necessary to meet the demand and make adjustments to the price according to this. The analysis of seasonal behavior, the type of rooms, and the type of services are also essential to know the market and making the necessary adjustments.
  • Personalization of the experience: Through loyalty programs, for example, and the recording of guest activities, hotel companies can personalize their service offerings. You can proactively offer services and customize an offer aligned to data such as seasonality and the specific needs of different consumers.
  • Loyalty programs: In line with the previous point, tailor-made rewards can also be offered, and redeeming points from different programs are made quickly through mobile applications or web pages.
  • Chatbots and intelligent assistants: Chatbots are a tool that has become essential in digital transformation. Chatbots can be "trained" to solve simple problems and to answer frequently asked questions. In some hotels, there is already a "digital concierge" that allows you to make restaurant reservations, order extra towels, or turn on the air conditioning in the room. pages.

Tools focused on business operation

  • Building Management Systems (BMS): These systems allow for automatic control of air conditioning, electricity, and building security, allow problems to be identified before they exist, as well as schedule and perform preventive maintenance, which allows this industry to save significant amounts of money in capital and operating costs.
  • Security: There are already applications that allow guests to access their rooms and other places through an application on their cell phones. This allows greater control of access to the hotel's different areas and allows guests to check in and out without going through the reception, making the processes more agile, shortening waiting times, and reducing staff costs.

How the hospitality industry is impacted by Digital Transformation technology

It would be best if you had a digital-first mindset to alter your company digitally. This entails integrating digital technology and data into the core of your company's strategy and using it to inform all choices. It also entails developing a customer-centric culture committed to providing outstanding digital experiences. Finally, staying ahead of the curve requires embracing change and constantly inventing. Let's look at how the industry is being impacted by digital transformation.

  • Increase online sales and website traffic
  • Reduced operating costs
  • Improve the standard of products and services
  • Improve customer experiences

Enabling digital transformation in your company has numerous benefits. A business that has undergone digital transformation is more effective and efficient and can better cater to the requirements and desires of customers. It's an all-in strategy that can help to lower operating expenses and increase the market competitiveness of your business.

The hospitality industry has traditionally led the way in improving the consumer experience. However, the industry has become much more interested in digital transformation solutions, which have entirely changed client experiences.

There are many ways that digital transformation in the hospitality industry may be used to enhance the guest experience, operational effectiveness, and financial performance. For instance, hotels can leverage online reservations, guest self-service portals, and digital check-in and checkout processes. In addition, hotels can employ big data and analytics to gather information about visitor preferences and behavior and then use that information to enhance operations and marketing.

Last but not least, they can leverage mobile apps to offer guests a smooth and convenient experience from booking to check-out. According to a poll, 93% of businesses in the hotel industry claimed they would be increasing their digital expenditure over the next several years.

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Digital transformation's challenges for the hospitality sector

Although these measures may assist you in digitally transforming your hotel business, the hospitality industry must overcome several problems and difficulties. Let's look at them now.

  1. Much effort needs to be made in data analytics. To make educated decisions regarding marketing, pricing, and other business operations, most hotels and other hospitality firms need help to extract insights from their operational data meaningfully.
  2. The number of apps for the hotel industry needs to be increased. Even when they have a dedicated following on a particular platform, many hotels still need help to offer guests a seamless experience across various devices and platforms, even though some excellent solutions are available.
  3. The need for more options for direct customer-hotelier connection makes it challenging for prospective consumers to learn about new services or goods before they're prepared to make a reservation at your institution.

It takes work to maneuver through the hospitality sector. The sheer amount of things that may go wrong with your business makes keeping track of everything easy feel overwhelming. The hospitality sector has improved its digital performance despite its many difficulties. Numerous businesses have already mastered the art of digitally altering their customer experience.

Examples of digital transformation in the hotel sector include facial recognition for check-in, guest relations, and security. It used chatbots to assist with reservations and concierge services and offer details about the hotel, and its amenities are some other examples.

According to a survey, the digital payment option is the technology that increases travel trust & convenience the most for more than 40% of individuals. Future developments in the hospitality sector include voice-activated assistants and robots carrying items to guest rooms or managing customer services.

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Conclusion

The era of the massive, monolithic corporation is over. It's time to accept the new reality: companies are setting the pace for digital transformation and doing it more mobile and costeffectively. With new technologies like blockchain and intelligent contracts entering the market recently, the hotel sector has continued to expand and change.

The hotel sector has a long way to go before these new technologies become commonplace, even though they are fascinating and have the potential to alter the way we conduct business.

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