In the Spotlight Archives | https://hoteltechnologynews.com/category/in-the-spotlight/ Stay Smart, Keep Current Wed, 20 Mar 2024 01:13:55 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://hoteltechnologynews.com/wp-content/uploads/2019/04/cropped-HTN-fav-32x32.png In the Spotlight Archives | https://hoteltechnologynews.com/category/in-the-spotlight/ 32 32 134523673 Hotel Guest Wifi: How Mesh Networking Helps Large Hotel Properties Boost Connectivity https://hoteltechnologynews.com/2024/02/hotel-guest-wifi-how-mesh-networking-helps-large-hotel-properties-boost-connectivity/?utm_source=rss&utm_medium=rss&utm_campaign=hotel-guest-wifi-how-mesh-networking-helps-large-hotel-properties-boost-connectivity&utm_source=rss&utm_medium=rss&utm_campaign=hotel-guest-wifi-how-mesh-networking-helps-large-hotel-properties-boost-connectivity Wed, 28 Feb 2024 04:14:22 +0000 https://hoteltechnologynews.com/?p=11198 Hotels often face the complex challenge of providing reliable wifi for their guests across large premises. The good news is that, by utilizing a mesh network, hotels can improve connectivity, security and privacy. This can [...]

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Hotels often face the complex challenge of providing reliable wifi for their guests across large premises. The good news is that, by utilizing a mesh network, hotels can improve connectivity, security and privacy. This can help ensure a seamless online experience for guests.

Common Connectivity Challenges in Hotels

Hotels often struggle to offer consistent wifi coverage due to their complex layouts and diverse structural configurations. This results in dead zones and unreliable service, which negatively impacts guest satisfaction.

Mesh Wifi Solutions

Hotels that utilize mesh networking solutions can extend robust coverage seamlessly across their entire property. Mesh networks help optimize the internet experience for guests as they move around the premises.

Implementation and Best Practices

Successfully implementing a mesh network on premises involves careful planning, such as selecting the right hardware, ongoing network monitoring to ensure performance and determining the locations for access points. For large installations, an IT specialist may be needed to oversee the configuration and maintain the network.

Overcoming Security Concerns

When setting up a mesh network, it is important to incorporate the latest security protocols to protect guest data. To further enhance data security, it is also recommended to segregate the hotel operations network from the guests network.

Cost Considerations

There are many things to consider when installing a mesh network. Initial costs can vary depending on the size of the property and target network speeds. A phased approach may be recommended so hotel property owners can effectively manage costs.

Why a Mesh Network Provides the Best Hotel Wifi Solution

A mesh network offers an optimal solution for hotels that want to enhance their guest wifi connectivity. Here are several key advantages:

  • Designed for Hospitality: Guest wifi that utilizes a mesh network is specifically built to meet the needs of hotels. This ensures the network configuration is aligned with the operational benchmarks of the hotel.
  • Maximum Coverage and Reliability: Guest wifi that utilizes a mesh network delivers expansive coverage for guest rooms and common areas. This ensures guests have access to reliable wifi throughout the hotel property.
  • Guest Experience: A mesh network allows hotels to personalize the captive portal with ease. This enhances branding and guest experience. When guests get online, they will login through a guest wifi splash page with integrated branding opportunities and customizable promotional messages.
  • Customer Database: With guest wifi that utilizes a mesh network, hotels can build a customer database when guests use the guest wifi. This database is extremely valuable for targeting people who have visited the hotel with marketing and promotions. Additionally, the dashboard provides foot-fall data to better understand customer patterns and preferences.
  • Enhances Security: Digital security is crucial. Guest wifi that utilizes a mesh network delivers state-of-the-art security features, ensuring that guest data is protected using encryption, secure authentication processes, and regular security updates.
  • Cost-Effective: Guest wifi that utilizes a mesh network offers hotels theability to scale their wifi coverage at an industry-low price point. This ensures hotels can adapt to their growing connectivity needs without over-investment or expensive upfront setup costs.

Based on modern guest expectations and connectivity demands, it’s crucial for hotels to offer guest wifi on premises. A solution that utilizes a mesh network simplifies this process with its turnkey hardware and software. By addressing common hotel connectivity challenges head-on and simplifying the installation and maintenance, it delivers a best-in-class product at an industry-low price point. Additionally, it enables hotels to brand their guest wifi login experience with ease and control the network through a user-friendly dashboard. The dashboard also offers detailed analytics and builds a customer database as people use the wifi.

With careful planning, attention to security, and a commitment to quality, hotels that offer guest wifi that utilizes a mesh network can now exceed their guest’s expectations, foster loyalty and secure a competitive edge in the hospitality industry.

Incorporating guest wifi like Routie into a hotel’s connectivity strategy is a comprehensive solution that meets both guests and the hospitality industry’s evolving demands.

Jesse Berger is a media and technology entrepreneur. He founded the filmed entertainment company Radical Studios, which has produced movies that have generated over $1B in global revenue. Jesse has produced films for Universal Pictures, Paramount, MGM and Netflix, starring actors Tom Cruise and Dawyne “The Rock” Johnson with budgets of more than $300M. Jesse is a founding community member of PKT, an open source blockchain project that is expanding internet connectivity worldwide with mesh networks. Jesse is also co-founder and CEO of Routie, focused on providing guest wifi solutions to hospitality businesses. Jesse received his B.A. degree in film and video production, with a minor in business from Brooks Institute of Photography in Santa Barbara, California.

Are you an industry thought leader with a point of view on hotel technology that you would like to share with our readers? If so, we invite you to review our editorial guidelines and submit your article for publishing consideration.

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How Embedded Payment Processing Benefits Both Hotels and Guests https://hoteltechnologynews.com/2024/02/how-embedded-payment-processing-benefits-both-hotels-and-guests/?utm_source=rss&utm_medium=rss&utm_campaign=how-embedded-payment-processing-benefits-both-hotels-and-guests&utm_source=rss&utm_medium=rss&utm_campaign=how-embedded-payment-processing-benefits-both-hotels-and-guests Mon, 26 Feb 2024 23:50:40 +0000 https://hoteltechnologynews.com/?p=11191 The hotel payment processing experience is ready for a shakeup. Improving payment processing in hotels has been a major barrier for independent operators, and yet the closer payment processes are to a business’ core systems, [...]

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The hotel payment processing experience is ready for a shakeup. Improving payment processing in hotels has been a major barrier for independent operators, and yet the closer payment processes are to a business’ core systems, the more benefits they provide operators. Hotels have embraced the value of integrated payment processing, which allows merchants to integrate their capabilities into a hotel’s point-of-sale systems, but this still necessitates a digital “handshake” between service providers to process a simple payment. The next evolution of this offering is embedded payments, which are helping independent operators control costs and simplify guest purchases. 

Embedded payment processing takes integrated systems to the next level by allowing hotels to source one provider for management software and payment processing capabilities. Embedded solutions allow businesses to curate their own checkout experience, meaning no more bouncing from a hotel’s branded site to a third party to handle transactions. Guests prefer this approach to payments for a variety of reasons and are more likely to associate their purchase with a business or brand rather than a merchant this way.

Embedded payment processing conveys other benefits to hotels as well, such as more accurate accounting information and the ability to store all of a hotel’s purchasing data under one roof. When payments are routed through embedded tools, hotels know more about their guests, can keep their guests’ information more secure, and travelers can draw on increased confidence to drive further purchasing decisions.

Keeping Things In House

Third-party payment processors have been beneficial for independent hotels in the past thanks to their ability to equalize the payment landscape, but they also introduced different challenges. It can be jarring for guests to have their attention shifted to a third party during a purchase, and any shifts to a payment screen separated from your hotel’s branding can cause consumers to reconsider their buying decisions. By using an embedded payment processing system to create a consistent check-out experience, hotels can improve conversion rates while creating more opportunities for guest purchases. This setup also reduces churn and holds guests’ attention for less time during check-out.

Embedded systems also have the potential to improve the security of guest information tied to payments by reducing the number of channels a transaction must traverse before business can conclude. With money changing hands fewer times, there are fewer opportunities for guest data to be compromised. Additionally, avoiding third-party interactions also increases the perception of security when payment processing is concerned. Increasing positive perceptions about data security will be paramount to raising consumer confidence in hospitality throughout the current business cycle.

Lastly, embedded payment processing yields significant guest data that is now available exclusively to hotels, not selectively provided by payment processing partners. The closer hotels are to their guests’ data, the more insights they can gain. By embedding payments, hotels can track the journey of every dollar throughout their system. Direct access to these funds from beginning to end also provides benefits through accounting services, as they can be even more accurate than when routed through integrated systems.

By Popular Demand

Travelers crave consistency, especially when it comes to payments. Consumers want to be sure they are spending money with the business they expect, and by embedding purchasing tools, hotels can create a more consistent overall travel experience from beginning to end. Hotels must consider how airlines, rideshare companies, and more are embedding their payment processing capabilities and how guests are used to a certain presentation when it is time to pay. 

Additionally, embedded payments provide a level of authenticity to a business that can’t be replicated, to the point that it even provides access to additional revenue streams. Independent hotels can more consistently market ancillary services, amenities, or property attributes to guests when payments are embedded directly into the site. Hotels can cross-sell, up-sell, and more using cross-department carts and a streamlined purchase experience.

Independent hoteliers should ask their PMS provider about the availability of embedded payment solutions and how they can help create a more robust data and payment ecosystem for their hotel. Through embedded systems, hoteliers can ensure guest data stays within their purview while providing a more comprehensive guest experience from beginning to end. They are the natural endpoint for hotel payment processing, and these systems are available today. 

Warren Dehan is the President of Maestro, the preferred cloud and on-premises PMS solution for independent hotels, luxury resorts, conference centers, vacation rentals, and multi-property groups. Maestro was first to market with a fully integrated Windows PMS and Sales & Catering solution and is continuing that trend with leading edge web and mobile based solutions. Platform and deployment independence present Maestro as an investment that will continue to grow and adapt as new technologies emerge.

Are you an industry thought leader with a point of view on hotel technology that you would like to share with our readers? If so, we invite you to review our editorial guidelines and submit your article for publishing consideration.

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How Outdated Legacy Systems Can Limit Your Hotel’s Revenue Potential https://hoteltechnologynews.com/2024/02/how-outdated-legacy-systems-can-limit-your-hotels-revenue-potential/?utm_source=rss&utm_medium=rss&utm_campaign=how-outdated-legacy-systems-can-limit-your-hotels-revenue-potential&utm_source=rss&utm_medium=rss&utm_campaign=how-outdated-legacy-systems-can-limit-your-hotels-revenue-potential Thu, 22 Feb 2024 17:22:48 +0000 https://hoteltechnologynews.com/?p=11178 Despite its fast pace, the hospitality industry has a reputation for being resistant to change when it comes to updating platforms and processes. Many hotels continue to rely on outdated legacy systems that may have [...]

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Despite its fast pace, the hospitality industry has a reputation for being resistant to change when it comes to updating platforms and processes. Many hotels continue to rely on outdated legacy systems that may have served them well in the past but now pose serious limitations on their revenue potential. As a result, hotels often wait until an unexpected breakdown occurs, costing them significant losses, before seeking out the necessary upgrades.

By recognizing these limitations and embracing digital transformation proactively, hotels can unlock new revenue streams, improve guest experiences, and stay ahead of their competition.

Understanding Legacy Systems

Legacy systems refer to outdated computer systems, programming languages, or software applications that are used instead of newer, more efficient technologies. In the context of hotels, this might include room booking systems, customer relationship management (CRM) software, or point-of-sale (POS) systems that have been in use for many years. These outdated systems can pose challenges for businesses that rely on them, as they may be more prone to errors, security vulnerabilities, and lack of compatibility with newer technologies.

With so many disadvantages on the table, you might wonder why so many businesses continue to invest in legacy systems. As with any form of change, there is a fear of uncertainty that comes with retiring one system and replacing it with something new. Questions of how any upgrades will impact current operations, team performance, and customer satisfaction are paramount. Many leaders also worry about the downtime associated with implementing new systems, the potential for data loss during the transition, and the steep learning curve for employees.

These concerns are all valid. Legacy systems often contain years, if not decades, of accumulated knowledge and data critical to hotel operations. This makes the prospect of migration daunting. Additionally, older systems may be highly customized to suit specific needs, offering functionalities that might not be readily available or easily replicated in newer solutions.

There’s also the aspect of integration. Many legacy systems are deeply integrated with other tools and processes. Finding new solutions that can seamlessly interact with existing workflows without causing disruptions can be challenging. The compatibility of new software with existing systems and data formats is a significant concern.

Despite these challenges, the pressure to modernize remains strong, driven by the need to improve efficiency, enhance security, and meet the evolving expectations of customers and employees alike. For hotels, the key to navigating this transition successfully lies in careful planning, phased implementations, and ongoing support to ensure that both staff and guests can adapt to the new systems without significant disruption.

Revenue Limitations Imposed by Legacy Systems

By recognizing the revenue limitations that hotels face due to outdated systems, you can unlock new opportunities for greater growth and prosperity.

Inefficiency and High Maintenance Costs

One of the most significant drawbacks of legacy systems is their inefficiency. A study by Forrester Research found that legacy systems can use up to 75% of a company’s IT budget just for maintenance, leaving only 25% for new initiatives. This high cost of upkeep diverts funds that could otherwise be used for more revenue-generating activities.

Poor Integration Capabilities

Legacy systems cannot often integrate seamlessly with newer technologies. This limitation can lead to disjointed operations and a fragmented customer experience. For instance, if a hotel’s booking system cannot integrate with the latest online travel agencies (OTAs), it misses out on the vast revenue potential these platforms offer. Statista reports that in 2021, around 50% of hotel bookings were made through online channels, highlighting the importance of integration with digital platforms.

Limited Data Analysis and Personalization

Modern hotel management requires a deep understanding of guest preferences and behaviour. Legacy systems typically lack advanced data analytics capabilities, limiting the ability to personalize services and create targeted marketing campaigns. Without the ability to analyse customer data effectively, hotels miss opportunities to enhance guest experiences and increase loyalty.

Inability to Adapt to Mobile Trends

With mobile bookings steadily increasing, hotels still using outdated systems struggle to adapt. Remember, modern travellers expect mobile-friendly services – if you’re not offering what’s in demand, you’re likely missing out on potential bookings.

Security Risks

Older legacy systems often have outdated security protocols, making them vulnerable to cyber threats. A data breach not only has financial implications but can also severely damage a hotel’s reputation. Investing in modern, secure systems is essential to protect both revenue and customer trust.

Overcoming the Challenges of Legacy Systems

Remaining competitive and efficient in today’s rapidly changing technological landscape requires updating legacy technology. However, how can you carry out this process efficiently and effectively without disrupting daily operations?

These strategies and best practices can help you overcome the challenges associated with replacing older operational systems.

Assessing Your Venue’s Needs

Before you start shortlisting software, evaluate specific requirements. You should identify the issues and obstacles that your current processes are encountering. Clearly define your objectives, targets, and the essential features for smooth operation.

Besides functionality, operational aspects should be taken into account. Ask yourself and your team the following questions:

  • Can the software adapt to business growth?
  • Is the system easy for team members to navigate?
  • Will 24/7 customer support be available?

Researching and Selecting the Right Software

Once you and your team have identified needs, goals, pain points, and essential features, it’s time to start researching software options. Websites like G2 and Capterra can help you compare software features, functionalities, and pricing to find the best fit for your needs. Make sure to read reviews and seek recommendations from industry peers to gain insights into software performance and user experience as you move through the selection process and make your choice.

Planning the Transition

When implementing software, it’s important to plan carefully to ensure a smooth transition. You should work with your chosen provider to create a detailed implementation plan that outlines the key steps, timeline, and responsibilities. Having a supportive software partner can make the implementation process much smoother and ensure your hotel receives the necessary guidance and assistance.

Implementing Venue Management Software

Implementing software is a multi-step process. Your chosen software provider will work with you to install and configure software, import and migrate data, customize the software to fit your hotel’s needs, and test and troubleshoot to ensure successful implementation.

Maximize Your Revenue Potential with Modern Hotel Solutions

While the transition from legacy systems may require substantial investment and organizational change, the potential for increased efficiency, revenue, and customer satisfaction makes it a worthwhile endeavour for any forward-thinking hotel.

For a more in-depth look at transitioning to cloud-based venue management software, check out iVvy’s article A Step-by-Step Guide to Implementing Venue Management Software.

Lauren Hall is the CEO and Founder of iVvy, a a renowned software company that provides automation and cloud-based technology to help venues fill their function calendars and planners create unforgettable events. Lauren’s passion for entrepreneurship and over 25 years of business management experience at the executive and board levels make her a highly successful businesswoman. She has built multiple companies from startup to strategic and financial exit in various industries, including manufacturing, retail, advertising and technology, both in South Africa and Australia. Lauren co-founded iVvy in 2009 and has since overseen its growth to 10,000+ clients in 13 countries, expanding to New Zealand, Asia, Europe and North America.

Are you an industry thought leader with a point of view on hotel technology that you would like to share with our readers? If so, we invite you to review our editorial guidelines and submit your article for publishing consideration.

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How Voice Channel Technology Elevates the Luxury and Ultraluxury Hotel Guest Experience https://hoteltechnologynews.com/2024/02/how-voice-channel-technology-elevates-the-luxury-and-ultraluxury-hotel-guest-experience/?utm_source=rss&utm_medium=rss&utm_campaign=how-voice-channel-technology-elevates-the-luxury-and-ultraluxury-hotel-guest-experience&utm_source=rss&utm_medium=rss&utm_campaign=how-voice-channel-technology-elevates-the-luxury-and-ultraluxury-hotel-guest-experience Tue, 20 Feb 2024 18:12:37 +0000 https://hoteltechnologynews.com/?p=11164 When a hotel starts charging inordinate sums per night – with many properties around the world now above $1,000 per night year round – the luxury guests who are booking these lavish properties want to [...]

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When a hotel starts charging inordinate sums per night – with many properties around the world now above $1,000 per night year round – the luxury guests who are booking these lavish properties want to know what they are getting and they often have highly customized reservation requests. This not only speaks to a longstanding need for hotel brands in this category to maintain strong voice channel, but also to what technologies hotels can deploy to better service guests who are dialing in.

The Mille Club

While luxury or ultraluxury may not be for your company, its growth is one of the biggest trends in global hospitality right now. For reference, thing of brands like Aman, Armani, Belmond, Bulgari, Capella, Fairmont, Langham, Mandarin Oriental, Montage, One&Only, Peninsula, Raffles, Ritz-Carlton, Rosewood, Six Senses, Soneva, St. Regis, Waldorf Astoria and, perhaps this trend’s modern progenitor, Four Seasons. Then throw in the associations and collections like Auberge, Dorchester, Leading Hotels of the World, Oetker, Preferred Hotels & Resorts, Rocco Forte and Relais & Chateaux. Every property is droolworthy.

The growth of this category and the lessons for all hotels on how to achieve then sustain such lofty rates is something we document as part of other separate ‘The Mille Club’ column, with that middle word denoting the Italian for a thousand. What we emphasize throughout is that luxury guests are price inelastic but experience elastic.

These customers think in terms of time maximization and, even with high staff-to-guest coverage ratios, great technology is now paramount to make that happen. Despite the recent advances in attribute-based shopping (ABS) and genAI tools like chatbots, true customization (for now) can only be achieved by speaking to a live agent. Moreover, there’s something irreplaceably wholesome about a human-to-human conversation that’s emblematic of real hospitality service.

So, you want to increase rates and join the Mille Club? Maintaining an omnipresent, 24/7 voice channel in order to engage luxury guests during the reservation stage is critical, as is the ability to complete customizations and ancillary bookings while on the call. Yes, there’s lots of potential here to boost TRevPAR through upselling, but sustaining a well-honed res team still represents a high fixed cost.

And it’s not just new bookings that are coming through. Intake teams must also contend with:

  • Meal reservations
  • Front desk service calls
  • Group calls
  • OTA confirmation calls (where typically four out of five luxury OTA bookers will call ahead)

In order to not have these calls roll over to the front desk and potentially compromise onsite service, upscale and luxury hotels need a robust headcount. Yet during the low season, this cost can easily dip from revenue-producing to expense. We’ve been brought in by owners and executives in the near past to take a look at how to reduce the payroll, and the best solution involves converting the fixed expense to a variable one, necessitating a call center that can work on a per-minute fee while maintaining service standards and conversions.

To get some more specificity on the technology behind these scalable, cost-reducing outsourcing partners, we engaged John Smallwood, President of Travel Outlook, a call center company whose luxury hotel clients include KSL Resorts and Viceroy Hotel Group. As education on some of the specific terminology that voice operators use as KPIs, Smallwood added during our discussion, “We average closing more than 65% of the qualified reservations calls we receive, and we also average an 80/30 SLA, meaning that we answer 80% of the calls we receive within 30 seconds. Net abandoned calls are usually less than 5%.”

Part of the reason why Mille Club hotel members experience a much higher call volume is due to the convenience of having a human agent complete any manner of customization right on the spot. This has meant that any res team or call center partner has to have custom scripts in order to fulfill specific offerings such as spa rituals, beach rentals, skiing or excursions. Importantly, managers must also establish a seamless process for updating said scripts when there’s a special or new feature in order for any reservation agent, internal or external, to effectively sell.

Voice Channel Technologies

When done right, voice will always be a more convenient channel because it allows the customer to get exactly the answers they need and it’s hands-free. That said, automation and AI are inevitable, even for luxury, so here are three technologies that are proving to greatly enhance the voice channel while also driving down costs.

First is the CRM. With easy-to-implement APIs and AI-based connector tools like RPA (robotic processing automation) that solve the problem of double entry, it’s no longer the case that the PMS is always the singular cornerstone of the hotel tech stack. Instead, it’s all about knowing who your customer is across the entirety of their spending habits then being able to segment similar guests and find patterns for growing ancillaries, garnering return visits or targeting lookalike audiences.

With Travel Outlook having its own built-in CRM tools that connect through to hotel marketing databases, one protocol that Smallwood put in place for OTA confirmation calls is to have agents ask all callers for their real email address and phone numbers to see if they want to learn about the best rates and latest information in follow-up communications. From there, the guest profile gets automatically updated in the hotel’s CRM, so the property isn’t left with a bunch of useless OTA alias emails or duplicate profiles. This technique also works to capture leads for the hotel from callers who don’t end up booking at that moment.

Second is conversational AI; a voice bot that recognizes humans and can answer basic questions before passing the call off to a live agent. If a guest just wants to know what time the bar closes, they needn’t necessarily wait even 15 seconds in order to get the answer from a human reservationist. But if it’s a prospective booker with a complex reservation request, the AI can field some initial questions and fill out that information into the corresponding fields to save time for the res agent and for the guest.

Third and finally, hotel technologists should be aware of retrieval-augmented generation (RAG). Not quite available, it’s a near-future application of genAI where AI agents trained using deep learning can be commanded to execute multi-step functions from external sources. Such agents will likely be used in concert with a CRM, other systems, chatbots or voicebots to automate complex guest requests and personalize offers, further reducing labor demands in several key departments.

For all three technologies – CRM, conversational AI and RAG – the goal is convenience and reducing the total time spent on the phone by live agents. Soon, conversational AI will have the right data integrations – whether through APIs, a CDP, RPA or now RAG – to be able to complete basic bookings for the hotel, restaurant, spa or golf independent from any team intervention.

Implementing such a tool will be quite the debate for luxury hotels that pride themselves on curating human-to-human interactions as part of their service promise. Regardless, to be a Mille Club member the way to add value for luxury guests is to craft an excellent voice channel experience; convenience, responsiveness, customization and knowledge of the product will always be critical. And with every customization request that comes in, there are lessons for how to evolve your ecommerce channels, too.

Together, Adam and Larry Mogelonsky represent one of the world’s most published writing teams in hospitality, with over a decade’s worth of material online. As the partners of Hotel Mogel Consulting Limited, a Toronto-based consulting practice, Larry focuses on asset management, sales and operations while Adam specializes in hotel technology and marketing. Their experience encompasses properties around the world, both branded and independent, and ranging from luxury and boutique to select-service. Their work includes seven books: “In Vino Veritas: A Guide for Hoteliers and Restaurateurs to Sell More Wine” (2022), “More Hotel Mogel” (2020), “The Hotel Mogel” (2018), “The Llama is Inn” (2017), “Hotel Llama” (2015), “Llamas Rule” (2013) and “Are You an Ostrich or a Llama?” (2012). You can reach Larry at larry@hotelmogel.com or Adam at adam@hotelmogel.com to discuss hotel business challenges or to book speaking engagements.

Are you an industry thought leader with a point of view on hotel technology that you would like to share with our readers? If so, we invite you to review our editorial guidelines and submit your article for publishing consideration.

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How Smart Hotel Technologies Tackle Energy Wastage While Enhancing the Guest Experience https://hoteltechnologynews.com/2024/01/how-smart-hotel-technologies-tackle-energy-wastage-while-enhancing-the-guest-experience/?utm_source=rss&utm_medium=rss&utm_campaign=how-smart-hotel-technologies-tackle-energy-wastage-while-enhancing-the-guest-experience&utm_source=rss&utm_medium=rss&utm_campaign=how-smart-hotel-technologies-tackle-energy-wastage-while-enhancing-the-guest-experience Wed, 31 Jan 2024 16:54:30 +0000 https://hoteltechnologynews.com/?p=11096 In the ever-evolving landscape of hospitality, the pursuit of sustainability has become more than just a trend—it’s a necessity. Hotels, with their constant demand for heating and cooling, stand at the forefront of this environmental [...]

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In the ever-evolving landscape of hospitality, the pursuit of sustainability has become more than just a trend—it’s a necessity. Hotels, with their constant demand for heating and cooling, stand at the forefront of this environmental challenge. Traditional HVAC systems, operating on fixed schedules, contribute to energy wastage, environmental strain, and increased operational costs. Hotel managers are left grappling with inefficiencies resulting from guests leaving rooms with AC on for extended periods.

Enter smart hotels, a technological leap that promises not only increased efficiency but also a significant reduction in the carbon footprint associated with hotel energy consumption. However, for widespread adoption to occur, hotel managers must overcome certain challenges. Upfront costs associated with retrofitting existing structures and implementing smart hotel technologies such as smart dashboards can be substantial. Hotel owners and operators must weigh these initial investments against the long-term benefits of reduced operational expenses and enhanced sustainability.

Traditionally, hotels have relied on conventional HVAC systems that operate on predetermined schedules, often wasting energy by cooling or heating empty rooms, such as guests leaving their rooms with the AC on for many hours. This outdated approach not only puts a strain on the environment but also impacts operational costs. Smart hotels, equipped with cutting-edge technology, offer a compelling solution to this dilemma. 

Government incentives and industry collaborations can play a pivotal role in encouraging the adoption of smart hotel technologies. Financial support, tax breaks, and educational initiatives can alleviate some of the barriers that hotels face when transitioning to more sustainable practices.  The US Inflation Reduction Act, introduced in 2021, incentivizes this change by allocating $362 million for a commercial energy efficiency tax deduction.

The U.S. Department of Energy reports that substantial investments and focused initiatives are aimed at enhancing the efficiency and utilization of buildings, representing 39% of the nation’s primary energy consumption and 76% of its electricity usage. One of the key advantages of smart hotels lies in their ability to adapt to dynamic environmental conditions. Smart hotels leverage advanced sensors and AI algorithms, offering hotel managers dashboards with real-time insights into occupancy levels, weather patterns, and energy consumption. By intelligently adjusting temperature settings in a smart dashboard based on occupancy and external factors, hotel managers can optimize energy usage by up to 40%, reducing waste and cutting down on unnecessary expenses.

Moreover, smart hotels excel in predictive analytics, enabling hotel managers to anticipate peak usage times and adjust heating and cooling systems via dashboards accordingly. This not only ensures guest comfort but also prevents energy spikes during high-demand periods, contributing to a more stable and sustainable energy grid.

Smart hotels excel in predictive analytics, enabling hotel managers to anticipate peak usage times and adjust heating and cooling systems via dashboards accordingly.

A prime example of the positive impact of smart hotels is the integration of IoT (Internet of Things) devices. These devices, such as smart thermostats and occupancy sensors, provide hotel management with granular control over each room’s climate settings. This level of precision not only enhances guest satisfaction by allowing them to personalize their environment but also contributes to substantial energy savings by avoiding over-conditioning unoccupied spaces.

In addition to operational benefits, embracing smart hotel technology aligns hotels with global sustainability goals, as ESG is higher on the agenda for the hotel industry worldwide. The hospitality industry is a significant contributor to carbon emissions, and the adoption of smart technologies for hotels represents a tangible commitment to reducing environmental impact. Forward-thinking hotel managers are finding that investing in green technology and smart dashboards not only aligns with their corporate social responsibility initiatives but also enhances their brand reputation, attracting environmentally conscious guests. An example of this can be seen in a study produced by the International Journal of Hospitality Management, where constituents educated on the issues share a preference for staying in eco-friendly accommodations. They reported, “61% of global travelers prefer visiting eco-friendly hotels (Statista, 2020). Similarly, according to i-Scoop (2020), approximately 33% of guests at the Hilton group of hotels reported that its eco-friendly characteristics were the prime reason for their stay.”

In conclusion, the marriage of smart hotels and energy management represents a significant leap forward for hotels in the realm of heating and cooling. The adoption of these technologies not only improves operational efficiency and guest satisfaction but also positions hotels as leaders in the global effort to combat climate change. As the hospitality industry continues to evolve, smart dashboards are more than just a luxury—they are a vital component of a sustainable and responsible future.

Ran Roth is the CEO & co-Founder of Sensibo, a leading Climate Tech company combining smart heating and cooling devices with a more sustainable world. The company recently launched Sensibo Airbend:  a new software allowing hotels to manage air conditioning and air quality monitoring devices in bulk, reducing heating and cooling costs, while ensuring healthy air quality for their guests. Sensibo Airbend can lead to savings of over 40% on energy bills by optimized monitoring and management of all ACs in the hotel. Ran started his academia during his high school and served in unit 8200 in the IDF. He continued to obtain a B.Sc. in physics and math and an M.Sc. in computer science. Ran has led teams in successful startups such as Mobileye (sold to Intel for $15bn) and Dapper (sold to Yahoo! for $55M) focusing on Big Data and sensors. In Sensibo, he is directing the company’s future strategy and roadmap.

Are you an industry thought leader with a point of view on hotel technology that you would like to share with our readers? If so, we invite you to review our editorial guidelines and submit your article for publishing consideration.

 

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How to Create a Personalization Strategy for Your Hotel https://hoteltechnologynews.com/2024/01/how-to-create-a-personalization-strategy-for-your-hotel/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-create-a-personalization-strategy-for-your-hotel&utm_source=rss&utm_medium=rss&utm_campaign=how-to-create-a-personalization-strategy-for-your-hotel Wed, 24 Jan 2024 03:09:43 +0000 https://hoteltechnologynews.com/?p=11073 In findings by a customer data platform provider Twilo Segment, more than half of customers (56%) are more likely to return after receiving a personalized experience. According to the same report, even though the economy [...]

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In findings by a customer data platform provider Twilo Segment, more than half of customers (56%) are more likely to return after receiving a personalized experience. According to the same report, even though the economy is going through a tough time, almost 69% of business leaders are still willing to invest more in personalization. 

But, what does personalization really mean, what are the perks, and how can hotels make the most of it? Let’s find out.

What is a Personalization Strategy?

A personalization strategy is all about making each guest’s experience unique by catering to specific preferences and needs. This helps to increase satisfaction, foster loyalty, and ultimately result in repeat business. 

Personalization is not a one-size-fits-all solution and is not limited to providing perks or benefits to guests. While benefits such as increased customer satisfaction, loyalty, and repeat business are outcomes of a well-executed personalization strategy, the strategy itself is not solely focused on delivering these results. Rather, it encompasses a range of elements, including the collection and analysis of guest data, the use of technology to enhance the guest experience, and a commitment to respecting guest privacy and data security. 

Personalization goes beyond surface-level gestures to create meaningful and memorable experiences that resonate with guests on a personal level. In essence, it’s not merely a business tactic, but rather a commitment to understanding and meeting the unique expectations of each guest throughout their stay.

As guest preferences and industry trends change over time, a personalization strategy requires continuous adaptation and refinement. 

Why is a Personalization Strategy Important for Hotels?

Increased Guest Satisfaction: Catering to individual preferences can lead to higher levels of guest satisfaction as unique needs and expectations are met (or exceeded).

Repeat Business: Satisfied and loyal guests are more likely to become repeat customers, contributing to a stable and consistent stream of revenue.

Positive Online Reviews: Personalided experiences can lead to positive reviews and testimonials, which can, in turn, attract new customers and enhance the hotel’s online reputation.

Competitive Advantage: Hotels successfully implementing personalization strategies gain a competitive edge in the market, standing out among competitors and attracting a broader customer base.

Maximized Revenue: Personalization allows for targeted upselling and cross-selling opportunities, as hotels can recommend additional services or amenities based on individual guest preferences.

Effective Marketing: By understanding guest preferences and behaviours, hotels can create targeted marketing campaigns that resonate with specific segments of their customer base, leading to more effective and efficient marketing efforts.

Operational Efficiency: Personalization can streamline operational processes by anticipating guest needs and preferences, allowing for more efficient allocation of resources and staff.

Guest Engagement: Personalization encourages ongoing engagement with guests before, during, and after their stay, fostering a relationship that goes beyond a one-time transaction.

Data-Driven Decision-Making: The collection and analysis of guest data provides valuable insights that hotels can use to make informed decisions, optimize services, and adapt to changing trends.

Greater Adaptability to Trends: Personalization strategies enable hotels to stay current with industry trends and evolving guest preferences, ensuring offerings remain relevant and appealing.

Elements of a Successful Personalization Strategy

To create a successful personalization strategy, there are key elements that need to be considered;

Identifying Target Guest Segments

This involves understanding the various demographics of your guests, such as age, interests, location and lifestyle. Knowing your guests’ preferences and behaviours can help you tailor your guest experiences to these segments, allowing you to provide a more personalized and enjoyable experience.

Create a buyer persona to visually identify your target audience and map out their interests, pain points, and purchasing habits. Download iVvy’s buyer persona template here.

Setting Personalization Goals

Once you’ve identified your guest segments, it’s important to set clear personalization goals. These should align with your overall business objectives, whether it be to increase guest satisfaction, drive revenue, or improve brand reputation. 

By setting specific and measurable goals, you can track the effectiveness of your personalized strategy and make necessary adjustments to achieve your goals. Use these metrics to help set personalization goals your venue performance.

Aligning Personalization with Brand Identity

Your brand should be reflected in every aspect of the guest experience, from hotel décor to amenities and marketing messaging. A consistent brand identity not only helps build trust with guests but also reinforces your hotel’s unique value proposition, helping you to stand out in a crowded market.

Technology and Tools for Personalization

Technology and tools also play a significant role in personalization, by collecting and analyzing guest data through various channels such as website analytics, social media, and venue booking software. This data can then be used to create personalized recommendations and offers, as well as improve operational efficiencies. However, it’s crucial to balance technology with human interaction to maintain a personal touch and avoid losing the human element in the guest experience.

If you’re looking for more information on using tech to boost your venue sales, click here.

The Athenaeum in London is taking personalized hospitality to a whole new level with the help of iVvy venue management software. Find out more.

Lauren Hall is the CEO and Founder of iVvy, a a renowned software company that provides automation and cloud-based technology to help venues fill their function calendars and planners create unforgettable events. Lauren’s passion for entrepreneurship and over 25 years of business management experience at the executive and board levels make her a highly successful businesswoman. She has built multiple companies from startup to strategic and financial exit in various industries, including manufacturing, retail, advertising and technology, both in South Africa and Australia. Lauren co-founded iVvy in 2009 and has since overseen its growth to 10,000+ clients in 13 countries, expanding to New Zealand, Asia, Europe and North America.

Are you an industry thought leader with a point of view on hotel technology that you would like to share with our readers? If so, we invite you to review our editorial guidelines and submit your article for publishing consideration.

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Understanding the Importance of Good Survey Design and the Right Technology Capabilities in Hotel Guest Feedback https://hoteltechnologynews.com/2024/01/understanding-the-importance-of-good-survey-design-and-the-right-technology-capabilities-in-hotel-guest-feedback/?utm_source=rss&utm_medium=rss&utm_campaign=understanding-the-importance-of-good-survey-design-and-the-right-technology-capabilities-in-hotel-guest-feedback&utm_source=rss&utm_medium=rss&utm_campaign=understanding-the-importance-of-good-survey-design-and-the-right-technology-capabilities-in-hotel-guest-feedback Wed, 17 Jan 2024 18:05:53 +0000 https://hoteltechnologynews.com/?p=11039 Hotel reviews and guest feedback are critical for determining what’s meaningful for the guest. We all understand this, because oftentimes the fixes that will generate the most ROI are not necessarily the most expensive. Call [...]

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Hotel reviews and guest feedback are critical for determining what’s meaningful for the guest. We all understand this, because oftentimes the fixes that will generate the most ROI are not necessarily the most expensive. Call it ‘value engineering’ whereby the more guest feedback you get the more you have to go on to improve operations which then translates into more guest satisfaction, the ability to command higher rates and, ultimately, healthier NOI or property valuations.

In this sense, there’s a positive feedback loop between guest feedback and long-term asset value, making the former an instructional aspect of hotel operations that hoteliers simply must pay more attention to. Knowing this, the question then becomes how do hotels get more feedback (either on TripAdvisor, an OTA or direct to the brand) so that there’s more information to guide opex or capex.

With this question, what’s striking about the hotel industry is there’s no formal training on survey design. It’s actually a glaring gap for which we were honored to sit down with Jeff Robbins, founder of GuestInsight, to learn about what hotels can do to rapidly scale their total guest engagement so that management can better decide what projects have the best near-term and long-term ROI from the guests’ perspective.

Yes, GuestInsight is a vendor with a platform to help hoteliers collect, analyze and automate their guest feedback. Push the technology aside for a moment and the problem remains: hotels still need qualified personnel to govern their feedback systems in order to elicit the most data from customers.

With this in mind, one of us (Adam) first met Robbins at ILC Cultivate this past summer in New York to go through this challenge. It turns out that GuestInsight is an established player in the survey space, bringing with it over two decades of deep experience in survey design and applying this expertise daily via ongoing customer support so that hotels can realize the benefit of asking the right questions that engage guests in the right way.

Of the top, some survey design tips that Robbins suggests based on current work with GuestInsight clients include:

  • Messaging that demonstrates a respect for the guest’s time and inbox
  • Messaging that clearly defines the ask in terms of reason and time expectations
  • Stating outright how important the effort of collecting feedback is for the hotel
  • Being transparent about recruiting an experienced outside agency to manage the process
  • Mentioning how the guest’s anonymity and privacy will be protected
  • Having a responsive survey interface with reliably quick load times
  • Not bundling the feedback request with a sales effort
  • Having an alert mechanism in place so that teams can immediately tackle an error recovery situation or when the surveys are used for post-departure requests like making another booking
  • Being cognizant of a team’s overall ‘alert fatigue’ when setting up said alert mechanisms

Above all, Robbins emphasized that surveys must be structured in a way that accomplishes the research goals with the least amount of effort required by the guest according to these three principles:

  1. Question sequencing that prioritizes specified feedback goals
  2. Question wording or question format selection with precise and concise language to elicit results
  3. Flexibility in adapting the survey with seasonal or monthly updates to the questions in order to test new ideas as well as stress certain facilities or services

Now with that human ‘judgment’ covered, let’s circle back to technology because, ultimately, surveys need to be automated in order to achieve any semblance of labor savings. In November 2023, it’s inevitable for AI to enter the conversation, either as natural language processing (NLP) to help scale sentiment analysis or another form of machine learning (ML) that finds patterns in the multitude. And as any IT professional knows, the amount of data hotels currently have is becoming overwhelming; AI will be pivotal to help guide this managerial judgment.

Jeff Robbins, Founder, GuestInsight

From the above tips, though, what’s apparent is that these technologies are just tools; they belie the need for veteran oversight to help hotels maximize the usage of the totality of data for any algorithm to chew on. Hence, the act of setting up then updating questionnaires shouldn’t be the sole responsibility of the hotelier who isn’t formally trained in survey design and cannot provide this adept oversight.

The risk nowadays is that if feedback response rates remain low, then the data won’t be big enough for an AI to accurately interpret. Simultaneously, of course, some of that ‘significance’ also won’t rise to the top to present those value-engineered solutions that will inform operational planning and future investments in a meaningful way that will increase long-term asset value.

Then on another note aside from AI, we pressed Robbins for an example of past work because we often learn best through stories rather than the abstract. Working with a 120-room independent property in Silicon Valley, the GuestInsight platform was able to drastically ramp up the number of completed surveys, with a year-to-date total of 819 internal completed surveys compared to 12 reviews on TripAdvisor, 67 on Google and 193 on Booking.

With over 20 times the number of surveys versus TripAdvisor reviews, this uptick in both the quantity and pace at which data was accumulating meant that the hotel was able to rapidly spot a significant trend from its declining scores and guest comments. Specifically, the breakfast offering was changed during the pandemic and was initially positively received, so the hotel kept it in place. But during the late spring months of 2023, this perception shifted and was quickly spotted by the metrics which started to trail off at the same time.

From this observation, amidst the hectic summer period the team was able to upgrade its breakfast service back to and beyond its pre-pandemic levels, with this positive, cost-effective change reflected in the post hoc responses. Overall, these sorts of minute-by-minute inferences are only possible when there’s proper survey design in place to maximize response rates and the amount of data received. And when you are able to spot enough of these trends, you ensure that no issue goes unnoticed and that the hotel is maximizing satisfaction to thereafter influence brand advocacy, the ability to grow ADR and, specifically for owners, long-term asset value.

Together, Adam and Larry Mogelonsky represent one of the world’s most published writing teams in hospitality, with over a decade’s worth of material online. As the partners of Hotel Mogel Consulting Limited, a Toronto-based consulting practice, Larry focuses on asset management, sales and operations while Adam specializes in hotel technology and marketing. Their experience encompasses properties around the world, both branded and independent, and ranging from luxury and boutique to select-service. Their work includes seven books: “In Vino Veritas: A Guide for Hoteliers and Restaurateurs to Sell More Wine” (2022), “More Hotel Mogel” (2020), “The Hotel Mogel” (2018), “The Llama is Inn” (2017), “Hotel Llama” (2015), “Llamas Rule” (2013) and “Are You an Ostrich or a Llama?” (2012). You can reach Larry at larry@hotelmogel.com or Adam at adam@hotelmogel.com to discuss hotel business challenges or to book speaking engagements.

Are you an industry thought leader with a point of view on hotel technology that you would like to share with our readers? If so, we invite you to review our editorial guidelines and submit your article for publishing consideration.

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How Interdepartmental Communications and Two-Way Staff Messaging Elevate Hotel Operations https://hoteltechnologynews.com/2024/01/interdepartmental-communications-and-two-way-staff-messaging-will-elevate-hotel-operations-in-2024/?utm_source=rss&utm_medium=rss&utm_campaign=interdepartmental-communications-and-two-way-staff-messaging-will-elevate-hotel-operations-in-2024&utm_source=rss&utm_medium=rss&utm_campaign=interdepartmental-communications-and-two-way-staff-messaging-will-elevate-hotel-operations-in-2024 Mon, 08 Jan 2024 17:15:25 +0000 https://hoteltechnologynews.com/?p=10967 Thanks to technology, today’s hotel operators are breaking down departmental barriers and adopting a centralized database approach to have a game-changing impact on efficiency. This technology becomes even more transformative when coupled with two-way text [...]

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Thanks to technology, today’s hotel operators are breaking down departmental barriers and adopting a centralized database approach to have a game-changing impact on efficiency. This technology becomes even more transformative when coupled with two-way text messaging between hotel staff and guests. Such digitalization is revolutionizing how hotels manage guest information and communication, and it is leading to a remarkable enhancement in overall guest satisfaction.

Dissolving communication barriers between hotel departments is a key operational goal for many in 2024. Traditionally, hotels have operated in a siloed manner whereby each department focused on its strengths to the detriment of communication and collaboration. Hotel marketing departments focused on selling to guests, while the front desk consumed itself with direct guest interactions. While this strategy was effective in the past, today, this departmental makeup hinders operators’ ability to deliver seamless, personalized experiences.

To provide the best possible guest experience, management must commit to more expansive communication channels. Hotels have been effectively gathering data on guest booking decisions, guestroom preferences, and potential angles for upselling. Still, this information is often locked behind gates between departments, often inaccessible between disparate systems that don’t share data. By adjusting a hotel’s back end to reinforce collaboration, hotels can rectify inefficiencies and capitalize on missed opportunities to cater to individual guest preferences.

All in One

A significant and recent step hoteliers have taken to improve on-property communications has been to embrace a centralized database approach to data storage, complemented by guest two-way text messaging. Hotels can reconfigure their data storage strategy to consolidate guest data into a unified PMS platform, giving all departments a clear view of actionable guest information in a manner that can be easily accessed.

Once consolidated, guest data contains all the necessary information to contact travelers using text communication to confirm details of their trip quickly, inform them of changes on the property, or even conduct a conversation about the local area. However, this technology’s greatest potential impact is in providing hotels with additional revenue streams informed by guest data accessed through a centralized system. Text messaging has been transformative in hospitality because hotels can enter each interaction assisted with a full 360-degree view of each guest, including their travel history, preferences, and sentiments about the current hotel–or others.

When operators can access this holistic perspective, they can transcend departmental boundaries to provide more accurate answers or pointedly solve problems to enhance real-time guest engagement. Access to a centralized system allows hotels to market ancillary services or amenities to guests based on accurate preferences, which can be tracked over time. Hotels with access to this data can make nimble marketing decisions and quickly capture guest bookings, F&B reservations, and amenity purchases from any point of contact on property. A centralized system allows hotels to keep guests on property longer while exceeding their expectations at every turn.

Two-way text messaging is also indispensable for managing unexpected incidents as they arise. Two-way communications help hotel staff members stay in direct contact with guests, providing them with up-to-date information on booking adjustments, hotel restaurant reservations, or alerts regarding lost items. Expanding communication this way improves operational efficiency and helps hoteliers provide guests with a higher level of service.

Know More, Say More

The advantages of centralized data and a text-based communications system in hospitality are manifold. First, centralized data facilitates instant access to critical guest details, such as previous stays, dietary preferences, and special requests. Access to this information empowers hotel staff to anticipate guest needs, proactively address issues, and provide personalized services capable of exceeding guest expectations. Furthermore, they can do all of the above while communicating with guests in a way they prefer.

And make no mistake, guests do prefer texting. A Soprano Design study found that 90 percent of people open a text message within three minutes of receiving it, compared to just 20 percent for an email. Additionally, a study from the American Association for Public Opinion Research showed individuals are, on average, much more truthful when answering inquiries over text and that people “are more likely to disclose sensitive information via text messages than in voice interviews.” As a result, interacting with guests over text can help operators learn about a stay, which could potentially impact a guest’s satisfaction or review score but would otherwise go unmentioned across other interactions.

Real-time data analytics and sentiment analysis are also enabling operators to gauge guest satisfaction levels throughout their stay by leveraging the immediate feedback of text messaging. Staff can promptly intervene to amend the situation if a guest shows signs of dissatisfaction over text communications. Mid-trip interventions have the potential to turn a negative experience into a positive one and are often highly effective at generating beneficial reviews. At the same time, hotels can also seize on positive guest feedback to further enhance their experience during their stay or later, supported by new information on what is creating a positive experience for guests.

Access to these capabilities is made possible by a centralized database of guest information coupled with two-way text messaging. This level of communication between hotels and guests is not just a convenience; it is a strategic necessity. It empowers hotels to create memorable, tailored experiences and fosters guest loyalty through expanded interactions. By breaking down departmental barriers, embracing unified data management, and leveraging modern guest engagement tools, hotels position themselves as pioneers in guest-centric service, setting new standards of excellence in the hospitality.

Warren Dehan is the President of Maestro, the preferred cloud and on-premises PMS solution for independent hotels, luxury resorts, conference centers, vacation rentals, and multi-property groups. Maestro was first to market with a fully integrated Windows PMS and Sales & Catering solution and is continuing that trend with leading edge web and mobile based solutions. Platform and deployment independence present Maestro as an investment that will continue to grow and adapt as new technologies emerge.

Are you an industry thought leader with a point of view on hotel technology that you would like to share with our readers? If so, we invite you to review our editorial guidelines and submit your article for publishing consideration.

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How AI Turbocharges Attribute-Based Shopping, Enabling Hotels to Increase Revenue and Profitability https://hoteltechnologynews.com/2023/12/how-ai-turbocharges-attribute-based-shopping-enabling-hotels-to-increase-revenue-and-profitability/?utm_source=rss&utm_medium=rss&utm_campaign=how-ai-turbocharges-attribute-based-shopping-enabling-hotels-to-increase-revenue-and-profitability&utm_source=rss&utm_medium=rss&utm_campaign=how-ai-turbocharges-attribute-based-shopping-enabling-hotels-to-increase-revenue-and-profitability Mon, 25 Dec 2023 23:07:20 +0000 https://hoteltechnologynews.com/?p=10922 Artificial intelligence (AI) is at the forefront of hospitality technology heading into 2024, and in looking at specific tasks where it can be deployed, a very lucrative application is in attribute-based shopping (ABS). Alongside other [...]

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Artificial intelligence (AI) is at the forefront of hospitality technology heading into 2024, and in looking at specific tasks where it can be deployed, a very lucrative application is in attribute-based shopping (ABS). Alongside other pursuits like dynamic pricing and adept channel management, the ability for hotel guests to select individual rooms, configurations, services, add-ons and ancillaries in an a la carte manner has long been sought after as a way to bolster net revenues (some postulate by as much as 10% for the average property) without any significant upleveling of the physical product. And now, with some AI bolted on, this newly unlocked value may finally be achieved.

Before diving into why AI works for ABS and why your brand may need it in 2024, two prominent obstacles need to be addressed, both from the transient guest’s perspective as well as from the hotel manager’s side of things. While many have thus far blamed legacy systems as the hindrance, this is hardly the case as leading industry vendors have all deeply considered ABS modules as a way to provide more value for their clients. Instead, the challenges are mainly psychological.

Stating the Objections

From the guest’s point of view, it’s a matter of shopper’s paralysis. You give a guest four room types and they have no problem selecting which one fits their needs and budget. You give a guest those same four room types along with varied check-in times, F&B packages, high floor or low floor, close or far from the elevator, ocean view or no ocean view and others like these, and it becomes too much. Instead of making a choice, the user abandons the cart and goes elsewhere for their accommodation needs.

How about solving this with a purchasing sequence within the internet booking engine (IBE) so that these variables act akin to a prix fixe menu? This can work, but then you must also consider the stepchild of shopper’s paralysis – decision fatigue. Especially when it comes to the psychological pain of putting money on the line, making a decision is the most energetically taxing function that our brain performs. Ergo, the more monetary decisions you laden a guest with, the more displeasing the booking process becomes and, again, the more likely they are to abandon the cart. In this case, the customer may already be exhausted having compared upwards of 20 to 30 different lodging options, and throwing ABS on top of that would be overkill.

Onto the back office and the situation is one that every hotelier around the world can relate to – room blocks and VIPs. Hoteliers need to maintain control over where they place guests right up to the last few weeks before arrival so that they can maintain flexibility for accommodating a big group contract that came in or someone that deserves a higher-tier room based on their loyalty status. For these cases, ABS would ‘lock’ specific rooms and possibly create more work for managers who then have to untangle groups or VIP requests around these upsold ABS room assignments.

How AI Helps ABS

The mechanics of A/B testing different options and offers as they relate to machine learning (ML) presents a profitable avenue for both incremental revenues and insights to guide future capital improvements or a full-property renovation.

At its core, ML is just pattern recognition based off of a multitude of data – namely, thousands upon thousands of guest interactions with a specific brand as well as those derived systemwide from all hotels using a vendor’s platform – then optimizing to better fit that pattern towards a given outcome. In a general sense, the more data a machine has, the more patterns it can decipher and the better it can fit its behavior towards that stated goal.

So, if the objective is to maximize the number of bookings, the AI may determine that the best route is to not deploy ABS within the IBE. Why exactly? Answering that isn’t within the machine’s purview, but the human overseer may judge from the insights found by A/B testing different purchasing sequences that it’s because of shopper’s paralysis interfering with conversion maximization. Contrarily, if the objective is to optimize for revenue per room reservation, then the AI may find that compromising slightly on occupancy with well-sequenced ABS of the rooms inventory alongside other saleable products delivers a better overall topline.

There are indeed some prominent vendors who have built incredible online shopping experiences that incorporate elements of ABS and ML directly into the IBE. Getting into specifics for all the possibilities and advantages for specific hotels would take pages, but rest assured, they’ve found a way to thread the needle between customer decision fatigue and net revenue maximization. When considering how a prix fixe menu relates to the entirety of the guest journey, the two other areas where A/B testing can occur are within a prearrival upselling platform as well as within the hotel app for when the guest is onsite. Again, vendors are on the case, especially for the former of the two where ML can also observe the optimal day out from arrival for when guests are most likely to spend on ancillaries or individual rooms.

Separate from all the transient merchandising considerations, another prominent area where AI is reaching the forefront is in robotic processing automation (RPA) wherein a machine can be trained to connect disparate systems together when a strong interface doesn’t exist or there are problems structuring the data. While not expressly a function that current vendors can solve for right now, with ML’s core purpose being pattern recognition, RPA should be considered as a means of observing the behavior behind all group bookings so that a hotel has a better sense of what that segment’s volume will be according to pace reports and when the best time is to serve up ABS offers.

Why ABS Needs to Start in 2024

We’ve talked a bit in abstract about what the machine can do with the user interaction data it is provided, but we haven’t yet emphasized how the machine learns. It’s relatively easy to understand what A/B testing is or even how a Monte Carlo experiment can work to deliver a range of possible revenue outcomes with a high confidence interval. What’s more difficult is, like the obstacles, the human factor of being patient with the learning process.

That is, it takes time for the machine to test within a given range of variables in order to decipher what actually works to get guests to purchase more at any given moment as well as deliver actionable insights that can be used by hotel teams to improve product messaging, contextual delivery, sequencing, packaging, new types of onsite programming or capital expenses that maximize returns.

Because all this hinges on big data sets, every digital interaction that your guests currently have with your hotel where all the booking variables aren’t being recorded then tested is an opportunity that’s lost. This will likely require a lot of deliberate thought about what IBE, CRS and upselling platform you are using to start putting ML behind your online shopping experience, but it’s a task that should be undertaken inside of 2024 because otherwise lots of money is being left on the table.

Together, Adam and Larry Mogelonsky represent one of the world’s most published writing teams in hospitality, with over a decade’s worth of material online. As the partners of Hotel Mogel Consulting Limited, a Toronto-based consulting practice, Larry focuses on asset management, sales and operations while Adam specializes in hotel technology and marketing. Their experience encompasses properties around the world, both branded and independent, and ranging from luxury and boutique to select-service. Their work includes seven books: “In Vino Veritas: A Guide for Hoteliers and Restaurateurs to Sell More Wine” (2022), “More Hotel Mogel” (2020), “The Hotel Mogel” (2018), “The Llama is Inn” (2017), “Hotel Llama” (2015), “Llamas Rule” (2013) and “Are You an Ostrich or a Llama?” (2012). You can reach Larry at larry@hotelmogel.com or Adam at adam@hotelmogel.com to discuss hotel business challenges or to book speaking engagements.

Are you an industry thought leader with a point of view on hotel technology that you would like to share with our readers? If so, we invite you to review our editorial guidelines and submit your article for publishing consideration.

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Advanced Hotel Technology Starts with a Tailored Solution https://hoteltechnologynews.com/2023/12/advanced-hotel-technology-starts-with-a-tailored-solution/?utm_source=rss&utm_medium=rss&utm_campaign=advanced-hotel-technology-starts-with-a-tailored-solution&utm_source=rss&utm_medium=rss&utm_campaign=advanced-hotel-technology-starts-with-a-tailored-solution Thu, 14 Dec 2023 03:19:37 +0000 https://hoteltechnologynews.com/?p=10867 Hospitality technology played a role in transforming the hotel industry long before the pandemic. Even more so today, through the impact of rising costs in operations, labor challenges, and shifts in customer needs, technology is [...]

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Hospitality technology played a role in transforming the hotel industry long before the pandemic. Even more so today, through the impact of rising costs in operations, labor challenges, and shifts in customer needs, technology is widely recognized as being at the forefront of hotel operations. But, as more hotels adopt technology to streamline operations, more pressure is put on technologists to advance and come out with “the next best thing.” In my experience over the past decade working with several hotel brands and management companies, what proves clear is that a good technology solution is not one-size-fits-all. The next best thing might certainly be in the works, but today, hotels are all demanding one thing: solutions that cater to their individual needs.

While many hotel brands may have already adopted the tried-and-true technologies of the past decade, they can just as easily grow out of them. We’re in a competitive industry, and if a technology is unable to adapt to the changing needs of your customers, your survival is at risk. From working with hotels pre-, during, and post-pandemic, we’ve seen needs change drastically, but we’ve also seen smaller incremental changes to how hotels are approaching business. Our role as a technology partner is to work with our customers. Rather than advancing our own technologies in a silo, we seek to adapt our technology alongside hotels through customization and options that both satisfy their needs for today and grow with them tomorrow.

What that looks like can vary drastically. Sometimes it’s as simple as custom brand-compliant preventative maintenance templates, or on the opposite end of the spectrum, a proprietary tech solution. Where we’ve found ourselves recently is somewhere in the middle by providing integration capabilities which range from integrations with a brand’s proprietary software to fellow preferred solutions.

Not all hotels are built the same, and hotel management companies often have their own standards that need to be incorporated. For a management company, finding one technology to be used across all hotel brands in their portfolio could prove challenging when some hotels also require adherence to their own brand standards. That’s why we support integrations with multiple brand solutions in addition to their preferred vendors. At the end of the day, our goal is to simplify the workday for hoteliers and their staff.

This past year we announced Cleanings Plus Data Integration Powered by IHG Concerto ​​allowing room status details to be leveraged to improve the performance of housekeeping teams at IHG-branded hotels. Enabling IHG hotels to use a digital hotel management approach led IHG/Avid Hotel general manager Tony Cancemi to track the work his team was performing each day more efficiently through his existing software. Using the integrated solution, the Avid Hotel team was able to achieve a 25% reduction in housekeeping, 20% below brand-standard room cleaning time, and a 100% cleaning score. Rather than creating a new solution, we worked as a team to make sure our solution could work for Tony today and in the future.

Using the integrated solution, the Avid Hotel team was able to achieve a 25% reduction in housekeeping, 20% below brand-standard room cleaning time, and a 100% cleaning score.

As we continue to look for ways to solve our customers’ challenges, we also believe that technology should be advancing to meet the needs of those who are using the platform the most. When developing new solutions, we prioritize simplifying the experience for our users. Technology advancements don’t always have to look big and earth-shattering. Sometimes it takes a minor adjustment, made with hotel staff in mind, that leads to an easier path to adoption, and in turn, a happy management team.

All of this isn’t to say that new technologies won’t have a place in the hospitality industry. Artificial Intelligence (AI) is already impacting the hospitality market. Hotels are looking at ways to incorporate or prepare to incorporate AI-driven solutions into the way they conduct business. We should be in tune with the capabilities AI can bring, and how its impact can change how customers interact with hotel services, or how hotels market their services to new guests, but we also need to understand when the right place and time is for new technologies to be leveraged in our own solutions. As new advancements in AI and automation are tested, technologists can start to look deeper at how those tools could be leveraged in your existing solutions.

Technology should and will continue to evolve in the hospitality industry, but in order for hotels to advance in their operations and guest experience, solutions need to be customized. If you have a partner driving your technology solutions, you should be aware of whether those solutions are tailored to your specific needs. Consider the inefficiencies that are holding your hotel back from achieving higher guest satisfaction and how a customized solution can help drive your team forward.

Scott Schaedle is the founder and CEO of Quore, a hospitality technology company he founded in 2012. Quore is a cloud-based service optimization solution that helps hotel teams boost productivity, create clearer communication, and improve overall guest satisfaction. Scott’s passion for innovation and design drives everything he does. It led him to pursue a degree in Advertising Design and Fine Arts at the Atlanta College of Art, then onto the Savannah College of Art and Design where he received a BFA in Advertising. Scott was working as an engineer in a local Franklin, TN, hotel when he saw a need to streamline staff operations and was inspired to create Quore. In November 2016, four years after founding Quore, Scott was named one of the top innovators in hotel operations by Lodging Magazine. The company recently celebrated 11 years of serving hotels in all 50 states and 35+ countries and Scott is excited to continue its growth and expand future product offerings.

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