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New Technologies Will Redefine Hospitality Sector

Three leading hospitality industry technologists said that the ‘old’ 2020 is gone. Hotels need to embrace big data, not be overwhelmed by it, and understanding the new requirements of guests in the aftermath of Covid19 will be key to survival. technology and hospitality

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Kris Glabinski, Chief Business Development Officer at Lybra, Ryan Haynes, Director & Lead Consultant at Haynes MarComs, and Ali Beklen, Founder & Managing Partner at HotelRunner gave crisis recovery advice to hospitality industry leaders in the fourth I Meet Hotel industry webinar, 6 May, organized by Bidroom and moderated by Bidroom Director of Business Development, Caroline Dal’lin.

They said that a “wrecking ball” had been taken to the hospitality industry. However, the biggest threat was not C19 turbulence — but applying yesterday’s logic to a C19 and post-C19 world.

The webinar audience of 190 hospitality professionals learned that the hospitality landscape was now defined by four new realities, namely:

The Tension Between Big Data and Unreliable Data

“We are overwhelmed by data. We need conclusions instead,” said Glabinski. Revenue managers used to spend 75% of their time analyzing data, and 25% acting upon it. Now they have no long-term, reliable data to work with. Even when people switch on TV, information is inconsistent between countries in Europe, for example, on the use of masks and the implementation of social distancing. Artificial intelligence and algorithms can only take us so far because the rules-based world built on precedent is over. There is no new data to draw on.

New and Unpredictable Guest Needs technology and hospitality

There is also a new conflict between emotion and logic. What guests say they will do and what they will do is untested. Beklen reported a survey saying 35% of respondents won’t book an international holiday even next year. Other respondents said they might, but it would depend on a range of factors such as the availability of free cancellations, money-back guarantees, special price deals, and personal health and safety assurances. Beklin said there was initial evidence guests would want bigger, more spacious rooms such as suites and executive rooms. However, they said they wouldn’t pay more. But they would stay longer.

New and Costly Operational Realities

However, when guests check out, hoteliers may have to budget for the cost of room sterilization. It may be days before the room can be used by the next guest. Even when government lockdowns are lifted and hotel operations are ready, customers may self-impose their own lockdown. They may simply refuse to go to busy restaurants or hotel lobbies. Hoteliers must not be shy to drop services where they are not getting enough or any profit.

The Need to Empower Staff technology and hospitality

Even before C19, Haynes said that the hospitality sector was undergoing rapid transformation due to an “always on” culture, cloud technologies, integrated systems, real-time communications, the rise of the subscription economy, 24/7 bookings, and even digital apps that were redefining concierge services. Millennials now want last-minute bookings via smartphone, mobile check-ins, digital room keys on their phone and more geo-location services in the hotel neighborhood. “With reduced contact in hospitality, there will be an increased rise in digital,” said Haynes. “We must give staff more autonomy. Allow them to focus on the creative and strategic elements of hospitality.”

Dal’lin said that whatever the new digital skills required of young entrants into the hotel sector, it is imperative that they place a commitment to hospitality at the centre of their mindset.

Technology and digital priorities come and go, but a commitment to hospitality links it all together,” she said.technology and hospitality