What is hotel technology?
Hotel technology covers the many tools and systems designed to help hotels operate smoothly and meet their goals. These are used daily for the likes of automating operations, revenue management, distribution optimization, data analysis, forecasting, and enhancing the overall guest experience.
Why is technology important in hotels?
Technology is important to all modern hotels, because it drives efficiency and enhances the guest experience. It allows for superior service quality, streamlined operations, and keeps hotels competitive by closely monitoring market trends and pricing.
Moreover, technology enables hotels to capture and utilize more data, offering better opportunities for targeted marketing and personalized guest experiences.
Hotel technology trends and the future of the hospitality industry
As technology continues to move at a rapid pace, hotels must be capable of adjusting to this new way of life and adapting to meet trends. Millennial travelers especially, (the most technologically literate generation), are gaining more and more spending power. As such, they expect these advances to be incorporated in their customer journey.
Technology can help provide a state-of-the-art hotel experience, improving service, increasing retention levels, saving money and helping to boost revenue and direct bookings. Importantly, these advances can help you beat the competition and attract new customers.
25 hotel technology trends to watch in 2024
Here we’ve compiled a list of 25 hotel technology trends to keep an eye on. This is by no means a be-all and end-all list, but it is important for hoteliers to keep abreast of key developments. Ultimately, an awareness and ability to adapt allows you to continuously surprise guests with innovation, whilst also streamlining your own processes behind the scenes.
1. Artificial intelligence
Artificial intelligence seemed like it was years in the making, but now that it’s here, it’s here to stay. Hoteliers now rely heavily on artificial intelligence to make better-informed decisions about prices and demand, and to interpret guest data to apply more effective marketing strategies and tailor-made packages to fit guests’ needs.
AI hotel tools can also be used behind the scenes to make operations run more smoothly, by handling repetitive tasks and answering frequently asked questions so that your staff are free to focus on delivering best-in-class service.
2. Cybersecurity
With the advent of technology also comes the risk of technology breaches. This is where cybersecurity comes into play. Hotels handle a lot of sensitive data and therefore represent a threat from cyber-attacks, such as phishing, ransomware and DDoS attacks.
Hotels must have protocols in place. Some of these include frequently changing passwords, using a VPN when accessing the hotel network from outside the hotel, and having a guest network in place so that hotel guests don’t connect to the same network as the one your hotel staff uses daily.
3. Hotel apps
Nowadays there’s an app for everything. Guests, particularly millennial and Gen Z travelers, have come to expect an app to customize their experience. This allows customers to easily manage their booking, make virtual payments, take a virtual tour of the rooms, check in and out of the hotel on their own, and contact hotel staff via chat. It’s also a great way to reconnect with guests in the post-trip phase through push notifications.
4. Energy-saving technology
Technology has also come to play an important role in the hotel room. It’s designed not only to facilitate a unique experience for guests, but can also prove to be a great money saver for hoteliers.
In-room technology can include occupancy-based sensors that help reduce energy costs. These sensors, which use motion detectors or thermal sensors, detect when a room is unoccupied and shut off the power. They can also control lighting and implement water-saving measures when the room is occupied. Additionally, LED lighting can provide significant energy savings and create a modern, appealing ambiance in the room.
If you'd like to know more about how to embrace hotel sustainability throughout your property, download The Green Hotel of the Future – our guide to helping you go green.
5. Smart technology
Smart Hotels are those that use technology to create a unique experience and in turn, make life easier for guests. Smart hotels can implement technological advances such as voice control, facial recognition and mobile control so that guests can oversee their own experience. With certain technologies, they guests can control the lighting and temperature inside the room, start a bath, turn on some relaxing music and even check in and check out. Overall, using smart technology is a more sustainable option and can help reduce operating costs and energy use.
6. Big data
With thousands of guests passing through a hotel monthly, there is a huge database of big data readily available that can aid in better sales and marketing decisions. This big data can be collected and interpreted to manage revenue, identify specialized offers that will appeal to different target groups, and help make decisions that will positively impact the guest experience.
7. Virtual reality
Virtual reality is a great marketing tool that helps increase the time spent on your site – as well as conversions – and can therefore positively impact your organic rankings on Google. You can provide a virtual reality tour and 360-degree video of your hotel facilities and rooms, which is incredibly beneficial during the booking process. It helps retention rates because guests know what to expect so you are less likely to have disgruntled customers.
8. Operations
Hotel operations have never been easier. Thanks to technological advances and Mews’ hospitality operations platform, you can control reservations, revenue management, front-office operations, and housekeeping, all from one platform. This streamlining of the hotel operations process is one of the greatest advances technology has provided the hospitality industry. By applying different technologies to your hotel, staff can efficiently run the hotel and easily monitor performance.
9. Chatbots
Chatbots are without a doubt essential to any hotel’s marketing strategy. They can assist customers and answer frequently asked questions 24-7, as well as drive direct bookings. Powered by AI, chatbots can take care of the most common requests and transfer guests to the appropriate department without having to have a telephone operator on staff.
10. Metasearch bookings
Metasearch technology is the future of bookings, with the ability to increase bookings by as much as 180%. Metasearch engines such as Google, TripAdvisor, Skyscanner and Kayak serve as an important competitor research tool for users to compare prices and help drive direct bookings to your website.
11. Everything mobile
Mobiles represent the future of hotel technology. Beyond apps, mobile also proves an important tool for streamlining processes such as check-in and check-out, without having to interact with the front desk at all. It can also make the service quicker, allowing guests to register before they arrive. For this reason, it is now more important than ever that your hotel’s website is mobile-friendly as many last-minute bookings are made from mobile.
12. Marketing via text message or WhatsApp
The power of text messages should not be underestimated. While text messages are old news, using them for marketing purposes is becoming more and more popular. It’s a good way to reach your regular and potential guests directly. You can inform guests of promotions, deals, and last-minute offers without pestering them with phone calls. Conversion rates can increase, and it proves a powerful tool for building relationships with guests.
13. Facial recognition
Nowadays, even your smartphone has the possibility for facial recognition. This technology can be used to give a technological edge to the customer’s experience. You can offer facial recognition to access rooms, or the front desk can use it to recognize their guests to tailor their services and treat VIP guests with special perks.
14. Booking advances
Booking technology is constantly changing and helping to improve the process, including different software, metasearch, and online booking integrations for your website. There are also many tools that can be used to help track users and retarget them to direct channels.
15. Property Management Systems are here to stay
A Property Management System is no longer a “nice-to-have" but rather a must-have, allowing modern hoteliers to manage all aspects of their operations, from the guest experience to revenue management, task management, shift management, automation of processes, rate management, payment management, and so much more. It will continue to be at the heart of any hotel business.
16. The IoT
The Internet of Things, a network of connected devices and technology to facilitate communication between devices and the cloud will be a must in any smart room. It’s the perfect way for guests to take charge of their experience by using a phone or tablet to control things like digital key cards, voice-controlled devices for music, light and temperature control.
17. Digital payments
More and more guests will expect to use digital wallets like ApplePay and GooglePay when it comes to paying. Guests want to be able to quickly and easily process their transactions by placing their phones close to the reader. This reduces transaction times and gives flexibility for guests to pay in the most convenient way.
18. Fast internet is a must
Having fast internet is non-negotiable. With guests doing essentially everything on the internet, from virtual meetings to perusing social media and streaming videos, it’s crucial that your hotel’s internet bandwidth can support this increased activity. Plus, guests travel with multiple devices, making this even more important (think: tablet, smart phone, smart watch, laptop).
19. Hospitality software providing a frictionless experience
Hospitality software will continue to simplify day-to-day operations, boost revenue, and enable staff to deliver top-notch guest experiences. This software works in the background to deliver frictionless experiences, facilitating everything from reservation and rate management to payment processing and everything necessary to have a fully functioning hotel.
20. Robots
Robots are no longer something of the future but rather from the present. Yep, you heard us right: robots will be used for a variety of purposes, whether it be to deliver bags to the rooms, fulfill room service requests, or even provide keys upon arrival. Robots can also be used in housekeeping to always ensure spotless facilities.
21. Revenue management system
A revenue management system is another key technological trend that will be essential to boosting profitability. It can be used to determine your hotel’s pricing strategy based on internal data, market trends, and customer demand to optimize pricing and inventory.
22. Cloud technology
Cloud technology will replace legacy systems to make your PMS more accessible from anywhere, on any device. Hoteliers will no longer have to worry about backing up their data, because on the cloud, software is automatically updated and staff can collaborate in real-time.
23. Virtual concierge
With the help of mobile technology, guests will be able to easily get answers to their questions around the clock using virtual concierge technology. Virtual concierges reduce the stress on the front desk by enabling guests to handle service requests themselves, providing them with everything they need directly from their own devices.
24. APIs
No matter what software you use, APIs (application programming interfaces) allow seamless communication between the different programs you're using. If you have a PMS, you might be able to use an API to connect to another service that you need to run your hotel if it’s not integrated already.
25. Smart TVs
As part of a smart room, a smart TV is an important add-on. Gone are the days of pay-per-view and cable. You can allow guests to log in to their own Netflix and other streaming accounts to have a personalized in-room experience and to enjoy movie nights from the comfort of their hotel room.
Conclusion
Hotel technology can be implemented to improve the user experience throughout the whole customer journey, both online and in person. Online, you can use big data and different hospitality-specific tools to make better-informed decisions based on artificial intelligence and metrics. Implementing the use of new technologies can not only improve the customer experience, but also save you money while giving you an edge against the competition.
Keep in mind these 25 technologies that will help make your life easier as a hotelier by streamlining repetitive tasks and taking human resources away from certain activities that can be easily managed by technology.
Staying on top of the trends will help you better understand what customers will expect to continue to innovate and provide exceptional service using the newest technologies. All of this ultimately helps to increase customer retention and satisfaction while at the same time boosting your revenue.
The guide to switching PMS
To benefit from these technology trends, you'll need a modern, cloud-native PMS. Switching PMS is a big decision, but the actual process may not be as painful as you imagine.
Our Guide to Switching Your PMS covers the typical timelines and onboarding processes for when you make the move, as well as the ten key questions to ask any new hospitality cloud.
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