Why Hotel Technology Hasn't Kept Pace with Revenue Management
By Michael McCartan Managing Director Europe, the Middle East, and Africa, Duetto | October 01, 2017
The overreliance of legacy technology solutions and the lack of data integration are possibly the single biggest constraints on the hotel sector today. The reasons for this are deep-seated in the history of hotel technology. Most hotel operations have built up their technical systems and applications piecemeal over the years. As a consequence the teams that were created to support them looked at things from a narrow viewpoint. These organisational silos limited data exchange between teams, and that has evolved into limited data exchange between technology systems.
In order to drive revenue, hotels need to drive technological advancements in two ways:
1. Predictive Data Analytics – To better understand the market demands and customer needs in order to optimise on revenue through an Open Pricing strategy, ultimately culminating in personalised prices.
2. Machine Augmentation and Learning – To remove friction from the guest experience by replacing redundant human interventions with automated processes, allowing hotel staff to engage with the guests only in ways that truly enhance their stay.
However, their technological inefficiencies and organisational habits make it very difficult for hotels to break free.
Things are changing, and hotel companies are seeing the benefits of using best-of-breed, cloud-based technology solutions that don't require a huge capital investment and can be replaced relatively easily. However, there is still a large level of fragmentation between the various technologies they are now employing. This is holding back the access to and analysis of customer data.