The Next Phase of Digital transformation in Hospitality

July 26, 2019

In the hospitality space, customer experience is everything. Making sure guests are delighted is important to be successful in a market that is increasingly competitive and where customer reviews can be disastrous for a brand.

Technology is huge component in helping hotels/ restaurants provide optimal guest experiences, from the moment a reservation is made until a guest checks out. Everything in between—from the ease of connecting to the hotel’s guest network to the temperature of the guest room when entering for the first time or when the delivery speed of room service—has the potential to be enhanced by the right technology.

Hotels have recognised the importance of technology in improving the guest experience, and are now embracing digital transformation to increase the speed and efficiency of their processes and provide an even more consumer centric experience for its guests, many of whom are digital natives and expect services that support their lifestyle, such as high speed internet and mobile check in. Guests today crave autonomy but except personalized interactions—an expectation that may seem impossible without digital transformation technologies.

Industries of all capacity understand the impact of digital transformation and are investing major dollars to implement or expand their digital transformation initiatives. In 2019, spending on digital transformation is expected to reach 1.7 trillion worldwide

Hotel brands are recognizing the impact digital transformation can have in helping to increase guest satisfaction and guest loyalty. Many companies reported their top strategic tech objective in 2018 was improving digital customer engagement and guest loyalty.

Now, as hotels move into the second iteration of their digital effort, many are expanding their initiatives to further improve the guest experience and create even more opportunities. The drivers, technologies, processes and mindsets that drove digital transformation have evolved

Digital transformation uses current technologies in new ways to deliver high quality services to guests while also embracing new technologies that enable more personalised services and extend brand reach and reputation. Digital transformation efforts are composed of more robust and services-rich mobile apps, good in room connectivity technologies and back office data analytics working to improve the overall guest experience. The trial to extend the value of hotel’s initial investments, as well as streamlining their processes, improving service quality and increasing customer satisfaction.

Drivers for transformation

Today’s travellers are digitally savvy as well, relying on their smartphones and mobile devices to perform a multitude of tasks. Millennials, the 1st generation to grow up with the internet and smartphones, now make up more than a third of hotel guests worldwide and are expected to account for at least half of total guests by 2023. Their dependency on mobile requires hotels to have excellent connectivity and a high quality online presence, including sites that are optimized for mobile and interaction.

Ensuring a solid online presence is especially critical as expenditure on travel continues to increase. Domestic travel is expected to grow 2.6 percent through 2019, with U.S hotel occupancy rates hovering at about 73 percent in the third quarter of 2018.

The need for a first rate online and mobile presence is becoming ever more critical: in the United states, more than one quarter of travel searches in the fourth quarter of 2017 were done on a mobile device. What’s more, 80 percent of customers prefer to self-serve to get the information they need, according to a recent survey from online reservations.

Alot of travel sites that allow consumers to both book and provide feedback on hotels also have a major impact on a hotel’s reputation and resulting success or failure. Peer reviews can make or break a hotel: according to one survey, 49 percent of travellers will not make a reservation for a hotel that has zero reviews.

Transformative Technologies Changing the Hospitality Landscape

The first half of the phase of digital transformation is focused on technologies that helped companies work smarter and more efficiently. Cloud, big data and social are the cornerstones on which the foundation of many digital transformations was built, enhancing brands to achieve greater efficiencies and better understand their guests through personalization and business insights.

Secondly, it focuses on those accomplishments to focus more directly on the guest experience through expanded and more efficient use of technology. Mobility is a major driving force of digital transformation efforts in hospitality, as hotels recognize not only the importance of mobile devices in guests’ lives but also their role as a critical tool in making or breaking a brand’s reputation.

Data: The Lifeblood of Transformation

Data analytics has shown to be important spotting business trends, realizing operational efficiencies and understanding consumer sentiment. In the other half of digital transformation, hotels have adapted data analytics further to push customer engagement and loyalty, critical elements in establishing and maintaining brand reputation among consumers.

Data analytics also can be used to analyse local and national occupancy and average room rates, to determine whether the hotel’s room price is competitive. Such information may offer the required insight to change on-the-fly changes to area rates supported external factors like weather patterns or forthcoming events, or to produce special room rates to particular loyalty program members.

Hotels can also use data analytics to schedule upgrades to hotel rooms based on occupancy trends (both historical and predicted), the most appealing décor type (traditional, contemporary, no-frills), or most pervasive type of traveller (business, leisure or both).

What’s more, data analytics can be paired with social and other online sites to gauge customer sentiment and determine a hotel’s strengths and weaknesses based on guest reviews and social media comments. With the information gleaned from review analytics, hotels can plan improvements to their operations to better improve the guest experience—and increase their revenue.

Building the Infrastructure for Digital Transformation

As with the primary part of digital transformation, the efforts of Digital Transformation two.0 can’t be sustained on heritage network and IT design.

To reap the advantages of rising technologies, as well as deeper client engagement and stronger complete name, hotels want decent information measure and sensible, software-defined design to alter additional capability, flexibility and Control of business applications running across associate degree enterprise from complete headquarters to the sting (location level).

As hotels attempt to maneuver into the second part of digital transformation, they have associate degree atmosphere that supports that goal from each purpose on the network.

Hybrid cloud and network environments, SD-WAN and high-speed broadband square measure just a few of the technologies that alter corporations to raised manage their business applications across all locations, whereas networking

Components like WLAN and unified communications guarantee staff and guests alike have a high-quality property expertise.

To help hotels as they move deeper into digital transformation without overly stressing their current network and to help streamline processes for IT managers, managed services help tie disparate systems

Together and “fill within the gaps” each as hotels update their current infrastructure and when networks are upgraded.

Working with a network service supplier will facilitate IT leaders reimagine a way to build a contemporary network and IT infrastructure that’s capable of handling all aspects of digital transformation two.0.

By working with a network services provider, hotels can leverage virtual and physical private Ethernet connectivity to assure there are no issues regarding network performance and availability for critical applications at all locations.

They can also receive all or a number of their most important property functions as a managed service, as well as managed property, WiFi, security, voice and business continuity, among others.

The wave of digital transformation enabled hotels to utilize technology to figure smarter and additional expeditiously. Their processes, improve service quality and increase To know more visit: https://www.oec2019.com/

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Written by Zamask

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