INDIE Cultivate on July 11th - 12th in New York helps hoteliers explore what matters most when it comes to the complex hospitality tech space
In Frederik Backman’s New York Times best-selling book, “A Man Called Ove”, the first chapter is aptly titled, “A man called Ove buys a computer that is not a computer.” In those first few pages, readers are introduced to fifty-nine-year-old Ove, a decidedly grumpy and impatient man who ventures into a tech store on a mission to buy a computer. He mistakenly asks the young sales associate for an ‘O-Pad’. The exchange only becomes more strained as Ove repeatedly asks the associate if the tablet is a good computer, and the associate explains that while it’s a good piece of technology, it depends on what type of computer he wants. As you can imagine, Ove’s frustration soon peaks when the associate attempts to explain that a keyboard was sold separately and then tries to direct him to a MacBook (which Ove endearingly calls a ‘McBook’) instead.
While this scenario is a piece of fiction, it illustrates a relatable experience – not just for an older generation struggling to grasp new technology but for companies scrambling to keep pace with the rate of digital innovation. In today’s world, brands across every industry face what can best be described as a ‘paradox of choice.’ There is no shortage of new, innovative technology available today, and waiting just around the bend. Much like any other service-based, customer-centric industry, the world of hospitality is no exception. Generally speaking, travelers today are no Ove; rather, they are an exceedingly tech-savvy bunch demonstrating an undeniable preference for those hospitality brands offering an exceptional online and offline experience. Sure, they still crave the more traditional elements of hospitality – but rarely without the digital conveniences and efficiencies they’ve grown accustomed to in their daily life.
Moreover, from an operational standpoint, hotels have no choice but to frequently audit their systems and processes to identify gaps, improve workflows, capture data, and unlock new efficiencies that promise to mitigate labor challenges. As a result, the hospitality industry has been flooded with new platforms, applications, and services that promise to transform the hospitality experience for guests and hoteliers alike.
And so, the question is not whether or not hotel brands should embrace digital innovation – that is, after all, inevitable in today’s market – but rather, what platforms should they choose? Better yet, with countless vendors playing in the hotel tech space, how does one decide? What are the vetting criteria, and how can hotel brands avoid feeling like Ove did when he stumbled into the store without a clear idea of how to find what he needed?
As I plan my trip to New York to attend the Independent Lodging Congress’ upcoming event, INDIE Cultivate, on July 11th and 12th, I look forward to hearing from hoteliers and tech companies about our industry's challenges and solutions. This is a unique conference focused on innovation, investment, and technology adoption in the independent hospitality, travel and lifestyle sectors. It will bring hoteliers, technology companies, investment bankers, M&A advisors, and venture capitalists together in one incredible setting.
Cost Considerations
One of the primary considerations hoteliers must make when vetting and adopting new technology is rather apparent – budget. There is, of course, a requirement for all stakeholders to be involved in today’s purchase decisions, and to protect the bottom line, adherence to the budget a hotel property or brand has allocated to tech adoption is undeniably important. With hundreds of PMS platforms, booking engines, CRMs, POS providers (and more) in the market today, hoteliers must assess the entire cost profile of each option. Does the platform or service come with substantial upfront expenses, or is it a subscription or tier-based service? Are there integration fees, training fees, maintenance fees, or upgrade fees that will add to the cost of the platform over time? Are pricing options flexible and adaptable to each hotels’ needs? More importantly, do the long-term benefits and cost-saving opportunities outweigh the initial financial outlay to ensure alignment with business goals and budget?
Big Fish, Little Pond – or Small Fish, Big Pond
Of course, hoteliers do not have time to review and consider every piece of technology that will be offered to them; instead, they have to narrow down their focus right from the start to prioritize those platforms that best align with the goals of the business and the needs of guests and staff.
But within the world of hospitality tech, there often exists a choice between innovative start-ups with a grand vision of the future and a penchant for hands-on partnership or a large, tried, and trusted technology provider with industry tenure. There are pros and cons associated with both; with a tech start-up, a hotel property is likely to be a big fish in a small pond, and these companies often come to the table with cutting-edge ideas and a genuine exuberance for continued innovation and evolution of the industry. Large, more established providers offer a sense of security regarding service/platform reputation and brand association. After all, they often have a proven track record in the hospitality industry and reliable support services. However, hotels that align with these providers may feel like small fish in a big pond.
One is not inherently better than the other; rather, it ultimately depends on the platform capabilities required by a hotel (both short-term and long-term), its appetite for innovation, and the type of vendor relationship/partnership and support a property needs. Striking the right balance between embracing cutting-edge solutions and practicality is crucial.
Technical Support and Integration
Hotels also have to consider the way(s) in which a new platform or system will integrate with existing technological infrastructure. To ensure a successful implementation, hoteliers should only consider those platforms which boast the ability to integrate seamlessly (often via an open API or microservice infrastructure) with existing systems.
With this in mind, any new application or platform should be compatible – in terms of day-to-day functionality and the migration and ongoing exchange of data – with the hotel’s other core platforms. Interoperability, as you might have guessed, is integral to successfully adopting any new technology.
Support
Oftentimes, the most significant barrier to the adoption of new technology is the user experience. If a new system requires extensive training, is too complicated, or otherwise difficult to use, staff and/or guests are unlikely to embrace it. After all, hotel staff and guests will be unable to effectively leverage the capabilities of a new tool or process if they aren’t confident using it in the first place. Finding the right platform is only half of the equation – the winning solution often comes with top-tier support, collaboration, and partnership.
As such, hoteliers are encouraged to seek vendors offering comprehensive training programs, change management strategies, and, perhaps more importantly, ongoing, hands-on support. Suppose a hotel has plans to scale and innovate well into the future. In that case, it should also consider those vendors which seem equipped to help to foster a culture that encourages growth and technological advancements.
As the hospitality industry continues to evolve at a rapid – and exciting – pace, the continued embrace of new and innovative technologies has become essential for hoteliers to remain competitive and meet the ever-changing expectations of modern travelers. The pursuit of technological advancement comes with its own set of challenges; however, hoteliers that clarify the needs of their business and guests (both now and in the future), and consider factors such as cost, technical support, and innovation potential, are well positioned overcome these hurdles and unlock the full potential of their properties with the help of new technology.
As I plan my trip to New York to attend the Independent Lodging Congress’ upcoming event, INDIE Cultivate, on July 11th and 12th, I look forward to hearing from hoteliers and tech companies about our industry's challenges and solutions.
About Alan Young
Alan E. Young is the Co-Founder and President of Puzzle Partner, the leading marketing agency focused exclusively on the complex B2B initiatives of technology innovators across industries including hospitality, travel, healthcare, life sciences, pharma, media, and entertainment. He is also the Tourism and Hospitality Program Professor at Georgian College. Previously, Alan has held executive-level positions with start-up companies such as Newtrade Technologies (acquired by Expedia), Hotel Booking Solutions (acquired by IBS Software) and TrustYou. Alan is past Chair of The Board of Directors of The OpenTravel Alliance and been very involved with other industry associations most notably AHLA, HEDNA, and HTNG. With over two decades of experience in the travel and hospitality technology world, Alan specializes in helping innovative companies achieve winning performance and dramatic growth.