What is the State of IT Investment in Hotels and What Needs to be Done?

 

What is the State of IT Investment in Hotels and What Needs to be Done?

Like any other industry, hotels have realized that technology adoption is the only thing that will help them drive growth. And this has led to a slight yet encouraging increase in their IT investment. Hotels are encouraged to increase their investment in IT to grow their business.

These days, more and more hoteliers believe that cloud migration will significantly impact the industry in 2023. As the hotel business is back on track globally, the keenness of hoteliers to invest in technology is more than ever.

Where does a Hotel Property Management System stand on a hotel’s priority list?

When we say cloud migration, it primarily indicates adopting a cloud-based hotel property management system (Hotel PMS). As also referred to as hotel software or hotel management software, Hotel PMS is a crucial piece of a solution for handling day-to-day hotel operations.

It's all about adopting the right solution.

When automating and streamlining operations, properties of all sizes need Hotel PMS. But there is a slight difference here. It is mainly because their technological requirements vary to a great degree. While a small or independent hotel would need a solution with just a few basic modules, a hotel group would need something robust and comprehensive. Since they have multiple properties in a group, they need a multi-property management system.

Here are some points to consider:

Costs
Be it a small or large hotel, saving costs is everyone's priority. This is where cloud hotel software makes sense. It comes with flexible pricing and no upfront license or AMC fee. Then, hotels don't have to spend more on setting up on-site servers and IT teams to manage them. Product upgrades are regular and free. All these lead to one thing - lower software ownership costs.

Operations
A small property can manage its operations with a Hotel PMS that has a front desk, housekeeping, and PoS modules. If the management wants to sell more rooms online, they can use a channel manager and web booking engine integration. But they need to ensure that the PMS is offering them operational reports so that they know how their hotel is performing.

Third-party integrations

Hotels in both segments would need to work with third-party solutions of their choice to leverage the power of digitization.

They must ensure the solution directly connects with leading channel managers and web booking engines. The channel manager ensures an automated, error-free, and real-time distribution of rates and availability across OTAs, ultimately leading to better visibility and sales. The booking engine generates more direct bookings via their websites.

Similarly, they must see if the Hotel PMS is integrated with multiple and widely used revenue management systems. It is very critical as it suggests to them the optimal room rate based on local demand, occupancy rate, and competition rates. This is key to selling more rooms at the best rates to increase occupancy and revenue.

The crux is that the right hotel property management system should integrate seamlessly with various best-in-class solutions, including accounting, CRM, loyalty programs, online reputation management, and materials management, etc. It helps hotels manage operations across departments.