Hotels Embrace Digital Transformation to Stay Ahead of the Latest Technology Trends

Hotels Embrace Digital Transformation to Stay Ahead of the Latest Technology Trends

Digital transformation represents the process of humans and technology working harmoniously for the greater good. 

A trend is a general direction into which something is changing, developing, or veering toward.

There is a misconception of trends that they represent some form of urgency. Maybe in the fashion industry, there might be some form of urgency related to trends. 

But for the hotel industry, it is more important to stay informed on trends to build trust, relationships, credibility, and value to show that your hotel understands the current shifts in the markets. 

Any hotel that allows itself to be driven by the urgency to be on top of the latest technology trend will at one point experience the disconnect between humans and technology. If there is no harmony between people and technology it does NOT matter how much your hotel has invested in the latest and shiniest technology - it will fail!

Technology is there to serve your hotel and help you add value both for employees and customers. 

It is important to understand that your hotel's technology is only as good as the people that come in touch with it makes it be. 

In this article, we will take a look at the connection between digital transformation and the latest technology trends for hotels. 

Let’s dive in…

Hotels Embrace Digital Transformation to Stay Ahead of the Latest Technology Trends

When we look at digital transformation and the latest technology trends for hotels we see this in context with value innovation.

Value Innovation

Value Innovation is the simultaneous pursuit of differentiation and low cost, creating a leap in value for both customers and the hotel.

And value is crucial because it forces your hotel not to rest on its laurels but assess your daily operations based on the value you currently deliver to your customers. The value your hotel delivers today drives customer behavior, which determines your future growth prospect, whereas the value you delivered yesterday determines your current market share. 

Innovation, on the other hand, is key because it allows your hotel to overcome existing industry conditions. Without it, hotels are stuck in the trap of competitive improvements. 

And when you are in the trap of competitive improvements that is when most hotels will eventually discover they are on the path to a disconnect between humans and technology. 

Where does your hotel want to be?

  1. Do you want to be a settler hotel that provides value imitations competing by offering incremental changes to an offering or its the price?
  2. Do you want to be a migrator hotel that doesn't offer innovative value but provides value improvements over your competitors and may even be best in class? 
  3. Do you want to be a pioneer hotel that provides value innovation? A pioneer hotel doesn’t have customers, they have raving fans. These hotels offer unprecedented value that opens a new value-cost frontier. And this unprecedented value is what holds the keys to renewing your hotel experience. Pioneer hotels are poised for strong profitable growth. 

The majority of hotels today are either a settler or migrator hotels. There are a variety of reasons for this, but from a technological perspective, the primary reason has been that the majority of hotel technology today lives in data silos. 

Data silos

Within a data silo, the data typically is dedicated to one department. The data is often structured in a hierarchy that requires certain skills and management tools. In many cases, a department has exclusive access to certain applications. From a cultural aspect, this is a factor that can create an unwanted internal competitive culture. 

Data lakes

Within a data lake, all data is typically stored in a central respiratory. A data lake environment eliminates data silos by facilitating the centralization of information. 

There are several benefits for hotels making a move to data lakes. It removes wasted resources and provides a space for more productive collaboration. Hotels get access to more relevant and timely actionable data. Data lakes improve both internal and external communication. 

Embedded hospitality

We have now set the premises for any technology investment your hotel makes. It starts with a focus on people and technology working in harmony for the greater good.

Second, we want to make sure that your hotel technology investment has a focus on value innovation. A pioneer hotel works with people to provide differentiation and cost-effective alternatives. 

And the third is what I define as embedded hospitality where you include people through data lakes. Data silos exclude while data lakes include. 

With embedded hospitality, we focus on technology in the spirit of collaborating on co-desi, co-creation, co-working, co-production, co-marketing, co-distribution, and co-funding.

The latest technology trends for hotels

Digital transformation is the process by which hotels leverage emerging technologies across their operation to drive fundamental change. The benefits? Increased efficiency, greater agility, and, ultimately, the unlocking of new unique value innovation for employees, customers, and shareholders.

2023 is dubbed the year of digital transformation. And several emerging technologies will help hotels in a challenging time. 

I watch and follow the latest technology trends closely. 

But in this article, I am not going to provide a list of these technologies. 

I keep reminding hotels that digital transformation represents the process of humans and technology working harmoniously for the greater good.

Before your hotel stars worry about the trends and invest in new technology to serve new needs and demands you need to start with the people. 

Your hotel has to focus on supporting skills to build a robust system that is prepared to invest in new technology in a setting that promotes differentiation and cost-effective alternatives. Invest in people and they will invest in your hotel.

The most important trend for your hotel to start with is to focus on making a shift from data silos to data lakes. It's from this point a new era of digital transformation for hotels will start.

Digital Transformation Partnerships for Hotels

Hotels today must invest in people and technology in a context that adds value to everyone involved.

Don’t continue to neglect or take the people's transformation for granted. Technology is a digital tool that will help your hotel when implemented in collaboration with your employees.

Partner with your employees and they will help with retaining and hiring people.

I also invite you to work with me as your hotel partner to help implement a new innovative digital transformation framework that opens the digital gateways to more direct bookings without competing with the OTA.

Through value innovation, I help hotels with cost-effective alternatives that are focused on eliminating and reducing factors the hotel industry competes on. I also help lift employee and customer value by raising and creating elements that hotels never offered before.

Learn more about digital transformation partnerships for hotels...

Please shoot me an email at: hotelblogger@aremorch.com

Are Morch is a digital transformation coach helping hotels open their digital front door, reimagine their processes and culture, and transform experiences in a fast-paced world!

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