The hospitality industry has been navigating a surge of new technology solutions. Each one promises to streamline operations and enhance the guest experience. Indeed, the hospitality technology sector is looking really strong.
The global market for cloud-based property management systems (PMS) alone is expected to rise exponentially to 2030, reaching a value of $3.43 billion (Hospitality Financial and Technology Professionals). Research also shows that 66% of travel executives are investing in digital technology specifically in order to improve customer service (Skift). And 56% of hotel leaders say they expect the impact of technological automations to increase their profits due to improved guest experience (Deloitte).
Despite all this positivity around technology in hospitality, the behind-the-scenes reality is sometimes different. At a Hospitality Discussion event in September 2024, Travel Market Life gathered over 20 hoteliers and industry experts to delve into five core industry issues which are available through a five-part podcast series. In the fifth episode, we look at some of the challenges and solutions facing hoteliers when it comes to selecting and integrating technology.
The issue of seamless communication
One of the most discussed issues hoteliers experience is compatibility problems between their different technical solutions. With so many systems and partners in play, it can be really difficult to achieve complete integration between them. Booking platforms, channel management tools, property management systems (PMS), and payment gateways all play a role in ensuring hotels can effectively manage room availability, pricing, and booking. Yet, one of the industry’s most persistent challenges is getting these systems to communicate seamlessly.
“When I start looking for a new system, or when we look at replacing a system, I ask ‘can these systems talk [to each other]?’” explained Mustafa Gokcen, Head of Information Technology at the Cheval Collection. “Number one: it has to help the data flow. It must give you that seamless, smooth transition from one system to another.”
Despite the now wide-availability of open APIs, which should simplify data exchange between systems, hoteliers continue to face frustration. According to Maggie Bazemore, Knowledge Management Director at Mr and Mrs Smith, data quality and system compatibility can vary, with some providers unable to meet the specific data needs of hotels. This means that even with tech-driven solutions implemented, many hotel staff members are left manually inputting or adjusting data, increasing both workloads and risk of errors.
“I think payments are not very well integrated within the systems,” Bazemore said. “It’s always a separate thing. Security and compliance and all of these really important things need to be done. But there is still so much of a gap between real-time availability, real-time bookings and then the payments associated with them.” She said that this is one of many “connecting the dots” pieces that needs to be done by technology vendors.
The importance of vendor flexibility and responsiveness
For hoteliers, the right technology partner is more than just a system provider; they’re a critical piece of the operational puzzle. Vendor flexibility and responsiveness are crucial when choosing a new system. Hotels often need vendors to adjust to their unique setup, which means that a one-size-fits-all solution just won’t cut it. And with integration already such a headache for some hotels, you don’t want to create more problems with the wrong choice of technology or vendor.
“Don’t let the user interface fool you,” Gokcen warned. “Consider what support is available, and what the integration is like. You might have all these different, very nice and super expensive systems. But when they don’t talk to each other, they are kind of useless.” A good vendor is one who provides solid initial support, and continues to monitor and update integrations, according to Gokcen. As hotel needs evolve, so should the tech solutions, adapting to handle increasing guest expectations and dynamic room pricing.
As a booking partner working with both hotels and guests who want to book hotels, Mr and Mrs Smith grapples with a lot of different technologies. When it comes to technology vendors, Bazemore says you can spot the good ones by their responsiveness. “The ones we work with most successfully are those that we know are providing a good service to hotels, because we can actually see it,” she explained. “When something’s gone wrong with the integration, they react quickly. They make changes quickly so that our customers are not affected, and our hotel customers are not affected either.”
The cost of downtime
Integrating a new system can come with unexpected challenges, including downtime and coordination issues. Integrations need to be organised with an efficient project plan in place, back-up processes available in case systems go down, and general preparedness for things taking longer than expected.
Sarova Hotels recently managed the first installation of a new payment system involving multiple vendors throughout the portfolio, taking a staged approach by addressing one property at a time. “We have six different partners involved in the installation process, and the first big hurdle is coordinating engineering time from each one,” Jon Siberry, the Group Revenue Manager explained. “They all have to be available and ready on the same day. They have to work to a schedule, right through from the first person in the chain to do their bit. It’s all got to complete on a schedule within a cycle. And if anything goes wrong within that process, then the whole thing breaks down.”
Unfortunately, on the first attempt something did go wrong, the system crashed, and the whole network went down. They had to revert to their previous payment system, and then schedule the complicated installation process again for a different day.
While Sarova achieved a successful install of the new system, this experience highlights how even a single misstep can disrupt hotel operations, impacting guest experience, and potentially revenue too. Again, working with technically proficient, reliable and communicative vendors is key to success, particularly if you have complex needs.
Navigating the vendor market
With new tech vendors regularly entering the market, hotels now face a blend of well-established providers and niche newcomers. While consolidation among major players might suggest a more streamlined vendor landscape, the reality is that small, specialised tech firms are increasingly available. Sometimes it’s the smaller, local vendors that can bring competitive pricing and tailored solutions, particularly for boutique hotels that may not need the capabilities of a large, international system.
This influx of niche providers may offer hoteliers more choice but also requires careful vetting to ensure compatibility with existing systems. It’s a balancing act, as smaller providers often bring innovative solutions to the table, but may lack the resources for extensive, custom integrations or ongoing support.
Ultimately, buying decisions must always be based on the solution the technology can actually deliver. “I’m not saying the user interface is not important,” Gokcen shared. “But sometimes the system that has all the friendly colours and graphs might not be the best one. You might get a system that doesn’t look as fancy as the fancy-looking one. You need to look at what features it offers, and what benefits it brings to the table.”
As technology continues to evolve, hoteliers are looking for vendors who understand both the hospitality sector’s challenges and the potential of technology to transform it. Many in the industry hope for a more unified tech landscape where payment systems, property management solutions, and booking engines integrate effortlessly. This would not only ease operational workloads but also improve the overall guest experience by enabling smoother and faster booking and payment processes.
Ryan HaynesDirector | Lead ConsultantHaynes MarComs Ltd
