The hospitality industry is at a crossroads as it enters 2025 and encounters the perfect storm. All aspects of external pressures – labour shortages and business taxes along with rising costs of goods and staffing are creating pressures and challenges that are out of hoteliers’ control. From discussions with our customers, we are seeing the same repeated themes; inefficiencies, lack of data capture and attaining profitability.
Advancements in technology in the coming year will be transformative for the industry with developments of integrated connected systems, Artificial Intelligence (AI) and machine learning (ML). People and technology together will help the industry overcome the challenges ahead.
Despite 61% of travellers willing to pay extra for tailored unique experiences, many smaller independent properties continue to struggle with inefficiencies and external challenges squeezing profit margins. Larger hotel chains can absorb these inefficiencies and external factors to some extent, but smaller properties face a stark choice: accept shrinking profit margins or adopt smarter strategies by investing in technology.
We looked at the key factors to achieving more in 2025, and how hotels can jump on the trend wagon to drive success:
Better connectivity between systems
2025 will see the era of hoteliers looking for better integrations and connected systems. Disconnected systems are a common problem for hoteliers. In the coming year, there will be a shift towards more fully integrated platforms that streamline operations and maximise the use of data for better business performance management, seeing the eradication of the spreadsheet!
Through a single interface, more hotels will be able to manage multiple aspects of the business, guest journey and staff management with the platform unifying numerous systems.Hotels that adopt integrated systems see a positive return on investment within six months. Digital check-ins, for instance, already average a 31% uptake, and further integration could unlock opportunities for automated upselling of F&B offerings and other services.
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Automation for staff sake
Staffing on a shoestring remains one of the biggest pain points for hoteliers. Hoteliers are looking for ways to make their limited staff resources work smarter. Increased adoption of technology, automating routine tasks like check-ins, room allocation, and inventory management and eradicating the zombie task culture will address this in 2025.
This will provide a win-win; guests get an experience that exceeds expectations and staff can get on with the job of service excellence and not mundane admin.
Data capture priority
Many hotels struggle to capture guests’ information – email, home address, room preference, length of stay – which is readily available to them. Without data hotels are unable to communicate effectively with guests and provide that personalised guest experience.
Hoteliers will prioritise direct booking strategies, supported by marketing and dynamic pricing tools to reduce reliance on OTAs utilising data more efficiently.
Intuitive user interfaces and self-service technology is enabling better guest data capture. When combined with AI, hotels get better insights of guest preferences and behaviour to deliver tailored experiences, from room recommendations to upselling additional services.
Guests value personalisation, and hotels can charge premium rates for bespoke experiences. But this requires centralised, integrated data platforms to function effectively.
Forecast profitability
Predictive analytics allow hotels to forecast demand more accurately. Having integrated data enables hoteliers to make informed decisions about how to maximise spend to fulfill resource demands.
Managing F&B costs is a persistent challenge with profitability dropping by over 30% in the last five years. This year, as costs continue to rise, more independent hotels will adopt integrated technology solutions to make F&B work smarter to reduce food wastage and reduce costs.
Machine learning will integrate data from occupancy trends, market conditions, and external events, such as concerts or festivals, to optimise pricing, maximising “The Taylor Swift Effect” where local accommodations can manage anticipated spikes in demand.
Evolution not Revolution
The hospitality industry doesn’t need a technology revolution but rather an evolution. More hoteliers will find themselves transitioning to new systems in 2025. The process can be overwhelming, and hoteliers will need solutions that are easy to implement and scale at a pace their teams can handle.
Hotel staff should be able to navigate and utilise these systems intuitively without the need for an IT specialist. This approach will ensure that technology supports rather than overwhelms operations, maintaining the human touch that is so crucial in hospitality.
Integrated AI
Hotels will increasingly capture and use integrated data to make informed decisions. AI will transform data into actionable insights, helping to optimise everything from staffing to F&B ordering to marketing campaigns.
In the next 12-18 months we will learn to unlock the value of AI and Machine Learning (ML). More hotels will adopt tools with integrated AI to enable sustainable operations, from reducing food waste to monitoring energy use.
Conclusion
The hospitality industry stands at a tipping point which will accelerate the adoption of technology in 2025 and there will be more focus on the technology tools to navigate this storm. The Cloud systems will be essential for hotels to automate administration while staying on top of business performance, while having the flexibility to respond to market changes.
The key to success lies in gradual adoption, ensuring that both systems and staff are ready to embrace this tech-driven future. With the right balance of human interaction and technological innovation, the hospitality industry will unlock new levels of efficiency, profitability, and guest satisfaction.
With the right technology and strategic approach, hoteliers will thrive in 2025.
Learn more about Guestline here
About Guestline
Guestline (an Access Company) provides the hospitality industry with innovative property management, guest engagement, payment and distribution software.
Since 2003, Guestline’s cloud-based solutions equip any sized hotel or group with everything to successfully run the business and generate more revenue – from intuitive PMS and booking software to fully unified channel management and payment solutions.
Guestline’s feature-rich portfolio includes PMS, CRS, Conference & Banqueting, Channel Manager, EPoS, Internet Booking Engine, GuestPay Payments and GuestStay Guest Experience. With over 500 integrations, Guestline offers its 3,000 clients a flexible, cost-effective, multi-functional system that allows them to stand out in an increasingly competitive marketplace.
Discover more at guestline.com
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