The Hidden Impacts of Investing in the Right Tech

There are many obvious reasons for wanting to invest in the “right” technology: from wanting to stay competitive, to maximizing your ROI, to simply making your life easier. But for hoteliers and revenue leaders, defining what solution is the best fit for their business is more critical than ever before – particularly as more and more hoteliers shift to an above-property revenue management strategy.

What does “the right tech” really mean?

When we talk about the “right” technology, we mean fit for purpose technology that is built to support and enhance the way you do business. The technology should adapt to fit your needs, rather than boxing you in to a certain way of working. It should make your employees’ day-to-day work easier while positively impacting key KPIs. Plus, the technology should be provided by a partner that understands not only the hospitality industry at large, but also the unique complexities of your specific portfolio of properties.

Hospitality and revenue management teams are not one-size-fits-all, and their technology shouldn’t be either. But the stakes for having the right tech are higher and more far-reaching than you may imagine, especially for teams that have made (or are making) the shift to above-property revenue management.

Far-reaching implications

Beyond the obvious reasons for wanting to partner with the right vendor and invest in the right tech, we’ve identified 3 key (potentially surprising) areas that are greatly affected by the systems you have in place.

1. Employee development and retention. Hospitality leaders know that navigating the current labor market is more difficult than ever before. It’s hard enough to source good talent; developing and retaining them is even more challenging. Leaders are responsible for setting their employees up for success, which includes continued growth and chances for upward mobility within their role, in addition to making their day-to-day as productive and painless as possible. Making sure they can successfully navigate the ever-evolving digital landscape and having the right tools in place to foster this environment is a necessity. From HSMAI’s 2023-2024 Special Report on The State of Hotel Sales, Marketing, and Revenue Optimization Talent:
   

   “As technology transforms every aspect of the hospitality industry, from revenue management to asset management, employees must adapt. However, expecting employees to navigate this journey alone is unrealistic. Organizations must take the initiative to systematically identify their employees’ skills and actively train and nurture their growth.”

   Additionally, implementing technology that frees employees from manual, repetitive tasks, and instead lets them focus on more strategic and meaningful work, increases fulfillment and has a positive impact on long-term retention. 
2. Fostering collaboration and commercial strategy. As more hoteliers shift to an above-property management model, effective communication between on-property and centralized teams is paramount. Leaders should foster an environment that encourages collaboration across cross-functional teams, including revenue management, sales, marketing, and more (HSMAI 2023-2024 Special Report). The right systems should enable – not hinder – that communication. Seek out technology that identifies and measures key, shared KPIs at both the property and portfolio levels.
3. The adoption of AI. You’ve heard it time and time again: if you don’t adopt AI, you’re going to fall behind. But what does that actually look like as it relates to your specific business and team? It doesn’t have to mean using a standalone AI tool (like asking your team to use ChatGPT to enhance their communications and output). Instead, look for partners and solutions that seamlessly integrate AI into their existing application to enhance its capabilities, productivity, and accuracy. This is especially important for revenue management systems (RMSs), where an accurate demand forecast, plus the ability to scale processes across a large portfolio of properties, is critical for above-property teams. Per HSMAI’s 2023-2024 Special Report on the State of Talent:

“AI significantly enhances revenue management in the hospitality industry by utilizing predictive modeling to analyze historical data and predict future demand and revenue. It helps revenue management teams optimize pricing and availability to maximize revenue, helping set dynamic pricing based on demand, occupancy, and other factors, thereby increasing occupancy rates and room rates.”

Your RMS’s ability to effectively incorporate AI into its forecast model ultimately has an impact on your bottom line. Make sure you understand how your current or potential partner is utilizing this important tool, and if it’s the right fit for your business.

A path forward

The right technology is critical for not only developing and retaining talent (in an environment where skilled talent is increasingly scarce), but also for enabling collaboration between teams during the shift to an above-property business model. Having the right systems in place is a lifeline in navigating talent challenges, staying competitive, and driving success in the hospitality industry. 

Auditing your current systems, as well as any potential new partners, to ensure they meet the specific requirements of your unique business model can maximize the return on your investment in more ways than one. If you are among the hoteliers who are operating in an above-property environment and are feeling the effects of legacy technology that wasn’t built to support your business model, it’s time to take a look at your tech stack.

Our team has years of experience navigating unique business challenges for hoteliers and can help you determine if your tech – particularly your RMS – is built to properly support your business. We’d love to connect with you.  

And for more free revenue management and above-property resources, click here.