The major changes brought by technology in the hospitality industry

The hospitality industry is a dynamic environment in a constant state of movement and evolution. To meet the challenge of growing customer expectations, the hospitality industry is turning to technology. What normal wisdom perhaps misses - or at least misjudges - is the degree to which technology, from online booking to innovative apps, is not just influencing the hotel business, but is well on its way to becoming the driving force behind its future. To get a sense of where we might be headed, Catherine Dubois posed the following questions to Greg Moore, General Manager of the Crown Promenade hotel in Melbourne, Australia and an hotelier who has worked for 42 years in the industry:

What major changes has technology brought to the Hospitality Industry?

The major changes have occurred on two levels:

1. Management level: the advance of technology has transformed how we communicate, from email to a whole new range of applications. Yet it is still a fact that technology is not always the best way and will never replace good customer relations and interactions. Time spent managing emails could be spent actually talking to staff and customers.
2. Hotel operations level: despite all the inevitable changes technology has delivered, the industry is still based on the original principles: clean room, fluffy pillows, good food, and great service: “home away from home”.

How has technology altered “in-room” guest experience?

• Technology has transformed and expanded in-room entertainment as guests can now access 300 channels on wide screen televisions, web enabled.
• Tablets have replaced compendiums to provide guest with all the services available in your property.
• Because utilities are the fastest rising cost for hotels, technology can be useful in their management. For instance, the use of swipe cards enables lights to be automatically switched off when guests leave the room.
• The fast pace of technological development outside of the industry means that most people now have their own device and it is paramount to remember that we cannot have a disconnect between home and hotel in regards to technology.

Technology has also

• Brought a greater degree of security for hotels, from CCTV (now readily available, as the cost has reduced significantly) to key lock and in-room safe mechanisms to mention a few.
• Altered the way we conduct and capture business:
  • Marketing and booking methods have changed: the consumer can book direct, book on line or use one of the two main Australian travel agents.
  • In the sales and marketing area, social media is a now an effective tool to communicate with guests and customers instantly. It is contemporary: the language of the day.
  • There is a new cost of doing business, especially sales as some platforms are expensive and these costs will inevitably end up impacting on rates.

What link do you see between technology and excellent customer service?

Technology makes processes more efficient, effective, and smoother. There is more pressure for financial performance and we now lean more heavily on technology to run a smart, smooth business. Revenue management systems are becoming more sophisticated. This means you are able to direct more human resources into service staff, rather than administration. The aim is to exceed guest expectations. Customers expect an increasing standard of, and access to, good technology. As staff has grown up with technology, they have a high learning agility and adapt very quickly to change. They appreciate the benefits of more efficient processes that provide them with more time to build stronger relations with guests. 

The future…where to from here?

Technology now guides and contributes to hotel design. Sustainability, which is now expected by customers and required by government, can be incorporated into the overall hotel design and facilities for technology can be embedded during the building stage. The enduring message remains “In the Hotel industry, technology must continuously be used to enhance not replace customer service”

Interviewee Catherine Dubois is an international hospitality trainer and consultant with over 20 years’ experience. Some of her career’s highlights include opening 5 star hotel complexes in Macau, opening boutique resorts in the Maldives and delivering in house training to hotels in Bahrain.

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