A New Age of Hospitality-Tech: Investment Booms and Maturing Technologies
The hospitality industry presents a challenging landscape for technology development and adoption, primarily due to its complex structure and global reach. Despite these difficulties, there is a significant opportunity for transformative investments in innovative solutions that can drive efficiency, sustainability, and personalized guest experiences.
When Edward T. Drumheller was persuaded by the famous Mr Edison to try out electric lighting in his hotel in Sunbury Pennsylvania in 1883, he backed a winning technology. The magic of a winning idea often lies in its simplicity: it addresses a need we were hardly aware of. However, transforming a great, simple idea into a winning innovation is never easy. This journey is particularly challenging in the hospitality industry, where, let's face it, selling new technology is a tough task.
Firstly, the fragmented ownership model, where brands do not own the assets but operate through managed and franchise models, makes large-scale investments cumbersome and slow. Convincing various stakeholders to invest in a vision and comply with ever-changing global regulatory standards adds another layer of complexity. Additionally, the sales cycle in hospitality is notably intricate due to the diverse ownership structures. For example, selling technology to an Accor hotel in Asia requires approval from multiple layers of the organization, including corporate, regional offices, and the hotel’s general manager and owner. This multi-stakeholder environment makes the process time-consuming and complicated.
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