In a recently contributed article on Hospitality Net, Michael Levie asked the question of why we see a slow pace of hotel groups upgrading to contemporary tech stacks. Innovative and open-architecture applications that the hospitality sector has long anticipated are now accessible, providing vast and flexible options ready to be deployed. From data analytics, digital transitions, and understanding revenue flows to business intelligence, everything is available at attractive SaaS pricing. Modern technology solutions available today have the potential to transform our industry into genuine tech and data-driven entities. Yet, the question remains: why haven't all made the shift instantly? What's holding us back?

Below is an executive overview of 13 expert views in Hospitality Net's World Panel:

The hospitality industry, synonymous with impeccable guest experiences and age-old traditions, seems to stand at a crossroads when it comes to technological adoption. While there's no dearth of innovative technologies promising transformative results, many hoteliers appear to tread cautiously, even hesitantly, in this domain. Several experts have weighed in on this apparent paradox, revealing multifaceted challenges and offering insights on potential solutions.

  1. Financial Barriers and Perceived ROI: One of the most pressing challenges is the perceived financial implications of integrating advanced technology. Dave Berkus underlines the quandary many face – the uncertainty of which tech investments will yield tangible returns. There's a prevalent skepticism, especially among the older generation of hoteliers, regarding the true value of tech investments. As Ian Millar (EHL Hospitality Business School) aptly puts it, the immediate return on investment (ROI) of these technologies might not be glaringly evident, leading to a wait-and-watch approach rather than proactive adoption. Michael Toedt (dailypoint) emphasizes that most hotel CEOs lack tech-savviness, often focusing on brand expansion rather than tech upgrades. He underscores the need for a guest-centric IT strategy, differentiating big data OTAs from the prevailing problem-solving approach in the industry.
  2. A Pronounced Skills Gap: Berkus sheds light on another significant issue – the lack of requisite skills at the grassroots level. Contemporary technologies, while promising, often require a specialized set of skills for seamless deployment and maintenance. Max Starkov goes a step further, critiquing the education system, where few hospitality schools are prioritizing tech education, leaving graduates ill-equipped to handle the demands of modern-day hotel operations.
  3. The Intangible Human Element: The hospitality industry's charm lies in its human touch. However, this also serves as a double-edged sword when it comes to tech adoption. Ian Millar attributes much of the reluctance to the human factor. This encompasses everything from a fear of the unknown to concerns about job redundancy due to automation. Adam Mogelonsky reiterates this sentiment, stressing how deeply rooted traditions can sometimes impede systemic and rapid change.
  4. Disjointed Investments: Max Starkov paints a vivid picture of misplaced priorities. While there's a palpable excitement around innovative tools, the focus often shifts to adopting isolated flashy applications, sidelining the broader tech infrastructure that can bring holistic transformation. Such a piecemeal approach can result in a fractured tech ecosystem, devoid of cohesion and true integration.
  5. The Legacy System Dilemma: Legacy systems, especially Property Management Software (PMS), have been both a boon and a bane for hoteliers. While they've served as reliable backbones for operations for years, they've also become stumbling blocks for integrating newer, more efficient systems. Uli Pillau (apaleo) and Binu Mathews (IDS NEXT) both highlight the cumbersome nature of these systems and how their deep entrenchment complicates the move towards more agile and integrated solutions.
  6. Mental Roadblocks: Stanislav Ivanov delves into perhaps the most intangible yet potent barrier: mindset. The inertia stemming from the "we-have-always-done-it-this-way" mentality is arguably the most challenging to overcome. Professionals, both at the managerial and operational levels, exhibit resistance to any change that threatens to disrupt established norms. This, combined with either an exaggerated trust in AI or unwarranted skepticism, often results in a paralyzing indecision.
  7. Data Security Concerns: In an era where data breaches make headlines, it's no surprise that the hospitality industry, which handles vast amounts of sensitive guest data, is wary. Ian Millar emphasizes this genuine concern, as any technological misstep can jeopardize guest trust, leading to severe reputational damage.
  8. Tech Supplier-Client Dynamics: Not all challenges originate from within the hospitality sector. As Tristan Gadsby (Alliants) highlights, the tech industry has its share of issues. The absence of stringent regulations, coupled with dubious players, makes the task of finding reliable tech partners daunting. The onus, thus, falls on both tech providers and hoteliers to foster a transparent, trust-driven environment.
  9. The Cloud Transition Hurdle: Laura Calin from Oracle elucidates another prevalent misconception: the complexity of transitioning to the cloud. While cloud solutions offer unparalleled scalability and efficiency, many hoteliers are hesitant, often due to misconceived notions about costs, security, or the sheer effort involved in migration.
  10. Mark Fancourt highlights the hospitality industry's reluctance to fully embrace essential modern technologies despite their clear advantages. This hesitance stems from fears of unforeseen challenges, a lack of deep understanding of technology's potential, and complexities in integrating new solutions with legacy systems.

Concluding Thoughts

The hospitality industry's tech lag isn't merely a tale of available technology and hesitant adopters. It's a complex narrative interwoven with financial concerns, skill gaps, human reluctance, outdated systems, and external challenges from the tech world itself. Bridging this gap requires more than just solutions; it demands a paradigm shift.

To truly embrace a tech-driven future, stakeholders across the board must acknowledge the challenges, champion education, realign investment priorities, and focus on holistic benefits over short-term gains. By fostering collaborations, nurturing a culture of continuous learning, and emphasizing the symbiotic relationship between technology and enhanced guest experiences, the hospitality industry can not only bridge the tech gap but also set the gold standard for other sectors. As the journey from inertia to innovation unfolds, it's evident that the industry stands on the cusp of a transformative era, one where tradition and technology can coalesce seamlessly.

  • Proactive Approach towards Change: As highlighted by several experts, a proactive approach to change, rather than a reactive one, is essential. Waiting for a technology to become mainstream before adopting it can result in lost opportunities. Being an early adopter, or at the very least, an early explorer, can give businesses a competitive edge, allowing them to provide unique guest experiences.
  • Collaborative Initiatives: Collaboration between tech providers, educators, and hoteliers can pave the way for more streamlined tech adoption. By creating platforms where knowledge is shared, best practices discussed, and challenges addressed collectively, the industry can accelerate its tech journey.
  • Customized Training Programs: Recognizing the skills gap is just the start. Addressing it requires focused training programs tailored to the unique needs of the hospitality industry. Such programs should not only impart technical know-how but also instill a sense of confidence and adaptability in the workforce, ensuring they view technology as an enabler rather than a threat.
  • Holistic Technology Assessment: Instead of chasing the latest tech trends, hoteliers should conduct a holistic assessment of their operations, identifying areas where technology can bring tangible improvements. This ensures that tech investments align with business goals and deliver quantifiable returns.
  • Redefining Legacy Systems: While legacy systems pose challenges, it's essential to view them as foundations to build upon rather than obstacles to overcome. By identifying core components that still serve the business well and integrating them with newer technologies, hoteliers can transition smoothly without reinventing the wheel.
  • Embracing a Guest-Centric Approach: Ultimately, the hospitality industry revolves around guests. Any technological adoption should prioritize enhancing guest experiences. From AI-driven personalized recommendations to VR-enabled room previews, technology should be leveraged to make guests' stays memorable, comfortable, and uniquely tailored to their preferences.

Conclusion

The bridge over the tech gap in the hospitality industry is built on pillars of understanding, collaboration, education, and a relentless focus on guest experiences and profitability. As the industry moves forward, it's clear that the marriage between its core funtion of providing hospitality and cutting-edge technologies isn't just possible, but imperative. Embracing this synergy will usher in an era where hoteliers can excel, offering guests the best of both worlds: a sense of hospitality they've come to love, enhanced by the efficiency, personalization, and innovation that today's technology offers.