Analyzing the Surge: Why are over 60% of hoteliers doubling their tech budgets

In the evolving landscape of the hospitality industry – the one constant is change. In recent years, we’ve witnessed a significant shift in the way hotels operate and serve their guests.

The catalyst behind this transformation? Technology.

Research shows that over 60% of hoteliers in Europe, based on a sample of over 3000 hotels, are planning to double their tech budgets in the next year. It’s evident that technology is playing an increasingly vital role in the sector. In this analysis, we’ll delve into the reasons behind this surge and why it’s a strategic, and necessary move for hoteliers.

Continuous Innovation

From AI-driven tools to smart room controls, hotels are constantly presented with new opportunities to enhance the guest experiences. To stay competitive, hoteliers must embrace these innovations, and over 87% of the interviewed hotels have invested in new tech solution since the past 3 years, and are planning to invest even more in the coming years.

Investing in technology allows hotels to keep up with changing guest expectations and industry trends, ensuring they remain relevant and appealing.

How to make use of tech budgets?

Improved Service and Elimination of Mistakes

One of the primary drivers behind the increased tech budgets is the potential for improved service and the reduction of human errors, according to 95% of hotels. Automation and digital solutions can streamline various aspects of hotel operations, from check-in and room service requests to housekeeping and billing. These technologies not only enhance efficiency but also minimize the chances of errors, ultimately leading to higher guest satisfaction.

Greater Guest Satisfaction

Technology can transform the guest experience from the moment they book their stay to the time they check out. Mobile driven technology solutions, such as TouchMenu, allow guests to customize their stay, make special requests, access useful information at their fingertips, and ultimately spend more money in less time.

Personalized experiences, made possible through data-driven insights, lead to happier guests who are more likely to spend more, return and recommend the hotel to others.

Resilience to Staff Shortages

The hospitality industry has faced unprecedented challenges in recent times, the main one being – staffing shortages, caused by various factors. Technology can step in to bridge the gaps caused by these shortages, and is the main reason for investing into new tech solution, according to 48% of hotels. Hoteliers who invest in such tech solutions ensure their operations can continue smoothly even during labor shortages.

An investment, not a cost

One of the most compelling reasons hoteliers are eager to increase their tech budgets is the promise of measurable and immediate results. Unlike some investments that take time to yield returns, technology often delivers visible outcomes right away. From increased efficiency in daily operations to higher guest satisfaction scores and revenue growth, the benefits of tech investments are readily apparent.

In conclusion, the decision of over 60% of hoteliers to double their tech budgets in the coming year is a strategic move driven by the need to adapt to a rapidly evolving industry. Technology not only helps hotels stay competitive but also enhances service quality, minimizes errors, and makes them more resilient to challenges like staffing shortages.

With immediate and measurable results, investing in technology is not an expense; it’s a smart and forward-thinking investment that promises a brighter future for the hospitality sector.

Tech budgets

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