Learn what hotel leaders need to know to guide any technological game plan and transform digital evolution into a potential competitive edge.
ATLANTA – Hospitality has undergone a massive transformation during the past few decades, much of it driven by digital, technical and product innovation. This evolution has significantly improved how hotels run their business, market themselves and interact with guests. As the industry continues to advance alongside disruption, hotel owners and operators must remain agile and aware of the latest technological developments to stay competitive.
Driving technical transformation is not about overhauling everything at once, but rather identifying the tools and strategies that can deliver the most significant impact and testing your way into them. Here are five essential questions to guide hotel owners and operators on a path of success as they begin navigating the technical landscape.
Jolie Fleming, IHG Hotels & Resorts
1. How can tech innovation best improve business operations?
Any broad technical transformation should begin with simple, yet crucial questions: what is our core business problem, and how can technology help address it? Most hotel owners aim to increase revenue, manage costs and operate in an environment of turnover, and need technology to help address those challenges.
IHG has deployed a cloud-based revenue management platform and a Next Gen Payments system across our Americas estate. These tools leverage data science to provide real-time insights into everything from system performance to guest booking habits, allowing owners to optimize pricing and maximize revenue potential.
2. What digital options do guests expect when traveling?
Today's travelers expect choice, and a hotel experience as seamless and convenient as their everyday digital interactions. For hotel owners, providing guests with the ability to manage their travel plans through mobile devices is essential for retaining loyal customers.
Having a true mobile travel companion is a requirement. IHG has invested significant time ensuring that our IHG One Rewards mobile app is sticky and keeps guests coming back. Ultimately, we want our hotel teams to be able to say, “It’s in the app!” for any guest ask. Beyond a simplified booking process, we’ve leveraged our own research, data and insights to add the unique features that we know guests want – such as an in-app Wishlist, where users can save bucket-list hotels for future stays, and Artificial Intelligence (AI)-powered travel planning tools that offer personalized itineraries. These enhancements already are making a difference. App downloads increased 30% YoY in H1 2024 and, thanks in part to the mobile app, the percentage of room revenue booked through IHG-managed channels and sources now has reached 80% for the first time – ultimately driving higher returns for IHG and for our owners.
3. Should I be concerned that AI will disrupt our business?
As AI continues to make headlines, it’s essential to understand its role in the hospitality industry. While AI is not a replacement for human interaction, it can significantly enhance operational efficiency.
The key is to integrate AI in a way that supports the human element of hospitality, ultimately driving cost reductions and boosting guest satisfaction. With AI handling transactional tasks, staff can focus on more complex, high touch guest interactions and provide the personal hospitality travelers still covet. Need to make an easy update to a reservation? AI can help with that. Want to confirm you are set with your trip before arrival? AI can do that too. But if you want to make sure your partner’s birthday cake is delivered on time? It’s probably better to make a human connection.
Ultimately, we want our hotel teams to be able to say, ‘It’s in the app!’ for any guest ask.”
Jolie Fleming
4. Which technologies and tools can I trust?
The technology ecosystem inside a hotel is complex, and technical innovation requires careful consideration. Successful innovation should be easy to implement without impacting daily operations or overburdening staff. Collaboration with trusted partners can help hotel owners and operators deploy new technologies more efficiently.
A wise starting approach may include exploring partnerships with strategic, established tech industry leaders and testing and learning as you go. For instance, IHG partnered with Google to develop a soon-to-launch GenAI-powered travel planning tool. This collaboration leverages Google's expertise in AI while ensuring the technology aligns with operational needs. Additionally, IHG became the first hotel company to test Apple AirPlay technology in guest rooms, enabling seamless content sharing between personal devices and in-room TVs. While we’re still in the early stages of both projects, we’re excited about their potential to drive owner and guest satisfaction while potentially inspiring additional innovative ideas.
5. What’s next? How will hospitality technology continue to evolve?
The future of hospitality technology will focus on making travel more convenient, giving guests more choices and prioritizing the delivery of more personalized guest experiences. As traveler expectations evolve, so too will the tools and technologies that cater to them.
For example, something as simple as automatic Wi-Fi connection upon entering a property can provide a memorable convenience for guests. The Wi-Fi Auto Connect feature for IHG One Rewards loyalty program members is a step in this direction. Moreover, IHG is connecting properties to exclusive experiences through our mobile app, such as offering ocean adventures near beachfront hotels as part of the booking experience.
On the operational side, new technologies will continue to automate back-of-house tasks, enabling hotel staff to focus more on guest service. As hotels face increasing pressure to meet compliance and security requirements, advanced technologies will play a crucial role in maintaining robust data protection and streamlining labor-intensive processes.
The digital and technical frontier
Innovation and disruption in the hospitality industry are both exciting and essential for staying competitive. Stay in the know. Partner with strategic players. Test and learn. Be part of the future, but embrace technology responsibly to maintain a competitive edge.
By Jolie Fleming, chief product & technology officer, IHG Hotels & Resorts.
The views and opinions expressed in this content do not necessarily reflect the opinions of Hotel Investment Today or Northstar Travel Group and its affiliated companies.