According to Gartner’s Top 10 Strategic Technology Predictions for 2015 and Beyond, “By the end of 2017, 70 percent of successful digital business models will rely on deliberately unstable processes designed to shift as customer needs shift.” This ability to adapt with the consumer is directly applicable to the hospitality industry, as meeting the ever-changing expectations of guests is essential to profitability. When considering which technology options can have the greatest impact on dexterity and flexibility, cloud computing should certainly be top-of-mind.
Impact on Limited Service Hotels
Limited service hotel brands are a vital part of the hospitality market, typically offering room rates that appeal to budget-savvy travelers. However, because they do not have as many ancillary revenue streams as full service hotels, decision-makers are often unable to allocate sizeable funds for IT to match their larger counterparts. In the past, this has created difficulty for these properties in remaining up-to-date on business systems and potentially hindered them from capitalizing on the latest innovations.
Fortunately, the cloud provides an opportunity to change this. Many national or global organizations are choosing to invest in SaaS to provide their limited service brands with access to technology that may otherwise be beyond their reach. When the parent company evaluates potential applications, selects the vendor and equips its brands with the necessary tools to execute the project, these hoteliers are positioned to reap a multitude of benefits, both immediately and in the long-term.
Consider this illustration
A global hotel company with numerous franchised hotels is considering technology options to help its limited service properties improve revenue management. By implementing an automated revenue management solution in the cloud and rolling it out to these locations, the organization can help smaller hotels with lower numbers of staff to better manage profits, despite a lack of time or resources to dedicate solely to a revenue management function. These properties will now benefit from an advanced technology application to help optimize revenue, allowing owners to focus more on guest services. Simultaneously, the global organization gains the advantage of a holistic perspective across these properties to enable better-informed decision-making.
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