Investors are now looking for new prospects. They are looking at B2B companies that focus on narrow industries. These companies can use technology to boost profits, improve processes, and increase efficiency.
For hotels looking to grow and invest in new technology, this is a welcome development. Healthy competition means that hotels are no longer relying on outdated services that they have worked with in the past. There are more providers in the hotel industry today than ever before, which lowers prices and improves quality. The hotel industry may be entering a golden age of technology. Hoteliers have many IT solutions to choose from. These solutions solve real business problems and make teams more efficient.
For hotels looking to grow and invest in new technology, this is a welcome development. Healthy competition means that hotels are no longer relying on outdated services that they have worked with in the past. There are more providers in the hotel industry today than ever before, which lowers prices and improves quality. The hotel industry may be entering a golden age of technology. Hoteliers have many IT solutions to choose from. These solutions solve real business problems and make teams more efficient.
How is hotel productivity measured?
Productivity is a measure of labour efficiency. It is calculated by dividing the products or services produced by the hours to produce them. It is an important metric for businesses as productivity has a direct impact on a company's bottom line.
One of the challenges facing hotels today is to increase profits and reduce costs. Due to staff shortages and high turnover, productivity has become an urgent priority. It also creates a competitive advantage: if a hotel operates more efficiently and therefore with a higher profit margin, it can organise its prices more flexibly and respond better to changing market dynamics.
Productivity indicators in the hospitality industry:
How long it takes to process a maintenance request
How many rooms are cleaned by each chambermaid?
How many guests check in at reception
How much revenue each room generates
How many orders each room service processes
How long it takes to finalise a guest request
In each of these cases, optimising processes can increase efficiency. Digital solutions can help. For example, to keep service standards, hotels can use a workforce management system. It improves communication between all departments. Such tools, which help to manage staff workloads and simplify tasks, attract strong talent.
One of the challenges facing hotels today is to increase profits and reduce costs. Due to staff shortages and high turnover, productivity has become an urgent priority. It also creates a competitive advantage: if a hotel operates more efficiently and therefore with a higher profit margin, it can organise its prices more flexibly and respond better to changing market dynamics.
Productivity indicators in the hospitality industry:
How long it takes to process a maintenance request
How many rooms are cleaned by each chambermaid?
How many guests check in at reception
How much revenue each room generates
How many orders each room service processes
How long it takes to finalise a guest request
In each of these cases, optimising processes can increase efficiency. Digital solutions can help. For example, to keep service standards, hotels can use a workforce management system. It improves communication between all departments. Such tools, which help to manage staff workloads and simplify tasks, attract strong talent.
So why is productivity in hotels still low?
Companies benefit from investing in digitalisation. It reduces the need for employees to do routine tasks. As a result, there is a general trend towards steady and reliable productivity growth, fuelled by the use of technology in many areas. However, the hotel industry is still lagging behind when it comes to digitalisation, with many hotels using outdated systems. The digital divide has not yet enabled a similar transformation in the hospitality industry as in the financial or media sectors.
What is the reason for this lag?
Reason #1: The digital transformation has progressed unevenly. It has mainly boosted productivity in industries where automation changed labor (e.g. factories, mills, rural fields).
Reason #2: Lack of investment in technology by hotels. Industries like hospitality have historically invested too little in technology. This has limited the automation of some work. The Gartner Lodging Technology Study says the industry invests about 4.9% of its revenue in IT solutions. According to McKinsey, leading industries also have five times more digital interaction between companies, their suppliers and customers than others. In other words, industries such as hospitality are simply not utilising digital technology as effectively as their counterparts in other industries.
Reason #3: The nature of the work. Automation allows for better efficiency. Tools for communication and project management make each hour an employee works more productive. However, over the past decade, productivity growth has slowed significantly in industries that employ the most workers, such as retail, food service and hospitality. This is due to the fact that low-skilled employees are being hired at lower rates. There is also a lot of manual labour in the hotel industry, which makes automation more difficult. For example, it's difficult to develop a robot that makes the bed. Emotional, lively interaction with customers is also not suitable for digitalisation.
Reason #2: Lack of investment in technology by hotels. Industries like hospitality have historically invested too little in technology. This has limited the automation of some work. The Gartner Lodging Technology Study says the industry invests about 4.9% of its revenue in IT solutions. According to McKinsey, leading industries also have five times more digital interaction between companies, their suppliers and customers than others. In other words, industries such as hospitality are simply not utilising digital technology as effectively as their counterparts in other industries.
Reason #3: The nature of the work. Automation allows for better efficiency. Tools for communication and project management make each hour an employee works more productive. However, over the past decade, productivity growth has slowed significantly in industries that employ the most workers, such as retail, food service and hospitality. This is due to the fact that low-skilled employees are being hired at lower rates. There is also a lot of manual labour in the hotel industry, which makes automation more difficult. For example, it's difficult to develop a robot that makes the bed. Emotional, lively interaction with customers is also not suitable for digitalisation.
How to increase productivity in a hotel with a workforce management system
In the last 20 years, leading industries using digital technologies have increased their productivity by a factor of 2-3. One of the most difficult questions is: where to invest first? Hoteliers have many choices. They can choose between management systems, business tools, and other hospitality technologies.
Many hotels start with tools to improve staff collaboration. This can boost communication quality between departments and so impact the team's bottom line. With a workforce management system, managers can create more accurate schedules for room cleaning, the hotel manager can receive detailed performance reports and track the status of tasks, etc.
How to prepare for the implementation of a management system
Prioritise and reward employees. Hotel management and staff should share a common goal: to improve work efficiency. They should also know how digital tools can help with this. Controlling workflows can be scary for employees. But, it's worth telling them that any extra work, for example, will be seen as a reward. The system will also reduce the risk of errors.
Identify the main problems of the hotel. Look for two things: problems experienced by guests, negative reviews and problems within the team. So, if you know the reasons for guest dissatisfaction, you will also know how the staff can resolve them. To do this, we need to agree on key performance indicators. These include: the number of rooms cleaned in a given time, the number of guests served per shift, and the average time to respond to guest questions.
Test and implement. Invest in a pilot project to try out the most promising solutions and give employees time to adjust. You can then check the effectiveness and make evidence-based decisions.
Many hotels start with tools to improve staff collaboration. This can boost communication quality between departments and so impact the team's bottom line. With a workforce management system, managers can create more accurate schedules for room cleaning, the hotel manager can receive detailed performance reports and track the status of tasks, etc.
How to prepare for the implementation of a management system
Prioritise and reward employees. Hotel management and staff should share a common goal: to improve work efficiency. They should also know how digital tools can help with this. Controlling workflows can be scary for employees. But, it's worth telling them that any extra work, for example, will be seen as a reward. The system will also reduce the risk of errors.
Identify the main problems of the hotel. Look for two things: problems experienced by guests, negative reviews and problems within the team. So, if you know the reasons for guest dissatisfaction, you will also know how the staff can resolve them. To do this, we need to agree on key performance indicators. These include: the number of rooms cleaned in a given time, the number of guests served per shift, and the average time to respond to guest questions.
Test and implement. Invest in a pilot project to try out the most promising solutions and give employees time to adjust. You can then check the effectiveness and make evidence-based decisions.
Conclusion
The hospitality industry has traditionally lagged behind other industries in technology adoption, but that is now changing. A hotel will benefit from new ways of operating. These will come from the right way to evaluate and use digital solutions. They will bring happy guests, satisfied staff and better resource allocation.
Improving efficiency through digital solutions helps the hotel to perform better every day. Over time, this means a higher return on investment in technology.
Improving efficiency through digital solutions helps the hotel to perform better every day. Over time, this means a higher return on investment in technology.
