In 2023, the hotel market began to recover, returning to pre-pandemic levels. IT technologies became integral to this process. New digital solutions, automation, and digitizing services help to attract customers. They also cut costs and raise hotel profits.
Automation and AI
Automation and AI are key business trends worldwide. In the service sector, they cover many functions. They make hoteliers' and customers' lives easier and the business more profitable.
Currently, the IT market offers tools designed to manage typical guest requests reducing staff burdens. These tools address staff shortages in the hotel industry effectively.
These solutions not only reduce the workload for staff but also facilitate the analysis of business processes. Consider, for instance, the straightforward technology of online booking. It enables businesses to gather crucial information about their target customers. This includes insights into peak booking times, reasons for cancellations, frequently requested services, and more.
Currently, the IT market offers tools designed to manage typical guest requests reducing staff burdens. These tools address staff shortages in the hotel industry effectively.
These solutions not only reduce the workload for staff but also facilitate the analysis of business processes. Consider, for instance, the straightforward technology of online booking. It enables businesses to gather crucial information about their target customers. This includes insights into peak booking times, reasons for cancellations, frequently requested services, and more.
Contactless services
Today, people are comfortable doing things online. The data from an international study by Oracle shows they are fine with paying for the services, checking into hotels, and solving their needs without direct interaction with staff. And while hotels are only beginning to implement online reception technologies, it's already possible to facilitate access to hotel services with "one-click" in a hotel of any level. It includes food ordering to the room, cab service, booking a massage, and other services.
There are already a few such IT products available. For example, take Hoop, our digital menu for booking and selling hotel services. It allows you to order food to your room, buy hotel merchandise, book SPA, tours, and much more. For each hotel, Hoop creates personalized pages in a branded style. It takes images of dishes from the menu using AI if the company doesn't have professional photos. It even fills out product cards.
The ability to make a one-click order simplifies the guest's interaction with the hotel. It boosts sales and loyalty. It also affects their willingness to return or recommend the hotel to friends. Hoop's analytics show that implementing the service brings a financial benefit starting from $35,000 per year. With Hoop, the number of orders and service bookings grows by 15%.
This can also include "smart home" systems. They let you manage your room using a mobile application. You can turn on the lights, adjust the temperature, draw the curtains, order cleaning, or complain about a breakdown.
There are already a few such IT products available. For example, take Hoop, our digital menu for booking and selling hotel services. It allows you to order food to your room, buy hotel merchandise, book SPA, tours, and much more. For each hotel, Hoop creates personalized pages in a branded style. It takes images of dishes from the menu using AI if the company doesn't have professional photos. It even fills out product cards.
The ability to make a one-click order simplifies the guest's interaction with the hotel. It boosts sales and loyalty. It also affects their willingness to return or recommend the hotel to friends. Hoop's analytics show that implementing the service brings a financial benefit starting from $35,000 per year. With Hoop, the number of orders and service bookings grows by 15%.
This can also include "smart home" systems. They let you manage your room using a mobile application. You can turn on the lights, adjust the temperature, draw the curtains, order cleaning, or complain about a breakdown.
Improving hotel management with digital solutions
One of the main innovation directions is the automation of team management. Without it, the future of the hotel business is unclear.
Data from Hoop shows that the financial benefit of improving operations and customer service starts at $40,000 per year per hotel.
Hoop allows you to instantly get info about breakdowns and guest requests. You can track cleaning progress and keep maintenance records, analyze room service and housekeeping work, and get reports. All this makes the work of staff more visible and allows to reduce operational costs.
Another area where AI can help optimize is utility costs. Now, mostly large hotels use these technologies. But they are slowly becoming available and essential for all industry players.
Data from Hoop shows that the financial benefit of improving operations and customer service starts at $40,000 per year per hotel.
Hoop allows you to instantly get info about breakdowns and guest requests. You can track cleaning progress and keep maintenance records, analyze room service and housekeeping work, and get reports. All this makes the work of staff more visible and allows to reduce operational costs.
Another area where AI can help optimize is utility costs. Now, mostly large hotels use these technologies. But they are slowly becoming available and essential for all industry players.
Flexible pricing with AI
Over the past two to three years, pricing technologies in the travel industry have reached a new level. Dynamic pricing tools can now set room rates. They do this by looking at past and current bookings, occupancy levels, cancellations, user behavior, and other factors. And they help to make a personalized offer tailored to the client, taking into account his budget.
McKinsey estimates that AI-based pricing technologies can create up to $500 billion in extra value. Another international consulting company, Boston Consulting Group, notes that automatic price determination using AI provides a revenue increase of up to 5% in less than 9 months.
McKinsey estimates that AI-based pricing technologies can create up to $500 billion in extra value. Another international consulting company, Boston Consulting Group, notes that automatic price determination using AI provides a revenue increase of up to 5% in less than 9 months.
Hyper-personalisation
The days of one-size-fits-all marketing are passing. Data drives personalized guest experiences. They are a game changer for hotels. They allow hotels to predict needs, customize services, and offer targeted deals. A favorite coffee, a pre-booked tour, a spa package based on a specific customer's needs – this is the future of hospitality. Digital solutions with analytics capabilities help meet all these demands. They collect customer information, analyze and store the data, and use it to help create personalised offers for guests. Sooner or later, every business will have to implement such technologies — they will define the service industry soon.
Smart hotels
Hoteliers are increasingly implementing 'smart hotel' concepts. It implies contactless check-in, automated control of lighting and temperature, and innovative sensors in rooms that help to respond promptly to breakdowns and manage the cleaning process. It also implies electronic access to hotel services and modern security systems.
The idea of "smart hotels" is growing fast. This is no surprise. They are convenient and well-designed, and help hotels optimize resources.
The idea of "smart hotels" is growing fast. This is no surprise. They are convenient and well-designed, and help hotels optimize resources.
Augmented reality
AR and VR are no longer fashionable futuristic gadgets. They are important marketing tools. They "sell" tours, rooms, and hotel services, since "the picture is worth a thousand words".
Large hotel chains are also using AR to train staff.
Large hotel chains are also using AR to train staff.
Bleisure travel
A worldwide trend is the merging of business and leisure (Bleisure). Remote work is becoming a new normal. People can combine employment with a comfortable vacation. Hotels have to adapt to this new demand. They must offer dedicated workspaces, meeting rooms, and good internet.
Branded social media posts
People turn to social media for recommendations when choosing a hotel or tour. This means that branded direct messages on social media are key to the 2024 marketing strategy. These include answering inquiries from potential guests, helping in planning a trip, and sharing special offers.
Besides, experts predict the development of systems capable of analyzing hotel reviews. They will identify places based on photos posted on social networks by users.
Another trend — the demand for short videos — is also becoming significant when choosing places to travel. According to European market data, 40% of travelers over 30 years of age research trips on TikTok and Instagram. One way or another, this trend needs to be considered by all hotels that want to stay competitive. Short video marketing is becoming an important medium for travel destinations.
Besides, experts predict the development of systems capable of analyzing hotel reviews. They will identify places based on photos posted on social networks by users.
Another trend — the demand for short videos — is also becoming significant when choosing places to travel. According to European market data, 40% of travelers over 30 years of age research trips on TikTok and Instagram. One way or another, this trend needs to be considered by all hotels that want to stay competitive. Short video marketing is becoming an important medium for travel destinations.
Data-driven marketing campaigns
Hotels are increasingly turning to martech services. Martech services help to analyze the effectiveness of a hotel's marketing strategy, personalize offers, and get the most out of paid advertising. These services analyze the customer journey using cookies and other tracking technologies. They can help hotels get data on guest acquisition and retention rates, engagement, and other valuable information.
