How the digitalization of the hotel industry is succeeding
It is no longer a secret that the digital transformation is unstoppable. Digitalization is now a feature of all sectors – including the hotel industry. The coronavirus pandemic has put even more pressure on hoteliers to react quickly and appropriately to the new requirements and find suitable solutions. In this context, however, digitalization also offers opportunities and possibilities to question existing business models and drive forward innovative solutions in order to ultimately create a digital hotel.
What do we mean by a digital hotel? The term is often associated with digital booking and payment processes or contactless check-in/out – mainly processes that require guest contact. But these only represent a part of it, because the digital hotel affects all areas. In addition to technology and infrastructure, all topics and processes relating to service and administration are included – in short: everything that is necessary for hotel operations. This holistic view is a basic prerequisite for successfully digitizing a hotel.
The four most important features of a digital hotel
What will the hotel of the future look like? We present four different features on how you can make your hotel business fit for the future. The most important features of a digital hotel include
- Optimized and efficient processes through automation
- Increased comfort
- Sustainability
- Security
Optimized and efficient processes through automation
The digital transformation of a hotel not only affects the technical infrastructure, it also changes the operational organization and its processes. These include, for example, personnel planning, purchasing & logistics, accounting or public relations, facility and security management. And of course all processes along the guest journey from booking to arrival and stay to departure are also included. As you can see, it is a very diverse and therefore complex field.
Many tasks can be simplified by optimizing processes such as automation. In a 2019 survey, the digital association Bitkom found that 69% of respondents would like to stay in a hotel room that automatically recognizes that the guest is in it. For example, room service could use this information to let the guest sleep in peace.
In addition, one in three respondents is open to a service robot that takes care of the check-in process. In the area of facility management, smart technologies can also be used to automate processes such as lighting and temperature control – provided that the systems are networked accordingly. These time savings would give hotel staff more resources for better guest care.
However, hotel operators are often faced with a heterogeneous system landscape (property management systems, CRM, booking systems) from different providers. There are different requirements and many back-office processes are not yet well-established and inefficient. In order for you to really benefit from the process optimizations in a digital hotel, interfaces and uniform data structures must be created between the tools and systems used.
Increased comfort
Another important feature of a digital hotel is the increased comfort that guests experience. As a consequence of process optimization, service staff have more time to concentrate on their actual work, namely being a good host and offering tailor-made service. The guest journey is simplified and runs digitally, at all possible touchpoints.
A few application examples for the digital hotel: a guest could use their smartphone to control the room temperature and lighting in their hotel room via an app or it could even be used as a key replacement. Digital signage in conjunction with beacon / geolocation technologies make it possible to display personalized and context-relevant information to guests: For example, a guest could be reminded at a certain time that happy hour is currently taking place in the hotel bar – in their native language. Interactive touchpoints offer uncomplicated contact options, for example when ordering food and drinks. Integrated entertainment systems increase comfort for guests. But there are also other touchpoints after the stay: E-mail automation ensures that the guest’s feedback is obtained or further offers are sent to the customer – without any manual intervention.
Sustainability
Digital transformation also means sustainable change. For a digital hotel, this aspect is particularly important in the area of building management. For example, a digital hotel building is equipped with appropriate measurement, control and regulation technology that digitally records energy consumption and automatically controls lighting, ventilation, sun protection and temperature. These building automation solutions ensure safe, economical and energy-efficient operation and thus make a significant contribution to sustainability. The same applies here: data, processes and systems must be seamlessly integrated through suitable interfaces.
In addition, sensible energy concepts for the building itself can increase sustainability, for example by relying on renewable energy generation with an in-house photovoltaic system. Good thermal insulation also has a positive effect on energy efficiency.
E-mobility services such as charging stations not only expand the range of services offered by a digital hotel. They increase local mobility through climate-friendly means of transportation and thus make an important contribution to the energy transition. Another potential: the hotel image can change positively through such sustainable measures.
Security
The digitalization of work processes and functionalities of a hotel business requires a variety of different hardware and software components and suitable network structures. In addition, certain framework conditions must be taken into account during implementation, such as infrastructural requirements or compatibility with existing systems. This makes the topic enormously complex. Due to the digital penetration of services and the associated increase in networking, IT security is becoming more important than ever.
Security managers need to consider how they can protect guests and staff from errors, damage, failures or malicious attacks. At the same time, the requirements regarding data protection guidelines increase when facial recognition and ID card storage are used for booking processes or access controls. In the worst case, careless handling can lead to far-reaching legal and financial consequences.
A digital hotel therefore takes the issue of security very seriously and has a sophisticated strategy – both in technical and legal terms. This includes areas such as data protection concepts, encryption techniques and access control mechanisms. The digitization of a hotel requires vast amounts of data, so the big question when setting up an IT infrastructure should also be answered: Do I rely on a local installation or do I obtain my resources from the cloud?
Conclusion
Every hotelier who wants to remain fit for the future will have to deal with the topic of digitalization. The digital hotel offers you the opportunity to improve the customer experience and reduce costs at the same time. Process optimization and automation are important factors – and not just for the guest journey. A high level of digital maturity can only be achieved with a holistic overall strategy that encompasses all areas of hotel operations. The added value is then obvious: efficient, cost-effective and sustainable measures not only increase profitability, but also guest comfort and therefore customer satisfaction.
Do you want to make your hotel fit for the digital age? KraftCom is a digitalization expert in the hospitality sector. Contact us and let us advise you!