European hospitality moves towards a technology-based future
The 2020 COVID19 tragedy has accelerated the digital transformation within the hotel industry in ways that we would never have anticipated in 2019. Guests are now happy to accept social distancing measures and contactless procedures, as do hotel staff who want to be safe in their day-to-day tasks.
New days, new worries, and new behaviors
Everyone knew that digital was inevitable, but customers now demand it. They welcome the prospect of new technology that allows hoteliers and guests to interact whilst keeping a safe distance away from each other, thereby providing a level of service that is paramount to the art of hospitality.
We now have remote check-in, mobile phones to open doors and avoid handling keys that other people have used, and cashless payments, all these measures provide the guest with a feeling of safety that only digital allows us to achieve. The hospitality industry has enthusiastically embraced this technological leap, investing more than any other. It now recognizes the commercial advantages, but more importantly, how to improve the safety of their guests.
The governments of many European countries, including Portugal, have looked at this situation not only from a health standpoint but also in respect of job creation, and we could be looking at millions of new ones.
Governments are now giving subsidies and incentives to those companies who increase their investment, regardless of whether it is to acquire new equipment, software, or staff education to address the technological upgrades to their infrastructure and services.
Whilst the current situation is of concern it should be noted that this new digital explosion throughout the hospitality industry will be of benefit to both the customer, and to the millions of people who work hard to keep their guests happy and coming back for more. The overused stereotype that one day all people in the hospitality industry will be replaced by robots is wrong. Robots will never replace people in and industry where the most important thing is human contact, but there will be a place for them.
As things stand, people are still going on business trips, so artificial intelligence is already playing an important role in maintaining the connection between the guest and the hotelier. Communicating with guests and analyzing their preferences is vitally important in a time when things are literally changing daily. So, the main function of artificial intelligence is to keep in contact with the guest.
Europe, the old lady who always arrives late
Europe, home of the first hotel and birthplace of the hospitality industry is today falling behind Asia in the use of technology solutions and developments. The reason for this is that we cling to established protocols, seeing the hospitality industry much as we always have, personal service and eye to eye engagement.
There is no question that the industry is changing, but the guests are changing as well. These days they regard cashless payments as a service itself and a clear indicator that hotels, restaurants and other providers are looking at ways to provide them with the most comfortable and safe solutions. There is still a place in the hospitality industry for personal service, and for the customer, having both would be the cherry on the cake.
Most significant tech’ breakthroughs are initiated by start-up companies, many of which are based in Asia. Another sign that Europe is falling behind is in the number of courses and college degrees that are available. There is a demand for qualified professionals such as digital coordinators, analytics managers, analysts, systems developers, etc, and the teaching institutions are only just starting to pay attention to this evolution.
Not long ago when I was working as a Sales Director, my GM stated that “e-commerce was rubbish” and that we should only focus on the MICE segment. Let us just say that this individual is no longer a GM, anywhere.
The Cloud, where is it?
One of the growing new scary digital solutions is the CLOUD. What is it, where is it and what is it for, are the questions that are most often asked? In short, it is a protocol that provides access to more reliable, detailed, and up-to-date information, and this is usually enough.
Taking account of the fact that the fastest growing target group for the hospitality industry are millennials, they will not be alienated by these developments in fact they are demanding it. Additionally, most hospitality industry companies are populated with staff who belong to this age group, so this is a good match.
The advent of the Cloud brings with it other advantages. Less hardware and electronic equipment on each site is required, which reduces carbon footprints, and if well-advertised by our Marketing departments could be a new and valuable selling point to the group with the greatest growth potential, the millennials.
For the hoteliers, besides reduced costs, it also means increased revenue, better information, and always on time. This gives staff more time to do what they do best, which is welcoming guests and keeping them coming back, year after year. These solutions are more relevant than ever because last year operational costs and budgets were overstated, consequently, this year everyone is trying to optimize as much as possible. Cloud technology is a way to not spend money on what is a quite expensive component of chain hotels and national chains.
To clarify, I am referring to the situation where a large proportion of the budget goes on equipment. Cloud solutions do not provide for this, fundamentally it is a subscription fee that is used in a Plug and Play mode. Once installed it can be used anywhere, at home, in the office, on the beach, dependent entirely upon your needs. HRS offers Oracle Hospitality OPERA and Oracle Hospitality Simphony Cloud solutions, both are proving to be very popular in the European market due to their convenience and safety.
At the end of the day, it is digital technology that will help us to do our jobs even better, which is keeping our customers happy with our services and performance. We are at the dawn of a new and exciting era in the hospitality industry, and what excites me most is that the best is yet to come.
About the author:
Rui Burguete has profound experience in Hospitality Area, worked as a Sales Executive since 2010. In 2019 joined HRS Hospitality & Retail Systems as Area Manager in Portugal.
