Behind the automation boom coming to the hotel industry, from 24-hour check-in to texting for towels

Hotel operators have under-invested in technology for a long time, but labor challenges are making a difference.

The labor issue is one of the main reasons for investments in technology. You can't get enough people. I submit to you that labor is more important than an economic downturn.

Even though room rates are going up, hotel operators are reporting brisk bookings. Thank you for traveling. They are so eager to leave that they aren't afraid of the higher prices. According to two industry forecasts, hotel revenue will likely top pre-pandemic levels this year.

According to the latest released by STR and Tourism Economics at the NYU International Hospitality Industry Investment Conference this week, the average daily rate will be higher than the group had previously predicted.

The outlook factors in the possibility of a recession, but doesn't expect the economy to cause travelers to change their habits. Heading into next year, it expects that business travel will continue to increase.

Even in a deep recession, 70% of the population isn't seeing it. Haley said that they're still getting their regular paychecks.

The weakness of business travel continues to be felt in hotel spending. According to the American Hotel & Lodging Association and Kalibri Labs, hotel business travel revenue will be 23% below pre-pandemic levels this year. The industry lost $108 billion in business travel revenue in the two years that followed.

Business traveler growth will help offset any decline in leisure demand. The expectation is that the average daily room rates would go up by 16.9% in the year after that. Occupancy and room rates will help RevPAR rise in 2023, which will make up 114% of the current level.

Some big changes are expected when guests return to hotels. Technology is being used to ease the impact of staff shortages.

Guests should be able to use a kiosk or app on their phone to check into their rooms, instead of having to go to the front desk. Almost all of the hotel executives surveyed by Skift were investing in self-service technology. Over the next three years, they expect the most popular tech to be contactless.

Marco Manzie said that he sees the investment in technology as a must because it has the power to lower his costs over time.

The leanness of the future economy has most hoteliers and owners of hotels taking a step back and revisiting ways to improve their bottom line margins because they have been eroded from the inflation that we've been hit with.

Inflation hasn't been this high in 30 years. The Bureau of Labor Statistics reported on Friday that the consumer price index rose 8.6% in May. Hoteliers are seeing the costs of everything from food to fuel to salaries go up.

Manzie said he is in the process of installing kiosks for food and beverage orders at some of his properties. He has yet to benefit from lower labor costs since it is still a work in progress.

He said that they planned to cut labor costs at the end of the year.

Most large hotel chains had already put in place contactless options for their guests when the Pandemic hit. The cost of entry is the result of Covid speeding up the adoption.

Some hotels were looking to make changes within a few years. He said the road map was sped up to three months after Covid struck.

"As hotels saw a decrease in hotel staff and an increase in customer safety and health expectations, there was a strong need for hotels of all sizes to automate the experience by empowering guests to manage their stay largely from their mobile devices."

Guests are expected to expect it. The vast majority of consumers say they are more likely to stay at a hotel with self-service options.

Guests would like to be able to order room service from their phone or text, and have more towels sent to their rooms. They want to be able to connect to their personal streaming or gaming accounts without having to remember passwords.

Consumers want to be able to unbundle hotel offerings and only pay for the services they use during their stay. He said that they are willing to pay more for personalized choices like choosing an exact room or floor.

The unbundling model is the future of the industry according to 40% of hotels.

A modern enterprise resource planning system is needed for hotels to be able to adapt to this change.

He wouldn't give a forecast for future spending but said hotels are making significant investments.

Some hotel technology systems are old. According to a New York University professor, the hotel industry can spend less than 2.5% of net room revenue on IT.

There has been a greater focus on updating back-office systems.

He said that companies were having to play catch up because there hadn't been much attention paid to the back office. The investment is being inspired by labor needs.

Yug said that the quest for talent is not only for people cleaning your rooms and hotels, but also running finance operations. It's really aboutUpgrading the experience for their employees by putting better technology in their hands.

Small business owners can use one of two standardized property management systems that the company offers, according to the chief information officer.

The investment we made to standardize puts us in front of our competitors. It means that some of the services associated with high-end hotels are available to its more economical hotels brands.

To be able to do it at the economy hotel is something we are very proud of. A bus full of kids coming back from a soccer tournament can arrive at a Super 8 hotel and use self-service check in to speed their way to their rooms, which helps build loyalty.

Customers can go to a centralized call center to book a room with the help of the reservation system. The hotels that use the system see a higher premium on rates than non-participating hotels. The operators of hotels can focus on the guests at their hotel or other duties without distraction.

New ways to use tech to ease the labor crunch are being looked at by the company. It is testing a system where guests can tip the housekeeping staff with a phone call. There has been an increase in tipping at the hotel.

According to Bene, its clients see an average increase in staff compensation of $4.70 an hour and a 30% increase in monthly staff retention.

The system makes it easier for guests who don't have a lot of money to tip.

Many hotels are looking at ways to run their properties more efficiently and with less staff. Staff can focus on more meaningful one-on-one interactions with the help of these technologies.

As we head into the busy summer travel season, strategic technologies will be critical as the hotel industry is still facing a labor shortage.

He has used technology as a key point of differentiation in his business.

Many hotels are only now changing over their property management systems to the cloud because they run on an archaic technology stack.

In-house software developers and product engineers are what Pasricha has in mind. He drew inspiration from features in the e-commerce industry to improve the booking system.

He said that he couldn't understand why they would accept a cookie cutter booking engine when they cared so much about their physical experiences.

He was able to get more bookings to the website of Hoxton, a boutique hotel brand. About half of them are direct.

It made it possible for the company to create Flexy Time, a feature that allows guests to check in or out of a room at any time of day or night. Guests don't have to "bum around the lobby for five hours" after arriving in town on a red-eye flight thanks to the offering.

Flexy Time presents more of a logistical and operational challenge than other hotel brands. Guests are asked when they will arrive and depart to make sure rooms are ready.

He said that the ability to control the technology allowed them to have innovations that gained a lot of loyalty.

Gleneagles, So/ and Mama Shelter are some of the hotels that are part of the Flexy Time brand. The company is a partnership between Accor and a French hotel brand.

The company looks for ways to stand out. The road trip planning feature on its app was launched two weeks ago. A reservation system to book plug-in time is one of the investments it will make.

A company that wants to build loyalty with their customers can use a mobile app. It is possible for the data companies to better tailor future services.

It is too early to say what impact inflation will have on the industry, but the Pandemic forced a new level of appreciation for modern systems.

The pace of innovation may slow, but hotels know there is no turning back on consumer demands and they must be able to adapt with the help of the right technology.