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RIYADH: The global hospitality industry is increasingly investing in technology to improve the guest experience, with artificial intelligence playing a key role in automating tasks like booking, check-ins, and housekeeping management. 

In a recent report, The Bench, a publication by the Future Hospitality Summit, noted that implementing advanced technologies also enables 24/7 traveler support through AI chatbots and virtual assistants. 

“The hospitality industry has continually been reputed to adapt slowly to technological advancements. Hospitality asset owners and investors are keen on ramping up technology investment,” said the report.

Citing a 2023 PwC analysis, the report noted that over 70 percent of hotel executives are prioritizing investments in technologies that streamline operations and elevate customer experiences.

“This growing focus is evident in the adoption of Customer Relationship Management systems and data-driven marketing strategies aimed at customer retention,” added The Bench.

According to the report, CRM systems are becoming a cornerstone in hotel operations, helping hoteliers manage and analyze guest interactions and data throughout the customer lifecycle.

FHS added that leveraging CRM systems could also help hotels improve customer service relationships, assist in guest retention, and drive sales growth.

It cited a Salesforce study, noting that CRM technology could increase sales by up to 29 percent and improve forecast accuracy by 32 percent.

“Data-driven market strategies supported by robust CRM systems enable hotels to tailor their marketing efforts to individual guest preferences, thereby increasing the likelihood of repeat business,” said the report.

Property Management Systems

According to the analysis, Property Management Systems like innRoad, Oracle, and Hotelogix are essential for maximizing revenues, increasing efficiencies, and enhancing guest understanding.

“These systems serve as the backbone of hotel operations, offering comprehensive functionalities that streamline various processes. From managing reservations and check-ins to overseeing housekeeping and billing, PMS solutions integrate all these functions into a single cohesive platform, making operations smoother and more efficient,” the report added.

The FHS publication also noted that technologies like TakeUp.ai leverage AI to analyze past guest behavior and competitors’ pricing, thereby optimizing revenues without reliance on guesswork.

“This approach provides hoteliers with a strategic advantage in a competitive market. AI-driven revenue management systems can predict demand with higher accuracy, allowing hotels to adjust prices dynamically and maximize revenues,” said the report.

It added: “These systems also help in identifying and capitalizing on market trends, ensuring that hotels remain competitive.”

The release highlighted that the hospitality industry is witnessing a shift in guests’ behavior, as most travelers expect a seamless, modern experience blended with technology.

“Guests now expect digital control over room environments, such as lighting, shades, and temperature, even in mid-range hotels. Additional basic additions like bedside USB-C ports, mobile key entry, and digital check-in contribute to a seamless and modern guest experience,” added the analysis.

Moreover, mobile key entry will reduce the need for physical keys and front desk check-ins, thereby streamlining the arrival process.

Post-pandemic market dynamics

According to the report, rising wages and worker shortages have accelerated the move toward automation and technology utilization in the hospitality sector.

“Automated check-ins, robotic room service, and AI-powered concierge services are just a few examples of how technology can mitigate labor shortages. These innovations allow hotels to maintain high service levels, even with reduced staff, ensuring guest satisfaction,” said the FHS publication.

With travel restrictions easing post-pandemic, the report highlighted that hotels are prioritizing technology to enhance operational efficiency and attract guests.

“This focus is vital in a landscape marked by intense competition. Technologies that enhance cleanliness and safety, such as contactless check-in and check-out and mobile room keys, have become particularly important. Hotels are also investing in digital marketing strategies to reach potential guests who are eager to travel again but are cautious about safety,” said the analysis.

Moreover, the hospitality tech sector is experiencing a surge in acquisitions as companies aim to consolidate and offer more comprehensive solutions to meet the diverse needs of hotels.

“This consolidation trend is driven by the need to provide integrated solutions that address multiple aspects of hotel operations. By acquiring or merging with other tech companies, firms can offer a broad range of services, from property management and guest services to marketing and revenue management,” added the report.

Discussing the challenges faced by the sector in implementing technology, the study highlighted that several hotels face the problem of outdated and siloed systems that hinder their efficient operations.

“The solution lies in adopting open API-based (Application Programming Interface) systems that facilitate the integration of various functionalities, thereby overcoming the limitations of legacy systems,” said the analysis.

The report also highlighted that using open API-based systems will enable seamless communication between different software applications, allowing hotels to integrate new technologies without overhauling their entire IT infrastructure.

Areas of untapped potential

The analysis highlighted that some untapped areas in the hospitality industry can be strengthened further using technology.

It added that many processes in the sector are still handled manually and should be automated using advanced technologies.

“For example, night audits, which involve substantial administrative work, can be automated to improve efficiency and reduce labor costs,” added the document.

Moreover, integrating a proper payment technology setup can enable hotels to offer more personalized and flexible experiences without relying on manual administrative tasks.