Once, hoteliers with a keener sense of technology had an edge. Today, it’s essential to commercial success.
This evolution brings both challenges and possibilities for hotel revenue managers. Commercial technology stacks can make the difference between thriving properties and those that struggle to compete in a competitive market.
With so many technological solutions on the market today, selecting and implementing a perfect tech stack may feel like carefully navigating through a maze.
This blog is intended to give revenue managers the key considerations they should use when building a technology ecosystem that will be future-proof.
Focusing on these factors will help you build a technology stack that optimizes revenue streams, adapts to new developments, and ensures the long-term success of your hotel.
What is a Hotel Tech Stack?
A hotel tech stack consists of a set of digital tools used by a hotel to enhance its guest experience and drive revenue.
This suite is aimed at revenue managers, and includes interconnected solutions that focus on optimizing distribution channels, pricing strategies, and the overall revenue management framework.
In the past, revenue managers have been responsible for generating revenues. tech stack was relatively simpleMany tools, such as a Property Management System For transactions, (PMS) includes Customer Relationship Management (CRM), Central Reservation System(CRS), Point of Sale (POS), and a Software for Transactions.
The modern hotel technology stack has seen a major transformation. The modern hotel tech stack is a complex ecosystem of interconnected solutions. It touches nearly all aspects of the commercial operation of a hotel.
The PMS is one of the most important components in this ecosystem, and I am sure that you are aware of it. Rate Shopping toolRevenue Management System, Predictive Demand Intelligence, Booking Engine and more.
This ecosystem’s main goal is to maximize the revenue performance of a hotel and its overall profitability. It does this by automating tasks and improving efficiency, and by empowering data-driven, well-informed decision making.
Why it is important to future proof your hotel technology stack?
The hotel technology environment of today is always evolving, with many providers. Implementing a technology stack that will prepare you for the future of hospitality as well the current world, gives you an edge over your competitors and guarantees long-term growth.
This proactive approach is important for several reasons:
Technological advances: These include areas such as Artificial Intelligence The pace of technology development is reflected in the rapid growth of (AI), machine-learning and automation. You must be able to integrate and adapt new technologies into your tech stack in order to stay competitive and take advantage of these innovations.
Guest expectations are changing: As technology becomes more integrated into our daily lives, guests are becoming accustomed to it. Travelers today expect personalized experiences and seamless digital interactions. mobile-first solutions All throughout their journey.
A future-proof stack of tech enables you to meet these evolving customer expectations by using guest data. This can in turn significantly improve guest satisfaction and foster loyalty.
Market dynamics: The hospitality market has a dynamic nature, and is influenced by a variety of factors. economic fluctuationsThe competition is intensifying, as are the changing travel patterns. The ability to respond quickly to changing market dynamics is made possible by an innovative tech stack.
Adopting new technologies is more than just keeping up with industry trends. A modern, well-integrated tech stack can offer many benefits. They include the facilitation of data flow between different systems, automation of routine task, a reduction of human errors, potential revenue generation and more.
Not all tech stacks have the same features. Here is a comprehensive list that will help you build the perfect tech stack to ensure your hotel’s future.
1. Artificial Intelligence: How to harness its potential
Artificial Intelligence is a force that has transformed hotel revenue management. AI offers capabilities far beyond those of traditional technologies.
Prioritize the integration of AI applications to create a future-proof tech stack.
AI is a powerful tool for hotel management. But it cannot replace the human touch.
AI is a powerful advisor and a collaborative copilot. It is adept at automating tasks and handling data, while you retain strategic oversight and use your market knowledge and judgment.
AI solutions that are leading-edge will not only process vast amounts of data, but also provide actionable insights so you can make more informed decisions based on data.
AI should reduce manual error, improve overall operational efficiency and enable revenue managers to focus on strategic initiatives which drive long-term, sustainable growth, instead of being weighed down by tactical tasks.
2. Lean towards platform consolidation
You’ve probably heard of Frankenstein. You’ve probably heard of Frankenstein, whether you have read the book or watched the movie. The name implies a creation that has gone wrong. Assembled out of mismatched human pieces and brought to live by mysterious science.
Consider your hotel’s technology stack. Are you piecing together a ‘Frankenstein’ of fragmented systems, each operating in its own silo and refusing to play nicely with the others?
Hoteliers often fall into this trap of trying to force disparate tools to fit together. A fragmented technology stack is not likely to end well, just as Mary Shelley’s creation did.
It instead creates the perfect storm of data silosInaccuracies in your data, inefficiencies in the operations that drain your staff, missed revenue potentials, and a reduced ability to design and execute an integrated strategy. commercial strategy.
Revenue managers who are smarter than average see the benefits of consolidating their technology solutions on one comprehensive platform. This is why it’s worth seriously considering.
Benefits from a commercial hotel platform that is unified
- Reduced complexityHotel staff can become more proficient faster and easier by managing fewer solutions.
- Cost savings Consolidating vendors of technology can lead to significant cost savings when compared with managing multiple subscriptions and maintenance agreements as well as complex integrations among disparate systems.
- Data consistency is improved: A unified platform ensures data consistency and accuracy across all hotel functions. It also provides a centralized source of information for important business information.
- Workflows that are streamlined: Integrating disparate systems of different vendors is more difficult and error-prone than trying to integrate them within a comprehensive platform.
While the allure of a single, unified platform offering complete functionality is hard to ignore, the ‘perfect’ technology solution for you will likely involve a strategic combination of a core platform for revenue management essentials, complemented by specialized solutions designed to address more targeted needs.
3. Prioritise forward-looking data and avoid relying on historical data
Tired of making your decisions based solely on what has happened, and not what is to come? What if you had a crystal-ball that could tell you what is next and predict trends for tomorrow?
The travel and hospitality industry is characterized today by unpredictable booking trends and changing market dynamics. Due to this, the traditional approach of relying solely upon historical data is no longer sufficient for hotel revenue planning.
To create a commercial tech stack that is resilient and future proof, revenue managers need to prioritize the integration and use of real-time and forward-looking data.
What is the significance of forward-looking information?
Future-looking data can be very valuable insights into future demand patterns By identifying emerging market trends you can develop proactive strategies for revenue management, instead of simply reacting on past performance.
You can use this type of information to predict future demand spikes and dips. You can also understand the geographic origin and characteristics of demand and respond effectively, especially during peak seasons. periods of significant uncertainty.
Accurate demand forecastingThe use of, based on comprehensive data and a forward-looking perspective, is crucial to optimizing hotel operations. This includes pricing strategies, marketing campaigns, inventory management, and adjustments in staffing levels.
Types of forward-looking data relevant:
- Search data for hotels and flights Analyzing search and booking data for hotels and flights can reveal important information about arrival patterns in a destination. It can also help identify the key origin markets which will drive future demand.
- On-the-books (OTB) data: This dataset is a key indicator of the number of confirmed reservations held by a hotel. It provides a solid basis for forecasting future demand and revenues.
- Events and Holidays It is important to accurately forecast the impact of local, national, and holiday events. This will allow you to adjust your pricing and inventory in order for demand spikes to be predicted.
- Short-term rental data: It is important to monitor the pricing and availability of alternative accommodations, like vacation rentals and serviced residences, in order to understand the competitive landscape of a particular destination.
Forward-looking data Can help you anticipate market shifts and identify emerging trends. It can also be used to adjust pricing and your marketing strategies in advance.
Using forward-looking data is more than simply accessing raw data. It requires the implementation of right technology To accurately analyse and interpret data, and translate it into actionable insight.
4. Champion seamless integrations
The value of the hotel tech stack is not only in its capabilities, but also in how effectively it communicates and shares data.
Data is essential to successful revenue management. Data fragmentation occurs when the systems of a hotel lack connectivity.
A lack of a single view can make it difficult for a revenue manager to make the best decisions and maximize revenue generation. Investing technology platforms with a unified view can help revenue managers make informed decisions and optimize revenue generation. robust Application Programming Interfaces (APIs) It is crucial to prioritize open integration features in order to future-proof a hotel’s technology stack.
APIs are “digital bridges”, which allow different software systems and applications to exchange data effectively.
This data exchange is smooth and streamlines workflows. It reduces the amount of manual data entry, manipulation and processing, and it improves staff efficiency because the time required to move between platforms is reduced.
5. Prioritize user-friendly, intuitive design
It is important to prioritize user-friendliness when selecting technology. This is more than just a matter aesthetic preference.
To make revenue-generating decisions, you need to have quick and easy access to data. Complexity or an unintuitive design can result in wasted time, errors and ultimately, a failure of the platform to reach its full potential.
The use of technology platforms with intuitive interfaces reduces the amount of time needed for training staff and the risk of human error. This leads to an increase in productivity and a quicker onboarding process.
This encourages consistent, effective use and ensures that you are able to easily access and analyze critical data necessary to make informed decisions or optimize revenue strategies.
6. Embrace Total Revenue Management
To future-proof the commercial tech stack of your hotel, you must shift from focusing only on room revenue towards a more holistic and inclusive approach that covers all revenue-generating areas at your property. Total Revenue Management.
This includes strategically optimizing revenues from your food and beverage outlets as well as spa services, parking spaces, meeting and event space, and any other ancillary offers at your property.
Why Total Revenue Management is essential for future commercial success
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Profitability: Total revenue management is aimed at maximising the potential of each guest to spend or Total Revenue per Available Room (TRevPAR).
Consider all revenue streams to gain a holistic understanding of profitability. You will be able to identify growth opportunities beyond the room bookings. You will become more resilient and financially strong in the competitive market. - Guest experience enhanced: The TRevPAR method encourages you create attractive packages that meet the needs of your guests. This will lead to more satisfied guests, repeat bookings and positive reviews.
- Competitive advantage Total revenue management optimizes the revenue-generating departments by applying proven strategies for rooms sales to other perishable assets, such as dining services, spa services and event spaces, to avoid revenue losses from unused capacities.
Business Intelligence (BI) Tools play a vital role in consolidating, analyzing and optimizing data from various solutions. Adopting a TRevPAR tech stack can help you unlock significant revenue and create a sustainable and profitable future.
7. You need to ensure flexibility and scalability
The hospitality sector is dynamic. There are many factors that make it so. These include a constantly changing market, a rapidly evolving technology landscape, a massive influx of information, changing guest behavior, and an increase in competition. For long-term adaptability and success, it is essential that your commercial tech stack be both flexible and scalable.
Why flexibility and scalability are important:
- Adapting growth: Your technology should scale with your growing business, allowing you to handle increased data volumes, and support additional properties or services, without needing costly upgrades.
- Market shifts and how to respond: Staying competitive requires the ability to pivot quickly in response to changing market conditions, new trends and technologies.
- Cost efficiency Cloud-based solutions that are scalable allow you to only pay for what you use, and avoid overspending during periods of low demand. They also offer the flexibility to scale up easily if necessary.
- Integrations that are frictionless: Flexibility is often synonymous with the ability of a system to seamlessly integrate into other systems. This allows for efficient data flow across your entire technology stack. Open APIs are a must for any system that allows integration with current and future technologies.
You can make sure that your technology investment will support the growth of your hotel, and keep up with the changing demands in the hotel industry by prioritizing flexibility and scalability.
Selecting the right tech stacks for your hotel
To build the perfect commercial tech stack of the future, you need to take a strategic and thoughtful approach.
You can create a flexible and robust infrastructure that will thrive in the hospitality industry by aligning your tech choices with these essential values and characteristics.
You are ready to build your future. Discover How Lighthouse, the all-in-one commercial platform, can help you achieve success.
Lighthouse
Lighthouse is the leading commercial platform for the travel & hospitality industry.
We convert complexity into confidence with our actionable market insight, business intelligence and pricing tools to maximize revenue growth.
We continuously innovate to deliver to the best platform that allows hospitality professionals to measure performance, price more effectively and understand the markets in new ways.
Lighthouse, trusted by more than 70,000 hotels across 185 countries is the only platform that offers real-time data on short-term rentals and hotels. Our goal is to provide an unsurpassed customer experience. We consider our clients as true partners—their success is our success.
Lighthouse is a great source of information. https://www.mylighthouse.com.
