Op-Ed: Embracing automation for the competitive edge in hospitality
Eric Wong on how automation allows hotels to streamline operations, curb expenses, gain insights and provide top-notch services
2024 marks the shift to automation as hotels, venues, and restaurants march fast toward new technologies to transform guest experiences and reduce costs. From mobile apps and self-service kiosks to AI-powered platforms, automation is becoming ubiquitous across hotels, restaurants, and travel businesses.
Forward-thinking operators are embracing automation as the new imperative to remain competitive. Automation allows businesses to streamline operations, curb expenses, gain insights into guest needs, and provide top-notch services. The hospitality industry is marching firmly into the era of automation, and the winners will be businesses that leverage technology to transform the guest journey.
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1. Evolving guest expectations
Today’s consumers have high expectations for seamless, personalised service and interactions during their hotel stays and restaurant visits. Guests want technology to enhance their experiences, not detract from them. They expect service providers to know their preferences and past interactions. Guests want mobile apps, self-service options, and automation that allow them to customise and control their experiences.
Guests are accustomed to real-time, on-demand services from companies like Uber, Amazon, and Netflix. They expect the same level of personalisation and streamlined service from hotels and restaurants. Self-service kiosks, mobile check-in/check-out, smart room controls, and automated amenities allow guests to curate their own experiences.
By leveraging data analytics and automation, hospitality businesses can cater to each guest individually and provide customised recommendations and offers. Today’s consumer is experience-driven, and seamless service through technology is now expected rather than a pleasant surprise. Hospitality operators must prioritise digital capabilities and automation to meet and exceed evolving consumer expectations.
2. Optimising revenue
Pricing optimisation and revenue management solutions are stepping up to eliminate uncertainties in hotel pricing by automating pricing adjustments throughout the day, providing hotel organisations with a strategic edge in enhancing revenue and profits. Hoteliers are turning to advanced hotel revenue management solutions driven by precise machine learning algorithms that can calculate demand forecasts, suggest strategic selling approaches, and automate processes like stay controls and room category management.
3. Labour shortages and costs
The hospitality industry has been facing staffing challenges, making it difficult for operators to adequately staff their properties and provide high-quality service. Many hospitality employees left the industry during the pandemic, opting for more stable jobs with better pay and predictable hours. This has created a talent crunch, with many hotels and restaurants struggling to recruit and retain workers.
Workforce management tools automate the process of scheduling staff, tracking their hours, and managing their performance. They also help with compliance by ensuring that labour laws and regulations are followed. This not only saves time and reduces administrative burden but also helps to improve staff morale and retention.
4. Operational efficiencies
Automation allows hotel and restaurant operators to streamline operations and improve productivity in several ways. By relying on technology to handle routine tasks, staff can focus on providing excellent customer service instead of manual work.
For hotels, a modern, integrated property management system (PMS) automates tasks such as room booking, check-in, and check-out, billing, and inventory management, freeing up staff to focus on providing excellent guest experiences.
For restaurants, a point of sale (POS) system that automates the ordering and payment process not only speeds up service but also reduces the chance of errors. It can handle multiple payment methods, split bills, and even manage loyalty programs. Additionally, it provides real-time reporting and analytics, giving restaurant operators valuable insights into their business performance. Inventory levels are tracked in real-time so restaurants can optimise food costs.
Self-service kiosks allow guests to check in and check out or order and pay without waiting in line, supporting faster turnover, especially during peak periods. Utilising a reservation system to streamline bookings for hotel amenities, restaurants, and entertainment assets, including tables, fitness machines, cabanas, and more, delivers better amenities and asset management.
Together, these automated systems enable hospitality operators to serve more guests efficiently. By streamlining repetitive tasks, automation allows staff to focus on providing better service.
5. Enhanced guest experiences
Automation allows hotels and restaurants to provide guests with more customised, seamless, and intuitive experiences that exceed expectations. Self-service kiosks with easy check-in/check-out, touchless mobile payments, and automated scheduling of services (like housekeeping and dining reservations) give guests more control over their stays.
With integrated PMS and data analytics, staff have instant access to guest preferences and can personalise each visit. Guests feel recognised and valued. Operations teams also gain data-driven insights to refine offerings and tailor them to specific guest segments.
Mobile apps allow guests to access services, receive notifications, and request amenities from anywhere at any time. Travellers today expect this level of convenience and personalisation. Automated chatbots can quickly handle routine guest inquiries, freeing up staff to focus on providing genuine hospitality.
Overall, smart automation enhances each touchpoint across a guest’s journey. It facilitates the delivery of hyper-customised, anticipatory service that caters to each visitor’s unique needs and desires. This builds lasting loyalty and emotional connections.
6. Better employee experiences
Automation in hospitality enables better experiences for employees by reducing repetitive manual tasks and allowing staff to focus more on engaging with guests. With chatbots handling routine guest inquiries and mobile solutions streamlining maintenance workflows, employees can devote their time to more meaningful interactions. Automation eliminates the grunt work of manually entering data, searching multiple systems, and shuffling paperwork. Staff is relieved of these mundane chores and can invest their efforts into elevating the human element of hospitality.
For example, at check-in, automated kiosks reduce queues and check-in times, enabling front desk agents to focus on greeting and welcoming each guest personally. Automated service ticket systems let maintenance staff spend time proactively addressing issues rather than manually logging requests. With tablets that sync updated room statuses, housekeepers can focus on perfecting the room experience rather than tracking paperwork.
7. Data-driven insights
The data gathered from automated systems provides hospitality operators with invaluable customer and operational insights that can drive better decision-making. With automated point-of-sale, property management, and other systems, companies gain access to a wealth of customer data, including preferences, spending habits, satisfaction levels, and more. This allows them to understand their guests better so they can tailor offerings, target promotions, and provide personalised experiences that keep customers coming back.
Leveraging a customer relationship management (CRM) system automates the process of managing customer interactions. This system collects and analyses customer data, helping businesses understand their customers’ needs and preferences, personalise their offerings, and build stronger relationships.
Automation also produces operational analytics related to staffing needs, inventory management, profitability, and other metrics. By monitoring real-time data from sensors, IoT-enabled devices, and integrated systems, managers can identify problem areas and opportunities for improvement. Instead of relying on guesswork, they leverage actionable data to boost efficiency. Automated reporting eliminates manual tasks while producing comprehensive overviews of performance. With data-driven insights from automation, hospitality operators gain significant competitive advantages.
8. Competitive advantage
To thrive in today’s age, hotels and restaurants cannot afford to fall behind when it comes to adopting new technology. Those that fail to automate and streamline their operations risk frustrating today’s increasingly tech-savvy guests. Customers accustomed to seamless digital experiences expect the same level of convenience when booking rooms, ordering food, and accessing amenities. Venues that rely on outdated processes often deliver a clunky, disjointed experience that turns people away.
Losing guests to competitors with better technology directly hurts the bottom line. Operators striving to maximise revenue simply cannot ignore the role of automation and innovation in attracting and retaining patrons. With so many options out there, dissatisfied guests will quickly take their business elsewhere if a hotel or restaurant lacks the cutting-edge systems they desire. The venues falling behind today will be the ones struggling to fill rooms and draw diners tomorrow.
The stakes only grow higher as new startups disrupt the market with tech-driven models. To stay competitive, operators must keep pace and continually modernise their systems and services. Those refusing to adapt to major industry shifts will watch their customer base erode over time. Maintaining a competitive edge, demands embracing automation now to deliver the experiences that consumers and guests expect.
Adapting for the future with technology
In the hospitality industry, technological innovation emerges as the decisive factor that can significantly influence financial performance in 2024. From handling reservations, processing orders, and payments to enhancing upselling and streamlining operations, the potential for advanced solutions to drive efficiency, insights, revenue, and personalised experiences is expanding rapidly.
By taking a proactive approach, hotel and restaurant operators can shape how technology transforms their organisation rather than resisting changes that will happen regardless. Embracing and preparing for automation will ensure companies can continue delighting guests, attracting talent, and sustaining profitability. The time is now not just to adapt but lead the way. Savvy hospitality organisations of all sizes that can harness these capabilities while staying responsive to the dynamic consumer landscape are poised for substantial growth in the upcoming year.
