A new report from Sona, the leading AI-native workforce management software firm, and Peach 20/20 has revealed that the vast majority of hospitality executives are prioritising improving productivity over all other metrics to positively impact the bottom line.
The report, based on detailed surveys led by CGA by NIQ and a roundtable with hospitality executives, showed 82% of executives believe improving productivity will impact their EBITDA.
They discuss how the sector must evolve to navigate the plethora of issues facing the industry – such as staffing, inflation, taxation and changing consumer habits – to find a pathway to profitability.
Technology was found to be central to profitability with 53% strongly believing tech plays an important role in productivity strategy. While cost reduction is a key objective, operators believe it has to be part of a longer-term growth strategy by enhancing guest experience, staff engagement and operational flexibility.
While leaders agreed (81%) that productivity is a board-level strategic priority, the following challenges that need to be overcome were also raised in the report:
- Rising operational/input costs (74%)
- Inefficient processes (42%)
- Repetitive/time consuming work (29%)
- Poor forecasting/scheduling (24%)
- High staff turnover (13%)
Leaders believe that technology holds the key to unlocking productivity with 61% pointing to increasing automation of basic tasks, 45% see greater opportunity in workforce scheduling and more than a third (39%) recognise an opportunity for marketing optimisation with improved technology.
However, only 35% expressed confidence in their data and 58% of respondents said outdated systems hinder productivity.
Ben Dixon, chief technology officer and co-founder of Sona, said: “The challenges the hospitality industry continues to face are exhaustive and ongoing, and leaders are constantly looking for innovative ways to navigate through to greater profitability. The research in this report shows that technology is considered as an essential way to boost productivity but what is less clear to some is knowing where to best invest.
“We increasingly see leading hospitality businesses evaluating existing systems and identifying the functions where significant value can be driven, with the support of AI, to drive the team and guest experience, cost benefits, revenue, and profit.”
Peter Martin, co-founder of Peach 20/20, added: “Our report focuses on how boards are measuring productivity success and which KPIs and metrics are being utilised. It is an area that is quickly evolving and will become increasingly sophisticated.
“The results of our research and roundtable conversations paint a fascinating picture of how the hospitality sector is addressing productivity, which we have no doubt will prompt more discussion.”
