These hoteliers trade less operational and financial support for greater control over the entire technology stack. Independent operators can choose how to implement new technology to bring their unique product to market and are not subject to the many constraints often associated with brand standards. So where should independent hoteliers train their focus when investing in new technologies? Here are three critical capabilities for independent hoteliers to prioritize.
Automation
Independent hotels are uniquely exposed to many of the most significant risks associated with technology investment due to the lack of overarching brand support. However, automation has proven to be an invaluable tool for controlling costs and improving operational efficiency today. Independents can confidently invest in automation at hotels of any size because it serves as a force multiplier among staff, enabling these properties to accomplish more with less.
Automation’s value is perhaps most visible when applied as a communications tool, instantly responding to guest inquiries when a hotel associate isn’t available. However, automation is also incredibly effective when applied behind the scenes to a hotel’s revenue management system (RMS) to tune its financial performance to perfection. Thanks to independent hotels’ lean operations, U.S.-based independents consistently achieved higher revenue per available room and average daily rates than branded hotels in the same class.
The day-to-day activities of an automated RMS in today’s hospitality space revolve around granularly forecasting demand levels and deploying new rates and inventory controls in response. These activities directly impact daily operations, usually by preparing hotels for new arrivals and equipping operations teams with more knowledge about travelers and their preferences.
Data Analysis and Reporting
Hoteliers are focused on the depth and usability of data analytics and reporting features to a degree they have never been before, as these are essential for making informed pricing, inventory, and budgeting decisions. A best-in-class RMS system can see hotel booking data at its most granular level, providing an invaluable strategic resource to independent hoteliers.
Hotels thrive with targeted, individualized marketing, which is only accessible using advanced data analytics to track individual guest profiles. Not only will an advanced RMS automate mundane daily tasks around pricing and inventory management, but can also provide invaluable insight into who a hotel’s ethos, merchandising and marketing efforts appeal to. This information can be used to inform how hotels position themselves and ultimately work to capture a greater share of these guests’ attention and bookings.
With access to this information, independent operators have the tools they need to remain competitive with established brands. Independent hotels can identify their core guests through targeted, individualized marketing and capture their share of travelers. Hotels can leverage modern RMS capabilities to gain the insight needed to refine their approach and generate bookings within each market segment.
System Connectivity
While it’s obviously important for hotel tech infrastructure to “play nice” together with solid integration capabilities today, technology upgrades are about more than immediate-term improvements. Ideally, these investments set a solid foundation that can scale with the demands of a rapidly evolving hotel technology ecosystem.
Without brand support guiding their choices, independent operators must conduct thorough due diligence when selecting tech providers who can shepherd them through the buying process and beyond. Timing is an important factor all hoteliers consider when shopping for new technology. However, making a rushed investment to secure business in time for an upcoming holiday season will do more harm than good in the long run.
Most importantly, independents and tech partners must have frank, honest discussions about their integration expectations and how their platform will adapt over time. Hospitality integrations are meant to enhance a hotel’s key functions, not replace them. With this in mind, independent hoteliers must consider investing in a solution that prioritizes their needs upfront without creating barriers to future integrations. Speed is important for new tech integrations, but so is remaining strategic about your business’ five and ten-year plans.
Independent hoteliers are urged to understand the capabilities offered by their software partners, how they innovated to reach this level, and their upcoming development plans for the foreseeable future. Change can be challenging, so find a partner who isn’t just going to help you survive here and now–find one who will help lead your property’s evolution according to your script.
