What Tech Trends Are Impacting Revenue and Guest Experiences In 2023?

“The hospitality industry has been going through a lot of changes since the pandemic. More and more properties are realizing the importance of revenue management. And most importantly, they’re realizing the need for proper tools that will help them with better decision-making.

There’s a strong shift to automated systems, investment in market intelligence tools, rate shopping, and proper RMS tools. But AI is also becoming more present in modern usage scenarios. For example, integrating AI with RMS tools to increase revenue generation. AI is also being used for customer experience like generating suggestions based on a guest’s preferences.

The good news is that there are more options and tools available nowadays. The growth in tools allows more properties to shift to the next level of revenue management. A level where they get to better optimize and strategize; based on reliable data and trends.

With the availability of more cloud-based tools, hotels have also been considering cluster revenue management. And the change comes with several advantages. Outsourced revenue management is also becoming more common. Smaller, independent, hotels can benefit from the knowledge and experience of a larger pool of qualified revenue professionals.

Guest experience has always been at the center of the industry’s decisions – but now properties want to take this to the next level. CRM has become really important. Not only for guest recognition but also for providing more personalized service to them. Even independent properties are looking for a way to convert direct business and have some sort of membership scenario. Either on their own or in collaboration with another company.

Chatbots, live chat service,s or WhatsApp messaging is also a significant part of the discussion. Many hotels use them, as today’s guest wants a faster response. We can expect growth of these tools in areas related to customer experience.

There will be further enhancement of booking processes. It’ll become more effortless, with smoother booking procedures. And it’ll open up an experience that is more relevant to the guest’s profile.

Conscious options for guests: Paperless check-in and check-outs, personalizing their stay before arriving, pre-book experiences via mobile, paperless menus, etc.

To recap, I would say that the latest tech trends could really elevate both your Revenue Management and also your guest experience if you know how to properly utilize them.”

“Here are some tech trends that are likely to impact revenue management and the guest experience in 2023:

1) Artificial Intelligence (AI) and Machine Learning: AI and machine learning are already transforming the hotel industry and their impact is likely to grow in the coming years. These technologies can help hotels optimize pricing and inventory, personalize the guest experience, and automate tasks that were previously done manually – such as room assignments and check-ins.

2) Virtual and Augmented Reality (VR/AR): VR and AR technologies have the potential to transform the way guests experience hotels. These technologies can create immersive experiences that allow guests to explore hotel facilities, preview rooms, and even visit destinations before they arrive. For example, Marriott has already launched a VR platform that allows guests to experience travel destinations before they book their stay.

3) Digital Twin: A digital twin is a digital replica of a physical Hotel. A digital twin could be used to create a detailed, three-dimensional model of the property, including its rooms, amenities, and infrastructure. This could help hotel companies to sell more direct bookings offering room number upselling. Companies like Hotelverse are now providing this service.

I believe that we’re facing challenges while making a significant impact and achieving improvements. However, when considering the next big change in guest experience, personalization is proving to be a critical factor that’ll make a significant impact. A perfect illustration of this can be found with platforms that offer features like freedom for guests to choose their preferred room number after booking. This technology is genuinely impressive and is revolutionizing the booking experience for our guests.”

“Tech has been trying to steer into total revenue for years now – moving from RevPAR to TRrevPAR. Current tools are moving in that direction. You can see it with technology’s growing ability to digest more and more data. That should mean guests are able to enjoy a fully personalized experience, at a fully personalized price, according to what they want or need.

Having access to the guest throughout the entire customer journey helps deliver a more curated offer. Customers are able to select what they want when they want it. Therefore, development of revenue management tech should mean a more enjoyable customer experience.”

“You can see a huge impact from various tech trends trying to improve revenue by shifting focus to the output instead of the input. And tech-savvy inventions in, for example, restaurants should also benefit the guest experience. They provide your employees with more time to focus on guest experience instead of less important matters.

Just remember to deliver on the service promises and don’t overdo it on the tech side of things. Solutions should help take back the manual hours needed to run reservations, groups, events, sales, reservations, and a revenue-based focus on the output. It’s about taking more time for lead calling, after-sales, prospects, analysis of the business, etc.”

“People often mistake automation for optimization. You need to put a “BS detector” on it. Buzzwords will, more often than not, make you look silly. And what exactly are tech trends? Is it moving to the cloud, automation, personalization? We know we’re in a connected world and that tech needs to address a problem – REGARDLESS of trends. Trends are just that: Trends.”

“Revenue management systems are pushing revenue managers to become more strategic and less “excel centric”. The implementation of a Revenue Management system can reduce a lot of the time spent collecting and organizing data. Especially data which puts a heavy focus on strategy and achieving collective results. It helps in breaking down silo’s between revenue-generating departments like sales and marketing, distribution, F&B, and common KPI’s.

Tech trends are influenced by market trends and the reverse holds true as well. There is a large focus on guest-centricity and personalization which is very much linked to loyalty and direct booking. Having a personalized experience sticks in people’s minds and will influence them to return. And of course, returning guests are much more profitable than new client acquisition. Being able to approach clients directly is an objective that every hotel should pursue. But it often seems that we forget that fact fairly quickly.”

“COVID definitely drove the guest experience in regard to tech. This continued into 2023, when hotels have continued to operate with the new systems they installed and grew into over the last few years. They’ve allowed for increased instant communication, both internally and with the guests, at all stages of the funnel. For some properties this has led to reduction in staffing versus holding to maximize a face-to-face experience. Tech’s impact on the guest experience has also been a key motivator of incremental revenue and directly impacted revenue management.

Hotels with fully integrated systems have seen increases in RevPAR and movements to TRM where the revenue and guest experience are unified. On the independent hotel front there’s room to grow. You can see them all as part of a single cycle. Easy-to-implement systems like Oaky guide the pre-arrival, and during stays the communications have a direct impact on revenue performance in a truly guest-friendly experience. TRM, in particular resort-type properties, have greater opportunities to drive demand periods or specific guest experiences. Again, bringing the two together.”

“The most significant subject centers around all the data they can provide. But just be sure you don’t mix apples with pears ;-)”

“Today’s hospitality industry is witnessing a rapid shift towards technology adoption. It’s faster than I’ve ever seen. And the shift has brought about significant changes in the way hotels operate and interact with their guests. It’s transforming both the guest experience and revenue management strategies.

Personalization has become a top priority for hotels, and with the help of AI and machine learning, hotels can offer customized recommendations to guests. This leads to increased revenue by encouraging guests to spend more and return for future stays. Casinos led the charge on this 10 years ago through access to detailed guest spending and gambling history data.

Mobile technology is also becoming the new “go to” in the hospitality industry. The tech makes it easier for guests to check in, order room service, and access other services from mobile devices. This creates improved guest satisfaction and loyalty, not to mention reducing staffing requirements across the business.

Virtual and augmented reality technologies are also being increasingly used to provide immersive experiences for guests. It allows them to preview their rooms or explore nearby attractions before they arrive. This can enhance the guest experience and increase revenue by encouraging guests to upgrade their accommodations or book additional services.

Revenue management software led the way with “Big Data” and has become a vital tool for hotels to optimize their pricing strategies and increase revenue. These systems use sophisticated algorithms to analyze market data and adjust prices in real-time, maximizing revenue while maintaining occupancy rates. And it allows revenue leaders to focus more on implementing strategy and managing all revenue streams.”

“AI and machine learning are likely to see a breakthrough in customer-facing and back-of-house processes due to staff shortages. Consumers prefer instant answers from robots over slower responses from humans which take time. At least as long as the robot’s answers have merit to them. With the right mechanics in place, inquiries for room rates or bedroom availability initially placed via email, messenger, or even voice can be directed to the IBE. This can not only save valuable resources but also support engagement whilst collecting personal details and capturing them in the CRM.

Another trend approaching the travel industry is the usage of biometric data in conjunction with payment systems. Tech giants are working in close cooperation with governments, airport authorities, rental car organizations and hotel chains to make the entire journey during travel much more frictionless. To a point that makes identification at reception desks of hotels, airlines, or car rentals completely unnecessary.”