Today in the hospitality sector, pleasing the guest through the use of innovation is paramount in order to effectively compete. From developing new concierge services to even employing a robotic butler, it seems that the sky is the limit when it comes to amazing guest-facing innovations.
As we have highlighted before, many of the hospitality providers that are winning the innovation war are the premium brands that have made the proper investments into technology.
A key driver of this change is the mindset of the guest. As consumers, we have become accustomed to paying for digital services in our homes. From Wifi connections to subscriptions to HuLu and NetFlix, as well as the cost of data plans for smartphones, we are used to spending hundreds of dollars each month on technology. This is an investment that we all happily make.
Unfortunately, this same approach does not happen when it comes to booking hotel rooms. The typical guest is mainly driven by price, especially since there are competing companies like Trivago and Hotels.com that are driving down the prices per room.
This price war has made consumers feel entitled to get the best room deal possible. It never enters their mind that they should be part of the technology investment chain in hospitality.
When you pay more, you get more – as the old expression goes. However, it is unlikely that we will see the average guest be willing to pay extra for hotel rooms, which will translate into additional revenue for technology investments.
In the meantime, until we see this mind shift in the consumer, it will continue to be a battle between the “haves and have nots.”