What is driving most hotel budgets today? Where is spending being allocated? That is exactly what Hospitality Technology Magazine set out to reveal when it presented the findings from the 2013 Lodging Technology Study at the recent Hotel Technology Forum.
The study, which looked at hotel technology budgets, drivers for new investments, top challenges, PCI compliance efforts, and specific areas of IT innovation, including property management, social media, cloud computing, in-room technology, and much more, uncovered several interesting points.
For example, in 2013, hoteliers said that high expectations on the part of guests have outpaced budget limitations. Twenty six percent of hotel executives said that this is the number one challenge facing their IT departments. This is compared to 2011, when only 22 percent said guest expectations were a challenge, but rather said that insufficient budgets were the top issue (39 percent).
The study also showed that 19.7 percent of budgets are allotted to guest room technology. Another 10.1 percent is spent on customer relationship management, which means that 30 percent of budgets is going towards guest-centric technologies. This confirms the fast growing trend towards more Frictionless Guest Experiences, where guests are the true brand owners and the drivers of innovation.
In addition, the study listed the top five reasons for hotel technology investments:
- Driving more revenue
- Enhancing guest services
- Improving operations
- Cost savings
- Maintaining or acquiring a competitive edge
We believe that this data reinforces that travelers are much more tech-savvy, than even just a few years ago. As such, the demand for the most cutting-edge innovations is increasing exponentially and hoteliers need to justify budget increases to meet those demands.
Download the complete report here.