Technology investment for hotels

Chains more committed to technology investments, while independent counterparts prioritise room renovations, says Expedia study

Chain hotels are nearly twice as likely as small independent properties to prioritise technology investment, according to a new survey of more than 1,200 hoteliers by Expedia Group, the global online travel platform.

Small independent properties, meanwhile, are 1.5 times as likely as chain hotels to prioritise room renovations — indicating a gap in technology investment strategies among different segments of the industry.

Reliance on technology is becoming increasingly important in the lodging industry as hotels begin to recognise how they can gain a key competitive advantage with strategic technology investments.

According to the latest report by Hospitality Technology, 54% of hotels plan to increase their technology budgets for 2019, while only 8% plan to reduce them.

However, cost continues to be the key barrier to technology adoption for many hoteliers, with nearly half of the small independent hotels surveyed indicating technology investment decisions are based on affordability and value. In contrast, more than half of the chain hotels prioritise technology that seamlessly integrates with their existing systems.

“We’re witnessing chain hotels placing significant investments in technology, which opens the potential for a greater divide between properties that are not able to match those investments,” said Pimpawee Nopakitgumjorn, director of market management with Expedia Thailand.

“Technology has the power to level the playing field for hoteliers of all sizes. We continue to listen to our partners’ needs and invest in how best to serve all our partners so that even the smallest of properties can compete effectively and find opportunities to succeed.”

Among the small independent hotels surveyed, 25% cited complexity as the biggest challenge they perceived when adopting technology, with 33% saying ease of use is a priority when evaluating solutions.

To remove these barriers, Expedia is making enhancements to its platform

so partners not only have the right resources whenever and wherever they need them, but that they are delivered through intuitive and easy-to-use tools.

“Operating a small property means juggling multiple responsibilities. Expedia understands this and it has developed some fantastic technology,” says Nittaya Karnchaisri, hotel manager of the Intimate Hotel Pattaya.

“In particular, the convenience of the Partner Central mobile app makes it easy for me to update my rates and availability and manage my guests while I am on the move.”

New user-friendly features on the Expedia Partner Central platform also further streamline everyday tasks and provide suppliers instant access to relevant information so they can make real-time, informed decisions. These features include:

Partner Central mobile app improvements: A series of upcoming enhancements will make managing rooms and rates easier with modified calendar navigation, the ability to view inventory and availability and make real-time updates to reduce errors. Suppliers can also receive mobile notifications for bookings, cancellations and guest messages, as well as prioritise actions with easy-to-use filters.

New rooms and rates overview page: A simplified view streamlines information and tasks related to rooms, rates and inventory. The new page reduces the number of links and helps suppliers determine where to take action with business alerts and insights.

New marketing overview page: Suppliers currently using marketing tools will see reporting on their results, while suppliers that are not will be educated about the various tools available. The page includes the top five countries with the greatest booking opportunities and raises awareness of properties within the marketplace.

New adaptive home page: Designed to provide customised recommendations for partners based on their current familiarity with Partner Central. This personalised experience helps suppliers identify time-sensitive tasks they should carry out to accelerate booking potential on Expedia. This will be made available to most properties at the end of the year.

Multi-property portfolio dashboard: Provides a portfolio snapshot for suppliers managing two or more properties. It lists accommodations associated to the user, provides insights for each property and signals when and where action is needed.

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Technology has the power to level the playing field for hoteliers of all sizes. PIMPAWEE NOPAKITGUMJORN Director of market management, Expedia Thailand