One of the biggest challenges the hospitality industry faces is how to best leverage the ever-evolving technology services available. Tech-focused efforts to create brand differentiation and yield greater value are significant and ongoing, as hospitality companies compete for additional wallet share from travelling consumers.
While hospitality brands continue to investigate and evaluate the latest trends—drawing primarily from the residential market to re-create or surpass an “at-home” experience—hotel management is assessing the impacts of these technologies by asking two key questions:
With different perspectives on which investments will maximize returns—corporate brand leadership, franchise owners and site managers may have differing goals and objectives for the same property.
A typical hotel has multiple IT platforms to support operations and guest experience, spanning from property management systems to the guest Wi-Fi. Hotel technologists are becoming increasingly dependent on migrating—and potentially outsourcing—these systems to the cloud, as it becomes cost-prohibitive to continue staffing resources to manage on-site infrastructure.
Below are five factors influencing decision makers in the hospitality space.
While these five factors are not an all-inclusive list—they help to define next‑generation network requirements in the hospitality industry. IT communities and lodging companies who leverage these technologies in their deployment plans—for both new-build properties as well as retrofits—will be well prepared to reap the rewards from these investments, to the benefit of guests and staff alike.
Today’s guests have high expectations. They demand a frictionless guest experience in exchange for their loyalty. The booking process is an early and significant aspect of the guest experience. Guests are looking to quickly and easily book their stay – and they want to do it via their preferred communication channel.
Many hotels still rely on a “phone system” to power the reservations contact center. The basic function of taking a call, processing a reservation and posting to PMS are no longer cutting it. Plus, peak periods can leave your “phone system” lagging behind, not being able to keep up with the demand. In order to leave a lasting impression during this initial guest encounter, you need to provide a simple and unique booking experience with no glitches. Remember, the guest experience begins now, not when the guest arrives on-property.
Hospitality digital transformation
The hospitality industry must move past primarily communicating via voice or email. Guests now expect real-time communication that is available over a host of channels (voice, email, chat, text, etc.). Many properties find themselves band-aiding together multiple cumbersome applications in an effort to meet these communications demands. It feels disjointed to your staff, and it ultimately feels disjointed to the guest as well.
Delivering guest interactions that are simple and mobile friendly require a digital transformation strategy. This may be as simple as providing a “Contact Us” button on your website that allows guests to interface with your property via voice, email, chat or SMS text, or it may be as “new-age” as interacting with them on social media platforms.
To maintain the loyalty of customers and gain the loyalty of new guests, we must not only allow guests to communicate via their preferred channel, but also be privy to the path they took to get there. Have they communicated with your call center before? What channel did they use? Were their questions answered or issues resolved? What are their loyalty program preferences and purchasing tendencies? Having this background information available to your reservations team personalizes the booking experience and leaves a favorable impression with the guest.
Empowering your staff and delivering a multi-channel guest journey can be accomplished with relative ease by deploying cloud-based contact center applications. These applications provide all the tools needed for agents to be knowledgeable and helpful while providing the digital interactions that will suit the preferences of a wide range of guests.
These Contact Center as a Service (CCaaS) options not only satisfy the primary concerns of hotel CROs but improve them significantly:
A well-versed hospitality partner like Windstream Enterprise can help you improve your guest interactions with the latest in CCaaS technology. Our Hospitality Contact Center experts will be at HITEC on June 19-20 at booth #1427. Stop by with questions about your contact center and learn more about our for the hospitality industry.
To most hotel professionals, operators, and brands, the guest experience is everything. It is the item that is most discussed, measured, shared, and evaluated as the lodging companies compete for their share of the travelling consumer’s dollar. Hotel, time-share, and resort companies strive every day to raise the bar of their staying experiences to create that unexpected delight in their guest’s eyes. The great memory of that experience, while elusive, is the target for most in the business. The focus of all in hospitality should be elevating and transforming the guest experience.
Elevating your brand with improved service loyalties
More specifically at the brand level, the promise of consistent and excellent service creates loyalties at the brand level. There is comfort in the sameness and knowing what to expect when you step into a branded hotel property. Travelers rely on this and reciprocate by participating in brand loyalty programs and the like.
Improve booking experience
An often-overlooked aspect of the guest experience is the entire booking process. Frequent travelers are looking for quickness and convenience, event shoppers may be looking for price or location. Hoteliers who have mastered delivering a reservation with the right mix of guest demographics and personal attention can win favorable attention with the guest before they ever set foot in the lobby.
Improving the guest experience with the Power of One
Windstream Enterprise’s compelling Power of One program aligns very tightly with transforming the overall guest experience. Quite simply, The Power of One is defined as our suite of vertically aligned and cloud-based network solutions that can assist the Hotelier across the entire spectrum of the guest experience, essentially what we term as GXaaS (Guest Experience as a Service). The Power of One simplifies the guess work of elevating the guest experience by providing the network infrastructure and tools to assist in reaching for that 5 star level of guest satisfaction. Here are some examples which can be bundled through the Power of One or obtained separately.
WE at HITEC
In a hotel, many times the secret to the guest experience are the details of the service delivery. There is “devil” in the details, but there is also excellence. WE urge you to stop by our HITEC booth 1427 and talk to us about your specific challenges. You will quickly find that our team of hospitality ninjas will establish themselves as partners to focus on your most pressing needs to really elevate and transform not only your guest or staff experience, but your entire network platform, whether at a property, sales office, or corporate office location.
It’s a known fact many hotel owners and management companies prefer to capitalize their purchases and expenses. Paying for products and services as a budgeted capital expense allows goodies like depreciation of the asset and scheduling those cost allocations. “One-timing” the purchase also allows the property to increase or conserve that precious NOI (Net Operating Income), a key factor in increasing the value of the real estate/lodging asset (remember playing Monopoly as a kid?). Many hotel management companies negotiate their management fees and incentives around increasing this key NOI metric.
Conversely, most SaaS, UCaaS, and virtualized equipment models are built with a focus on the monthly service fees; i.e., a fixed pay-as-you-go, with an emphasis on rolling the installation, equipment, software licensing, support, etc. into the monthly payment, with the capital buried somewhere into the monthly operational charges. Managed network services, such as Windstream’s Virtual PBX for Hospitality solution, also use this model. Many other virtualized services, and the companies that distribute them, are focused on increasing the monthly recurring revenue (MRR) as more clients sign up and engage.
Moving to virtualized services in a capex focused environment
So how does today’s hotel IT manager, who likes the flexibility, centralized management, high availability, and reduced equipment footprint on-property that a centralized, hosted/cloud-based platform provides, take advantage of these services when it appears many of the commercial business models are setup in the exact opposite direction of how they prefer to buy?
Following are three primary options for making it happen:
1) Build Your Own – By creating your own server farm, the IT manager can capitalize most of the elements of equipment purchase, software licensing fees, applications running on it, installation, etc. This also allows the IT manager to completely customize the offering from the ground-up. It’s key to remember that there is typically a high level of expertise, effort, and resources needed to be able build your own hosted platform.
2) Prepaid Services – Another, and quite possibly less labor intensive route, would be to negotiate pre-paying (or perhaps annualizing) for the monthly service fees associated with the service. While you would need to consult a tax advisor on how to treat this expense for items such as depreciation, one could certainly shift this into a “one-time” expense/budget allocation for predictable annual and/or TCO (Total Cost of Ownership) budgeting.
3) Hybrid – If there are certain elements of the virtualized services, such as infrastructure hardware costs, cabling, or installation fees, negotiate with your integrator to capitalize as much of those fees as possible. Maximizing any of the elements of the capital purchase while still paying for any hosted subscription fees could create a win/win.
While there’s no single right answer for the above, we believe that hotel IT managers and the integrators who partner with them should stay flexible and look for solutions based upon their property’s particular fiscal objectives. In doing so, they will ultimately conquer this conundrum and be successful in their IT transformation initiatives by deploying their own stable of above property solutions.
With hotel networks, one size does not fit all
Even within a single hotel owner’s portfolio there may not be one single direction that is a fit for all properties. Hotel owners may have assets they want to move out of their portfolio and the investment decision for that property will differ from the investment decision for a property that the owner plans to maintain for the long term.
While there has been a shift in the technology, owners still rely on fundamentals like TCO, ROI, and the current tax code when making a buying decision. Furthermore, many of the owners are publicly traded equity REIT’s that have the added focus on corporate governance and increasing shareholder value.
Let’s connect at HITEC Houston
The Windstream Hospitality Team will be at HITEC this year in Houston, June 18-21. We’re going to be at booth 1427 if you want to make a note in your smart phone to stop by and discuss how to improve your network and manage your costs effectively. By working together with a knowledgeable network provider – one that offers a broad range of options that can be tailored to your needs – you will be sure to design the best possible solution for your unique goals and needs.
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