Artificial intelligence is ubiquitous in the hospitality industry. This is partly due to the promise of a revolution in bookings, guest engagement and operations, and partly due to keeping up appearances. Hotel operators are enamored with the potential of AI, as the industry continues to try to fully understand the implications for its use. And while there’s no doubt that AI will ultimately be everything it promises, the more important question is:
Do operators have the infrastructure in place to ensure that new technologies will have a safe and effective impact on their business?
Catching up on technology
The hospitality industry can sometimes be a step behind in adopting new technology, which is understandable because the core of the business involves human interaction and the property itself. There are also several other factors that have held back progress:
- Most real estate properties operate on very tight margins, meaning that large-scale initial investments in new technology are difficult to support and can lead to serious consequences if the investment fails.
- It is very difficult to show the ROI of technologies that do not have a direct impact on guests (such as Wi-Fi), meaning hoteliers are likely to reserve capital for known, immediate returns.
- Conversely, adding too much technology can be overwhelming and increase the need to manage more and more products, reducing the time staff spend with guests.
This slowdown in progress means that many properties are not where they need to be in terms of infrastructure. Lower investment in foundational technologies that keep everything running means properties are running on systems that may be inappropriate, split and disconnected from each other, creating security risks and potentially negating the ROI a new tool could provide.
Dust over flash
AI is one of the top buzzwords in most industries. Solution providers are applying AI to products wherever they can, but when you look beyond the marketing, it becomes clear that many of these solutions offer nothing new or different. Investing in new technology for the sake of it comes with costs and risks that can impact a business in the short term through financial, operational and reputational risks. It is more important that products provide the right solution and a tangible ROI.
That said, there are practical use cases for AI. It is here to stay and will continue to evolve to deliver new and impactful solutions for lodging, enabling better guest experience and retention, and reducing burden on staff. But real estate won’t deliver on the AI/AR promise by taking a traditional approach to technology.
This discussion must start at the backbone of the systems that will power advanced applications, AI and technology in the building – not start at the end. If a property does not have solid foundations, the system cannot support advanced products.
A guideline for success
Before embarking on new investments, it is important to first take stock of a property’s current setup and then develop a long-term strategy to ensure upgrades can continue to support new and more substantial software and connectivity needs. The following steps provide an overview of how hoteliers can ensure longevity and success for technology.
- Conduct an analysis of your current infrastructure. Make sure the technology can properly manage your current needs. Check for blind spots, glitches, or persistent errors. Assess whether all systems are connected and working together. If you are experiencing persistent problems or have had to call in multiple technicians, the system needs attention.
- Understand your timeline. Most technology must be updated every three to five years to meet increasing bandwidth and software needs. If your system is older or just getting cutbacks, you should update your system and make sure you keep an eye on it in the future.
- Budgets are tight, but don’t go for the lowest bidder. It’s easy to make the lowest bid when your budget is limited. But taking shortcuts in wiring, system hardware, and access points will impact the ability to expand and upgrade a system, and increase spending in the long run.
- Work with a partner who gets it. The more technology is added, the more vendors have to manage it, and the harder it becomes to keep all the individual parts of a system running. By working with a partner who can assess, advise and manage your end-to-end technology infrastructure, you can reduce the time you and your employees spend on management and save money through strategic technology selection and management.
To keep pace with the industry, hoteliers will need to embrace new technology solutions, but this must be done in a purposeful and strategic manner. By taking a step-by-step approach to progress and looking at total operating costs, ROI, overall system performance, future benefits, security and guest satisfaction, properties can ensure they can implement modern technology solutions and take the guest to the next level. experience.
About Allbridge
Allbridge delivers a single connected experience across all data, video and voice technologies for hospitality, healthcare and higher education organizations. Allbridge, formerly Bulk TV & Internet, DCI Design Communications and EthoStream, currently serves more than one million rooms nationally and positions properties for the future while strengthening relationships with their customers. The company is headquartered in Raleigh, North Carolina, with additional offices in Milwaukee, Wisconsin and Garden City, New York. For more information, please visit www.allbridge.com.
