Michelle Duffy, Marketing Manager at Percipient, explains how to tell when a hotel tech stack is outdated and highlights the importance of integration in maintaining relevancy for a modern marketplace.
The concept of a tech stack, where a set of technologies spanning all core business functions are stacked together to facilitate seamless data flow, foster collaboration, and deliver one version of the truth, continues to gain traction across the hospitality sector. A good tech stack can provide real-time actionable insights, helping hospitality businesses better react to trends, mitigate against threats, and quickly seize opportunities.
However, not all tech stacks are created equal. It’s common to see tech stacks where integration is almost an afterthought, which goes against the vital underlying principles of seamless data flow and collaborative working. The power of a tech stack can be significantly diminished if it’s outdated. Something many businesses fail to consider when reviewing their processes.
With this in mind, what are the five tell-tale signs that a hotel tech stack is outdated?
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Reliance on Manual Processes
If a hotel business still relies on manual data entry and paper records, even with a tech stack in place, there’s a good chance the tech stack is outdated. What should be happening is the automation of routine, repetitive tasks, such as billing and room allocation, freeing up staff to focus on more value-added activities.
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Lack of Integration
For a tech stack to deliver real value, its systems need to communicate with each other. If this isn’t the case, the result can be data silos, inefficiencies and mistakes. Up-to-date tech stacks enable seamless system integration, facilitating smooth data flow and enhancing operational efficiency.
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Lack of Mobile & Contactless Guest Experiences
From mobile check-in to contactless payments and digital room keys, guests expect mobile and contactless services. Tech stacks that cannot support such applications put hotels at a disadvantage, running the risk of not meeting guest expectations and falling behind the competition.
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Lack of Data Analysis & Reporting
Hotels must harness their data, using up-to-date tools to turn information into actionable business insights. A tech stack cannot provide these vital predictive insights without advanced reporting capabilities and data analytics, again putting a hotel on the back foot compared to more tech-savvy competitors.
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Difficulty Embracing Emerging Tech
A tech stack should make it easy to integrate new and emerging technologies. Capabilities such as AI chatbots and IoT devices for guests can revolutionise the industry. If a tech stack isn’t flexible or scalable enough to integrate such innovations, that suggests it requires updating.
Integration is Key
When upgrading a hotel tech stack, the overarching priority for the business should be integration.
A well-integrated tech stack allows for the seamless flow of data between different systems, including accounting and financial management solutions, Property Management Systems (PMS), Customer Relationship Management (CRM), Revenue Management Systems (RMS) and Point-of-Sale (POS). Not only does this reduce the inevitable errors that can occur with the manual transferring of data, but it also affords the business greater visibility and control, providing real-time business-wide information.
With data analytics tools integrated into the tech stack as well, this comprehensive, real-time, business-wide data can be turned into real-time actionable insights, too. These insights underpin more dynamic decision-making, from pricing strategies to resource planning and everything in between. Integration provides a complete picture of performance and operations at any one time, giving decision-makers the information they need in context to make better, faster decisions.
Upgrading a hotel’s tech stack can lead to better guest experiences, enhanced operational efficiency, and the ability to seize new and profitable opportunities.
For example, integrating a PMS with an RMS allows for dynamic pricing based on real-time occupancy and market data, enabling hotels to optimise pricing strategies to maximise revenue. Integration can also greatly enhance the guest experience, with guest preferences from the PMS integrated with the CRM solution to deliver personalised offers and services.
When it comes to future-proofing the business, an integrated hotel tech stack also allows for more effortless scalability. As new technologies, capabilities and guest preferences emerge, hotels can add or update systems without completely overhauling their infrastructure. Integration-friendly platforms are a must, and Application Programming Interfaces (APIs) have been a game changer in this respect, facilitating easy integration and two-way information flow. As such, open APIs enable hotels to connect new tools and services to meet current and future demands, such as mobile keys, contactless payments or AI-powered guest services.
Upgrading a hotel’s tech stack can lead to better guest experiences, enhanced operational efficiency, and the ability to seize new and profitable opportunities. In today’s competitive and fast-moving hospitality sector, an up-to-date, fully integrated tech stack represents the digital foundations needed to support forward-thinking, future-proof hotel businesses that can stay one step ahead of customers and the competition.
Sage Intacct for Hospitality
If you’d like to learn how Sage Intacct can benefit your hospitality tech stack and ease integration headaches, contact Percipient or call the hospitality finance experts on 01606 871332.
