Smart Technologies: Affordable Capital Expenditures That Drive Revenue

By Adam Gillespie Founder, BroadView IP | January 08, 2017

Hotel technology is constantly trying to catch up and accommodate guests’ interests compared to what they use at home. Each year, hotel properties are faced with evaluating and upgrading to the latest and greatest technologies to accommodate their guests, but at what cost?

In an increasingly complex world, businesses need to adapt with shifting trends and technologies. The hotel industry’s landscape has responded with corporate solutions that allow for minimal capital expenditures. Previous models required capital budgeting techniques to adjust to a larger margin when it comes to acquiring critical technologies. In this sense, technology spending in the hotel industry becomes more vulnerable to increased levels of fluctuation in terms of cash flow and capital expenditure ratio.

Properties have been getting locked into expensive, long-term contracts which hold long term-promises beyond the cost of implementation, paying for the cost of the equipment onsite but not realizing the profits originally projected while the equipment or service slowly becomes extinct.

The rise of cloud computing has streamlined traditional concerns such as workforce management and server administration, services can be better managed in a shift from capital expenses to operating expenses. This shift reduces costs for maintaining and scaling newly acquired technologies.

New developments in advertisement targeting, coupled with the diverse amount of internet connected devices a guest carries into a hotel are allowing ownership to present a wide suite of unique services at a minimal infrastructure and delivery cost than ever before.

Advertising for Wi-Fi Landing Page / Guest Authentication

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Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.