Hospitality in the Cloud

The Future of SaaS Trends in the Industry

By Bernard Ellis President & Founder, Lodgital Insights LLC | July 05, 2015

According to Gartner’s Top 10 Strategic Technology Predictions for 2015 and Beyond, “By the end of 2017, 70 percent of successful digital business models will rely on deliberately unstable processes designed to shift as customer needs shift.” This ability to adapt with the consumer is directly applicable to the hospitality industry, as meeting the ever-changing expectations of guests is essential to profitability. When considering which technology options can have the greatest impact on dexterity and flexibility, cloud computing should certainly be top-of-mind.

As more hotel and casino operators have familiarized themselves with the potential benefits of Software as a Service (SaaS), momentum behind the cloud is here to stay. Hospitality organizations have moved past previously associated concerns with the cloud, and it has now become a fixture and regularly selected path for IT in the industry. This progression has brought about several new cloud-related trends, all centered around achieving business goals such as increased revenue, enhanced guest services and improved operational efficiency.

Impact on Limited Service Hotels

Limited service hotel brands are a vital part of the hospitality market, typically offering room rates that appeal to budget-savvy travelers. However, because they do not have as many ancillary revenue streams as full service hotels, decision-makers are often unable to allocate sizeable funds for IT to match their larger counterparts. In the past, this has created difficulty for these properties in remaining up-to-date on business systems and potentially hindered them from capitalizing on the latest innovations.

Fortunately, the cloud provides an opportunity to change this. Many national or global organizations are choosing to invest in SaaS to provide their limited service brands with access to technology that may otherwise be beyond their reach. When the parent company evaluates potential applications, selects the vendor and equips its brands with the necessary tools to execute the project, these hoteliers are positioned to reap a multitude of benefits, both immediately and in the long-term.

Advantages from moving back-end systems to the cloud center primarily on day-to-day operations

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Coming up in June 2018...

Sales & Marketing: Opinions Matter

Hotel Sales and Marketing Directors manage a complex mix of strategies to attract and convert customers into guests. Part of their expertise includes an awareness of customer behavior during the reservation process, so they can make sure their hotel is favorably positioned. One such trend is the growing popularity of travel review sites. According to one recent survey, 61% of prospective customers consult online reviews in order to validate information about the hotel before making a purchasing decision. Another survey found that the average hotel customer reads between 6-12 reviews across 4-10 properties before making a final decision on where to stay. Similarly, other studies have shown that consumer reviews are a more trusted source of information for prospective customers than other kinds of marketing messaging. In fact, reviews are often considered to be as influential as price regarding whether a customer decides to complete a purchase or not. Plus, travel sites with the most reviews - including recent reviews from satisfied customers and thoughtful responses from staff - were also found to be the most appealing. So having positive reviews on a travel website is essential and can help to increase a hotel's conversion rates dramatically. Of course, there are all kinds of additional marketing strategies for sales and marketing directors to consider - the importance of video and the emergence of live streaming; the implementation of voice search; the proliferation of travel bots; and the development of Instagram as an e-commerce platform. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.