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