With the rise of the Internet of Things (IoT), Artificial Intelligence (AI) and Social Media, it's commonly believed that travel brands need to invest more in tech to provide guests with cutting-edge experiences. However, is it true that hospitality tech is always a win?
Per Unifocus, “81% of hoteliers reported implementing and/or planning at least one major tech project during 2022.”
Two truths can exist simultaneously – while hoteliers are increasing technology budgets in 2024, too much of a good thing can be dangerous.
In the tech landscape, a significant amount of money is often wasted on flashy, but poorly implemented solutions – dubbed "Shiny New Toy Syndrome." While innovation is always exciting, tech advancements can cause more harm than good. Mismatches between actual experiences and marketing promises can leave the guest feeling let down, eroding the trust built up over time.
Let’s set the scene.
A hotel has implemented new technology throughout its booking, information, and on-site processes. Poorly designed tech with little user-experience forethought has led to guests attempting to get in touch, but instead they find themselves gridlocked by an automated robot, frustrated with too many steps and no real authenticity.
On the other hand, too little tech can lead to guests failing to accomplish basic tasks, such as having to call for vacancy information when an online booking system is not present.
While incorporating hospitality tech can enhance the guest experience in certain aspects, it isn't necessarily the case that more tech is always better. According to the MODIV Mindset data, over 67% of travelers trust travel brands based on pragmatic aspects such as value, quality, and reliability. This indicates that investing in tech that improves these aspects of the experience is worth it and may build trust with guests. For example, investing in booking systems that are reliable and transparent with pricing can increase trust and satisfaction with the travel brand.
On the other hand, investing in tech that doesn't directly enhance the guest experience or solve existing problems can be a waste of money and potentially harm the experience. This is because guests prioritize trust when choosing a travel brand, with 87% considering it a key factor. Gimmicky tech that does not offer real value or compromise safety and security can undermine guest trust. It's important to consider which technology aligns with guest priorities and needs.
So, where’s the sweet spot?
The MODIV Take
When separated from the white noise and fad trends, hotel technology can play an integral part in enhancing the overall guest experience. Travel brands must invest in technology that enhances the user experience and builds trust with guests instead of relying on tech for tech's sake.
Hospitality tech can be a tangle or a triumph depending on the investment made by travel brands. Therefore, hospitality brands should prioritize investing in technology that enhances the guest experience and builds trust while avoiding gimmickry that doesn't add real value or compromise safety and security. By investing in communication technologies and other value-adding technology, travel brands can increase guest satisfaction, build loyalty and ensure a competitive edge. Properly vetting technology before adopting and investing can ultimately enhance guests’ travel experience.