Thursday, October 3, 2024

Technology ‘set to transform hospitality, tourism in a big way’

The region’s hospitality and tourism industry is checking into tech in a big way.  From revolutionising the guest experience to smart energy management systems, innovation today is the key to the industry’s success of tomorrow – and beyond.

Technology and innovation will be under the spotlight at Future Hospitality Summit – FHS World, with a host of dedicated presentations, debates and features, including the semi-finals of the UN Tourism Women In Tech Start Up competition.  With just two weeks before the region’s largest, most influential industry event gets under way, industry leaders — Nicolas Nasra, Head of Hotel Advisory, Hospitality & Tourism, Colliers in MENA; Tjalling van den Burger, Vice President Enterprise Sales, Adyen; Piergiorgio Schirru, Executive Vice-President, Blastness, and Amit Sharda, Chief Operating Officer, Prologic First – share their thoughts on how tech is driving the sector forward:

We’ve all heard of Artificial Intelligence (AI) but there’s a new wave coming:  Artificial General Intelligence (AGI), which is so advanced that it is being compared to human intelligence.

According to Nicolas Nasra, Head of Hotel Advisory, Hospitality & Tourism, Colliers in MENA, while AI excels at specific tasks like personalising guest experiences and optimising operations, it is limited to predefined functions.

“AGI will be capable of understanding and learning across a broad range of tasks, rather like humans. In hospitality, AGI could revolutionise operations by autonomously managing everything from dynamic pricing to real-time guest interactions. It could predict maintenance needs before issues arise and offer personalised travel advice that adapts with each interaction. Investing in AI today sets the stage for AGI to transform hospitality into a truly intelligent and adaptive experience,” he said.

But it’s not just all about AI and AGI.  “The Internet of Things is transforming hotels into smart environments, where room settings adapt to each guest’s preferences, enhancing comfort and satisfaction. Contactless technology has become essential, offering secure and seamless interactions through mobile check-ins and biometric payments.  As sustainability gains importance, technologies that support eco-friendly practices, such as energy management systems, are critical for attracting environmentally conscious travellers.  And, cloud computing is centralising operations, enabling hotels to scale efficiently while maintaining data security. These technologies are not just enhancing operations—they are all redefining the guest experience,” added Nasra.

Piergiorgio Schirru, Executive Vice-President of Italian tech company, Blastness, says that today, more than ever, Revenue Management Systems (RMS) and Bid Management Systems (BMS) powered by AI and real-time market data are the secret to success for total revenue and direct bookings.

“With an RMS that suggests and implements real-time price adjustments based on demand fluctuations and hotel performance, hotels can stay competitive and consistently secure the best market price. Using a BMS system in digital marketing instead of manually bring the RM concept of dynamic pricing, setting a digital marketing dynamic budget that optimizes bids for each auction based on estimated conversions, market opportunities and hotel performance,” he said. “However, the optimal results of total revenue and direct bookings share can only be achieved if digital marketing and revenue management systems and strategies are close are perfectly orchestrated. Having a unique integrated software is the fundamental starting point.”

Amit Sharda, Chief Operating Officer, Prologic First, says that in today’s fast-paced world, technology is the backbone of hospitality.

“Incredible innovations are centre stage. AI is revolutionizing how we connect with guests; cloud-based Property Management Systems are game-changers, streamlining operations and bringing everything together under one roof,” he said.  “Contactless tech—think mobile check-ins and digital keys— make travel smoother and safer. And let’s not forget the impact of the Internet of Things, which is quietly working behind the scenes to save energy and keep everything running smoothly.”

Experts also shared their views on the investments in technology that stakeholders are – or should – be making now and in the future, and how they can ensure that they are using the right tools to enhance operations, the guest experience and workforce happiness.

In Nasra’s experience, strategic technology investments are crucial for staying ahead in the fast-paced hospitality industry.

“Property Management Systems and mobile technology are foundational tools that streamline operations and personalise guest experiences – essential for delivering seamless service. Embracing AI and contactless technology are also key.  The future of hospitality is smart, secure, and seamless.

“It’s important to align technology investments with your strategic goals to ensure you are using the right tools. The right technology doesn’t just streamline operations—it elevates the entire hospitality experience,” said Nasra.

One of the main challenges facing the hospitality industry today is the fragmentation of software providers, from PMS and PoS systems to OTAs and channel management, according to Tjalling van den Burger of Adyen, which brings all these platforms together, offering a unique, fully integrated unified commerce experience.

“It’s wise to focus investment efforts on unifying these systems,” he said. “Traditionally, the hospitality sector has lagged in technology adoption compared to other industries, often relying on third-party products instead of developing in-house solutions. Legacy providers dominate the landscape with outdated technology, leading to manual processes that are prone to human error. Additionally, operations are often fragmented, with hotel groups in different regions relying on multiple providers, further complicating the management process.”

Prologic First’s Amit Sharda believes that when it comes to investing in the future of hospitality, it’s all about making choices that blend innovation with practicality. Cloud-based systems should be at the top of the list because they offer the flexibility and real-time insights that modern hotels need.

“AI is another big one, as it helps us to understand guest preferences and optimize everything from pricing to operations. And we must not overlook sustainability. Investing in energy-efficient technologies and eco-friendly practices is more than just a trend; it’s a smart business move that resonates with today’s environmentally conscious travellers. By focusing on these areas and staying adaptable, owners and investors can ensure their properties are not just keeping up but leading the way,” he said.

With hotel systems generating huge amounts of data, how can technology assist with analytics, and how can data drive innovation in hotels?

“Technology is transforming how hotels leverage big data, turning vast amounts of information into actionable insights that drive innovation. By integrating data from reservation systems, CRM platforms and guest feedback into a centralised system, hotels gain a comprehensive view of operations and guest behaviour,” says Nicolas Nasra of Colliers. “Advanced analytics and AI enable the processing of this data to uncover trends, optimise pricing, and enhance personalization, offering tailored experiences that boost guest satisfaction.”

Adyen’s Tjalling van den Burger says that guests are constantly making payments throughout their stay, whether it’s for spa treatments, dining, or ordering beverages by the pool. Each interaction generates valuable payment data, but without a proper platform to unify these insights, capturing and leveraging this data becomes challenging. A platform capable of generating a token for each guest and monitoring their journey at the hotel provides a comprehensive view of their interests and preferences, in turn allowing hotels to personalise experiences for each guest.

According to Piergiorgio Schirru from Blastness, there are three connected challenges when it comes to data gathering and analytics: collection, extracting information and turning that information into action.

“Gathering vast amount of data from different sources and successfully linking them together is a significant challenge, which can only be overcome through a scalable, multi-source DWH and BI system. With large volumes of data, extracting meaningful information is far more complex than before. To do this quickly, it’s essential to fully leverage the opportunities provided by AI algorithms. Information is crucial, but to unlock and capitalize on its value, it must be transformed into actionable strategies in revenue management and digital marketing. To achieve this, RMS and BMS must be coordinated and synchronized with BI, powered by AI algorithms to take the best data-driven decisions.

While the industry has made huge strides in tech and innovation, bottlenecks remain.

Den Burger says hotels often face significant challenges when adopting new technology, largely due to the limitations imposed by legacy payment systems. While hotel tech partners are quick to innovate and introduce new solutions, outdated payment technology can hinder advancements.

Sharda acknowledges that innovation in hospitality has its challenges, but technology is helping to clear the roadblocks.

“One of the biggest hurdles is getting different systems to talk to each other—something cloud-based solutions and APIs are starting to solve by enabling smooth integration. Another is helping staff adapt to new technologies, but with user-friendly designs and ongoing training, the transition can be smooth,” he said.

FHS World will take place at the Madinat Jumeirah in Dubai from September 30 to October 2.

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