The Middle East has become the main destination for available luxury in the global hotel sector. The continuous development of hotels raises the bar in terms of facilities, amenities and amenities technology. However, with the pandemic, the expected impact on total spending does not necessarily keep pace.
If we look at the demographic changes and segment changes among hotel guests over the past two years, have hotel operators hit the mark when it comes to smart technology investments to increase sales? In the 12 months leading up to Covid, hoteliers had a strong focus on key technology areas like revenue management, and with Expo 2020 it made sense. How can you optimize your inventory for the duration of the event? Overnight stays, meetings and events were the main sources of sales.
The guest drivers switched overnight and people wanted comfort at home. In-room TV streaming, online room service ordering, electronic keys and contactless check-in and check-out. And if they couldn’t get it from the property, they’d do one of two things:
- Stay elsewhere
- Use third parties to meet their needs
The first option became a clear opportunity when prices plummeted and with it access to properties with low demand and low occupancy. The second option is a more complicated subject that can best be explained by a recent visit to real life.
How hotels don’t use technology
In the typically efficient style of the Middle East, I came via the airport to a five-star business hotel with 800 rooms divided between residences and hotel rooms. I approached the front desk where the service was hardworking and warm as they checked me in and cut two keys. When I got to my room I found that it had been cleaned according to the brand new Covid cleaning standards, but there was no mention of a cell phone key at the front desk that I could have used to throw away the plastic cards. Having worked closely with this hotel, I am aware that the owner has invested heavily in key mobile technology (around $ 1M and more), but prior to my stay there was no communication that gave me the opportunity drew attention to take advantage of this innovation. It wasn’t mentioned on arrival either. The experience wasn’t bad, it just missed the chance to be something better.
As I now sit in my room for 24 hours while waiting for my PCR test result, I am further disappointed that although there is a QR code to get to room service, only one menu that I have to pick up is that Phone to place an order and hope I can convey exactly what I need. Alternatively, I could just follow what everyone else seems to be doing, order from Talabat or Deliveroo, and do everything on my device.
Ordered food, got work done for the day, time to catch up on another box on Netflix … Or maybe not, since I can’t stream anything, so I seem to have to focus on that 5-inch screen a little longer.
Technology is here to stay
If you put all of this into perspective, Covid has likely simplified guest travel. However, it has now created a significant revenue opportunity on side expenses that many are missing out on due to the advent of the technology.
In my opinion, the operators focused more on the technological bang than on the business case. Meanwhile, the Talabat and Deliveroo drivers gather at the hotel reception to give hotel guests more triggers to order from them.
Kevin Edwards has joined Allies from PnK People, where he was managing director. Prior to PnK, Kevin founded the hospitality consulting firm Avenue9, where he worked for many of the leading hospitality brands. Edwards left the business after a successful sale to JLL, the Fortune 500 real estate company. He has led the technical disciplines for a variety of large-scale private equity-backed hotel portfolio transactions.
