Demand Calendar Blog by Anders Johansson

Hotels need to be quicker to change

Written by Anders Johansson | 31 January 2023

By understanding the challenges hotels face in adopting new technologies and customer behaviors, we can gain insight into the future of the hotel industry and what changes may lie ahead.

Technology Adoption

The reasons why hotels are slow to adopt new technology

Here is a more in-depth look at why hotels may need to be faster to adopt new technologies, including the challenges of cost, complexity, resistance to change, and uncertainty about the return on investment.
 
  • Cost of implementing new technology: Upgrading to new technology can be expensive, and many hotels may be hesitant to invest significant sums of money without knowing the return on investment. This includes the initial cost of purchasing the technology and the ongoing maintenance, support, and training costs. Furthermore, hotels may be concerned about the high cost of integration with existing systems and processes, which can take time and effort.
  • The complexity of new systems and processes: New technologies can be complex and challenging to implement, especially if they require extensive training for staff and significant changes to existing systems and processes. This can be a considerable barrier for hotels that are already stretched thin in terms of resources and manpower. Also, hotels may be concerned about the potential impact of new technologies on the overall guest experience and their ability to continue providing high-quality service.
  • Resistance to change among staff and management: Some hotel employees may resist change, mainly if they are used to working in a certain way and are not comfortable with new technology. This can make it difficult to fully adopt new technologies in a hotel environment, as staff may need help to adapt to new systems and processes. Additionally, management may be concerned about the potential impact of new technologies on job security and employee morale, which can also slow down the adoption process.
  • Uncertainty about the return on investment: Many hotels are uncertain about the return on investment of new technologies and may be hesitant to invest in them without knowing the long-term benefits. This can include concerns about the impact of technology on guest satisfaction and loyalty, as well as the potential for new technologies to drive down revenue and profits. Additionally, hotels may be uncertain about the market for new technologies, mainly if they are not widely adopted in the industry.
 
By understanding these challenges, we can gain a clearer understanding of the factors holding hotels back from embracing new technologies and what steps they may need to take to overcome these challenges in the future.

The impact of slow technology adoption

Here are a few highlights of the impact of slow technology adoption on the hotel industry, including falling behind the competition, decreased efficiency, missed opportunities for growth and innovation, a loss of relevance, and difficulty attracting and retaining top talent.
 
  • Falling behind the competition: By keeping up with the latest technology, hotels avoid falling behind their competitors, who may be adopting new technologies to provide a more efficient and personalized guest experience. However, this can result in a loss of market share as guests opt for more technologically advanced hotels.
  • Decreased efficiency: The slow adoption of new technologies can also lead to decreased efficiency in hotels, as they continue to rely on outdated systems and processes that are no longer effective or efficient. This can result in a loss of productivity, longer wait times for guests, and increased costs for the hotel.
  • Missed opportunities for growth and innovation: By failing to embrace new technologies, hotels may miss out on opportunities for growth and innovation, as they are not taking advantage of the latest tools and techniques to enhance the guest experience and streamline operations.
  • Loss of relevance: As the world becomes increasingly technology-driven, hotels not keeping up with the latest trends and innovations risk losing relevance and becoming outdated. This can result in a decline in guest satisfaction, loyalty, and revenue.
  • Difficulty attracting and retaining top talent: Slow technology adoption can also make it difficult for hotels to attract and retain top talent, as employees may be looking for innovative and forward-thinking organizations. By failing to embrace new technologies, hotels may struggle to compete for the best and brightest employees in the industry.
 
By understanding these impacts, hotels can gain a clearer picture of the risks of not embracing new technologies and what steps they may need to take to stay competitive and relevant in a rapidly changing industry.

Consumer behavior adoption

The reasons why hotels are slow to adopt new customer behaviors

Here are a few ideas of how the changes in consumer behavior impact the hotel industry, including the desire for personalized experiences, the rise of a mobile-first mindset, increased expectations for technology, environmental and sustainability concerns, and the impact of social media.
 
  • Personalized experiences: Today's guests expect a highly personalized experience when they stay at a hotel, from when they book their room to when they check out. They want to have control over every aspect of their stay, from selecting the room type to ordering room service. By failing to keep up with changes in consumer behavior, hotels risk missing out on opportunities to provide a more personalized experience and build stronger relationships with their guests.
  • Mobile-first mindset: With the rise of smartphones and mobile devices, guests now expect to be able to access information, make reservations, and control various aspects of their stay via their mobile devices. Hotels that are slow to adopt mobile-friendly technologies may find it difficult to attract guests with a mobile-first mindset.
  • Increased expectations for technology: As technology advances, guests' expectations for technology in hotels are also increasing. This includes high-speed internet access, in-room entertainment systems, and the control of various aspects of the room using voice commands or mobile devices. Hotels risk disappointing their guests and losing their business to more technologically advanced competitors by not meeting these expectations.
  • Environmental and sustainability concerns: Today's guests are increasingly aware of environmental and sustainability issues and want hotels to be environmentally responsible. This includes reducing energy and water consumption, using eco-friendly products and materials, and reducing waste. However, by not keeping up with these trends, hotels may miss opportunities to appeal to environmentally conscious guests and build a more sustainable business.
  • Social media impact: Social media plays a significant role in shaping guests' perceptions of hotels, and hotels must be able to engage effectively with their guests via social media. By failing to keep up with the latest trends and tools in social media, hotels risk missing out on opportunities to connect with their guests, build stronger relationships, and enhance their brand reputation.
 
By understanding these trends, hotels can take the necessary steps to keep up with changing consumer behavior and provide a more personalized, technologically advanced, and environmentally responsible experience for their guests.

Challenges faced by hotels in keeping up with changing consumer behavior

Here are a few challenges hotels face in keeping up with changing consumer behavior, including resistance to change, lack of resources, the complexity of technology integration, challenges in data management, and the pace of change.
 
  • Resistance to change: Hotels often face opposition to change, both internally and externally. Internally, hotel staff may resist new technologies or processes, while externally, guests may resist changes in how they interact with the hotel. To overcome this resistance, hotels need to invest in training and support for their staff and communicate the benefits of change to their guests.
  • Lack of resources: For many hotels, investing in new technologies or processes to keep up with changing consumer behavior can be a significant challenge. Hotels may need more financial resources, technical expertise, or internal support to implement these changes. To overcome this challenge, hotels may seek outside investment, partner with technology companies, or work with industry organizations to access their needed resources.
  • The complexity of technology integration: Integrating new technologies into a hotel's operations can be a complex process. It may take time to fully understand how these technologies can be used to improve the guest experience. To overcome this challenge, hotels may need to work with technology companies or consultants to ensure that the technologies they implement are integrated seamlessly into their operations.
  • Challenges in data management: To provide personalized experiences, hotels need to collect and manage large amounts of data about their guests. However, managing this data can be a significant challenge, particularly regarding privacy and security. To overcome this challenge, hotels may need to invest in data management technologies and processes to ensure that they can collect, store, and use data securely and responsibly.
  • Keeping up with the pace of change: The change in consumer behavior is rapid, and it can be challenging for hotels to keep up. Hotels must stay informed about the latest trends and technologies to overcome this challenge and be proactive in adopting new technologies and processes to improve the guest experience.
 
By understanding these challenges, hotels can take steps to overcome them and provide a more personalized, technologically advanced, and environmentally responsible experience for their guests.

Conclusion

Technology

Technology adoption in the hotel industry has been slow due to many factors, including the high cost of investment, the need for technical expertise, and the challenge of integrating new technologies into existing operations. Additionally, hotels face resistance to change both internally and externally, which can make it difficult to adopt new technologies and processes. Despite these challenges, technology is transforming the hotel industry. As a result, hotels adopting new technologies and processes will be better positioned to provide their guests with a more personalized and environmentally responsible experience.

Consumer behavior

Hotels have been slow to adapt to changes in consumer behavior, despite the rise of the digital age and travelers' increased use of technology. This can be attributed to several factors, including a lack of understanding of new consumer behavior, resistance to change, and maintaining consistency and control over the guest experience. However, as consumers continue to expect more personalized and seamless experiences, hotels adapting to new consumer behavior will be better positioned to succeed in the long run.

Final thoughts

The slow adoption of technology and hotel consumer behavior changes can be attributed to various factors. Despite challenges, hotels that can adapt to new technologies and changing consumer behavior will be better positioned to succeed in the long run. By embracing new technologies and processes and understanding evolving consumer behavior, hotels can provide a more personalized and environmentally responsible experience for their guests and remain competitive in a rapidly changing market.

Adaptive hotels are more successful

General success

Hotels that are adaptive to new technologies and changing consumer behavior are better positioned to provide a better guest experience and remain relevant in a rapidly changing market. Adaptive hotels can respond quickly to new trends and customer expectations and are more likely to offer innovative products and services that meet the evolving needs of their guests. On the other hand, hotels that are resistant to change may struggle to keep up with the pace of the market and risk becoming outdated and irrelevant to their guests.

Financial success

Hotels that are adaptive to change are also more likely to achieve financial success. By embracing new technologies and processes, adaptive hotels can increase efficiency, reduce costs, and enhance the guest experience, leading to increased revenue and profitability. In addition, adaptive hotels are better positioned to capture new market opportunities and can take advantage of new revenue streams, such as e-commerce and digital marketing. On the other hand, hotels resistant to change may miss out on these opportunities and risk losing market share and profitability to their more adaptive competitors.
 
Hotels resistant to change risk becoming outdated and irrelevant and may miss out on new revenue streams and opportunities for growth. On the other hand, hotels that adapt to change are better positioned to achieve general and financial success. They can quickly respond to new trends and customer expectations, increase efficiency, reduce costs, and capture new market opportunities.