Legacy software is installed on your computer’s hard drive and can only be accessed from that computer. Cloud-based software, on the other hand, lives online, or “in the cloud,” which means you can log in from any device, anywhere, to use it. Legacy software was the only option for hoteliers for decades, and only in the past few years did cloud-based apps become popular. Cloud-based software offers a slew of benefits besides convenience; one key benefit is that software updates happen automatically so you can always use the most up-to-date version. On a legacy system, you’d have to download (and perhaps even purchase) a new version and install it manually. Another benefit to cloud-based software is that it’s often cheaper or more flexibly priced than legacy software. You often don’t need to commit to years-long contracts or purchase a certain number of licenses. Switching to cloud-based systems can be a great way to decrease your technology costs and increase efficiency.

One of the top challenges facing hoteliers in 2023 is the industry-wide staff shortage. When your hotel must deliver the same high standard of guest service with fewer employees, you need to find ways to free up time that employees would normally spend on repetitive back-office work. Automation is the perfect solution for this challenge, since software on the market today can handle tasks like guest communication, billing and invoicing, and even pricing. As Mark Braune, Group Director Revenue & Distribution at Ruby Hotels, says: “Automation is one of the major topics for Ruby Hotels and we are always looking to improve our automated processes with a special focus on this in 2023.” In addition, Bob Engeringh, Commercial Director at citizenM, is prioritizing automation: “Especially now that it is harder than ever for the industry to attract people to work, the focus will be more on automation.” If you’ve been thinking about implementing that chatbot or AI-powered pricing tool, 2023 can be the year you unlock the power of automation so your staff can focus their attention on higher-impact tasks.

Many hoteliers are determined to get as many direct reservations as possible, but as Bob Engeringh of citizenM notes, some guests can’t or won’t book through your direct channel. “Our focus is on net CLV (customer lifetime value) with a focus on driving more direct business. However, not every loyal customer can book via your website due to travel policies, so here it is up to us to make sure we have the best set up for us to further optimize our spend within our total distribution network.” Instead of spending resources trying to convince those guests to book direct, you can boost profitability by nudging them toward ancillary spend, room upgrades, or loyalty perks that will increase their lifetime value to your hotel.

As we learned during 2020, marketing dynamics can change quickly. If you want to work toward greater profitability, you need to keep a pulse on what’s happening in your market – without dedicating much time and manpower to the task. Chris Crowley, Chief Revenue Officer at Duetto, states, “Staffing pressures and market variability meant that hotels needed to implement systems that could harness and process extraordinary amounts of data without having to hire large teams of specialists.” Having a solid revenue management system can do this heavy lifting for you, especially when trends like shorter booking windows and personalized pricing necessitate quick, data-driven decisions.

Guests aren’t booking or traveling in the same manner as they did ten years ago, but is your hotel’s booking process the same as it was last decade? Erik Tengen, Co-Founder of Oaky, suggests, “If you can tap into how to market to the guest of today, you will outperform the market.” For example, today’s guest has a short attention span and is accustomed to making quick purchasing decisions without having to read through a lot of content. Oaky tested two different landing pages, one with a lot of text and another that was more photo-heavy, and the photo-heavy page performed better. In addition to short attention spans, take note that today’s consumer likes personalized content and often makes decisions based on their instincts. Suzanne Swafford, SVP of Revenue Management at Tishman Hotel Corporation, notes similar trends: “Hotels have always been slow to change, but today’s consumer is looking for unique and individual experiences. Hotels must stay in touch with evolving guest needs and be ready to move quickly as those dynamics change.”

In Duetto’s study, 60% of survey respondents said their technology spend will increase in the next three years, which means your hotel needs to continue its technology investment to stay competitive and relevant. It might seem counterintuitive to spend money on technology in order to become more profitable, but cutting-edge tech can actually help you unlock revenue or cost-saving opportunities. For example, according to Laura Calin, Global Vice President, Hospitality Strategy & Solutions Management at Oracle Hospitality, “In tandem, more than half of consumers (54%), said they are willing to pay more to choose their view; 38% to choose their room; and 32% to choose their room floor; etc. Consumers want what they want, and it’s up to hotels to provide options for guests to customize their stay, and to present those offers throughout the guest journey, from booking to check-in (digital or in-person) to on-site.” A hotel can only realize the revenue uplift from these potential upgrades and ancillary fees if it has the tech infrastructure to support it.

What steps will your hotel take to become more profitable in 2023? With technology at the center of your strategy, you can achieve higher profitability, decreased costs, and even better guest review scores this year.

This article was created collaboratively by Duetto and HotelTechReport.