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How Independent Hotels Can Compete with Big Chains Using Technology

While independent hotels may not have the same resources as large chains, they can still compete effectively by embracing technology.

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Mayela Lozano in Operations

Last updated September 12, 2024

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Independent hotels often find themselves at a disadvantage when competing against large hotel chains. These big brands benefit from extensive resources, including advanced technology, comprehensive marketing strategies, and loyalty programs that draw repeat customers. However, with the rise of innovative technology solutions, independent hoteliers now have the tools to level the playing field. By strategically adopting and leveraging these technologies, independent hotels can enhance their operations, offer personalized guest experiences, and build a loyal customer base.

Enhancing Guest Experience Through Personalization

One of the most powerful ways independent hotels can differentiate themselves from larger chains is through personalized guest experiences. While big chains often rely on standardized approaches, independent hotels can use technology to offer highly customized services that resonate with their guests. 

Did you know? According to Salesforce (2021), 66% of consumers expect companies to understand their unique needs and expectations. This expectation extends to the hospitality industry, where personalized service can be a significant differentiator. 

For instance, Property Management Systems (PMS) integrated with Customer Relationship Management (CRM) software enable hoteliers to track guest preferences, booking histories, and special requests. This data allows hotels to create a customized experience, such as remembering a guest’s preferred room type, favorite amenities, or even their preferred check-in time.

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InnQuest integrates with leading CRMs like Guestfolio, enabling hoteliers to personalize guest experiences by tracking preferences, booking histories, and special requests.
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roomMaster PMS by innQuest Property Management Systems
THE PITCH
RATINGS
62 HT Score
InnQuest integrates with leading CRMs like Guestfolio, enabling hoteliers to personalize guest experiences by tracking preferences, booking histories, and special requests.
Learn More
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Case in Point: The Power of Personalization

Consider a boutique hotel in Savannah, Georgia, that used its PMS-CRM integration to enhance guest experiences. By tracking guest preferences, the hotel knew which guests preferred rooms with a view of the historic district, who favored specific breakfast options, and which travelers appreciated a welcome note in their native language. These small but meaningful gestures led to a 30% increase in repeat bookings, showcasing the impact of personalized service.

Creating a Stunning Website with a Custom Booking Engine

Independent hotels can significantly boost their online presence by investing in a well-designed website that features a customized booking engine. Contrary to popular belief, creating a visually appealing and highly functional website doesn’t have to be expensive. Affordable web design services are available that can tailor the website to reflect the unique personality of the hotel while ensuring it is user-friendly and optimized for search engines. A customized booking engine integrated into the website allows hotels to capture direct bookings, reducing reliance on OTAs and increasing profit margins. Additionally, a well-designed website enhances the guest experience by providing a seamless and personalized booking process, encouraging repeat visits.

Optimizing Operations with Cloud-Based Solutions

Cloud-based technology has transformed the way independent hotels operate, offering both cost-effective and scalable solutions. Unlike traditional on-premises systems, cloud-based Property Management Systems (PMS) and Channel Managers provide real-time access to booking, inventory, and pricing data across multiple online travel agencies (OTAs). 

According to a study by Hospitality Technology (2022), 63% of hoteliers have adopted cloud-based PMS, with another 20% planning to do so within the next two years. The benefits are clear: reduced IT costs, improved data security, and enhanced operational flexibility.

Example: Streamlining Operations with Cloud-Based PMS

A mid-sized hotel in New York adopted a cloud-based PMS to manage its operations. Before the switch, the hotel struggled with overbookings and manual data entry errors. After implementing the cloud-based system, the hotel saw a 25% reduction in booking errors and a 15% increase in staff efficiency. The ability to manage operations remotely also allowed the hotel to continue running smoothly during a major renovation, minimizing disruptions to guests.

Leveraging Data Analytics for Informed Decision-Making

Data analytics has become an essential tool for independent hotels looking to compete with big chains. By analyzing data from various sources, such as booking engines, guest reviews, and social media, hoteliers can gain valuable insights into market trends, guest preferences, and operational performance. 

For example, a report by Deloitte (2021) found that 49% of travel companies use data analytics to identify trends and make strategic decisions. By leveraging these insights, hotels can optimize pricing strategies, tailor marketing campaigns, and improve guest satisfaction.

Case Example: Data-Driven Decision-Making in Action

A coastal resort in California used data analytics to understand booking patterns and guest preferences. By analyzing their data, they discovered that weekend bookings were higher among couples, while weekdays attracted business travelers. With this information, the resort adjusted its pricing and marketing strategies, offering weekend getaway packages for couples and corporate rates for business travelers. As a result, the resort saw a 20% increase in occupancy and a 12% boost in revenue.

Implementing Mobile Technology for Enhanced Guest Engagement

Mobile technology has become a cornerstone of the modern guest experience. Independent hotels can leverage mobile apps and mobile-friendly websites to engage with guests before, during, and after their stay. Mobile check-in and check-out, digital room keys, and in-app messaging are just a few examples of how mobile technology can enhance the guest experience. 

Did you know? A study by Statista (2023) found that 74% of travelers prefer using their smartphones to manage their hotel bookings and communications during their stay. This statistic highlights the importance of mobile technology in meeting the expectations of today’s travelers.

Example: Mobile Technology in Practice

An independent hotel in San Francisco implemented a mobile app that allowed guests to check in and out, access their rooms with digital keys, and communicate with hotel staff via in-app messaging. The app also offered personalized recommendations for local attractions and dining options. Within six months of launching the app, the hotel reported a 40% increase in guest engagement and a 15% rise in positive online reviews.

Embracing Technology to Thrive in a Competitive Market

While independent hotels may not have the same resources as large chains, they can still compete effectively by embracing technology. By offering personalized guest experiences, optimizing operations with cloud-based solutions, leveraging data analytics, and implementing mobile technology, independent hoteliers can differentiate themselves in the market and build a loyal customer base. 

As the hospitality industry continues to evolve, the adoption of these technologies will be crucial for independent hotels to not only survive but thrive in an increasingly competitive landscape.

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Mayela Lozano
Marketing Content Specialist @ InnQuest