After a four-year hiatus, the world's largest travel trade show was back in full force last week at Berlin's Messe Convention Center and showcased how innovation in the hotel industry continues to accelerate.
While mainstream tech struggles to cope with inflationary and recessionary forces (and the fallout from Silicon Valley Bank), hotel tech continues to boom as a result of the fact that our ecosystem largely pivoted to profitability early in the pandemic and that arguably made us stronger than ever before.
ITB Berlin provided an exciting glimpse into the future of the industry, demonstrating how the latest trends and innovations are transforming hospitality. With the GPT-3 craze artificial intelligence was obviously top of mind with some compelling new applications in hospitality. We also observed compelling solutions around attribute based selling, sustainability and the labor shortage.
In this article, we will delve into some of the most exciting developments showcased at ITB for those who couldn't make it to Berlin (as well as those who were there and couldn't cover 500 hotel tech booths) and discuss how they are set to shape the future of the hotel industry.
Our editorial team grouped the innovations from the show into eight key themes...
- Artificial Intelligence: AI as a Digital Assistant to Save Time
- Big Data: New Workflows & Use Cases for Hotels with Clean Data
- Modernizing Payments: Simplifaction of Complex Legacy Payment Workflows
- Diversifying Customer Acquisition: Tools to Help Hoteliers Get Savvier at Customer Acquisition
- Sustainability: Heightened Focus on Tech’s Impact on Sustainability
- Labor Shortage: Creative Ways to Mitigate the Impact of Labor Shortage
- Digital Guest Journey: Creating a Seamless Digital Guest Journey
- Merchandising: Spotlight on Merchandising & Ancillaries to Increase Profits
1. Artificial Intelligence
AI as a Digital Assistant to Save Time
The hotel industry has been adopting various AI innovations to improve customer experiences and streamline operations. Chatbots and virtual assistants have been used to reduce staff workload and increase efficiency, while AI tools have been introduced to manage communications and speed up proposal processes. Other AI solutions can detect guest sentiment in real-time to enhance customer service, personalize newsletters based on guest interests, and respond to guest reviews with personalized answers. Additionally, digital strategies, such as interactive maps and virtual tours, are becoming increasingly important to differentiate hotels from competitors and enhance the customer experience.
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2. Big Data
New Workflows & Use Cases for Hotels with Clean Data Sets
Similar to artificial intelligence, big data is a buzzword that's been used for over a decade but hotels are really just scratching the surface of what's possible when leveraging data. The first step was architecting data in the right ways to make them accessible and now software companies are really starting to action this data in creative ways that drive bottom line results for hotels. The innovations we observed at ITB Berlin were geared towards optimizing revenue and inventory management, automating workflows, and utilizing data science for better decision-making. Real-time pricing adjustments and automation of lead acquisition and event bookings are increasingly popular trends, providing hotels with a competitive edge and increased efficiency. Consolidation of customer data and data-driven insights allow hotels to track revenues and operational costs across all outlets, leading to better strategic decision-making in a changing market. Demand-driven dynamic pricing and grouping rate plans for profitable channels are also trends that have resulted in increased revenue. These technological advancements are expected to continue shaping the hospitality industry in the years to come.
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3. Modernizing Payments
Simplification of Complex Legacy Payment Workflows
Innovative solutions aimed at improving the efficiency of the hospitality industry were showcased at ITB Berlin. The solutions aim to streamline operations and enhance the customer experience. The solutions include automated invoice management systems that eliminate waste and increase electronic invoicing to save time and improve accuracy. Platforms that simplify hotel bookings management and payment processing by automating the processing of booking and payment data within one environment were also showcased. Other innovations include automatic payment and deposit collection features that simplify payment processes, reduce risks, and provide convenience for clients. These innovations offer a more efficient and effective way to manage hotels and enhance customer experience.
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4. Diversifying Customer Acquisition
Tools to Help Hoteliers Get Savvier at Customer Acquisition
As the hospitality industry continues to evolve, new trends and innovations are emerging to improve customer acquisition and enhance guest experience. This year's ITB Berlin showcased a variety of solutions that leverage technology to optimize revenue and inventory management, automate workflows, and utilize data science for better decision-making. Common themes included the use of centralized data to create personalized guest marketing journeys, the optimization of rates and inventory across multiple channels, the ability to drive ancillary revenue through personalized offers, and the use of live availability tools to sell experiences and gifts. Other solutions aim to simplify complex processes, such as payroll planning, and provide a more efficient way to manage multiple properties. These innovations are aimed at improving collaboration between sales and marketing teams, increasing business wins and customer satisfaction, and ultimately driving revenue growth.
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5. Sustainability
Heightened Focus on Tech’s Impact on Sustainability
Hotels are increasingly turning to automation and technology to improve their sustainability efforts. One innovation is the use of automated cleanings, which allows hotels to create custom cleaning schedules based on reservation data, reducing costs while meeting guest requests for sustainability. Another innovation is the use of LoRaWAN technology for energy management, which helps hotels save energy, reduce costs, and decrease CO2 emissions. Additionally, smart thermostats with advanced energy management and automation features have been successful in achieving significant energy savings in pilot tests across multiple hotel rooms without requiring any infrastructure. These innovations demonstrate the importance of sustainable practices in the hospitality industry, as hotels strive to reduce their environmental impact and meet the increasing demand for sustainable travel options from guests.
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6. Labor Shortage
Creative Ways to Mitigate the Impact of Labor Shortage
New developments in the hospitality tech industry from ITB Berlin addressed the labor shortage by providing solutions that help hotel teams communicate securely and instantly. Payroll planning software allows for accurate employee cost planning and department analysis, reducing workload and errors. On-demand training videos and courses for hotel front desk associates and leaders aim to improve service quality, upselling, service recovery, and ADR improvement. Digital key programs and pre-stay guest verification enable remote check-in, mobile entry, guest communication, and upselling, reducing front desk friction and labor shortage pain. Automated guest offers based on profiles and preferences save time and HR budgets while increasing guest booking rates. Tracking and evaluation of sales performance across all channels and operations management tools simplify task management and help property managers use their time more efficiently. Finally, digital recipe management solutions eliminate manual data entry and provide accurate recipe information in multiple languages to all kitchen staff, improving kitchen operation management and addressing staff shortage and increased food costs in the hospitality industry.
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7. Digital Guest Journey
Creating a Seamless Digital Guest Journey
Several innovations were showcased that highlighted how hotels are leveraging contactless solutions to enhance guest experience and drive efficiency. Contactless services, such as pre-check-in and check-out, are offered through mobile phones to improve guest satisfaction and streamline hotel operations. Keyless hotel room access systems that can be enabled with mobile wallets were introduced to increase mobile key adoption rates, saving time and reducing the cost of lost NFC cards. Fast and error-free check-in processes were also demonstrated using passport and ID scanners and credit card readers, resulting in significant reductions in check-in time and paper usage. Tools were presented to help hotels keep information up-to-date and create new revenue centers, such as communicating with guests and placing codes for room service. Overall, these innovations showcased how hotels are leveraging technology to improve guest satisfaction, streamline operations, and drive efficiency.
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8. Merchandising
Spotlight on Merchandising & Ancillaries to Increase Profits
To increase revenue and enhance customer experience, hotels are adopting smart merchandising of hotel rooms and ancillaries. To achieve this goal, various tools and features are available. Total Revenue Management enables hotels to track revenues and operational costs across all outlets, providing insights into profitability and new revenue opportunities. Personalized offers can increase revenue and guest satisfaction, while customer-centric features such as high-quality content, interactive maps, and sales and marketing tools can enhance customer experience and generate more revenue. In addition, digital strategies, virtual reality, and technology can help hotels stand out from competitors. Dynamic pricing of function spaces has proven successful in increasing revenue per available square meter. Rate Buckets solution groups rate plans with high distribution costs or deeply discounted promotional rates together to focus on profitable channels, resulting in increased RevPar. On-demand training for hotel staff can improve service quality, upselling, and incremental ADR improvement. Tailored offers sent to guests based on their preferences can save time and money while supporting human receptionists. Additionally, hotels are utilizing live availability tools to sell experiences and gifts to local residents, increasing profits and engagement with the community. A new tool that allows guests more control over their stay experience by virtually unbundling room types promises to change the way consumers prioritize price over room features and experience.
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