If you own or operate a hotel, you know that labor is the single largest expense on your P&L and that housekeeping is typically the largest expense within your labor budget. If you want to boost NOI, look no further than your housekeeping department. Cleaning the average hotel room typically costs between $10 and $16 with luxury hotels often spending more than $20 (CPOR). The majority of that cost (~65%) is spent on housekeeping salaries and wages. Hotels that are laser focused on housekeeping optimization often enjoy higher margins and ones that pioneer new housekeeping initiatives often enjoy a significant competitive advantage. Starwood’s “Make a Green Choice” program is one such initiative that not only drove company profits but also fundamentally changed the hotel industry. Starwood’s program allows guests to opt out of room cleanings in exchange for loyalty program points or F&B credit and is still running today - over 10 years later. In fact, the program was so successful that almost every hotel in the world followed suit. As pioneers in the “Make a Green Choice” movement, Starwood enjoyed a competitive advantage for years as the competition slowly caught up. Today hotels around the world are enjoying a similar competitive advantage through the early adoption of cutting edge housekeeping management software. Shockingly, most hotel housekeeping departments today still operate the same way they did in the 1980s. Every morning, housekeeping managers create boards for their room attendants to reference in order to be able to identify which rooms they have been assigned to using age old tools like pen and paper, PMS exports, radios and other manual methods. Due to the manual nature of the task, this process can take anywhere from a half hour to several hours each morning and the plan immediately becomes obsolete as soon as anything changes--even something as simple as a housekeeper arriving to their next assigned room to find a do not disturb on the door. Manual methods also hamper efficiency offering little in the way of performance optimization data and lots in the way of potential human error. Housekeeping management software provides a suite of manager and room attendant tools that combine real time departmental communication and synchronization with sophisticated reporting and analytics. This week, New York City based hotel tech darling ALICE made an announcement that is poised to shake things up for hotels across the globe with its all new Housekeeping product. While ALICE has always offered a flexible staff communication and task management platform that is used by housekeeping teams across the globe--the all new housekeeping offering is designed from the ground up to deliver a magical experience that will leave even non-housekeepers wanting to take it for a spin. The platform packs a punch with mission critical housekeeping management functionality like automated room assignments but delivers this functionality in an elegant and easy to use solution that integrates each department on property like a finely tuned orchestra. ALICE gave us a glimpse into the future of housekeeping with an exclusive behind the scenes tour of their reimagined housekeeping product. Let’s dive in, shall we… The All-New ALICE Housekeeping at a Glance A fresh take on a department that is one of the biggest cost centers for hotels, yet hasn't changed the way it operates in decades Forward-thinking design and intuitive user interface based on a system of simple icons and labels that minimize training requirements and maximize team adoption Push one button and watch your rooms inventory get magically assigned to the optimal members of your team based on your properties’ bespoke rules and characteristics Real time updates and notifications that make manual entry, tracking and repetitive tasks a thing of the past Automated reporting that unlocks new levels of visibility into real time and retrospective performance to bring more to your bottom line Platform approach enables seamless inter departmental handoff to supercharge your team’s collaboration and put an end to expensive and frustrating human error The all new ALICE Housekeeping boasts clean lines and an intuitive user interface that your team will actually want to use One of the single biggest problems in hotel tech is adoption (i.e. getting your team to actually use software and use it correctly). When hotel software implementations fail it’s usually due to the fact that on property teams lack the product knowledge needed to properly leverage the tool. For this reason, hotel software must first and foremost be simple and easy to use--clunky and bloated software rarely (if ever) reaches its full potential. With ALICE, you can put this concern to rest. The new housekeeping app design is stunningly beautiful and shockingly simple. The product team over at ALICE has taken design hints from best-of-breed user interfaces like Facebook and Google. Students of product design know that simplicity has long been the holy grail of product adoption and customer experience. Housekeeping teams often suffer from high staff turnover, challenging language barriers and in many cases and a lack of formal education. These factors make design one of the most important factors when selecting housekeeping management software for your hotels. Legacy housekeeping software platforms often run on confusing code based systems (e.g. code 1724 = clean room) that can be difficult to train new employees on. Contrastingly, ALICE runs on an intuitive set of icons and colored labels which deliver an easy to use experience for new hires and housekeeping veterans alike. Great software design delivers direct business benefits such as reduced training and generally faster on-boarding of new hires. There’s also a significant indirect benefit to ALICE’s cutting edge UX design which often gets overlooked by hoteliers. Choosing a technology vendor is as much about the future as it is about the present. Legacy software vendors often have hundreds or even thousands of features developed over the years that 90% of their users don’t even know exist (let alone know how to use). ALICE’s intuitive design ensures that your team will be able to easily learn and adopt new feature functionality as the platform progresses. In fact, the ALICE interface is so simple and intuitive that your team can literally get started with little to no prior training on the software. It's not surprising how intuitive ALICE Housekeeping is given that the product team didn’t even begin designing the product until they had spent more than six months shadowing hotels and performed more than 100 user interviews with hoteliers across various segments and geographies to learn about their pain points, daily routines and what makes them tick. Push one button and watch your rooms inventory get automatically assigned to the optimal members of your team based on your properties’ bespoke rules and characteristics While ease of use is critical for team adoption--the true magic lies in ALICE’s pièce de résistance which is (drum roll please…) automated smart room assignments. If you operate your housekeeping department the old fashioned way (as most hotels still do), your executive housekeeper sits down at their desk each morning to assess available labor and rooms turnover. They then spend anywhere from 30-minutes to several hours assigning ‘points’ to staff (ie. the standardized way of allocating housekeeping labor availability to demand on a daily basis) ensuring that all rooms that need to be cleaned are scheduled to be cleaned as efficiently and quickly as possible to accommodate incoming arrivals. This process can be extremely manual and intuition based which leads to lots of guesswork and a myriad of snowballing sub-optimal decisions that cost your hotel valuable time and money. For hotels that want to skip the guesswork and run an efficient housekeeping department, ALICE’s new housekeeping product allows your team to press a magic button then watch everything fall into place like a game of Tetris. Once you press the “auto-assign” button, ALICE’s algorithm instantaneously matches your staff with their optimal room assignments based on your hotel’s pre-determined staffing and inventory rules. This process can save your housekeeping managers anywhere from one to three hours each morning. Your housekeeping managers can then use that time saved to focus on other mission critical items that improve the guest experience and optimize your assets. Easily drag-and-drop or let ALICE automatically assign rooms for you Don’t want to let the computer do the work for you? No problem, ALICE offers complete flexibility for human override coupled with a simple drag-and-drop interface. You know what they say though, once you go auto-assign you never go back. Auto room assignment is only the tip of the iceberg because in a hotel, things are constantly changing. These critical changes don’t just happen daily, but hourly and sometimes even by the minute. A housekeeper calls in sick. A guest arrives early. An elevator breaks down. The list of exceptions, changes and variables is nearly infinite so keeping track of them and adjusting in real time is critical - this is where ALICE really shines. Every room change, late checkout, VIP arrival, etc. upends your whole plan and requires you to reoptimize. These types of real time optimizations with hundreds of variables and constraints are extremely difficult (if not outright impossible) for the human mind to compute. With ALICE, however, things like a rushed room will trigger the software to re-optimize room assignments instantaneously sans the mental math and back and forth team coordination. So unless your housekeeping manager is able to calculate sophisticated optimization algorithms on the fly - they’ll be forever grateful for your decision to invest in ALICE. The platform is likely to save them time, alleviate stress, make them better at their jobs and allow them to focus on the more strategic decisions within the department. Not to mention, it may even help them fend off some grey hair. Just considering the time savings alone for each fully turned room, investing in housekeeping software should be a no brainer for bottom line focused hoteliers The fatal mistake that many hoteliers make is that they are so caught up in the day-to-day operations that they miss the bigger picture and the impact that seemingly small boosts to efficiency can have on their bottom line at scale. A few minutes here and a few minutes there might not seem like a big deal in the moment (especially if you don't have software to track and measure this inefficiency) but that's exactly what makes these types of invisible inefficiencies so dangerous silently sucking profit out of your operation. Let's look at an example. Imagine you operate a 200 room hotel running 80% occupancy and 2.5 night LOS (length of stay). Based on those numbers, you are going to be cleaning north of 20,000 rooms each year and that's not even considering turndown service, mid-stay cleanings or special requests. So while shaving 4-minutes off of every one hour room cleaning might not seem like a big deal on its own can actually have a major impact on your hotel's bottom line. In fact, this one optimization alone has the potential to lead to enough in cost savings to pitch ownership on upgrading your hotel's housekeeping software to the 21st century as a 2-4x ROI initiative as shown in the image below. The new housekeeping product stays true to ALICE's platform approach creating a one stop shop for running and optimizing your hotel's operations With this robust new housekeeping offering, ALICE’s platform creates a seamless symphony between front of house and back office team members while enabling hotel owners and operators to gain critical visibility into their operations and make more informed decisions that ultimately lead to serious bottom line results. The day-to-day operation of a hotel rests on hundreds of daily requests both internally between departments, and from guests. Each of these requests involves subtle critical details, back-and-forth communication, execution and follow-up which is what makes seamless pass-on of critical information to the right team member, with native escalation procedures so essential when it comes to identifying and reducing human error. Equipped with ALICE, a housekeeper can leave a note about damaged equipment which automatically creates a work ticket, assigns the ticket to an engineer and notifies them to address the issue. A room attendant can quickly tag an item left behind for lost & found by snapping a photo so that the front desk knows which guest to expect a call from in real time. ALICE has done an incredible job converting the daunting complexity of hotel operations into elegant simplicity. What’s also great is that once you start using ALICE, you can say goodbye to all manual tracking, note taking and back and forth communication relays thanks to automated notifications, updates and task routing built directly into the platform. Is ALICE Housekeeping right for your property? The platform is a fresh take on a department that for most hotels hasn’t changed the way it operates in decades. While housekeeping features like automatic room assignments and real time progress reporting stand on their own as valuable additions to the ALICE product suite, the power truly gets unlocked when the platform is utilized by your whole team: front desk, engineering, concierge and housekeeping. Leveraging the full ALICE platform gives your team the tools they need to operate at peak performance by being completely in sync with each other. The all new ALICE Housekeeping combines the computing power of the cloud with deep operational expertise to simplify hundreds of housekeeping decisions made on property each day, and ensure that the optimal decision is effortlessly made in even the most complex scenarios. For some hoteliers, the intuitive UI and sheer awesomeness of ALICE’s new automatic room assignments feature will be enough to upgrade their hotel's housekeeping software. But if that's not enough for you then the promise of empowering your team to make better decisions that shrink the single biggest expense on your P&L is likely to do the trick. So the question is, if your team can save time, communicate seamlessly, decrease human error, reduce operating expenses, improve service delivery, foster happier employees and give management the visibility and tools to make better decisions from the comfort of their desk - why wouldn’t you give ALICE a try?
Hotel Operations Software Articles
It’s not uncommon for tech companies in hospitality to start as B2C brands (business to consumer) then pivot to service hotel businesses instead. Triptease launched as a TripAdvisor alternative before pivoting to become a direct booking platform. Similarly, Munich based TrustYou started as a hotel booking website that aggregated reviews from around the web to provide a single trust score for properties around the world before becoming a leading guest feedback and reputation management platform. Back in 2008, TrustYou founder Ben Jost noticed that online review scores had the ability to make or break hotel performance. He also noticed that reviews were being spread to more and more websites like TripAdvisor, Google, Facebook, Yelp and Expedia. Jost and co-founder Jakob Reigger hypothesized that if they could consolidate these reviews to provide travelers with a holistic view of a hotel by creating a proprietary aggregate score that they’d be able to leverage their neutral position to become a dominant booking platform. TrustYou’s booking platform experienced some success but Jost and his team noticed that thousands of hotel managers were coming to the site because they wanted to monitor their review performance across multiple channels - this was their ‘ah-hah’ moment. With this insight, TrustYou pivoted from a B2C model into B2B (business to business) and the firm’s growth exploded. “I remember 5 years ago we had one slide in our sales deck showing a king and a queen on a throne. The headline said “when price is king, reputation is queen.” Maybe it will take another 5 years until we see those both equally presented, but I definitely see it in the future.” ~Benjamin Jost TrustYou has since doubled down on reviews and even demonstrated a commitment to reviews in it’s own business winning 2nd place in the 2019 HotelTechAwards beating out more than 100 hotel tech peers. Everything that TrustYou does tests back to the fundamental question of whether a product or service will enable hotel clients to achieve higher review scores by delivering better service to guests. That mission has resonated with hoteliers around the world and in 2017 alone the Company analyzed more than 100 million guest reviews and collected more than 4 million survey responses. TrustYou’s guest feedback and reputation platform consists of four main components that work in tandem to gather feedback, manage collection at scale and leverage that feedback to drive more business: Review marketing: Market guest reviews via a website widget to increase hotel website conversion Guest messaging: Communicate with guests before and during their stay to ensure a great experience then send surveys afterwards to increase review volumes and rankings Guest surveys: gather feedback from guests after their stay to maintain guest satisfaction scores Reputation management: Real time insights into review scores and online feedback across a variety of channels Reviews are critical to the survival of any hotel today and Benjamin Jost believes that trend is only accelerating. We sat down with him to learn about his vision for TrustYou and to get his perspective on the evolution of reputation management in the broader hotel tech marketplace. What was your background prior to starting TrustYou? After studying engineering, I worked for two Venture Capitalists in Paris and Munich. Then I decided to go on an 8 month trip around the world, and when I came back, I started working in corp dev / M&A for a renewable energy company. I think TrustYou ultimately was born from my urge to do something on my own. Tell us how you founded TrustYou. My co-founder and old friend Jakob Riegger always had his own businesses from the age of 18, and from the outside, it always looked so cool to be your own boss. I think after working for various bosses in various types of organizations, I wanted to do something on my own, and when Jakob also simultaneously wanted to start something new, we brainstormed what we could do together. So the idea of creating a business together with my co-founder came before the actual idea of TrustYou. We started as a B2C company, so actually, our very first customers were users who heard about our site and used it. I know all my family used it because I told them to! But it wasn’t enough, and we were a typical underfunded, German startup and had no idea how much it would cost to actually compete in the B2C world of travel. So while running out of money we realized that more and more hotels were using our website and were looking up their reputation scores and reviews from across the web on our site. Of course they never booked their own hotel so we didn’t earn any money. But that was the starting point of our B2B business. I think it’s much easier to earn money in B2B than B2C so kudos for all the B2C companies who succeed in this world. Wow, I didn’t realize that TrustYou started as a consumer facing brand. Can you talk about the B2B business today? We believe deeply in the power of feedback to build a better product and offer a better service. The only currency that counts to achieve that goal is feedback from your customers. Therefore, hotels need to find a product that helps them collect, understand and market guest feedback (reviews, surveys, messaging) for every customer, via every channel, at any time. I still strongly believe that a hotel’s reputation is more important than their room price and for sure a more sustainable competitive strategy. The TrustYou dashboard gives hoteliers real time insights to improve their businesses Who is one mentor that has really helped you scale TrustYou? Many people helped me over time. One mentor who was there from the very beginning until today is Philip Wolf, founder of Phocuswright, who still sits on TrustYou’s board of advisors. What makes him important to me, next to his great character, is his unvarnished opinion about tough questions and topics. You can surround yourself with people saying yes to everything or with people who point to facts that can be really are uncomfortable to tackle, e.g. cutting costs, hiring people you deem unnecessary at first, etc. And he doesn’t let go until you tackle them, which I appreciate. I don’t always like it, but I always appreciate it. What's one commonly held belief that most hoteliers believe to be true that’s actually false? I think the one I most commonly hear is “I know my guests, I don’t need software to tell me”. Even if you are the type of hotelier who listens to their guests without a survey or reputation management tool, I definitely know you don’t measure any KPIs, track your progress over time, share feedback effectively with your team, or know if you’ll improve from where you stand today. Additionally, you still don’t respond to online reviews, especially the negative ones, and you don’t reach the average guest by sending them your own survey, your own questions. Technology does all of that for you, truly helping you listen to your guests, and win against the competition. What's the most surprising thing you've learned about scaling technology into hotels? Scaling a business in hospitality requires more manpower than what I would have expected when we started. In the beginning, I thought we would be a self-service technology that hotels would just buy, login to, and use. But we quickly learned that the business would require not only our tooling but also our expertise. We have truly become a service company, as well as a software company, and that requires talented people to support the hoteliers. We’re happy to be an extension of our client’s team as their dedicated feedback experts. Are there 1 or 2 companies that have been a particularly good partners for you? We partner with hundreds of different fantastic companies, so it wouldn’t be fair to just name one or two. However, what I would like to see in our industry are more open APIs and more simple connections. I think this would be very beneficial for our common customers, the hotels, but many tech companies don’t operate that way. I wish every tech company in our space would have a section on their website “API for developers” where you can develop solutions on top of their APIs and widgets. I am pushing my company to be open in that way because it just becomes much easier for partners to work with us and new things can be created. For example, I would still love to see rate management companies correlate their data with our data. We have the APIs, just plug them in. I would want every rate management company, every IBE, every website builder, every PMS, every CRM to use our APIs and products to build a better product. Review content plugged into different hospitality solutions is already happening on a small scale, but not everyone out there knows how easy and convenient it is and what kind of value add it can provide to their own solutions. We have an entire team dedicated to those needs. Where do you see TrustYou in 5-years? I want us to power feedback not only from guests but from other stakeholders as well. I believe we will enable feedback and communication between hotels and guests using messaging apps like Whatsapp, Facebook Messenger, and SMS instead of email. To help service our clients, I would want our platform to act as an AI solution and suggest actions to hotels based their data instead of just presenting it. I also think feedback will move from “3 days after stay” to “real time”. And I want TrustYou to spearhead those trends. How will the online reputation management category change in the next 5-years? I hope to see guest feedback become a “must-have”, where it belongs to a hotel stack like a website or internet booking engine. More and more hotels will have figured out that with a 4.1/5 overall score they can offer a $100 room rate, but with a 4.6/5 score they can charge $150. I remember 5 years ago we had one slide in our sales deck showing a king and a queen on a throne. The headline said “when price is king, reputation is queen.” Maybe it will take another 5 years until we see those both equally presented, but I definitely see it in the future. Does TrustYou have any new products or feature launches that you're particularly excited about? We just launched a new restaurant analytics product (May 2019) that is seamlessly connected to the hotel’s toolset, so for all hotels that run a restaurant in parallel, they can more easily manage their online reputation. Additionally, we have combined our Analytics and Survey with our Messaging product together into one platform so that as a hotel you can manage pre-stay, onsite, or post-stay communication and feedback from one place. Another big launch is coming towards the end of 2019, but I can’t talk about it just yet. Stay tuned! What's one piece of advice that you have for any entrepreneurs looking to get into the hotel tech space? When seeking funding and putting together your business plan, calculate an amount you think you need, and then double it! What is the best book you've read lately? Blitzscaling by Reid Hoffman. It’s written by Reid Hoffman, founder of Linkedin and Paypal. What is your favorite podcast My favorite “podcasts” these days are live interactions with my children. Very funny. Topics change every time. No scripts. I love it. What is one thing that most people don't know about you? I’m very approachable, and I think anyone who has ever reached out to me knows that. I’m an open book. So if you have questions or need information, I’m always happy to hear it and respond back.
Labor Management Systems provide tools to reduce labor costs by more effectively allocating resources and scheduling shifts. Labor is the largest expense on any hotel P&L (~44.2% of all costs) so managing how that labor is deployed is critical to operational efficiency. Managers use the software to get a high level view into optimization of employee shifts, to minimize overtime risk and more. Workers use the software to request time off, schedule shifts and view their schedules in real time. Hotel Effectiveness offers a solution to rising labor costs in the hotel industry. The product is an intelligent, easy to use labor management system that has proven to reduce total labor costs by 5% or more. The system utilizes staffing rules developed for each hotel combined with key operating drivers to produce dynamic work schedules for each manager. Full visibility into forecasted staffing needs, active trends, and individual employee productivity and hours enable real-time decision making to achieve 100% perfect labor costs. The firm touts major clients such as Heritage Hotels & Resorts, Interstate Hotels & Resorts, Pacific Host Hotels, Chartwell Hospitality and Spire Hospitality Decrease operating costs with Hotel Effectiveness Hotel Effectiveness claims to reduce total labor costs by 5% or more. The primary way they deliver on this promise is by creating a set of rules for each hotel client and notifying managers when those rules are at risk of being breached. For example, managers receive alerts when overtime risk is approached to avoid costly overtime and compliance violation penalties. Hotel Effectiveness conducted a case study with two select service hotels in the same suburban market. In the test hotel, the team set different room cleaning metrics for MPR (minutes per cleaned room) for guests staying over and those checking out. In the control hotel, they maintained a flat target. The test hotel achieved a 7.4% decrease in housekeeping costs based on Hotel Effectiveness’ recommendations with no change in brand quality scores. Hotel Effectiveness can decrease operating costs for clients by setting labor goals such as hours worked per employee and delivering real time insights to managers with recommendations of which staff to reduce hours with and which they should be ramping up to meet goals. This avoids overtime and maintains compliance with local labor laws. Hotel Effectiveness also ran a case study for a portfolio of 20 small limited service hotels that implemented its labor management system. In just 2-3 months after implementation of the software, the portfolio was able to eliminate 10,000 labor hours with cost savings in excess of $100,000. In an increasingly squeezed labor market - clients seek optimization "We have been in the business for 25 years and know how to operate high performing hotels. Hotel Effectiveness has helped us to control our labor costs. They are hotel professionals who get the hotel business." ~Naren Shah COO, Imperial Investments Group, Inc. "Hotel Effectiveness has made a significant difference in our hotel’s ability to control labor, save money, and streamline work. We have never worked with a more accommodating and customer-oriented company. Our General Managers love the products and timely information." ~ Jim O’Brien Executive Vice President, Wilson Hotel Management, LLC As with any product, there are weaknesses but Hotel Effectiveness is committed to improving them User interface for labor standards can use some modernization and updating for ease of use The learning curve requires training your entire team on the software which can make implementation challenging for disorganized properties or groups The data needs to be updated in real time with regard to labor rates We’d like to see an owner’s view The budgeter needs more data points to maximize benefits Benchmarking tool needs to be a bit more granular by enabling same brand comparisons The software needs budget comparisons in relation to the plan. Integrating budget forecasts would be a huge upgrade to provide more context. We’ve heard some complaints around room cleaning data accuracy when not integrated (2-way) with property management systems Key Features Labor standards: Cut your labor budget into precise and actionable labor standards that can be tracked against Dynamic scheduling: Develop a set of automated rules to adjust labor based on a combination forecasted occupancy and labor standards Automated labor monitoring: Get notifications for key risk areas such as employees ‘riding the clock’ and housekeeping productivity issues Corporate visibility: identify at risk or underperforming hotels in your portfolio by creating enforceable and trackable labor goals. Robust reporting: Real time insight into how your hotel is performing Benchmarking: compare your hotels against similar properties to see how you stack up and make necessary adjustments Key Integrations Time & Attendance Systems: ADP, M3 RightTime, Attendance on Demand, Kronos, Netchex, Paycom, Swipeclock, Ultipro, Workday, WorkRecords Business Intelligence Software: ProfitSword, Broadvine, Aptech Property Management Systems: Oracle Micros, Hilton OnQ, Marriott Fosse Payroll Software: A1HR, Execupay, Paycom, ADP, Fortune Business Solutions, Paycor, APS Payroll, Heartland, Payentry, Asure Software, Insperity, Paylocity, Avintus, iSolved HCM (Infinisource), PayMaster, Certigy, Microsoft Dynamics GP, Payroll Rx, CYMA Payroll, MPAY, PrismHR, Engage PEO, Oasis, Progressive, Evolution Payroll Services, Oracle Peoplesoft, Sage 300, ExcelPay, Paycheck, Shaner Solutions, TriNet, Workday, Valiant Hotel Effectiveness Pricing Pricing is based on number of employees and starts at $99/month for companies with fewer than 1-15 employees. Pricing is on a per month per employee basis 35+ employees: $4.90 100+ employees: $3.80 200+ employees: $2.70 301+ employees: $2.30 Additional cost associated with: Automated data integration Time & Attendance service Custom reporting & professional services Conclusions Most hotels are coming off of pen and paper or excel when it comes to labor management protocol. Hotel Effectiveness builds on Time & Attendance platforms such as Tsheets and ADP with tailored solutions to help hotels run their businesses more efficiently. Our main complaint with Hotel Effectiveness is around its user interface that is a bit dated; however, they seem to be updating consistently making the software easier to use for clients. When working with Hotel Effectiveness, realize that implementation does take work and focus - but once implemented the software will save more than the time you invested setting it up for your team. Hoteliers should strongly consider working with a specialized provider such as Hotel Effectiveness because combining PMS data with reporting solutions and time/attendance software allows hotels to unlock insights that can’t be acted upon in real time when any of those components are removed. We are most encouraged about Hotel Effectiveness’ ability to help hoteliers create rigorous and trackable labor standards. While the software is valuable in itself, Hotel Effectiveness provides industry specific benchmarking solutions and contextual data that is critical for success in the hotel industry. These insights can’t be gained through generalist providers or with Time & Attendance software alone. The platform is best suited for management companies looking to gain more visibility into their portfolio operations and is least likely to impact small hotels with minimal labor forces.
Hotelogix is the latest in a line of hospitality technology vendors that have recently launched a marketplace. The thinking behind these initiatives is that existing customers should have a clear place to find integrations that work well together. By providing a source of vetted partners, hospitality technology vendors hope to improve implementations and encourage better long-term outcomes. The new marketplace features third-party solutions that integrate fully with the Hotelogix hotel management system. To navigate the latest marketplace, we’ve identified a few useful integrations for hotels of different sizes. Top Marketplace Apps for Smaller Hotels Smaller properties prioritize reasonably-priced solutions that help staff provide better service more consistently, as well as provide functionality that makes independents more competitive with chains. These properties usually have less complicated operations without on-site F&B or spas. For properties that do have those on-site amenities, many available solutions have unneeded functionality -- which can make those solutions cost-prohibitive. Training and on-boarding also take center stage, as the smaller staff can’t afford to take too much time learning a new thing. Benefits must be observed quickly and without a long ramp-up period. Here are a few solutions that integrate with Hotelogix to help smaller properties compete more effectively. #1 Tripadvisor Review Express Tripadvisor Review Express allows hotels to automate the review process -- saving time for hotels with limited staff. Rather than spending time manually asking guests for reviews, this automation means less time spent requesting reviews and increases the frequency, recency, and velocity of reviews by encouraging every guest to leave a review. When used regularly, TripAdvisor claims that “the average Popularity Ranking for highly engaged hotels was 63% higher than their non-engaged counterparts.” As this guide to Review Express emphasizes, regular reviews keep engagement high and automated templates reduce manual work. Benefits of the integration: Review Express collects all TripAdvisor Reviews of the hotel added by recent visitors and Hotelogix makes sure that these are directly displayed on the Hotelogix front desk so staff can respond rapidly. #2 Bookingsuite RateIntelligence Bookingsuite RateIntelligence is the Booking.com family’s rate manager, ideally suited for smaller properties that may not need a full-featured rate/revenue management solution. It's a cloud-based rate shopping tool that gives smaller properties an edge with access to the kind of rate intelligence used by larger brands. Smarter pricing decisions can be made based on market demand data and competitor intelligence, the Rate Manager. Benefits of the integration: Single login to access, instant access within Hotelogix to top five competitors’ rates on RateIntelligence, compare prices with competitors’ and update rates in your PMS, and single click to update rates on all your channels. #3 Intuit Quickbooks Intuit Quickbooks has evolved into a comprehensive accounting solution, which is well-positioned in price and functionality for smaller properties. Quickbooks reduces headaches around manual management of invoices, and payables. It’s simple and efficient, with a handy “at a glance” dashboard to track performance. There’s a companion expense app so you can take pictures of receipts, and pull them into Quickbooks. Also, integrates cleanly with TurboTax if you decide to tackle your taxes solo. Benefits of the integration: Individual tracking and handling of credits and commissions given to TAs & corporate clients, as well as advanced payments & payments against settlements can be managed through separate account head. #4 Mailchimp Email Marketing MailChimp’s email marketing software is simple to use and easy to access across devices. With its template and visual editor, the company has eliminated design barriers to creating classy email campaigns, as well as pre-arrival and post-stay communications. For small properties without a marketing function, the do-it-all GM can design templates, run campaigns and use analytics to get better with time. It’s generally recommended that hotel marketers work with email marketing and CRM platforms such as Revinate and Guestfolio but very small properties may not have enough guest data or return visitors to warrant specialized products. Make sure to benchmark a generalist solution like Mailchimp with specialized solutions before adopting because bad email marketing can actually cost your hotel money through unsubscribes and sendability issues. Benefits of the integration: MailChimp lists update automatically with new bookings, cancellations, check-ins, and check-outs. Data imported into the relevant list includes room type, number of rooms, rate/package type, reservation booking deposit, tax amount, country, date of birth and gender of the guest. This information can then be used to segment lists and write copy for each specific segment. #5 STAAH Channel Manager The STAAH Channel Manager handles online distribution so you can manage them easily from one place. When a customer books a room from one website, availability is automatically updated across all other channels including your property’s booking engine. STAAH also has an integrated suite of software, including a reputation manager, booking engine, website, and gift voucher manager, which can be a convenient one-stop-shop for marketing a small property. Benefits of the integration: Single log-in to make instant updates and manage multiple OTAs, as well as analytics to determine rates, stop-sell limits and evaluate the success of sales channels. Direct connection to PMS minimizes manual errors that lead to overbooking and double-booking. Top Marketplace Apps for Mid-Sized Hotels Medium-sized properties may sometimes feel stuck in the middle: too large for solutions geared towards independents and yet too small for enterprise-level systems built to manage major operations. Many medium-size properties have F&B operations, sizable staff, and established revenue management procedures -- all of which require solutions with adequate functionality. Except without the enterprise-grade price tag! Medium sized properties generally have larger teams, a marketing department and dedicated resources for functions like revenue management. Here are a few solutions that help medium-sized properties increase productivity and grow their business through better revenue management. #6 SiteMinder Channel Manager SiteMinder’s channel manager provides the benefits of channel management to hotels with more complex online distribution needs. With granular controls over inventory allocations to individual channels, SiteMinder supports a sophisticated revenue management strategy. For medium-sized hotels that welcome guests from all over, the hotel’s base currency automatically gets converted to the currency of a particular transaction -- helpful for providing a consistent experience for guests. Benefits of the integration: The direct integration into Hotelogix eliminates any chance of overbooking or double booking, and also prevents errors arising from manual consolidation of booking data. #7 Beonprice Revenue Management The Beonprice revenue manager maximizes profitability by optimizing rates for every room sold through an intuitive and easy-to-use interface. The tool starts with a hotel’s historical booking data and then recommends pricing based on using local and national events, e-reputation, transportation price, weather forecasts and exchange rates. By automating rate setting using artificial intelligence and all the available data, medium-sized hotels can devote more time to optimizing other areas of the business. Benefits of the integration: Rates are published in real-time, using the latest data from the property management system. With this real-time, scalable, automated and flexible execution of rate publishing, hotels can more fully manage revenues and unlock the value of existing data within a PMS. #8 Repup Review Management Repup reputation management helps hoteliers make sense of online reviews by aggregating all reviews into a single dashboard. Using a combination of natural language processing, data mining, and business logic, the tool evaluates performance so hotels can win more business, increase revenues and build customer loyalty. For mid-sized hotels with lots of moving parts, management won’t have a direct line of sight into everything; Repup can surface issues and identify problems before they magnify. Benefits of the integration: Hoteliers can access complete review data within Hotelogix front desk. The centralized dashboard showcases 60 days of reviews and social media mentions from over 15 online channels, such as Expedia, Booking.com, and Facebook. There’s also an option to configure Guest Feedback Form which can be shared with guests right from the dashboard. #9 Xero Accounting Xero’s accounting software has become a popular choice for hotels with more complex accounting needs, such as multi-currency accounting, payroll, inventory management, and customized recurring online invoices for regular suppliers. For managers on-the-go, there’s a mobile app that mirrors many of the core management features of the web version. The platform is flexible: a robust set of integrations that medium-sized hotels plenty of control to customize workflows and sync Xero with POS, hotel CRM and other tools. Benefits of the integration: Room revenue, as well as corresponding taxes, commissions, and other charges are first recorded in Hotelogix and then automatically synced with Xero -- no more manual imports from the PMS to accounting software! Also, only fully settled folios get synced with Xero, which avoids a lot of headache around cancellations and unsettled folios. Top Marketplace Apps for Hotel Groups & Large Hotels Larger properties and hotel groups employ more people and serve more guests across more complex operations. They need enterprise-level systems that can adequately manage all of these moving parts. The sheer number of options leads to a complex evaluation process. Any new tech tool must integrate seamlessly and work well with everything else in a hotel’s tech stack. There are many interdependencies that make a challenging road for implementation. Not to mention the fact that a larger operation has more stakeholders, such as security and IT, that must approve any new vendor. Depending on the group, and the tech being implemented, on-boarding new tools can take months -- or more than a year for more mission-critical systems that require careful testing. So ease of integration is paramount for larger properties and hotel groups. Here are a few solutions that help larger properties and hotel groups manage complexity at scale and leverage all available data to build a healthy business over the long-term. #10 OneLoyalty OneLoyalty is a Loyalty Management Software that allows hotels without access to a larger loyalty offering to provide best-in-class loyalty programs to their guests. The independent hotel loyalty program also extends to employees and vendors, as OneLoyalty offers tools to engage across stakeholders to foster more loyalty. With OneLoyalty, hotels can offer rewards, coupons or other perks to their guests. A companion mobile app can ping guests with unique offers and alert guests to upcoming promotions. Benefits of the integration: With direct integration, hotels can more easily use the sales tool to attract more customers and increase the share of wallet. Customer profiles benefit from the direct integration, which makes for simpler segregation of customers to personalize offers and thus deepen re;relationships with past guests. #11 Snapshot Business Intelligence Snapshot business intelligence tool positions itself as “hospitality’s data platform.” The comprehensive data analysis platform is the backbone of a hotel group’s data practice. Since Snapshot thrives with larger pools of data, the solution is ideally suited for larger properties and multi-property groups. The Snapshot sweet spot is facilitating access across disparate systems and data sources. Hotels benefit from enterprise-grade custom visualizations that surface insights derived from this comprehensive view into a hotel’s business. Benefits of the integration: Hotelogix sends all past and future bookings and transactions to SnapShot for accurate hotel data analytics. Your dashboard is updated after every night audit, as Hotelogix sends an incremental report to SnapShot automatically. In addition, Hotelogix helps track reviews and social follower trends from SnapShot thanks to connectivity to social media and TripAdvisor. #12 Comtrol In-Room Devices Comtrol in-room devices have been providing networking and data communications for over 30 years. The stability of the company makes it a preferable partner for many larger operations that prize longevity -- after all, it’s important to know that a mission-critical vendor for communications, IT, and networking will be in business when you need them most. Comtrol gear ensures that the PMS maintains consistent contact and data transmission to accurately manage guest accounts. Benefits of the integration: With a direct connection into the PMS, Comtrol can ensure adequate functionality across in-room devices. For such an important part of the guest experience, such as room locks and keycards, this functionality must work without fail. In addition, there are potential benefits for enhanced customizations, such as personalizing the in-room entertainment with guest greetings and other guest-specific information. #13 Vertical Booking CRS The Vertical Booking CRS integrates with over 200 channels, which gives larger hotels more granular control over inventory distribution and allocation. The company also provides on-going training, which is especially beneficial to large operations that will naturally experience higher turnover. The CRS can be set-up to suit hotel groups and chains by defining which functions are managed centrally and which are managed independently for each property. In addition, chains can view performance at the chain level and property level, with staff assigned roles that offer access to the system according to individual roles. The graphic below maps the workflow for chains and groups. Benefits of the integration: A tight integration between the property management system and the central reservation system reduces errors and keeps the team focused on maximizing guest satisfaction. All reservations, whether made through the hotel's website or other channels, are instantly updated in the PMS. An added benefit for larger chains is that Vertical Booking’s CRS can integrate with multiple PMS, so if a new property has Hotelogix, it can be quickly integrated into the workflow.
At its worst, hotel operations technology exacerbates divisions between departments, which continue functioning as isolated fiefdoms. At its best, an operations platform pulls everyone together by promoting collaboration and clear communication in hotel operations. One such solution is Quore, a workhorse that harmonizes hotel operations for 3,600 hotels in 22 languages and 29 countries. Its cloud-based platform enables more efficient communications and operations management across housekeeping, engineering, and guest relations. For some hotels, the integrated approach to handling guest requests on the platform led to a 50% improvement in problem-handling score. Effective, reliable communications also improves the staff experience -- something that matters more in a tightly competitive labor market. Staff want the right tools that help them do their jobs well -- and many will leave in frustration without them. The Bureau of Labor Statistics pegs the 2018 hospitality turnover rate at 74.9%, so hotels that use technology to make work better will out-perform their peers in both retention and referrals from current staff. With an eye towards empowering employees, here are four team members that will be thankful for the Quore hotel operations platform. Your maintenance tech will prioritize projects better Guests hate discovering a maintenance issue upon arrival. It's an unwelcome challenge, presented immediately. It also makes even the most forgiving guest wonder why the hotel missed such an obvious thing, such as a burnt-out light bulb, a clogged toilet, or a broken doorknob. Quore’s functionality makes it easier for maintenance to overcome these challenges and work more efficiently in three key areas: Real-time problem management. When something goes wrong in the guestroom, it’s nearly always urgent. Guests don’t want to sit around and wait for an engineer, and, some things (such as a flooding drain or a sweltering room) are emergencies. Quore provides real-time problem handling that can quickly be assigned to the right team member -- and visible on that team member’s mobile device. Zdravko Bengez, a maintenance technician at the Hilton Garden Inn and downtown Nashville puts it like this: “With Quore, I know in seconds what needs to be done.” All relevant details appear on his mobile device, without having to chase down more information. Resource and project prioritization. Prioritizing resources is a daily tug-of-war, especially for larger properties. To effectively prioritize resources (including urgent problems like the ones mentioned above), Quore gives maintenance a quick overview, showing the up-to-date task list, as well as whether it was made by supervisor, the front desk, or a guest. This allows technicians to make on-the-fly decisions about where to go next, As well as stay in-the-loop with colleagues across the hotel. Preventative maintenance. PMs shouldn't be guess work. Quore supports hotel maintenance techs and engineers with preventative maintenance checklists that are automatically surfaced at the right time. As these lists evolve, changes are applied universally to keep everything consistent. Quore has robust enginnering features to support your maintenance staff: Prevenative maintenance, Pool chemical readings, Work orders, Boiler readings, Asset tracking, Meter readings, Custom inspections Your housekeeping manager will manage shifts more efficiently Housekeeping has many responsibilities that require regular communication and precise time management. Before a guest checks in, housekeeping must ensure that a room is available -- and up to brand standards. During a guest’s stay, housekeeping must service the room and fulfill guest requests for specific items. After check out, housekeeping must flip the room efficiently (and to brand standards) so that it's available for the front desk to assign. “The way in which a room is cleaned, tidied and presented to its guests is in direct relation to the level of service the hotel prides themselves on. Housekeeping provides guests with a clear indication of how they are valued.” -Paul Duverge, General Manager, Menlyn Boutique Hotel Quore’s platform makes this daily cycle easier on the housekeeping manager by supporting: Preparation. Each housekeeping shift is a puzzle. In advance of a shift, it's all about preparation and planning. Quore helps housekeeping managers to set each days priorities, as each stayover and checkout is clearly defined in the system. It simplifies the process of assigning rooms to housekeepers before they clock in. Prioritization. Things change throughout today. Real-time updates on things like stayovers becoming checkouts helps the housekeeping manager match staff resources with guest demand. Accountability. There's also very important advantage of a paper trail. As Liz, the assistant housekeeper manager at the Hilton Garden Inn in downtown Nashville learned after starting at a hotel with Quore, there's less accountability without a written record: “[With walkie-talkies] it's easy to not write something down. With Quore, it's like having a paper trail, so there's more documentation. Also, I can start and complete an activity all through Quore which is helpful for tracking.” Quore has robust houskeeping features to support your staff: Housekeeping assignments, Guestroom inspections, Deep cleanings, Lost & found, Room notices, Custom inspections, Digital breakouts, Room status tracking, Work orders, Brand standards compliance Your front desk manager will deliver better service It takes a certain amount of finesse to work the front desk. The ideal team member here is pleasant under pressure, with a knack for creative problem solving. Yet, even the most creative employee will be hobbled by poor information. The front desk is, in many ways, the central command post for a hotel’s operations. As the front line of guest communications, one of the toughest challenges encountered by most front desk agents is the unevenness of information. Quore’s smooths out these imbalances by adequately equipping the front desk to solve guest problems quickly with its: Dashboard. The Quore platform provides a single unified dashboard to collaborate quickly and across departments. This synchronization allows the front desk to focus on the rapid resolution of guest issues and avoid poor service situations, such as assigning an unclean or out-of-service room. Instead of less reliable means of communication, such as walkie-talkies or face-to-face, the front desk can communicate guest requests efficiently, says Finesse James, a front desk agent at Hilton Garden Inn in downtown Nashville: “It's a great method because it can keep us from having to call them when things are busy up here, and we are multitasking. It's easier to click and type in that we need them to do something. We can put all the specifics in the comments so they don't need to call and clarify.” Ease-of-use. The front desk is usually an untipped entry-level role, which means higher turnover. Quore’s consumer-friendly interface is familiar to anyone who’s used popular messaging and social media apps. It's intuitive, which reduces training time. The ease-of-use also keeps staff engaged and less frustrated, as they feel that the technology is working for, rather than against, them. For millennial's used to well-crafted interfaces, this is actually an important part of their expectations for the workplace. Digital logbook. No more deciphering chicken scratch or calling a colleague from a previous shift about “complaint from 402.” Standard log sheets keep staff informed from shift-to-shift. The digital log book also connects with related items, such as guest complaints or requests, so staff can easily find updates on notices mentioned in the digital log book. Quore has robust front desk features to support your front office team: Local attraction directory, Guestroom notices, Guest request management, Guest complaint management, Satisfaction callbacks, Key sign-in, sign-out and audit, Log book, Cash count log, Guest SMS, Security walks, Wake-up calls, Guest shipments Your general manager will achieve budget more often The best general managers know the power of consistent, clear communications. And many have learned this first-hand, rising up the ranks from entry-level desk clerk. According to a 2016 AH&LA study, 45% of respondents said that at least half of the general managers began in actionable positions. Quore allows these veterans to focus on providing fluid and flexible workforce communications that empowers rather than discourages. The Quore platform becomes a GM’s stalwart ally in running a consistent hotel operation by supplying: Centralized, digital log book. A GM can’t be everywhere at once. Quore’s position at the center of a hotel’s operation relives some of that pressure. As Gerald Loughran, the GM of Hilton Franklin/Cool Springs emphasizes, Quore’s digital log book is his hotel’s bible: “We’re religious about putting everything into Quore. If it’s not in Quore, it didn’t happen.” By pulling staff together into one shared operational brain, it’s much easier to maintain brand standards and close communication gaps. Go-anywhere access. A GM also has to go home at some point! Quore enables managers to keep track of staff to-do’s, tasks and track overall productivity across their hotel from any device. The go-anywhere access means that GMs aren’t out of the loop when off shift, at a conference, or on vacation. Actionable reports based on historical data. Historic data is easily accessible so that GMs can achieve growth and measurable improvement. This gives GMs the confidence that work is being done as it should be -- or quickly services areas that need work. When a GM spends less time on inspection or micro-management, it frees up time to focus on other metrics that matter -- such as guest satisfaction, revenue, and profitability. Quore has robust features to support your general managers:, Analytics & reporting, Asset tracking, CapEx management, Attendance tracking, Custom inspections, Budgeting tool, Checkbook visualization, Daily property walks
1. Don't overestimate the difficulty of delivering a personalized experience “Hoteliers believe delivering personalized experiences is hard. I have always looked at technology as an enabler for innovation. With the right enablers, hoteliers can take advantage of technology to make personalization easy, which is one of the cornerstones of our eInsight CRM product. I think either hotels don’t know where to start with their data, or they haven’t democratized access to the right people who can leverage it to drive home personalization. Hotels that standardize 2-way communication among systems and make data integrations a priority are the ones able to break through and outperform in personalization. Information is more relevant, robust and customized when all the systems are speaking to the touchpoints guests have in the journey.” ~Charles Deyo from Cendyn eInsight CRM “Many hoteliers believe that personalisation is not important enough to spend time on. But in reality, the cost of standardised digital communication, and generic upsell offers and promotions is enormous. Hotels are literally losing money with every guest that is walking through the front door.” ~Erik Tengen from Oaky Upsell Software 2. Place importance on vendor quality rather than size “Unfortunately, in this industry, the size of a hotel tech vendor sometimes is overplayed or overemphasized, while the quality of product and engineering teams is underemphasized. People often assume that large companies have better products simply because they can afford better engineers relative to smaller companies. This is far from the truth—I've seen very large companies struggle with their platforms and engineering initiatives. And I’ve seen smaller companies blow away the industry with their solutions. The important thing for hotels to remember is not to judge tech vendors by the size of the company, but by the quality and capabilities of their product and their dedication to customer service. It seems obvious, but happens more often than you think.” ~Gautam Lulla from Travel Tripper RezTrip CRS 3. Understand that artificial intelligence will not take your job “Hoteliers believe that revenue managers will lose their jobs when artificial intelligence gets good enough. I believe that artificial intelligence is going to make revenue management an even more valuable skill because it will take more insight and analytical rigor to stand out from the competition set in a data-driven world. Hoteliers are used to looking at PMS as a cost centre of the hotel. With the maturity of Cloud PMS, the paradigm has changed. A PMS should not be considered as cost, but as a system that will help them grow revenues and business. Also, for most hoteliers, deciding on PMS is an operational decision whereas I feel it should be more of a strategic decision.” ~Aditya Sanghi from Hotelogix PMS 4. Stop running your operations with pen and paper “Perhaps the most common belief I used to hear was that the Concierge didn’t need an application because they could use Excel or their logbooks. We obviously felt differently especially after spending time behind the desk and seeing the amount of work done manually and the importance of providing a tool to enable the team to be more efficient. We believe the role of the Concierge should be in the center of the hotel operation since their work touches so many departments and has such a significant impact on the overall guest experience. A good Concierge team does the job so well that they make it look easy. What is often not recognized or seen is the volume of work being done behind the scenes to deliver such a great guest experience. Investing in a tool allows the team to be more efficient and spend more time and attention on the guests. I believe the reason guests come back now is mostly because of the way the Concierge and other team members make the guests feel when they leave, more so than just having a beautiful hotel. Without a tool such as ALICE, it is very difficult to be efficient and create that great guest experience.” ~Adam Isrow from ALICE Hotel Operations Platform 5. Leverage technology to decrease staff churn “I think the single biggest misconception is that hoteliers think the solution to their traveler personalization problems is to invest in traveler facing technology and create an omni-channel experience. The biggest problem hoteliers face is actually their staff turnover. What is the point of having traveler facing technology, without experienced staff that have the right technology to empower them to deliver on the brand experience? Your staff must always come first if you want to truly personalize and fulfill your brand promise. This means hoteliers need to balance their traveler facing and staff facing investments more effectively.” ~Kevin Brown from Amadeus Hospitality 6. Place less emphasis on meeting budget in volatile markets “Hoteliers are not comfortable making changes to prices without knowing the effect it has on their ability to reach budget. In a volatile market, too much emphasis is placed on meeting budget and making safe pricing decisions that ultimately limit a hotel’s revenue achievement. Placing an emphasis instead on demand-based pricing will help secure the highest possible revenue from the marketplace. "Some hoteliers believe it is prudent to wait until business is strong and making more profit before they invest in “nice to have” tools such as revenue management software. That is like saying an athlete should wait until they can run faster before they buy good running shoes. It is the revenue management system that will enable them to maximize their yield and create the bigger profits." ~Ravi Mehotra from IDeaS Revenue Solutions 7. Embrace technology, software is cheap and extremely easy to use today “Most hoteliers are skeptical about technology - for good reason. Tech companies have a long history of over promising and under-delivering. As a result, new technologies are not often eagerly adopted by experienced hotel people. They would rather "wait and see" before embracing yet another "shiny object" tech solution. The last thing we need is another complicated software program that takes up all of our time and delivers little value. Tech providers need to focus on the benefits of their solution and design products to require minimal effort for maximum value. Don't assume that because hotels are multi-million dollar businesses that we like to sit around on our laptops all day - we have become successful by taking care of travelers - and each other - with the service and care that we'd provide to our own families.” ~Del Ross from Hotel Effectiveness Labor Management System “The most common misconception about technology is that it's too expensive. Hoteliers have this misconception because they don’t fully understand the value that the technology brings. They see it as a cost rather than as a profit center. Hoteliers often buy technology the same way they would buy a TV or a pillow. And because of that, tech vendors have been forced to limit their innovation.” ~Marco Benvenuti from Duetto Revenue Management 8. Don't ever manually price hotel rooms “They believe they can do good or decent manual pricing... but in reality there is no way a human can do even a decent job at pricing a hotel. The math behind that statement is really simple, there are two main reasons why a human has absolutely zero chance versus an automated AI system: 1) The sheer scale of the problem. If you're a hotel with 5 room types, 4 variations on each room type (breakfast/cancellation), bookable 365 days in advance, and want to update each price once per hour then you have 0.49 seconds per price to do your analysis and set the price. Even if you simplify the problem drastically, let's say you have a fixed additional cost for breakfast & cancellation, that you just want to update the prices once every four hours, and that you only allow your guests to book in the last 30 days, then you still only have 96 seconds per price to do the calculations and set the price. The sheer scale of the problem makes it impossible for any human to keep up and do a good job. 2) The complexity of the problem. It's important to acknowledge that no price is an isolated island, if you change the price of one room type for a particular arrival date then it will have an effect on all the other room types for the same arrival day. But that's not enough, it will also have an effect on the adjacent days as many people stay more than one night and some one-nighters are flexible and price sensitive. There is this ripple effect and you need to present the optimal set of prices, not the price that is thought to be optimal for one specific room type. Quite often the optimal price for one room type will have a negative impact on the overall revenue, and to calculate the optimal set of prices is both hyper complex and very computationally intensive, it simply cannot be done by a human. Humans should focus on strategic revenue management, not at setting prices.” ~Leif Jaggerbrand from Atomize 9. Stop paying massive sums for integration fees when the entire world has moved to open APIs “Hoteliers that its extremely hard and expensive to integrate different software solutions. Having built our own PMS with open API, I can confidently say that this is no longer true, and we stimulate hoteliers to integrate as much as possible to make their lives easier.” ~Matthijs Welle from Mews Systems 10. Use technology to create more personal interaction, not less “Messaging is impersonal, you can’t replace in-person interactions.” The aim of messaging is not to replace in-person interactions or even phone calls, it is to fill the customer service whitespace or void that exists today. There are a large portion of travelers and consumers today who are not communicating with your organization because you may not have the proper means. With the increasing influx of technology separating the hotel staff and guests (e.g. OTAs and Mobile Room Keys), messaging is one of the main components connecting hotels with their guests today.” ~Chris Hovanessian from Whistle
When enterprise companies spend loads of money on technology they usually think about building tech in house so they can have more control over development and ultimately save money. Sometimes this equation favors building tech in house and other times it does not. Several high profile failures in the hotel industry include a collaboration amongst all major hotel groups to create an online booking platform called Room Key which was eventually shuttered. We’ll discuss this initiatives and more in detail below. Most sophisticated enterprise companies (think Nike and McDonalds) understand that they are not tech companies so they effectively outsource their tech R&D spend to 3rd parties that are focused on innovation. Could McDonalds build software to help franchisees manage their listings? Yes, but they partner with Yext. Nike could definitely build prototyping software in house for its digital products, but it chooses to partner with InVision. Firms like Nike and McDonalds have become innovators by being experts at identifying trends and partnering with top tech companies to meet their core business goals. So the question is, if McDonalds and Nike outsource their respective technology needs - should hospitality companies really be building tech in house? We believe that when hotel brands try to build tech in house it ultimately brings them into precarious waters, here's why: 1. They lack the resources to compete with pure play technology companies 2. Hotel brands usually underestimate the ongoing effort required to maintain and scale a technology business (let alone multiple business lines and products) Hospitality companies don't have the resources to compete with tech companies. Charles Schwab is a massive financial institution worth more than $60B. The firm could easily build custom marketing automation solutions for the business but they choose to work with with Marketo because they know that Marketo will be able to innovate over the long run. Even Citrix and Microsoft, technology companies themselves, use Marketo’s marketing technology so that they can focus on their core businesses. IDeaS, a popular revenue management software company and it’s parent company SAS just announced a 3-year plan to invest $1B in artificial intelligence. SAS is a company that deeply understands the power of focus and investing in its core competencies. "If I want to host a SaaS application, I choose a cloud host. If I want to manufacture a consumer product, I partner with a company like Foxconn. If I need delivery for my restaurant I work with a delivery company. Yet, brands without a technology focus still believe it will be cheaper and more effective to build their own software internally when history has shown us, time after time, that these projects will be over budget, unsustainable, and competitively weaker than the professional tech products in the market." ~Adam Harris, CEO, Cloudbeds The median publicly traded software company spends 23% of revenue on R&D with many high growth firms spending 50% of revenue. It’s hard to imagine that even Marriott could afford the spend levels to develop one competitive product let alone multiple product lines that compete with a myriad of different specialist software businesses. Technology is not a static good. Sophisticated enterprise companies buy into the future of a tech product as much as the present. Technology requires immense amounts of capital to scale and increasing investments to remain competitive. Technology requires even more upkeep than hotels. Where hotels build up their capital reserves and renovate roughly every 5-7 years, tech companies are constantly “renovating” their products daily through product sprints. When enterprise companies “buy” tech they are partnering with tech companies for the future as much as selecting products for the present. The reason that the SaaS business model (recurring subscriptions) aligns value so well between buyers and sellers is because the product is constantly being reinvented so it forces tech companies to maintain their end of the bargain. When you sign up for SaaS (software as a service) you are not only signing up for the product today but you’re buying into its roadmap for the future. Hotel companies that try to build tech in house are rarely prepared for the constant investment required to maintain let alone scale products and keep up with the ongoing massive investment, iteration and innovation of tech firms. So what does history tell us about hotel companies who have miscalibrated this decision? Starwood was bought by Marriott for $13B and itself has taken huge losses on technology investments when they were no longer able to invest enough to remain competitive. According to Starwood’s (now Marriott) 2015 10K filing, the firm took a $6M charge for “technology related costs and expenses that were no longer deemed recoverable.” Go back further to Starwood’s 2013 annual filing for stockholders and you’ll find a $19M charge related to “technology related expenses” that the firm “decided to absorb” because they couldn’t collect from managed and franchise properties. When we draw the analogy between maintaining software and maintaining a hotel, Starwood was effectively unable to properly renovate its technology and investors paid for it. Every hotelier knows what happens when you let a property go too long without renovation and the same happens when software isn’t maintained properly. Similar to Starwood building tech in house and having trouble maintaining the infrastructure, Choice created Skytouch PMS internally with the vision of transforming the tech market and has similarly struggled. “In 2014, it [Skytouch] generated a net loss to the company of up to $20 million. Investors have pressured Choice to either make SkyTouch profitable, sell it, or close it down.” Choice stopped reporting the results of its Skytouch division and now includes those results within its “Corporate & Other” expense line (pg. 102 of Choice 2018 10K filing). So while Choice no longer gives updates on how Skytouch is doing - it is highly inprobable that a company like Choice would decide to include the a business unit as an expense line if that unit was doing well. In addition to the Skytouch debacle, we've also heard that Choice is winding down its Choice Labs innovation division. Accor, too, recently reported a $288M write-off on tech investments such as AirBnB competitor Onefinestay and concierge service John Paul. Accor even tried to sell it’s distribution to independents and shuttered the project after 2 years, here’s what happened in the words of Accor’s own spokesperson. “This initiative is no longer relevant in regards to the Group’s strategy and its new profile as per today. Results are below expectations” Accor wanted to plug independents into its massive distribution which in theory could add a ton of value if executed well and even that didn’t work. Even when all the big hotel groups banded together to build the online booking platform Room Key they failed (Choice, Hilton, Hyatt, InterContinental, Marriott, Wyndham) - isn’t it time that hotel companies learned this lesson? Even Booking.com had to shut down it’s hotel software operations after some high profile acquisitions - a testament to how tough the business really is. Conclusion: Hotel brands shouldn’t build tech - they should get better at buying it The lesson here is clear - hotel brands need to focus on what they do best. They should leverage their scale and clout to secure great service and attention from tech partners. It’s up to franchisees and investors to ensure that operators stay focused. Hotel brands have insanely complex businesses managing many stakeholders who often have conflicting interests. The business of running a hotel is a huge feat both operationally and from a revenue/distribution perspective. "Because the skepticism exists and because tech can take long, hoteliers reach the wrong conclusion. They decide to build instead of buy. I have witnessed a transformation in travel tech. Increasingly, hotels are embracing the rules of comparative advantage and are embracing tech where they can move fast, learn fast and benefit quickly." ~Alexandra Zubko (former IHG Lead Strategist) Because of these factors, hotel companies who want to succeed in the digital age should be experts at technology procurement and management. Historically hotel brands have been very weak when it comes to technology procurement and management so many have tried to compensate for that weakness by building tech products in house. Unfortunately this strategy often leads to write-offs, burning piles of cash and consequently the executives who lead these disastrous projects being pushed out. "Great technology products enable a valuable job to be done to be easily performed with maximum success and consistent results. With the blistering pace at which the world is changing, our expectations change. That means jobs to be done change. And that means software needs to rapidly iterate and evolve. That is why the world is headed to simple, modular solutions that can nail jobs to be done as they evolve. The smartest brands know that to create compelling and lasting technology advantage, it’s now about identifying and bringing best-in-class interoperable solutions together into powerful system that gives lasting advantage. From a cost, resource, time to market and life time value perspective, you’ll waste literally millions of dollars even before calculating the opportunity cost. Brands need to get amazing at hand-picking and investing in their strategic technology partners who are proven to design, build and iterate the purpose-built software hotels require, so they can then focus on delighting guests, growing locations and enhancing the value of their networks for franchisees." ~Marc Heyneker, CEO @ Revinate Large enterprise brands have some clear motivations: (1) They want to expand to more and more hotels worldwide, and be able to do so quickly and efficiently. That means needing a consistent stack of solid technology that can be deployed, enabled and operationalized to run and add those hotels to the overall system. (2) They want to proudly position their Technology Stacks and enabled programs as unique value-adds that differentiate their Brand and their Brand value. So they can both convince Owners why they’re better, and monetize and justify their Brand fees in an age where consumer preference for brands is in decline. This sometimes gives large enterprises the false sense of belief that they need to build their own. In fact, building your own puts both goals in jeopardy, almost immediately. These multi-million dollar, multi-year, multi-faceted technology projects become sinkholes for capital investment, anchors to business progress and optimization, and turn into tough write-downs as we saw in the examples above. Hotel brands should instead be focused on rethinking their technology organizations to be better buyers and managers. Corporate hotel purchasing units have historically focused on price negotiations and software customization (i.e. product roadmap hijacking) but in order for brands to thrive in today’s hyper competitive markets they are in need of a massive strategy shift. Red Lion Hotels Corporation is one such company that has taken a deep look at how it buys technology and optimizes its tech stack. Red Lion Hotels Corporation CIO John Edwards shared his firm's approach to technology vendor selection with Hotel Tech Report. "At RLHC, we have been able to establish ourselves as leaders in hospitality innovation by focusing on what we do best: finding the right technology partners to create solutions that meet our hotel’s needs. We believe that is the fastest way to change the technical landscape in our industry. RLabs and Canvas Integrated Systems were created to house our already existing technology and innovation solutions, which provide customized best-in-class solutions for our hotels. Our tech stack includes well known industry solutions such as IDeaS, Opera, & WindSurfer as well as new industry solutions such as Monscierge and HAPI." Digitally savvy hotel owners want technological choice and they want the procurement benefits that brands command with scale. The brand development teams that win in the digital age will be the ones who are able to deliver choice to owners around which technology vendors to use, the scale that comes with warehousing and leveraging data from that warehouse and the cost benefits that come from bundled negotiations with vendors. Recommendations to hotel brands who want tech to be a core differentiator 1. Map out clear technology systems required to deliver on core business goals and all potential providers 2. Lay foundational infrastructure for open systems and clean data Design scalable processes to constantly beta test competitive products in the market and identify new products that can drive core business goals. 3. Set aside designated resources for technology management. Hotel groups should maintain a vendor CRM and dedicated staff for managing vendor relationships. This staff should also be tasked with collecting market insights and sharing new technological developments as well as vendor status updates on a regular basis with leadership. 4. Set clear and tangible KPIs with each vendor that must be met in order to retain the contract (e.g. customer support response time) Create clear roadmaps for switching systems in the event that suppliers do not deliver on KPIs 5. Invest in tech startups that fit your strategic criteria above! Highgate (invested in Stay Wanderful, Travel Tripper, LodgIQ, OTA Insight) and CitizenM (invested in Snapshot, exited to Shiji) have been incredibly successful executing on this strategy. They put strategic money to work then derisk their investments by giving those startups proof of concept in their properties. 6. For hotel companies that don't have the resources to start a fund internally like them there are great strategic venture capital firms that are focused on real estate and can do the heavy lifting for you - check out Metaprop VC and Fifth Wall Ventures. Investing enables you to gain access to innovation and lend your expertise without snuffing out the creativity. Leadership is about investing in great people and trusting them to do the work, not about micromanaging every aspect of the process yourself.
Being a hotel GM takes finesse and creativity. You have to be both analytical enough to manage your hotel’s P&L and personable enough to interact with guests. Usually employers have to choose between a people person and a numbers person but when searching for a good hotel GM owners need to look for both. Ultimately, a hotel GM is a business owner responsible for everything that happens between the four walls of a hotel. You have to handle situations ranging from a staff member who needs to be rushed to the ER for cutting their finger on the job to hiring talent and figuring out how to increase revenue per available room when occupancy is down. In case you couldn’t tell already GMs are stretched in a million directions and are expected to excel at everything, always. Due to the demanding nature of the GM role, it’s important to also spend time educating yourself on a variety of different disciplines and lots of this requisite knowledge can be found in books. Rather than tell you what books we think GMs should read we asked some of our friends who happen to be top hotel GMs about the books that have helped make them such incredible successes. We have got recommendations from GMs around the world - from Belgium to Mexico, Spain, the United Kingdom and everywhere in between. The book topics range from practical guides that help you run your hotel to productivity hacks, self improvement books and stories about how to be resilient under immense pressure. Without further adieu - here are the 16 books recommended by top GMs for their peers. 1. The 7 Habits of Highly Effective People by Stephen R. Covey Recommended by Simone Harms from Sage Hospitality in Santa Clara, California, Campbell Lee from Quest Apartment Hotels in Melbourne, Australia and Alex Obertop from SIDE Hotel Hamburg in Hamburg, Germany The 7 Habits Of Highly Effective People teaches you both personal and professional effectiveness by changing your view of how the world works and giving you 7 habits, which, if adopted well, will lead you to immense success. Habits one through three are focused on self-mastery and moving from dependence to independence. Habits four through six are focused on developing teamwork, collaboration, and communication skills, and moving from independence to interdependence. Habit 7 is focused on continuous growth and improvement, and embodies all the other habits. Hotel GMs can all relate deeply to these principles and for any GMs in a rut, Quest Apartment Hotels GM Campbell Lee told us, “7 Habits was a turning point for me. I was forced into reading it a decade ago by my GM at the time (which I did kicking and screaming!), but found it so engrossing to have a fully documented system for essentially being a better person; especially one that is so easily communicated to others you yourself are helping to mentor and grow. Within 6 months of reading it, I took the leap and quit my job and applied for a Hotel GM position without any prior experience, and have never looked back!” 2. Emotional Intelligence: The Groundbreaking Book that Redefined What it Means to Be Smart by Daniel Coleman Recommended by Imran Jivani from Bedderman Lodging in Chicago, IL and Silvia Nadal from Hotel Jazz in Barcelona, Spain Emotional Intelligence explains the importance of emotions in your life, how they help and hurt your ability to navigate the world, followed by practical advice on how to improve your own emotional intelligence and why that is the key to leading a successful life. Being the general manager of a hotel can be highly emotional with extreme ups and downs. Understanding how to channel those emotions is absolutely critical for keeping your staff productive and happy. "Understanding a person is much more complicated than a position, but that understanding brought on by emotional intelligence will help create a future leader who has a vested interest in the success of the company, property, and (most importantly) themselves," says Imran Jivani of Bedderman Lodging. 3. Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek Recommended by Enoch F. Nimene from Bridge Hotel Group in New York, NY and John Kirk Wright from Banyan Tree Companies in Roswell, Georgia Start With Why is Simon Sinek’s mission to help others do work, which inspires them, and uses real-world examples of great leaders to show you how they communicate and how you can adapt their mindset to inspire others yourself. Sinek’s belief is that the important thing is not what you do (run a hotel) but why you do it. It’s important for hotel GMs to understand why they run their hotel - is it for profit? Is it to make guests feel at home? Once you understand and communicate your own motivations you’ll be better able to motivate your team. 4. I Like Giving: The Transforming Power of a Generous Life by Brad Formsma Recommended by Paul Patiño from The Saguaro Palm Springs in Palm Desert, CA Paul Patino runs one of the most coveted hotels in California - the Saguaro Palm Springs. Paul believes that the essence of being a great general manager is not in your ability to simply own the P&L but in your unique ability to give of yourself. Paul told us that, “What I’ve learned in my long run in hospitality is that running an operation and answering to a P&L to ownership at the end of the month/year is all the same. Anyone can do it once they have had enough practice but the true challenge is being that leader that can move everyone in the same direction together and bring out the best in each person. Not everyone can do it and most days with social media and the world we live in, everyone wants that quick instant gratification. When in reality all great things take time, patience, and lots of love. The book I’m reading now is teaching me what I have done for a long time for others but just giving me a sharper knife. Doing right by others and leading by example, having a true connection with each person and inspiring them to be better versions than they already are is what’s truly important in this industry now a days. Once you have that the whole operation runs itself and people or group of happy people can overcome any obstacle, move any mountain. This book highlights that in so many ways and I encourage you to read it if you haven’t and go change someone else’s life and most of all have fun discovering how much you can do for others with very little.” 5. Setting the Table: The Transofrming Power of Hospitality in Business by Danny Meyer Recommended by Gary Gutierrez from HRI Lodging in New Orleans, LA This is not a typical business book, and it’s certainly not a how-to book. For hoteliers, what’s most meaningful is creating positive, uplifting outcomes for human experiences and human relationships. Running a hotel, like life, is all about how you make people feel. It may sound easy but this is actually pretty difficult to execute on. Danny Meyer, founder of Union Square Hospitality and the global hamburger empire, Shake Shack coins what he calls ‘Enlightened hospitality.’ Danny’s lessons help you put hospitality to work for first for the people who work for you, guests, community, suppliers, and investors — in that order. 6. The Obstacle Is the Way: The Timeless Art of Turning Trials into Triumph by Ryan Holiday Recommended by Peter Smiley from Hotel Nexus in Seattle, WA This book is a modern take on the ancient philosophy of Stoicism, which helps you endure the struggles of life with grace and resilience by drawing lessons from ancient heroes, former presidents, modern actors, athletes, and how they turned adversity into success, thanks to the power of perception, action and will. Many CEOs joke that their job is to be a plumber, finding holes in their respective businesses and plugging those holes. As the CEO of their hotels, GMs are constantly facing obstacles and adversity - this book gives GMs tools to turn obstacles into success. 7. Leading with Questions: How Leaders Find the Right Solutions by Knowing What to Ask by Michael J. Marquardt Recommended by Joseph Kirtley from Highgate Hotels in San Francisco, CA This is a highly acclaimed book that blends theory and practice on a leadership skill that is universally appreciated but seldom illustrated - asking the right questions. Joseph Kirtley, GM at Highgate Hotels says it best, “Leaders often feel that we are supposed to have all the answers. In actuality, being a great leader takes humility, and asking the right questions. Opening yourself to the strengths and knowledge of those around you takes you to another level.” Throughout the book, he demonstrates how effective leaders use questions to encourage participation and teamwork, foster outside-the-box thinking, empower others, build relationships with customers, solve problems, and much more. 8. Zapp: The Lighting of Empowerment by William C. Byham, Ph.D Recommended by Gary Gladstone from Diamond Mountain Hotel & Casino in San Jacinto, CA “Zap taught me to think a different way. When making a decision about how to handle a guest problem I now remember to ask the agent involved their opinion and what they recommend,” says Gary Gladstone of the Diamond Mountain Hotel & Casino. Employee motivation is often a difficult idea to truly grasp, yet alone to influence and leverage. Yet, if companies are to continuously improve, as is necessary for survival and success, everyone in the organization needs to be engaged. Byham writes that people with this engagement (those who are "zapped") have "responsibility, a sense of ownership, satisfaction in accomplishments, power over what and how things are done, recognition for their ideas, and the knowledge that they're important to the organization." 9. How to Win Friends & Influence People by Dale Carnegie Recommended by Guillaume Verchere from Radisson Hotels in Brussels, Belgium How To Win Friends And Influence People teaches you countless principles to become a likable person, handle your relationships well, win others over and help them change their behavior without being intrusive. Many GMs even go on to take the Dale Carnegie course which teaches interpersonal skills and public speaking to help them become better leaders in their respective communities. Some of the concepts that Carnegie outlines seem intuitive and simple but are fundamental to creating and fostering strong interpersonal relationships. 10. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt Recommended by Liutauras Vaitkevicius from Good Hotels in London, UK Freakonomics helps you make better decisions by showing you how your life is dominated by incentives, how to close information asymmetries between you and the experts that exploit you and how to really tell the difference between causation and correlation. This is a somewhat nontraditional pick for GMs but provides a valuable framework to think about incentivizing team members on property to consistently deliver the best experiences to guests. Luitauras told Hotel Tech Report, "this book helped me to become more efficient, more effective in my work. Once I understand correlation, reasoning, needs of my guests and my team, I can make right decisions quicker. It has also taught me to look into data more closely and challenge 'old ways' of doing things. And that really pays off long-term in building structure, new processes and helping my team achieve more in shorter periods of time." 11. Switch: Hot to Change Things When Change is Hard by Chip Heath & Dan Heath Recommended by Mohamed Elbanna from Four Seasons Hotels & Resorts in Palm Beach, FL Switch is about how you can lead and encourage changes of human behavior, both in yourself and in your organization, by focusing on the three forces that influence it. You might have heard the analogy of your brain as a rational rider, sitting on top of an emotional, stubborn elephant, trying to direct it, which makes it easier to understand how your brain’s rational and emotional side work together. Hotels are often thought of as slow to adapt when market dynamics shift and Heath gives a strong framework to help get your team ahead of changes to beat out the compset. Heath argues that what many think is resistance to change is actually just a lack of clarity around how to change. Setup incentives correctly and give a clear path forward for your team and even ownership for that matter - you won’t regret it. 12. Don't Sweat the Small Stuff: Simple Ways to Keep the Little Things from Taking Over Your Life by Richard Carlson Recommended by Rob Flinter from PPHE Hotel Group in London, UK Don’t Sweat The Small Stuff will keep you from letting the little, stressful things in life, like your email inbox, rushing to trains, and annoying coworkers who drive you insane and help you find peace and calm in the stressful world that is your hotel property. This is a great book that gives you tools to cope with those days when it just feels like the whole world is on your shoulders and you can’t do anything right. 13. Good to Great: Why Some Companies Make the Leap and Others Don't by Jim Collins Recommended by Heather (Dighton) Strauss from Prime Group US in Miami, FL Good To Great examines what it takes for ordinary companies to become great and outperform their competitors by analyzing 28 companies over 30 years, who managed to make the transition or fell prey to their bad habits. With companies like AirBnB and the OTAs, hoteliers are no strangers to disruption. Unfortunately this is just the beginning. While many GMs have thrown their arms up in defeat - there is still time to reinvent and out innovate some of these newcomers. 14. How to Run a Great Hotel: Everything you need to achieve excellence in the hotel industry by Enda M. Larkin Recommended by Brandon Sheldon from Mission Point Resort in Mackinac Island, MI According to Brandon Sheldon, GM of Mission Point Resort, “How to Run a Great Hotel really taught me to think about goals, but also how I will achieve the goals.” This book is based on the premise that being good is just not good enough in today's competitive environment. For hotel owners & managers who want to achieve lasting business success through a root & branch review of key business processes, 'How To Run A Great Hotel' is a 'must read'. 15. 100 Tips for Hoteliers: What Every Successful Hotel Professional Needs to Know and Do by Peter Venison Recommended by Jil Vivienne Berghäuser from Hotel Brandenburger in Potsdam, Germany Hotel Brandenburger GM Jil Berhauser told Hotel Tech Report that it’s important to lead with passion: “[as a general manager] you must be passionate about your job. You must have a clear vision about what you hope to achieve and find ways to share this vision and passion with everybody in your team. - If you're not passionate about it, who else should? Not having complaints does not mean that you are satisfying your guests. Find time for feedback and listen to your guests. To meet guests effectively, a manager needs to be around in guest area at business time. 100 Tips for Hoteliers details the strategies that have helped Jil channel her passion into results. 16. Nuts!: Southwest Airlines' Crazy Recipe for Business and Personal Success by Kevin Freiberg Recommended by Xavier Moulin from SH Hotels & Resorts in Cabo San Lucas, Mexico “Strategy and leadership publications offer relevant concepts and systems that are, in most cases, adaptable to a given business model. Beyond the theory however, lies a host of creative yet often unconventional solutions that have not only proven wildly successful in real life, but at times helped transform the very fabric of an industry. Immersing myself into the thought process and reasoning of business visionaries such as Kevin Freiberg in his book Nuts! helped me define fun and motivating productivity techniques that truly resonate with a team and are particularly well aligned with the emotional nature of our hospitality trade. Beyond the direct financial impact, the sheer associate engagement, fulfillment and retention observed as a result proved overwhelming.”
Dave Berkus knows hospitality technology more than nearly anyone. Back in the early 1980s, his company, Computerized Lodging Systems, dominated the nascent hospitality technology market with one of the first electronic Property Management Systems on the market. The immediate popularity of the technology resulted in rapid growth for the company, which was recognized on the Inc 500 list -- twice. Dave also created FOSSE, the property management system technology that Marriott used for almost 36 years. Today, there are over 700 property management systems for hotels. With such a dense thicket of choices, it's hard to imagine the early days of hospitality technology. These are the days when only a few players dominated, offering truly game-changing solutions that defined how hotels began using technology to operate more efficiently and profitably. Dave is also an accomplished angel investor, having achieved an impressive 97% internal rate of return from over 150 investments to date. His Wayfare Ventures unites five partners from AIG, TAJ Hotel Group and Starwood, alongside a board of accomplished travel industry veterans, to make early stage investments in travel technology startups. Hotel Tech Report’s Jordan Hollander recently enjoyed a wide-ranging conversation with Dave on the Hotel Tech Insider podcast, where the two discussed how Dave’s history in hospitality technology has shaped the way he sees the industry today. These are the most pertinent themes that reveal how this hospitality technology luminary sees the future of hotel tech, as well as what he looks for when evaluating both ideas and entrepreneurs for investment. The future of the PMS With so many property management solutions competing for business, it's hard to envision a post-PMS future. Yet, this future is coming, Berkus says, due to the increased importance of the Central Reservation System. The CRS owns the guest name record, which has made it more of a centralized source of data than the PMS: The PMS systems are, for the chains at least, becoming increasingly less important, as they handle right now in-house functions only. Berkus notes that the cloud PMS companies of today are likely to be the players who evolve these CRS like capabilities so while he believes that their technology will remain a core piece of the tech stack, he believes that what it means to be a PMS will change more in the next 5-10 years than in the last 20 years combined. Guest history has shifted to the CRS, while the PMS has transitioned into a fully operational role for specific properties. As hotels have both consolidated and established micro-brands, the CRS naturally became the way to share guest preferences across the portfolio. The centralization of data cemented the role of the CRS at the center of modern data-driven personalization and marketing strategies. says Berkus: Big Data's being used in very important ways but certainly not just from the PMS system anymore. The question then is: if the CRS could potentially supplant the PMS as the source of all-important guest data, will we need a PMS system in the future? Berkus says yes but the legacy PMS companies will be forced to innovate and more specifically open up their architecture to become platforms themselves because CRS, CRM and even Revenue Management companies of today have the requisite data necessary to become the center of the tech stack according to Berkus. Eventually, Berkus sees most hotels relying on a single cloud-based system that aggregates all functionality into one flow, which reduces errors and increases accuracy as it doesn't require passing information around multiple systems. A hybrid PMS/CRS/CRM solution means a single guest record that enables better, more accurate personalization. The consolidation of functionality also simplifies the tech stack and should help hotels effectively use existing data to power personalization at the individual guest level. A unified tech stack unleashes the full power of data-driven decision making, which will soon be table stakes for how hotels everywhere compete. Rather than relying on incomplete sets of data, hoteliers can constantly make decisions based on the holistic view. A unified tech stack can also be achieved through seamless integrations and Berkus says that “there will always be best of breed solutions in various categories.” This vision will take a while to achieve, and so the PMS will continue to play a critical role for hotel operations: If we look ahead ten years, it would be easy to see a single cloud-based system integrating everything from CRM to reservations to the accounting functions at the properties, all the way through all forms of marketing and follow-through. Even with this view, Berkus sees the potential for category leaders to dominate specific verticals, while still providing the essential services necessary to run a hotel. For example, revenue management, which may be a feature of a CRS or a standalone solution -- all depending on how an individual property derives its revenue, and the sophistication of its revenue generation strategies. Part of the problem, he says, is that people confuse hotel tech with quality hotel tech: just because a hotel has a system doesn't mean that it is a good system. For Berkus, this means that the hospitality technology industry has plenty of dynamism ahead of it and he believes that it’s far from maturity. The transformative power of analytics For Berkus, the primary reason for the PMS’ uncertain future is due to its isolation from data and analytics. Even the most integrated systems have challenges when it comes to gathering data from disparate sources into a unified view. Even so, it’s the analytics on top of all of this data that drives profitable hospitality today. Whichever technology hotel uses, It must facilitate the types of analysis that drive “more capable decisions,” across the organization, says Berkus: Analytics are everything. The most important single change that's going to come is the fact that every piece of data that arrives at the central source will be analyzed. You're going to find that more capable decisions will be made to maximize revenue...based upon AI and data analytics. That's your future. The unsaid implications here is that hotels with a sub-par data and analytics approach will be left behind. Hospitality has become not just about the guest-facing product but also the hidden back-end of intelligent data capture and analysis. The top performers will effectively oscillate between analyzing the data and making clear improvements based on this analysis. The data-driven hotel GM As data and analytics move to the core of a hotel’s operation, general managers must evolve their skill sets to match. While operations will never cease to be a part of a hotel general managers role, success in this role is increasingly about the ability to enhance profitability by effectively translating data analytics into actionable initiatives. Currently, GMs have a steep learning curve to build muscle memory around analyzing large amounts of data from disparate sources. As machines become more capable of doing the analysis on their own, the best GMs will be able to take action on the analysis presented by the tools to increase profitability, Berkus predicts: A manager has to be able to add value by adding revenue and by increasing guest satisfaction. Those two things are not necessarily the operational things that a manager today normally concentrates on. Marketing also matters more to the GM of the future. As marketing campaigns become data-focused, GMs will engage more deeply with their marketing teams to leverage a data-driven approach to spend marketing dollars more efficiently. It's all about the relevant message consumed in the right context, as GMs seek to add value in new ways. Sourcing true pain points from sales and marketing Berkus is an active angel investor, and his recent announcement of Wayfare Ventures brings his focus to travel technology. When it comes to developing an idea, Berkus sees real value in entrepreneurs solving true pain points rather than perceived problems: I love it when somebody in marketing or sales develops a company and says “I feel the pain” and let's try and solve the need. As opposed to what I see most often, which is an engineer says I really got an idea and I'm going to make that idea work. The contrarian view is noteworthy in its opposition to the engineer-focused view espoused by many investors and technologists. Part of this view comes from the plummeting costs of cloud computing, as well as the prevalence of APIs which make it simpler to plug into an existing ecosystem without having to build as much technical infrastructure. Differentiation comes less from tech and more from truly knowing the problem and having clarity around what needs to be solved -- rather than building a technically-flawless solution that misses the mark and fails to gain traction because it doesn't solve an actual problem. An early-stage solution that solves a real problem for a specific segment sells itself and helps a startup gain traction at a lower cost. It’s expensive to convince people that a product solves a non-existent problem. Market trends poised for investment As far as trends in the market that have potential, Berkus points to artificial intelligence, robotics, and data analytics as three disruptive forces. However, things change fast. Apps are no longer the hot commodity they once were. Today’s opportunities are all about AI, robots, and data analytics. When evaluating the most exciting opportunities for investment, Berkus expands his view to encompass all of travel technology. This expanded view allows him to see opportunities from the interconnectedness of the travel and hospitality industries, which is a core part of the thesis at Wayfare Ventures. It all comes down to using modern technology to find new revenue that may not have been easy to uncover in the past. Whatever it be, there are opportunities now for revenue that weren't easily available in the past but are today. But the whole point is if guest satisfaction goes up and guests are able to do things they couldn't do before, like order a meal from text, then you're going to have better revenue and more satisfaction. Enjoy the full podcast episode here. Outside of the points covered above, Berkus shares the fascinating foundational story of the first property and yield management tools for hotels.
Last week Hotel Tech Report attended ITB to discover the most cutting edge innovations in travel and hotels. Each year thousands congregate at Messe Berlin to connect with peers, partners and clients from around the globe. Below are 5 key trends that every hotelier needs to know about this year. In this article we outline each trend, tell you how it impacts your hotel and give an overview of the companies that launched or showcased on trend products at ITB. For those of you who couldn't make it to Berlin we also cut a reel from the show so you can get the next best thing to being there. Check out Hotel Tech Report's official ITB Berlin 2019 Recap video above 5 key trends & takeaways from ITB 2019 1. Automation is going mainstream 2. Software tools are breaking down operational silos 3. Hotel software is moving towards self service 4. App marketplaces are soaring 5. Meeting venues are getting wired up Our take on automation in hotel software Automation allows for time consuming, tedious and repetitive processes to be handled completely by software. When a task or process reaches the limits of the software’s capability, the appropriate team member is looped in to take over which is a beautiful thing. Let’s face it, if you’ve ever worked in a hotel you know that there are dozens of repetitive tasks that seem like a computer should be able to handle and in many cases perform even better, and now they can. Automation frees up staff to focus on the things that those computers can’t handle like high level strategic thinking, trying new products and serving guests. Many hotels are still afraid that technology and the personal touch are conflicting ideas; however, innovative hotel groups are realizing that technology and automation actually enable them to focus on the personal aspects of experience in a way they couldn’t when they were bogged down with repetitive tasks. What's new in automation? IDeaS launches Investigator to let revenue managers uncover the rationale behind automated pricing decisions by asking Alexa. IDeaS announced Investigator, an intuitive way to answer your management's question: How did you achieve that price and those results? IDeaS G3 is the most popular RMS on the market and now clients can ask the system via Amazon Alexa to rationalize the decisions that it automates to provide transparency into the decision making process that is out of a revenue managers hands and handled by the systems powerful A.I. engines. Hotelchamp launches Autopilot to help hoteliers leverage web data and user behavior to deliver personalized web experiences to boost conversion. Hotelchamp announced Autopilot technology, which wants to transform how hotels approach their online guest bookings and experience. Autopilot uses AI to deliver an adaptive experience that is tailored to every single website visitor, and is completely GDPR compliant. Using an A.I. engine to identify customer segments and audiences, Hotelchamp Autopilot can automatically serve the best information for each guest. Autopilot has been trained using pre-populated content, insights from the Hotelchamp data science team, and millions of A/B test impressions. Using this knowledge and live insights from the hotel’s website, Autopilot recognises and personalizes the website experience in real-time to convince visitors to book direct. All Hotelchamp tools can now be controlled by Autopilot, meaning the system will only deploy the right tools at the right time to the right audience. This process happens in real-time and is entirely personalised to each individual website visitor and moment in the booking phase. Crave Scheduler enables hotels to send targeted automated messages generating $5,000/mo in late checkouts. With the amount of times mobile comes up in conversation and the media, you might think BYOD (bring your own device) is the only way to go but the reality is there are lots of occasions where hotels just simply don’t have the ability to get a guest’s contact info or get them to download an app. Crave Interactive has a unique, and near unavoidable, position in the guest’s periphery with its in room tablets that see upwards of 90% guest engagement. At ITB, Crave announced a new feature called Crave Scheduler that puts a unique spin on automation allowing hotels to set rules to send target messages to guests. One of the prime use cases that Crave customers have been taking full advantage of is timed late checkout offers which have seen upwards of $5,000 month in revenue at Crave hotel partners who received early access to the feature. UpsellGuru announced "Auto Pilot" which automates the entire up-selling process. Upsell Guru now sends targeted emails, calculates the dynamic minimum and maximum upgrade bidding prices, sets up the system to decide which offers to accept and when, updates the PMS - all fully automated not requiring human interaction. The new feature allows hotels to up-sell their rooms & ancillary services without moving a finger. This saves hotels plenty of time and allows them to use the system without having to log-in on a daily basis. They’re initial trial was successful with a British chain of 30 hotels where they achieve GBP 65,000 per month in up-selling revenue without any manual human work. Quicktext showcased its website chatbot to help guests find answers faster while unlocking $140,000 in requests per 100 rooms. With Quicktext, guests can book at your hotel through a conversation (on various channels like WhatsApp, Facebook Messenger, Website Live Chat and SMS), something that has been mainstream throughout Asia (specifically China) via WeChat but has been slower to catch up in the West. The most practical use of chatbots is on a hotel website where prospective guests often get lost looking for basic information. A chatbot can answer critical questions instantly like “how far is your hotel from the convention center?”, “what is the best way to get from the airport to the hotel on public transportation?” and “can we add a cot to our room?”. This helps shorten the time needed to research the hotel and in turn increases conversion into your booking engine flow. Humanise.AI had Gem on display boasting automation of 80% of inquiries. Humanise.AI announced automated web-chat for hotels ensures that guests get an immediate response most of the time, but can still summon a member of hotel staff when needed. When hotels use human-only web-chat systems, they often struggle to respond to enquiries quickly enough, meaning guests leave the web site before they get a reply. With Humanise’s Gem product, they claim to automate ~80% of enquiries, radically improving the guest service and improving conversion-ratios for direct bookings. SABA put its multilingual guest request and F&B ordering chatbot on display. SABA Hospitality Technology announced a bespoke and fully automated hospitality chatbot (SABAGuest Request). This multilingual chatbot and digital F&B ordering platform provides guests with a seamless communication experience, without the need for downloads. It provides operators the opportunity to eliminate language barriers, provide instant answers to all guest requests and enquiries, and engage with guests on their preferred communication platform: messaging. This allows for the redeployment of staff away from call centers and other low-value repetitive tasks, to engage in meaningful guest interactions that help build long-term guest loyalty. Our take on breaking down silos in hotel organizations It’s no secret that hotels have historically suffered from siloed organizational departments because historically without better communication tools and access to data, teams were essentially on an island in their own physical locations. Technology companies are starting to realize that their products and tools can help hoteliers to become more effective by aligning departments around common goals, systems and data. At ITB we saw a lot of this happening as evidenced by a shift where CRM companies are starting to focus heavily on the operational applications of their guest data where historically that data has just been used for marketing purposes. Who's breaking down operational silos? TravelClick weaves Demand360 data into its Campaign Advisor toolkit to leverage market intelligence data to optimize marketing campaigns fostering collaborative efforts between revenue and marketing. TravelClick announced the addition of Demand360 to the Campaign Advisor toolkit. Building on last year’s email send time optimizer, Campaign Advisor now allows hoteliers to take the guesswork out of marketing by providing them with recommendations on when to run marketing campaigns based on predictive occupancy in the market. Demand360 is the hospitality industry’s competitive market intelligence product providing forward-looking reservation metrics and competitive share by segment and channel. Hoteliers using TravelClick’s GMS and Demand360 products will have access to current and projected occupancy data versus competitive sets to best identify the most valuable time periods to run campaigns, allowing them to avoid offering discounts and packages during peak market occupancy and place campaigns when they need it most. A huge pain point for hoteliers is knowing when to send promotions and emails to customers, as hoteliers do not have a clear picture of how their future occupancy compares with their comp set. It’s hard to determine the most valuable time to run a campaign. The Campaign Advisor and Demand360 integration, which is proprietary to TravelClick, takes guesswork out of the equation and enables hoteliers to leverage market data to feel confident that they are choosing the best time to run campaigns and capture demand. Serenata CRM announced Decision Maker, a solution that combines business intelligence with campaign management. Serenata Intraware's Decision Maker allows different users groups like owners, management, operations and marketing to view the same data but from different perspectives to get an optimal view of the hotel operation, identify potential problems and take corrective actions. The Decision Maker KPI dashboard gives a high-level insight into revenue, OTA share, loyalty contribution and other key metrics and trends. Other dashboards give subject matter experts from operations and marketing the ability to drill-down and identify the root cause for a problem and based on this insight create marketing campaigns using micro-segmentation to mitigate the problem without changing tools or breaking the workflow. Cendyn announced eNgage which brings marketing’s CRM data and customer profiles to front line operations teams bringing the gap between marketing and operations. Cendyn's next generation product empowers front-line and call center staff to instantly access guest profiles including historical guest feedback, membership information, brand-wide stays, social profile information and more. Used in conjunction with Cendyn’s eInsight hotel CRM, eNgage sits on top of a hotel’s property management system or call center application and intelligently guides staff to create authentic, meaningful encounters and upsell offerings based on guest history, preferences and loyalty status. This lightweight application can be accessed on any device and features configurable messaging prompts and data displays. Like all Cendyn products, eNgage integrates seamlessly with other hotel systems, utilizing an open architecture that ensures the accuracy and completion of guest information for all team members at every touchpoint in the guest journey. Cendyn’s eNgage solution allows hoteliers to provide the right approach to personalization for guests throughout their stay. eNgage brings to life all the data that hotels are collecting on guests and it displays it in real-time through an application window that always sits on top of the hotel PMS. For staff on the front-line, access to data instantly is critical for them to manage their workload and allows them to navigate every situation elegantly with customer service and upselling, so guests feel known and valued, not overly monitored. Fornova expands its business intelligence offering to create a cross department interface for data insights. Fornova announced that they recently acquired HotelsBI, a hotel Business Intelligence platform. With this acquisition, Fornova now caters to all roles and departments in the property and chain. With this acquisition, Fornova now has three product offerings; Distribution Intelligence, HotelsBI & eCommerce Optimisation. HotelsBI simplifies the process of analysing internal and external data sources thanks to simple, intuitive dashboards - enabling faster, data-driven decisions to optimize hotel performance. Revinate’s CRM is now being used by front desk staff and showcased the scalability of its platform on newly AWS servers. This shift allows Revinate to scale more efficiently and ultimately open guest data to new departments. Revinate showcased the capabilities that get unlocked when front desk staff and managers can access CRM data. MeetingPackage.com brings revenue management and pricing optimization to your sales team. The Company announced a partnership with IDeaS revenue solutions to bring real time dynamic pricing to meeting venues. When paired with MeetingPackage’s online booking engine for event spaces, this is a truly groundbreaking development providing hoteliers with real time insights to optimize pricing and a seamless, intuitive, flexible and real time booking experience. Our take on self service software in the hotel industry This is one of the trends that we’re most excited about at Hotel Tech Report. Freemium and free trials are ubiquitous in the software world but it’s not until recently that it’s broken into the hotel market. The challenge historically with hotel software has been that you need to ingest data from core systems like the PMS to make any software work; therefore, it’s hard to offer a free trial or self service. As the hotel software market moves this direction we’ll continue to see exponential upticks in innovation and sophistication. Another key reason that hotels don’t like trying technology is because even if they like the solutions that they try - they’re so busy that they don’t want to add one more thing onto their teams’ respective plates. Long complex implementations have stifled innovation for years and lead to a massive trust gap between buyers and sellers. At ITB, Oaky cracked the code on this problem by launching it’s simple onboarding wizard which helps hotels go live in just a few simple steps. Who's helping you take things into your own hands? Oaky’s new self service onboarding lets hoteliers start upselling in under 5-minutes. Oaky announced an onboarding wizard which allows hoteliers to go live themselves, by completing a few steps. This reduce onboarding time and effort, and allow hotels to buy Oaky from marketplaces and go live without human touch. Inside the wizard they’re putting together many millions of upsell moments, and predicting the optimal upselling set-up based on the type of hotel and its guests. From combining variables around the upsell, with data around the guest and the property - they suggest the optimal setup for the hotel (what deals to sell, which content, and so on) which also predict how much conversion and ancillary revenue guests that have not yet booked will spend using this setup. In today's revenue management, the room rate is often based on the room and not taking predictable revenue from segments into account. This upsell variable can impact the distribution decision and help hotels better price their rooms. When the revenue management system knows the upsell spend of a guest from various booking channels, they can deduct the distribution costs and end up seeing how to price their rooms for a more profitable booking. Some segments spend 20% on top of the ADR, which makes sense for the hotel to 1) have an upsell setup that allows for that, and 2) an RM strategy that takes it into account to acquire more of those (more profitable) guests. Atomize’s self service functionality lets hoteliers try out automated revenue management on their own time. Atomize showcased its advanced revenue management platform that has flexibility that allows hotels to control as much or as little as they’d like when it comes to revenue strategy. Atomize’s mobile first platform has been designed from the ground up with the idea that hoteliers should be able to go live and try it out without ever speaking with an Atomize rep. The company’s founder, Leif Jaggerbrand told us that he’s had clients come in that his team has never met from countries he’s never heard of. This dynamic is widespread in the broader SaaS industry and companies like Atomize are bringing this dynamic to hotels. Cloudbeds’ PIE bakes new revenue management capabilities native into the PMS. Cloudbeds announced PIE - Pricing Intelligence Engine. PIE is built directly into Cloudbeds hospitality management suite. It is seamlessly integrated with the entire Cloudbeds suite, including PMS, booking engine and channel manager. This helps hoteliers and hosts who want one easy-to-system to manage everything. Many of Cloudbeds’ clients have never used revenue management software before so this provides a lightweight way for them to get started making better pricing decisions. Our take on hotel software app marketplaces Marketplaces are nothing new to the software industry. The reality is that it’s impossible for one technology company to be the best at everything. Historically the hotel tech industry has taken a different approach where incumbents have tried to bolt all functionality into the PMS and maintain a closed architecture but that is rapidly changing as hoteliers are increasingly unwilling to work with closed vendors and sub-par tools. In response to the shift most forward thinking providers are taking towards open architectures, several innovative cloud PMS companies have taken note from tech darlings like Salesforce, Intuit and Apple by creating marketplaces. These marketplaces facilitate seamless integrations and eventually the ability to easily try new products with the click of a button making it easier than ever to find the best tools to grow your hotel business. Cloudbeds, Mews, Hotelogix, protel and Apaleo were the latest entrants into the marketplace space each launching their own native marketplace baked into their PMS empowering hoteliers to easily tap into a plethora of best-of-breed tools to grow their businesses right from their PMS. eRevMax was the first non-PMS marketplace on the market and Snapshot was next but SiteMinder and more recently BookingSuite are clear favorites in the race to marketplace dominance. Hapi is also taking a unique and differentiated approach by building a marketplace that is solution agnostic. Hoteliers should note that none of these marketplaces have gained significant traction from a demand perspective so the field is wide open. While the idea has been around for some years we are still in the early innings. Two-sided marketplaces require supply and demand to develop but those rarely happen simultaneously. Each of the players below has focused on signing supply/tech partners lately so it will be interesting to see which is able to deliver the best user experience and actually change the way hotels interact with their software. Who's who in the rise of marketplaces Cloudbeds Marketplace. On top of announcing its native revenue management tool, PIE, Cloudbeds announced the official rollout of its marketplace offering enabling its 20,000+ hotel clients to access a variety of best-of-breed 3rd party tools to mix and match to find the perfect fit. Mews Marketplace. In a blaze of glory Mews Systems continued its streak of creative conference displays to showcase its marketplace with this year’s theme of Pimp Your PMS (a parody of MTV’s Pimp My Ride) and its booth was cleverly referred to as ‘The Pitstop’. In true Mews style, each team member was adorned head-to-toe in race car pitstop jumpsuits with patches for various apps that are integrated into their marketplace. Touche team Mews, touche... Hotelogix Marketplace. Hotelogix Marketplace launched at ITB and is a one-stop shop for all the hospitality technology needs of a hotelier. It helps hoteliers find and evaluate best-in-class Hotel Technology products on a single platform. Hapi. Hapi is taking a unique and differentiated approach by building a marketplace that is solution agnostic. Why is this important? By being solution agnostic, Hapi's marketplace is freed from the confines of being locked into a single PMS. In fact, Hapi offers technology partners (ie marketplace apps) a way to normalize fragmented and messy data into a streamlined and unified structure opening up the potential to integrate to multiple PMSs (as well as various other hotel systems). Their marketplace offering enables partners to gain exposure to hotels on the platform and enables hotels to tap into other available systems that are connected to Hapi. Although Hapi is a smaller marketplace with only about 30 partners currently, its connectivity to multiple solutions from companies like Oracle, Infor and Salesforce signals a great deal of potential. apaleo. apaleo announced its One connection, where data from all pre-connected tools within apaleo's store is available directly within apaleo’s property management system. No switching between browsers or systems. It happens all too often that hoteliers start off their work day organized, and then somehow within a matter of hours (or sometimes even minutes!), end up with dozens of browser tabs open and many systems running. Especially for front desk staff, it takes tons of clicks and searching around to find the info they need, when they need it. It isn't pleasant. With apaleo One, all the info that hoteliers need is visible within apaleo's PMS, saving staff time and creating a more seamless journey for guests. protel Services Marketplace (SMP). While not quite its first appearance, protel proudly featured its services marketplace at ITB showing off its shiney new native ratings and reviews (syndicated from yours truly) to help hoteliers research, vet and discover the best tools to grow their businesses without leaving the protel app store. Pretty awesome! From the protel team, “The SMP empowers protel customers to choose from a variety of certified and evaluated 3rd party technology vendors covering all the essential hospitality technology services, such as RMS, CRM, PMS and POS. In other words, it's THE App Store to start integration with protel. It's also the point of entry to integrations for any 3rd party vendor to showcase and offer their powerful services to our 14,000 customers around the globe.” The protel SMP marketplace features reviews from Hotel Tech Report to deliver transparency for its users BookingSuite App Store (by Booking.com). BookingSuite unveiled its app store for the first time where hoteliers can use single sign on (SSO) to activate new apps. Many hoteliers are naturally wary of relying more on Booking.com or giving them more data, but overall it is a clear strategic move by Booking to provide more value to hoteliers to mend their often shakey relationship. BookingSuite’s approach is similar to the way LinkedIn, Google, Amazon and Facebook allow users to login to 3rd party apps with their APIs. The difference between BookingSuite and these other tech giants is that they want to take commissions (into perpetuity) from technology vendors. The commission vendors pay in the BookingSuite App Store is 25% for year 1, then 15% into perpetuity. If you are a vendor with an average monthly revenue of $800 per hotel and a 7 year average customer lifetime that means you'll be paying Booking $2,400 in year 1 and $10,080 over the duration of the contract to acquire that single customer. In our opinion, this fee will eventually be passed to the end user (hoteliers) over time and is just another form of integration fee. Google and LinkedIn give away this service free to foster innovation and strengthen their respective platforms. So while BookingSuite’s tech is innovative we’re concerned about their commercialization model and understand why hotels and vendors might want to remain cautious. eRevMax. eRevMax rolled out updates to its LiveOS platform that allows its hotel clients to centralize the usage of various software applications into one interface using single sign-on. While the LiveOS platform was one of the first to offer a marketplace offering, they seem to have fallen behind the competition with a limited range of apps available but seems to be pushing forward continuing to try to continue to explore the potential of LiveOS as a central operating platform, that can plug in various systems to help hotels make critical and time saving decisions across multiple systems without having to piece the data together manually. Our take on wiring up meeting spaces for easy booking During November’s Phocuswright event Hotel Tech Report tried to book the rooftop of several hotels for a client event. In order to book the spaces we had to go to the hotel websites and fill out a form, then wait for responses from sales reps. Some websites didn’t even have a form so we had to manually email reps based on contact info from their website (that we had to dig around for). Out of the 5 desired locations which were some of the hottest hotels in downtown Los Angeles - not a single one responded within 24 hours and 1 didn’t respond to our inquiry at all. Then to make matters worse, by the time they responded the first question was ‘how much budget do you have to spend’. Needless to say, this was a pretty horrible customer experience so we decided to take our business elsewhere and avoided hotels all together for our event. Imagine if you had to write to a hotel to inquire about availability. Now imagine that when you wrote, the hotel wrote back asking “what’s your budget?” The idea is absurd. Hotel websites and OTAs have wired up the industry to make sure this would never happen again. It starts the relationship off with a bad taste for the customer and completely undermines the intended nature of a collaborative ally that a sales manager should be for any client but especially given that they are a prospect who intends to spend thousands of dollars to throw an event. Meetings and events contribute $325B of direct spending in the U.S. alone (source AmexGBT) - so it’s about time this highly profitable inventory got wired up. Who's laying the groundwork to wire up meeting venues? MeetingPackage.com brings channel management and a seamless booking experience to your meeting space inventory. Meeting Package’s Joonas Ahola Joonas also announced his firm’s launch of a meeting space channel manager which allows inventory and rates to syndicate not just on a hotel’s website but across a myriad of 3rd party channels that have popped up to help them find new demand to generate additional revenue . Meeting spaces today can be booked on platforms like AirBnB as well as on niche marketplaces like Breather, Bizly and VenueBook. Venuesuite launches demand side marketplace to help venues and planners work better together online. Announced its direct booking platform (or marketplace) that helps venues & planners work better together online. The platform significantly simplifies the RFP process and sourcing of venues. The time required to book a venue for a meeting/event is reduced from days to minutes. Both planners and venues. It enables planners to find venues fast, book instantly and configure meetings & events 24/7. For venues it generates more revenue via qualitative leads & higher conversion rates as prices are shown upfront to bookers. Within 10 months 1,000+ spaces available in The Netherlands via dedicated venue partners who've joined the new way of online (platform) working. Other notable product launches and showcases Business Intelligence Pegasus announced its Business Intelligence Platform. It's difficult, if almost impossible to transform raw data into actionable insights - it pains most hotel companies, particularly independents. Pegasus BI combines guest data from multiple sources and deliver it with automated intelligence and an easy-to-understand dashboard. Hoteliers can gain immediate insights that allow their properties to increase bookings, revenue, occupancy and profitability. Revenue Management RevControl announced rate recommendations calculated by room type separately. This announcement is specifically meant for hostels where the rate difference between private rooms and individual beds in a dormitory is huge and unrelated. It is now possible to use a separate set of business rules for each room/bed type and link each room/bed type to its exact match at hotels in de comp set to get individually calculated rate recommendations for each room/bed type. RateBoard announced revenue management modules for leisure hotels. RateBoard offers a special module for leisure hotels, taking historical holiday seasons from different countries, matching this data with the booking window of the different nations and optimizing the forecast due to this important factors. HotelPartner Yield Management announced the implementation of success-based billing models. The implementation of success-based billing models aligns incentives between HotelPartner and clients since they don't charge new partners without having achieved added value in regards to room revenue. This is an interesting and innovative approach - we're curious to see how it works as demonstrating uplift is a really difficult thing to prove given market fluctuations and the massive # of variables that can't be controlled. Marketing Travel Tripper announced Real Time Ads & Metasearch Direct. These tools help hotel marketers minimize costs and maximize RoAS on their digital marketing campaigns. Real Time Ads is the first digital marketing tool that allows hotels to advertise—in real time—their rates, availability, popularity and more right on their Google search ads, delivering double the conversion rates. With Metasearch Direct, Travel Tripper has helped hotels generate 38x their spend on metasearch with our direct connect to Google Hotel Ads. Their unique commission model means that independent hotels with smaller budgets can play on the metasearch channel without any risks—and for less cost than an OTA commission. Travel Tripper announced ADA Monitoring Platform. Many hotels in the U.S. are in constant risk of ADA compliance lawsuits simply because their websites are not accessibility friendly. Not only does the TT Web team offer full-service ADA audits on websites, but they also have built out an automated ADA monitoring platform that performs website checks in real time to ensure compliance. Hotel marketers are immediately notified whenever an element of their site falls out of the accessibility guidelines (for example, lack of alt tags, color contrast etc.) Serenata CRM & IgnitionOne launched a next generation CRM partnership that combines both historic guest information combined with real-time intent data. By tracking and scoring website visitors interests and propensity to convert hoteliers can tailor messaging, content and offers, both on the website and in the booking engine accordingly to this data. The scoring technology also supports new guest acquisition by identifying unknown website user that show high interest in a hotel property or a specific offering from the hotel. Based on the interest and score, the visitor can be prompted with personalized newsletter invite. This approach has proven to massively increase the number of newsletter signups, something necessary for many hotels after recent introductions of privacy regulations like GDPR that eliminated a large part of the hotels marketable profiles due to lack of marketing consents. The newly created newsletter subscription profiles are enriched with the interests and intent information from the IgnitionOne scoring engine monitoring the hotel website and can be used for marketing purpose complementing the historical data points already stored in Serenata CRM. With Serenata CRM and the real-time intent triggered personalization powered by IgntionOne you can deliver a true personalized experience for your guests and website visitors to drive incremental revenue. Integrator announcements HAPI announced it’s recent Salesforce integration following a 2-way oxy connect with Oracle’s PMS dailypoint™ - software made by Toedt, Dr. Selk & Coll. GmbH announced a data cleansing solution which allows hotels to automatically clean, correct, and de-duplicate their guest profiles and push that data back to the hotel’s PMS. The fully automated, AI-based process includes hundreds of steps, reviewing all key data points within the guest profile. It removes duplicate profiles, corrects mistakes made from human errors, corrects addresses for more than 240 countries and ultimately creates one single, accurate guest profile for each guest. This data is stored in the central data management solution by dailypoint™ as well as pushed to the hotel’s PMS so that data is accurate across all key sources. Operations Betterspace GmbH announced Smart Check-out feature with digital invoice and the Self-Ordering function, both for the digital guest directory iQ Tab.The Smart Check-Out enables guests to comfortably check out of the hotel and allows them to view and split their invoice digitally and receive it by e-mail. Thanks to this feature, long waiting lines at the reception desk are a thing of the past. Self-Ordering for the digital guest directory gives guests the opportunity to order food and drinks with the digital guest directory - without leaving the hotel room. Orders are sent directly to the hotel restaurant Both features simplify operational workflows, optimize processes and thus relieve staff and relax guests. This reduces administrative/bureaucratic efforts, saves time and money and the time saved can be devoted to what is important: hotel guests. Customer Alliance announced Customer Experience Hub extending their surveying capabilities from solely focused on post-stay reputation and review gathering into the full guest journey. The Customer Experience Hub allows hoteliers to customize automated messaging based on events through the guest journey to collect feedback and pipe it in real time to the department or team member who can act on it to recover fast, improve the guest experience and in-turn--improve review sentiment and gss scores. Travel Appeal announced Mobile Coach, a mobile app designed for on-the-go managers. By combining artificial intelligence with human experience, the Coach is able to detect even the most granular details from customer feedback. It’s the perfect solution for obtaining actionable insights about everything that really matters to a business. Review and operations management, made simple. The Coach app not only improves and simplifies business strategies, but helps users manage and respond directly to customer feedback - reviews, posts and photos published by customers are delivered directly to your mobile. Uncover what your clients really think to offer the best experience and maximize satisfaction. Live updates and a seamless user experience allow managers to track competitors and monitor brand reputation while also collaborating and assigning tasks to staff members. hotelkit GmbH announced a HOUSEKEEPING module. Their existing platform is used by over 40.000 hotel employees in more than 800 hotels worldwide. This new solution now focuses on all housekeeping needs and guarantees high-quality housekeeping standards through fully digitalized processes. Through an easy and modern paper-free task allocation, housekeeping processes are way more efficient. The workload can be distributed efficiently according to an employee's time and skill credits, thus, productivity is enhanced. Through digital checklists, quality standards are significantly high and the entire cleaning process can be monitored easily through real-time tracking. Smooth and efficient housekeeping routines are a crucial aspect in hotels, as cleanliness is particularly important when it comes to the guest decision making process. However, typical housekeeping processes within hotels are still highly inefficient. In order to be able to substantially increase guest satisfaction, hotelkit HOUSEKEEPING was developed together with several luxury hotels - among them the Sacher Hotel Vienna and Salzburg, and the Radisson Blu Hotel Hamburg Airport. As all processes are digitized, fast reactions, increased quality standards, and high guest satisfaction can be guaranteed! Knowcross announced PANIC BUTTON. Hospitality workers are subjected to an inordinate amount of sexual harassment and abuse, which is why as a technology provider we considered the introduction of Panic or Safety Buttons as our way of giving back to the industry. Panic buttons give hospitality workers the ability to summon assistance when needed. PANIC BUTTON helps hotels to provide a safer working environment by instant reporting of harassment complaints by hospitality workers by using technology such as GPS and Bluetooth. Guest Applications & Devices Criton announced multiple property group functionality which was piloted with London-based Cheval Residences became the first brand to adopt the new product. Created specifically for the hospitality sector, the new product gives accommodations providers with multiple properties a platform to include information on each one within a single parent app. With locations across the capital city, luxury serviced apartment specialist Cheval Residences are the first group to adopt the new technology with eight of their luxury properties contained within their new app. Group functionality is a game-changer for multi-property organizations like Cheval; enabling them to showcase the unique personality of each property while reinforcing their brand, increasing direct bookings and driving loyalty from new and repeat guests. GuestTraction announced online check-in to reduce queuing at Front Desk by moving check-in to pre-arrival. More than a third of guests polled (38%) indicated that a source of frustration was the front desk taking too long to complete requests.