Effective Strategies for Modern Hospitality Success
Discover key strategies for hotel success in 2024
Embrace digital change, sustainability, and guest-centric initiatives to increase revenue and stay competitive.
The hotel industry is changing as consumers evolve and technology continues to advance. That said, you need to have a winning hotel business strategy in the current environment. New data from the World Travel & Tourism Council (WTTC) indicates that global hotel sector is expected to grow 5.8% per year reaching in the coming decade; hotels will need to look ahead and evolve their businesses in response.
“New data indicates that the global hotel sector is expected to expand 5.8% per year reaching into this new decade; as such, hotels will need to look ahead and evolve their businesses in response.”
In order to survive in this competitive environment, hotels can start digital transformation, focus on sustainability and being customer centered. In this article, we will discuss the components of a contemporary hotel business strategy that focuses on modern guests with an emphasis on technology to better guest experiences,. We will also look into eco-friendly practices in accordance with today's environmentally-aware world and data-based approaches for personalizing services. By addressing these areas, hoteliers can position themselves to address the changing needs of travelers and adapt before changes sweep them out.
At Ampliro, we help your hotel succeed by offering leadership training, improving operations, embracing digital transformation, and adopting sustainable practices. Our tailored solutions ensure your team is prepared to provide excellent service, work efficiently, and meet the changing needs of today’s guests. Keep reading to discover why these strategies are crucial for staying ahead in the modern hospitality industry.
Accepting Digital Transformation
Mobile check-in is predicted to become even more popular in the near future.
Over the past few years, the hospitality sector has undergone significant change, with hotels leading the way in the integration of technology into their operations. According to McKinsey research, hotels may increase income by 10–30% by emphasizing guest communication personalization (Lemnisk, 2023).
Integration of smartphone apps and contactless check-in.
Interestingly, according to a Travel Boom survey, 81% of participants would be open to using the hotel's mobile application for check-in, given the prevalence of contactless check-in. This rises to 89% for the millennial generation (Jonas Chorum, 2023). Mobile apps have several advantages, such as exclusive deals, destination details, and the ability to book services and goods directly from the app.
“81% of participants would be open to using the hotel’s mobile application for check-in, with this figure rising to 89% among millennials.”
A branded mobile application with a function for digital keys for contactless arrival or mobile web check-in via the hotel's Property Management System (PMS) can also be used for contactless check-in. The branded mobile application has a special place in marketing throughout the guest's journey, even though mobility Web check-in is more frequently used (Jonas Chorum, 2023).
AI-Assisted Customization
Artificial Intelligence greatly facilitates the ability of hotels to provide customized experiences. By utilizing the data and behavior of the guest, algorithms such as AI are able to ascertain the guest's preferences and deliver communications, offers, and services that are tailored to the guest's requirements (Lemnisk, 2023). This degree of customization may result in:This degree of customization may result in:
Improved visitor experiences
Customized deals and incentives
Using statistics to help with decision-making.
Enhanced effectiveness of operations
Strategies for dynamic pricing
Campaigns for targeted marketing
Increase in revenue by cross- and up-selling.
With the help of AI chatbots, Marriott International has improved the visitor experience and increased brand loyalty by providing recommendations and assistance to guests during their stay (Lemnisk, 2023).
“Smart room” technology with IoT
The hospitality industry has seen a shift towards “smart hotels” thanks to IoT. These hotels use IoT to provide guests with the ability to control the atmosphere and amenities of their rooms using their mobile devices (LinkedIn, 2023).
Among other things, guests can change the lighting and temperature of a room with the help of IoT. This allows hotel staff to use the collected data to monitor and control facility management, resulting in a safe and comfortable stay for guests. It also leads to increased profitability and reduced environmental impact.
The use of mobile applications, artificial intelligence, contactless check-in, and Internet of Things technologies can help hotels improve the guest experience, increase profits, and take the lead in the industry.
Sustainability, A Strategy Not a Public Relations Stunt.
There is a growing need for green hotels.
There is presently an increased awareness on the sustainability factor in the hotel industry and many hotels have embraced measures to minimize the impacts on the environment and encourage guests to do the same. According to a TripAdvisor survey conducted in 2023, 62% of the respondents said they preferred the hotels that are eco-friendly and 69% of the respondents indicated that they would like to travel in a sustainable way in the future.
Sustainability can also be adopted by the hotels as a marketing tool in the sense that guests who are conscious of the environment will opt to choose those hotels that are environmentally conscious. If a hotel is considered sustainable it will not only help in improving the image of the hotel but also encourage guests to consider the environment.
So what factors does a hotel need to consider in order to improve its environmental footprint and what actions can be taken?
Energy Efficiency
Energy is of significant concern for hotels striving to be sustainable. Among the measures that can be taken in hotels to reduce the energy use include the following; occupancy control sensors, smart thermostats and lighting control system (Energy Star, 2023).
Marriott International was in 2006 able to cut cost by $6 million and reduce its greenhouse gas emissions by 70,000 tons. Marriott achieved these results by replacing 450,000 compact fluorescent lamps (CFLs) and the use of fiber optic and led lighting in the outdoor signs (Energy Star, 2023).
Waste Reduction
Another sustainability factor that is critical in the hotel industry is the management of and reduction of waste. Food is unfortunately often wasted in the hotel industry on a daily basis. Some of the possible control measures which hotels may put in place include food waste assessments, improvements in food handling and storage practices and food waste policies. This may assist hotels in minimizing the amount of food that is wasted (Green Business Benchmark, 2023).
There are also several other ways through which the hotels can minimize other wastes such as plastic waste. This can be achieved by providing filtered water to the visitors, using environmentally friendly packaging materials and eliminating the use of plastics that are used once (Cvent, 2023).
Green Features & Facilities
Hotels can also contribute to sustainable operations by providing the guests with “green services”. Examples of these can include the use of natural and organic cleaning products, as well as toiletries together with organic beddings (Cvent, 2023). There are also ways through which hotels can promote sustainable transport by providing charging points for electric cars and bikes. Another example is by providing shuttles to the nearest train and bus stations (Cvent, 2023).
Apart from assisting the hotels in minimizing their impacts on the environment, it can also help the hotels in cutting on costs such as on disposal of wastes and energy (Cvent, 2023). A sustainable image may improve the perception of the hotel, and help attract guests which consider it an important issue.
A Focus on the Customer
Strategies centered on the guest can increase guest revenue and loyalty
Success in the modern hotel industry cannot be achieved without adopting a customer focus. Hotels can create memorable experiences that encourage visitors to return by ensuring that their demands are recognized and addressed. According to McKinsey's research, hotels may raise income by 10–30% by using a customized strategy to the guests (Lemnisk, 2023).
“Hotels may raise income by 10–30% by using a customized strategy to the guests.”
Customized Visitor Experiences
This implies that a customer's experience visiting your company is a very crucial factor from which one cannot overlook. This allows hotels to compile a lot of information about the tastes and behavior of its visitors to customize offers, services, and messages they receive (Lemnisk, 2023). This degree of adaptation improves the experience of the guests as well as advocacy and loyalty.
Making decisions based on data
The ability of the customer-centric strategy to base judgments on data analysis is also crucial. By means of data from such sources as reservation systems, guest comments, social networks, etc., one may see possible chances for development and, hence, make informed decisions aiming at improving the efficiency of hotel operations and the experience of visitors. Data can be used, for example, to expose areas of weakness including staffing, energy and inventory control, therefore helping to lower costs and improve efficiency (Hospitality Net, 2023).
Initiatives in Creative Loyalty
Loyalty programs have also been found to be another element promoting customer-oriented strategy. Still, more and more people are realizing that traditional point-based systems do not really encourage true involvement. Since most of the consumers (74%) see points as a norm (Tronic, 2023), fresh solutions to the loyalty rewards become necessary. By means of gamification, smart wallets, and other partners, the hotels are using reward variety and creativity to provide exceptional and emotive experiences for the guests (Tronic, 2023).
Hotels can establish a culture of customer centricity which results in long-term profitability by offering guest centric service, basing choices on data, and developing original methods to honor visitors. In the very competitive hotel sector, this strategy not only raises customer satisfaction but also improves income, operational effectiveness, and brand image strengthening ability.
Conclusion
Today’s business environment especially the hospitality industry is rapidly growing and changing because of technological developments and changes in customers’ needs and wants. Those hotels which have achieved a competitive advantage by developing a strategy that encompasses digital, sustainability, and customer experience are in the best place to succeed in this environment. AI, IoT and mobile application can help hotels to provide a better experience to their guests, control the operational cost and increase their revenue. These innovations have a rather profound effect on the industry, as highly-targeted experiences may raise the revenues by 10-30%.
“AI, IoT, and mobile applications can help hotels provide a better guest experience, control operational costs, and increase revenue, with highly-targeted experiences potentially raising revenues by 10-30%.”
Both sustainability and customer focus are as important as the other in guaranteeing the success of the company in the long-run. Eco-friendly practices are beneficial for the environmentally sensitive tourists and at the same time help in cutting costs and enhancing the image of the company. Hotels should therefore focus on their guests and utilize data to offer services that will make the guests have memorable experiences that will make them come back to the hotels.
In this article we have shown evidences that changes in the environment in which the hotel industry operates are considerable, which means that in order to thrive, hoteliers have to modify their strategies in line with the requirements of the contemporary traveller, embrace innovation and sustainability.
That is why Ampliro assists hotels with the creation and execution of their business strategies in the current hospitality environment. Ampliro has the experience to help you use the power of digital, embrace the green agenda and design customer experiences that delivers success. In addition, Ampliro provides tailored “Insights” reports that are designed to meet your unique requirements as well as present detailed analysis and recommendations. Get in touch with Ampliro today to know how they can assist your business and ensure your hotel is successful in the highly competitive hospitality industry.
About the Author
Ampliro’s CEO, Andreas Olsson, helps hotels adopt digital transformation, sustainability, and guest-focused strategies. He supports businesses in navigating industry changes and achieving success.
References
Lemnisk, 2023. AI-Driven Personalization Benefits in Hospitality. Available at: https://www.lemnisk.co/blog/ai-driven-personalization-benefits-hospitality/
Jonas Chorum, 2023. Why the Time is Now for Your Hotel to Invest in a Contactless Guest Experience. Available at: https://jonaschorum.com/why-the-time-is-now-for-your-hotel-to-invest-in-a-contactless-guest-experience/
LinkedIn, 2023. The Rise of Smart Hotels: IoT Integration and Connectivity. Available at: https://www.linkedin.com/pulse/rise-smart-hotels-iot-integration-connectivity-hotech-softwares
Intellias, 2023. Internet of Things (IoT) in the Hospitality Industry. Available at: https://intellias.com/internet-of-things-iot-hospitality-industry/
Cvent, 2023. Eco-Friendly Hotel Ideas. Available at: https://www.cvent.com/en/blog/hospitality/eco-friendly-hotel-ideas
Energy Star, 2023. SPP Sales Flyer for Hospitality and Hotels. Available at: https://www.energystar.gov/sites/default/files/buildings/tools/SPP%20Sales%20Flyer%20for%20Hospitality%20and%20Hotels.pdf
Green Business Benchmark, 2023. Hotel Sustainability: Reduce Waste. Available at: https://www.greenbusinessbenchmark.com/archive/hotel-sustainability-reduce-waste
Hospitality Net, 2023. Opinion on Data-Driven Decision Making in Hospitality. Available at: https://www.hospitalitynet.org/opinion/4122160.html
Tronic, 2023. How Innovative Loyalty Programs are Reshaping Hospitality. Available at: https://tronic.app/resources/how-innovative-loyalty-programs-are-reshaping-hospitality
