Category: Technology

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Hospitality Labor Shortage: How Technology Is Filling the Gaps

The hospitality industry in 2025 continues to face a persistent labor shortage, impacting service quality, operational stability, and guest satisfaction. Despite a rebound in travel demand, hotels are struggling to recruit and retain enough skilled staff to meet operational needs. According to the American Hotel & Lodging Association (AHLA), while the industry has reinstated more than 467,000 direct jobs over the past four years, hotel employment remains nearly 10% below pre-pandemic levels. Understanding the root causes, the impact of seasonal peaks, and implementing effective management and technology strategies is crucial for hotels to thrive in this challenging environment.

Current State of Hospitality Labor in 2025

The numbers tell a compelling story about the ongoing labor crisis in hospitality:

  • 65% of surveyed hotels report staffing shortages as of early 2025, with 9% describing themselves as “severely understaffed”
  • 71% of hotels have job openings they cannot fill despite active recruitment efforts
  • On average, hotels are trying to fill 6-7 open positions per property
  • Housekeeping (38%) and front desk roles (26%) are the most difficult positions to fill, followed by culinary (14%) and maintenance roles (13%)
  • The industry has the highest quit rate of any sector, with 4% of workers leaving their jobs every month
  • In January 2024 alone, the industry lost 781,000 workers but hired 1.05 million new employees, indicating a constant cycle of replacement rather than growth

Hotel Staffs

 

Root Causes of the Hospitality Labor Shortage

The labor shortage in hospitality stems from multiple interconnected factors that have intensified since the pandemic:

Demographic Shifts and Changing Workforce Preferences

Younger generations are increasingly seeking flexible work arrangements and remote opportunities, making traditional hospitality roles less attractive. The industry’s reputation for demanding schedules, weekend and holiday work, and limited work-life balance has deterred many potential employees who prioritize flexibility and personal time.

Burnout and High Turnover

The hospitality industry has the highest quit rate of any sector, with 4% of workers leaving their jobs monthly. Long hours, physically demanding work, and high-stress environments contribute to burnout, especially when properties are understaffed. This creates a vicious cycle: shortages lead to overworked staff, which increases turnover, further exacerbating shortages.

Skills Gap and Training Challenges

From culinary expertise to guest service skills, hospitality requires specialized knowledge that takes time to develop. Many potential workers lack these skills, and training programs have not kept pace with industry needs. Additionally, the loss of experienced staff during the pandemic created a knowledge gap that continues to affect service quality and operational efficiency.

Economic Factors and Wage Competition

While hotels have increased wages (total compensation in U.S. hotels is expected to rise by 2.13% in 2025, reflecting a 25.6% increase compared to 2019), they still face fierce competition from other industries offering comparable or better pay with less demanding schedules. The national unemployment rate of 3.9% means competition for talent is intense across all sectors.

Seasonal Labor Shortage: The High Season Challenge

Seasonality adds another layer of complexity to the hospitality labor shortage. During peak travel periods-such as holidays, summer vacations, and major events-hotels must rapidly scale their workforce to meet surging demand.

The Seasonal Staffing Dilemma

Seasonal positions present unique challenges: they’re temporary, often offer limited benefits, and require quick onboarding and training. The rush to hire and train seasonal staff can lead to inconsistent service quality and high turnover. When hotels are understaffed during high season, guest satisfaction suffers due to longer wait times, service delays, and overworked employees who struggle to maintain service standards.

Effective Seasonal Workforce Planning

Forward-thinking hotels are addressing seasonal challenges through proactive workforce planning and forecasting. By analyzing historical data, occupancy rates, and event calendars, they can predict peak periods and develop targeted staffing strategies. Building relationships with educational institutions and creating a pool of returning seasonal talent helps ensure consistent service quality even during the busiest times.

Cross-Training for Flexibility

Cross-training employees across multiple roles and departments enhances flexibility during peak periods. With versatile skills, staff can be deployed where they’re needed most, optimizing the workforce and responding to changing demands. This approach not only addresses seasonal shortages but also provides employees with valuable learning opportunities and career development.

How Hotels Are Managing Labor in 2025

To address these challenges, hotels are implementing innovative approaches to recruitment, retention, and workforce management:

Competitive Compensation and Benefits

According to AHLA data, 47% of hotels report offering higher wages as their primary strategy for attracting and retaining workers. Beyond base pay, hotels are expanding benefits packages to include healthcare, retirement plans, educational assistance, and employee discounts. Some properties are also offering sign-on and retention bonuses to secure talent in critical roles.

Flexible Scheduling and Work-Life Balance

Approximately 20% of surveyed hotels are offering flexible working hours to attract and retain staff. This includes implementing more predictable schedules, allowing shift swapping, and creating part-time positions that accommodate personal commitments. By addressing work-life balance concerns, hotels can appeal to a broader talent pool, including students, parents, and semi-retired individuals.

Career Development and Internal Mobility

A strong majority (72%) of hoteliers believe that career opportunities in hospitality are better than ever or at the same levels since the pandemic. Leading hotels are investing in clear career pathways, mentorship programs, and professional development to retain talent for the long term. By showing employees a vision for growth within the organization, hotels can reduce turnover and build a more stable workforce.

Targeted Recruitment Strategies

Hotels are diversifying their recruitment approaches, with 9% participating in job fairs and advertising. Some are partnering with hospitality schools, offering internships, and creating apprenticeship programs to develop a pipeline of qualified candidates. Others are tapping into non-traditional labor pools, including retirees, veterans, and international workers, to fill critical roles.

Technology Solutions: AI, Automation, and Self-Service

Technology is playing a central role in helping hotels do more with less. In 2025, the adoption of smart hotel tech is accelerating, reducing dependency on manual labor and streamlining operations:

Self-Service Kiosks and Mobile Check-In

Self-service technology has become essential in addressing staffing shortages. Mobile check-in/out, digital room keys, and self-service operates 24/7, reducing front desk workload by up to 40%. According to industry data, nearly 80% of travelers now prefer fully automated front desks, and over half expect contactless check-in and checkout as a permanent feature.

AI-Powered Guest Communication

AI-driven chatbots and virtual assistants handle routine guest inquiries 24/7, reducing the burden on front desk staff. These systems can answer common questions, process service requests, and provide local recommendations without human intervention. Advanced AI solutions can even personalize responses based on guest history and preferences, enhancing the customer experience while optimizing staff resources.

Automated Housekeeping Management

With housekeeping being the most challenging department to staff (38% of hotels report shortages), automation tools are helping optimize cleaning operations. Smart room management systems prioritize rooms based on guest needs, track cleaning progress in real-time, and ensure quality standards are maintained. Some hotels are also investing in robotic vacuum cleaners and other automated cleaning equipment to support housekeeping teams.

Hotel Staff Holding Tablet

Workforce Management and Scheduling Software

AI-driven scheduling tools optimize staff deployment based on forecasted demand, employee preferences, and skill sets. These systems reduce labor costs by ensuring appropriate staffing levels while improving employee satisfaction through more predictable schedules. Mobile-friendly platforms allow staff to view schedules, swap shifts, and request time off from their smartphones, enhancing work-life balance.

Channel Management and Revenue Optimization

Automated distribution channel managers synchronize rates and inventory across all booking platforms, eliminating the need for manual updates and preventing overbookings. AI-powered revenue management systems analyze market data, competitor pricing, and demand patterns to optimize rates in real-time, maximizing revenue without requiring additional sales staff.

Read more: Vision 2030: Future-proofing Hospitality Businesses

Striking the Balance: Technology and the Human Touch

While automation and AI are helping hotels operate efficiently with fewer staff, the human element remains essential to hospitality. The most successful hotels in 2025 are those that use technology strategically to enhance rather than replace the guest experience:

Augmenting Staff Capabilities

Technology should empower staff to deliver exceptional service by handling routine tasks and providing real-time information. When front desk agents are freed from processing check-ins and answering basic questions, they can focus on creating memorable moments and solving complex guest issues that require human empathy and creativity.

Personalization Through Data

AI-driven systems collect and analyze guest preferences, enabling staff to deliver personalized experiences even with limited resources. From room setup to dining recommendations, data-informed service creates the impression of attentive, personalized care without requiring additional personnel.

Training and Upskilling for the Tech-Enhanced Workplace

As technology transforms hospitality roles, hotels must invest in training programs that help staff adapt to new tools and develop the skills needed in a tech-enhanced environment. This includes digital literacy, data interpretation, and soft skills that complement rather than compete with automation.

Looking Ahead: The Future of Hospitality Labor

The labor shortage in hospitality is likely to persist through 2025 and beyond, but hotels that adapt proactively will gain a competitive advantage. Industry experts predict several key developments:

Hybrid Staffing Models

Hotels will increasingly adopt hybrid staffing models that combine core full-time employees with flexible part-time staff, gig workers, and outsourced services. This approach provides the stability needed for consistent service while offering the flexibility to scale during peak periods.

AI Evolution from Experiment to Impact

According to Oracle’s insights in the AHLA report, AI will transition “from experiment to impact” in 2025, as hotels move beyond pilot programs to implement AI solutions that deliver measurable results in guest service and operational efficiency.

Emphasis on Employee Experience

As competition for talent intensifies, hotels will place greater emphasis on the employee experience, creating workplaces that offer not just competitive compensation but also purpose, community, and well-being. This holistic approach to talent management will be essential for attracting and retaining the workforce of the future.

Conclusion

The labor shortage in hospitality presents significant challenges, but it also creates opportunities for innovation and transformation. By understanding the root causes, addressing seasonal fluctuations, investing in staff development, and embracing technology, hotels can build resilient operations that deliver exceptional guest experiences even with limited resources.

The future belongs to hotels that can strike the right balance between efficiency and hospitality, using technology to handle routine tasks while empowering their people to create the human connections that are the heart of the industry. With thoughtful strategies and a commitment to both guest and employee experience, hotels can navigate the labor challenges of 2025 and position themselves for long-term success in an evolving landscape.

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cloud service concept

All you need to know about Property Management System

In today’s digital era for the hospitality and tourism industry, applying technology to management has become a decisive factor in the success of every accommodation business. This article will help you understand the PMS system, its roles, and its benefits in optimizing hotel business operations.

What is a Hotel PMS?

PMS or Property Management System is information management software that supports various hotel departments to optimize operations and business activities. In other words, the PMS acts as the “brain” of the hotel, connecting information and managing operations from the overall to the smallest details such as coordinating reservations, check-in and check-out, guest information management, billing, payments, and more. Moreover, the PMS can be customized to suit the scale and management needs of each hotel.

The Property Management System (PMS) is an integrated software solution that enables hotel owners to manage every aspect of their business, from reservations and guest information to services and financial reporting. This system serves as a central command center, connecting and synchronizing all activities to help accommodations operate smoothly and efficiently.

Types of Hotel PMS

There are currently two popular types of PMS: On-premise PMS and Cloud-based PMS:

  • On-premise PMS: An on-premise or server-based PMS stores data locally at the hotel. To use this system, you need an IT team to operate, maintain, and upgrade its functions. Additionally, it requires dedicated space for workstations, data centers, and backup storage devices.
  • Cloud-based PMS: A cloud-based PMS leverages cloud computing technology, is installed automatically, flexible, and can be accessed from any device connected to the internet. The advanced features of a cloud-based PMS help you save on IT operation costs and allow you to manage your hotel remotely with flexibility. With cloud technology, you can also easily expand your hotel’s scale at a lower cost compared to on-premise systems.

See more: Cloud vs On-premise PMS: Which is the optimal solution for hotels?

Additionally, there is a Hybrid cloud hotel PMS – a “hybrid” cloud solution that allows users to access via web browsers on various devices. Data can be stored locally or accessed remotely, though some features are only available on the main platform.

Core Functions of a PMS

A PMS system should provide the following functions:

Reservation Management

The PMS comprehensively manages the reservation process. You can easily track real-time bookings across multiple channels such as OTAs, direct bookings, and phone reservations. This feature helps avoid double bookings and optimizes your hotel’s room occupancy. With Central Reservation Systems (CRS), you can also manage room inventory, booking information, and revenue more easily.

Front Desk Management

PMS provides a comprehensive solution for the front desk, managing check-in/check-out processes, room assignment, room status tracking, and customer service. The system also allows for quick and easy key card creation, saving time for both staff and guests.

Housekeeping and Cleaning Service Management

PMS helps efficiently manage housekeeping tasks. You can assign tasks, track cleaning schedules, and control supplies such as linens and towels. Room status updates (cleaned, not cleaned, being cleaned) are done in real time, helping the front desk easily arrange rooms for guests.

Financial Management and Reporting

PMS provides diverse financial management tools, enabling multi-method payment processing, detailed tracking of revenues and expenses, and automatic, accurate invoicing. The system also aggregates revenue by various criteria, generates business reports and analytics, and helps management make data-driven decisions.

Benefits of a Hotel PMS

With the continuous expansion of hotel scale and service quality, hotels require efficient management solutions to increase competitiveness and enhance the guest experience. Using a PMS instead of manual management methods is the first step in this improvement.

  • Secured information and real-time updates for all departments
  • Reduces operational costs and time, allowing more focus on guests
  • Minimizes errors and losses caused by human factors
  • Quickly manages and coordinates tasks for departments like housekeeping, laundry, and maintenance with just a few simple steps
  • Easily tracks rates and room inventory from booking channels
  • Updates and stores guest information to enhance guest experience
  • Provides visual business performance reports

Resource Optimization

PMS automates many processes, reducing staff workload, saving time and operational costs. Instead of manual record-keeping and updates, staff can focus on better customer service and improving service quality.

Increased Accuracy

Manual data entry errors can severely impact hotel operations. With PMS, standardized processes help minimize errors and ensure service consistency, especially in reservation and payment management.

Enhanced Guest Experience

Using PMS, hotels can deliver faster and more accurate service. From quick check-in, meeting guest needs, to efficiently managing guest requests – all are handled smoothly. Guest information is stored, allowing staff to recognize and meet each guest’s individual needs, creating a sense of personalized care.

Centralized and Secure Data

One of the biggest benefits of PMS is the ability to centralize all data in a single system. Managing all information in one place makes it easy to check, analyze, and ensure guest data security. This not only prevents data fragmentation but also gives hotels a comprehensive view of their business activities.

Considerations When Choosing a PMS

Selecting a PMS depends on the scale and actual needs of the hotel, as different systems have their own core feature sets. Here are some questions to consider:

  • Do the system’s features fit and solve the hotel’s current problems?
  • Are the costs and operational expenses reasonable?
  • Is the interface user-friendly and easy to operate?
  • How is the system’s integration capability and security?
  • Is the provider reliable and do they offer sufficient customer support?

Assessing Hotel Needs

The first step in choosing the right PMS is thoroughly evaluating the actual needs of your property. Consider the hotel’s size (number of rooms), business type (hotel, resort, homestay), additional services (restaurant, spa), and investment budget. Each hotel has its own specifics, so the PMS solution should fit those needs.

Costs

When choosing a PMS, assess the total cost of ownership, not just the initial price. Consider implementation costs, subscription/license fees, staff training, and maintenance fees. Don’t choose software that doesn’t fit your needs just because it’s cheap or assume the most expensive is always best.

Interface and Features

A user-friendly and intuitive interface is crucial for staff to quickly adapt and use the software effectively. PMS should offer a variety of features to serve all hotel departments. The chosen software should be compatible in terms of interface and browser, either designed on the same platform or as an independent application.

Integration Capability

A good PMS should integrate with other software and tools the hotel uses, such as channel management, online booking engines, payment systems, restaurant management, and popular OTAs. This integration synchronizes data and optimizes workflows.

Provider

Choose a reputable PMS provider in the market, trusted by many hotels. A reliable provider will offer good technical support, thorough staff training, and regular software updates to meet the evolving needs of the hospitality industry. Opt for reputable names with strong capabilities like CiHMS to ensure responsibility and stability in your experience.

CiHMS – A Comprehensive PMS Solution for Hotels in Vietnam

CiHMS is a professional PMS solution designed to suit the specifics of the Vietnamese market. With a user-friendly interface and strong integration capabilities, CiHMS fully meets the management needs of accommodation businesses of all sizes.

CiHMS PMS Solution

Outstanding Features of CiHMS:

  • Multi-channel reservation management: Integrates with over 300 OTAs and booking channels
  • Comprehensive front desk and housekeeping management
  • Detailed data analysis and reporting system
  • Cloud solution saves initial investment costs
  • Intuitive, easy-to-use user interface
  • Multi-language and multi-currency support
  • Compliance with Vietnamese tax and e-invoice regulations
  • 24/7 Vietnamese technical support team

CiHMS Integrated Solutions:

CiHMS is not just hotel management software but also provides a comprehensive solution ecosystem, including:

  • Channel Manager connecting to OTAs
  • Booking Engine for hotel websites
  • Mobile apps for management and guests
  • Restaurant, spa, and service management systems
  • Intelligent data analysis and reporting tools

PMS Software Development Trends

Technology is constantly evolving, and PMS solutions are continually being improved to meet the increasing demands of the hospitality industry:

Artificial Intelligence (AI) Applications

AI is being integrated into PMS systems to enhance management efficiency. Applications include 24/7 customer support chatbots, algorithms predicting guest needs and behavior, and dynamic pricing systems based on market data analysis. AI automates repetitive processes and analyzes guest feedback to improve service.

See more: AI in the hospitality industry

Mobile PMS and Self-Service

The trend of mobility is popular in the hospitality industry, with PMS apps on mobile devices allowing staff to work flexibly. Automated check-in/check-out via kiosks or mobile apps lets guests self-serve basic needs, saving waiting time and improving experience. Currently, CiHMS supports management through both a Staff App and self-service via QR Service Center.

Enhanced Data Security

With large volumes of guest information, PMS systems are strengthening security to protect personal and payment data. Security measures include data encryption, multi-factor authentication, access control, and compliance with current data protection regulations.

Conclusion

PMS will be the system platform you use daily to operate your hotel. Depending on your scale, needs, and budget, choosing the right system is crucial and impacts your business. If you are considering a PMS solution for your business, let our experts help. Contact us today for free consultation and demo!

In the increasingly competitive hospitality industry, investing in a quality PMS system not only optimizes operations but also provides a significant competitive advantage. With tremendous benefits in efficiency, cost, and guest experience, PMS has become an indispensable tool for every modern accommodation provider. CiHMS, with its comprehensive solution tailored for the Vietnamese market, will be a reliable partner to help your business reach new heights.

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Reimagining Hospitality: How Hotel Owners Can Thrive In The Next Technological Revolution

In the rapidly evolving hospitality sector between 2025 and 2030, hotel owners face a whirlwind of technological advancements, shifting consumer preferences, and operational hurdles. Embracing these changes is no longer optional but is essential for staying competitive and ensuring sustainable growth. This blog post delves into the key challenges and opportunities that lie ahead, offering strategies and insights for navigating this transformative period, with a spotlight on how innovative solutions can pave the way to success.

The Changing Landscape of Hospitality

The hospitality industry is undergoing a seismic shift driven by technological disruptions, emerging accommodation models, and evolving guest expectations. Hotel owners must adapt to these changes to remain relevant and competitive. Innovation and strategic planning are now more critical than ever to thrive in this dynamic environment. The insights and strategies in this article are designed to help navigate these challenges and seize the opportunities that lie ahead.

Key Challenges and Disruptions

These challenges encompass new technologies (AI, automation), alternative lodging options (Airbnb, micro-hotels), workforce management issues, and the rising importance of sustainability. Addressing these disruptions requires a multifaceted approach that includes investing in technology, refining operational strategies, and enhancing guest experiences. Those who don’t adjust risk falling behind in a market characterized by heightened expectations and fierce competition.

The imperative of continuous adaptation in the face of evolving consumer behavior.

Adapting swiftly to changing consumer preferences is paramount for hotel owners aiming to thrive in the evolving hospitality landscape. Consumer behavior is dynamic, influenced by technological advancements, economic conditions, and evolving lifestyle trends. Hotel owners must develop strategies to anticipate and respond to these shifts effectively.

Leveraging Data Analytics for Behavioral Insights

Data analytics is an indispensable tool for understanding consumer behavior. By analyzing various data points, hotels can gain insights into guest preferences, booking patterns, and spending habits. This information enables hotels to tailor services, personalize experiences, and optimize pricing strategies to meet customer needs effectively.

Sources of Data
  • Online Booking Data: Analyzing booking patterns, lead times, and demographic information.
  • Guest Feedback: Monitoring reviews, surveys, and social media comments.
  • Website Analytics: Tracking user behavior on hotel websites, including page views, bounce rates, and conversion rates.
  • CRM Systems: Utilizing Customer Relationship Management (CRM) systems to collect and analyze customer interactions.

Enhancing Personalization Through Technology

Personalization is a key differentiator in today’s competitive hospitality market. Technology enables hotels to deliver customized experiences that resonate with individual guests. AI-powered recommendation engines can suggest personalized offers, while chatbots provide instant customer support. The more a hotel can cater to individual preferences, the higher the likelihood of repeat business and positive word-of-mouth.

Examples of Personalization
  • Customized Room Preferences: Offering preferred room types, amenities, and views.
  • Tailored Dining Recommendations: Suggesting restaurants and dishes based on dietary restrictions and preferences.
  • Personalized Activity Recommendations: Proposing local attractions and activities aligned with guest interests.
  • Loyalty Programs: Rewarding repeat guests with exclusive perks and discounts.

Embracing Flexibility in Service Offerings

Flexibility is crucial in meeting the diverse needs of today’s travelers. Hotels should be prepared to adapt their service offerings to accommodate changing demands. This includes offering flexible booking policies, customizable packages, and a range of accommodation options.

Strategies for Enhancing Flexibility
  • Flexible Booking Policies: Allowing guests to modify or cancel reservations without penalty.
  • Customizable Packages: Offering packages that can be tailored to individual preferences and budgets.
  • Diverse Accommodation Options: Providing a range of room types and configurations to suit different needs.
  • On-Demand Services: Offering services that can be accessed and customized based on guest requirements.

Technological Disruption in Hospitality

Technology is no longer a mere support function but a core driver of innovation and efficiency in the hospitality industry. From AI-driven guest experiences to smart property management solutions, technology is reshaping every aspect of hotel operations. Embracing these advancements can help hotel owners streamline processes, reduce costs, and elevate the guest experience to new heights.

Read more: Vision 2030: Future-proofing Hospitality Businesses

AI and Automation Trends

Artificial Intelligence (AI) and automation are revolutionizing the guest experience by adding touchpoints that personalize and streamline service like never before. According to “Hospitality Technology,” AI-driven guest services will define the next generation of service optimization that ensures efficiency and satisfaction.

AI-Driven Guest Experiences

AI-powered chatbots offer instant customer service, while personalized recommendations enhance guest satisfaction. Automated check-in systems reduce wait times, providing a seamless arrival experience. Such technologies not only improve guest satisfaction but also free up staff to focus on more complex tasks.

Automated Check-In and Personalization

Automated check-in kiosks and mobile check-in options are becoming increasingly popular, reducing lines and providing a convenient way for guests to start their stay. AI-driven personalization tailors recommendations for dining, activities, and amenities, enhancing the overall guest experience. According to “Skift,” over 60% of guests prefer hotels to leverage data to personalize their stay.

Predictive Maintenance and Operational Efficiency

AI also plays a crucial role in predictive maintenance, identifying potential equipment failures before they occur, saving time and money. This capability minimizes downtime and ensures that hotel operations run smoothly. It also allows hotel staff to address maintenance issues proactively.

Smart Property Management Solutions

Smart Property Management Solutions are redefining how hotels operate. Systems become pivotal in enabling hotel owners to manage their properties more efficiently, leveraging real-time data analytics to make informed decisions, and centralizing operational control.

Cloud-Based Systems

Cloud-based systems provide real-time data analytics and centralized operational control, making it easier for hotel staff to manage bookings, track inventory, and monitor performance. The system is designed for operational excellence, scalability, and customer satisfaction.

Real-Time Data Analytics

Features like “Dashboard & Analytics” allow hotels to collect information and help them leverage analytical data to gain information. This includes occupancy rates, revenue per available room (RevPAR), and guest feedback, which provide valuable metrics for making data-driven decisions. “Hotel Tech Report’s 2024 study,” highlights that hotels using data analytics tools saw a 15% increase in operational efficiency.

Centralized Operational Control

CiHMS offers centralized operational control that keeps all hotel functions, from front desk operations to housekeeping, connected and coordinated. This reduces errors, improves staff productivity, and creates a more seamless guest experience.

Mobile Accessibility for Staff

With mobile accessibility, staff and managers can access critical information and perform tasks from anywhere, ensuring quick responses. Features like “Mobile App,” support all employee actions with convenience from any mobile device, which enhance responsiveness and productivity.

The Rise of Alternative Accommodation Models

The surge in popularity of alternative lodging such as AirBnB and other unique forms of accommodation creates both challenge and opportunity for those in the hospitality industry. To compete effectively, traditional hotels must innovate and adapt.

AirBnB and Sharing Economy Impact

According to a recent report by “STR,” Airbnb has achieved significant traction, impacting traditional hotels by cornering around 10-12% of the overall accommodation which presents a significant challenge that cannot be ignored. To counter this, traditional hotels can learn to offer their brand of personalization, curated experiences, and other value-added amenities.

Competitive Strategies for Traditional Hotels

Traditional hotels can compete by emphasizing personalized service, loyalty programs, and unique amenities. Hotels can also attract travelers seeking a more secure and reliable experience by highlighting their professional standards. Adding value through unique experiences (e.g., wine tasting events, local excursions) can also help differentiate from Airbnb offerings.

Hybrid Accommodation Models

Hybrid accommodation models blend the best features of hotels and alternative lodging. Boutique hotels with apartment-style rooms or extended-stay options cater to guests seeking flexibility and convenience. By integrating self-service options with traditional hotel amenities, hybrid models can meet a broad range of guest preferences.

Diversification of Hospitality Offerings

Diversifying hospitality offerings beyond traditional rooms can also draw in more customers. Hotels can consider incorporating co-working spaces, cooking classes, or wellness retreats to create a more holistic guest journey. According to “Forbes,” diversification into lifestyle and experiential offerings increases customer loyalty by up to 30%.

Emerging Staying Concepts

Several new staying concepts, such as micro-hotels and workation spaces, are emerging to cater to specific needs and preferences.

Micro-Hotels

Micro-hotels offer compact, stylish accommodations in urban areas, providing affordable options for budget-conscious travelers. By focusing on essential amenities and efficient use of space, these hotels can offer cost-effective stays without sacrificing comfort.

Workation Spaces

Workation spaces combine accommodation with co-working facilities, appealing to remote workers and digital nomads. Hotels can create dedicated work areas, offer high-speed internet, and ensure a conducive environment for productivity. “Global Workplace Analytics” reports a 35% increase in remote work, driving the demand for workation spaces.

Sustainable and Eco-Friendly Accommodations

With growing environmental consciousness, sustainable and eco-friendly accommodations are gaining traction. Hotels can implement green practices such as energy-efficient lighting, water conservation measures, and waste reduction programs, attracting environmentally conscious travelers. “Booking.com’s Sustainable Travel Report 2024″ indicates that 73% of travelers are more likely to choose accommodations with sustainability certifications.

Workforce Challenges and Solutions

Staff shortages are a significant challenge in the hospitality industry. Implementing technology can streamline human resource processes such as finding, onboarding, and training associates for various hotel functions.

Staff Shortage Mitigation

Technology is an important tool during low employment rates because technology can help businesses be at their most productive to keep operations flowing.

Technological Recruitment Tools

“Indeed,” for example, provides robust hiring and onboarding tools that give comprehensive options for hotel and resort owners to access during critical staff shortages. It also helps hotel owners widen applicant reach with online job postings.

Training and Upskilling Programs

“Coursera,” and similar platforms provide comprehensive training and upskilling programs that give hotel and resort owners access to a wider talent pool of potential associates.

Remote Workforce Management

Cloud-based systems offer “Mobile App” capabilities that allow for automated task allocation for both on-site and off-site staff, ensuring better overall work output.

Automated Task Allocation

Tools allow for streamlined automation of operations that alleviate some of the workloads on hotel staff. They are designed to delegate functions that require less critical thinking to be assigned to the machine, and those tasks that require careful consideration to experienced staff teams.

Digital Ecosystem and Guest Experience

The digital ecosystem is revolutionizing the guest experience. Interconnecting travel platforms and personalization technologies are now more important than ever.

Interconnected Travel Platforms

According to “Phocuswright,” seamless booking experiences and integrated travel services are key to attracting and retaining guests.

Seamless Booking Experiences

Platforms that are interconnected provide real time data to give hotel and resort customers information on bookings and sales.

Multi-Channel Reservation Systems

Also, those platforms that provide Multi-Channel Reservation System is paramount. Booking.com and platforms provide these integrations.

Integrated Travel Services

With the right PMS system you have to be able to create integrated travel services.

Personalization Technologies

Providing personalization tech that is helpful also sets the stage for continued sales and patronage. As reported by “Accenture,” 75% of consumers are more likely to purchase from a brand that recognizes them by name and recommends options based on past purchases.

AI-Powered Recommendation Engines

Being able to provide personal recommendation to your potential and recurring client set the stage for a long lasting business relationship.

Customized Guest Journey Mapping

As reported by “Salesforce,” 63% of travel customers will choose a company that will give them options that are more personalized.

Predictive Service Delivery

With hotel tech, you also have to be able to predict which is the most likely service or product a guest would want.

Sustainability and Eco-Innovation

In today’s environmentally conscious world, sustainability and eco-innovation are gaining prominence that can impact customer choice and customer loyalty.

Green Technology in Hospitality

Guests are increasingly turning towards eco-friendly service. Hotels that do not show their commitment to the environment are losing out on potential earnings.

Energy-Efficient Solutions

“The U.S. Energy Information Administration (EIA),” indicated that in 2023 roughly 4 petrillion BTU’s of energy was consumed by commercial establishments in the United States alone. The cost of energy production is high, switching to more energy efficient solutions saves money and the environment.

Carbon Footprint Reduction

The best step involves taking the step is to reduce your businesses carbon footprint. Finding sustainable operations gives hotel/resort owners a chance to lead by example.

Sustainable Design Principles

Having a building or series of buildings that represent Sustainable Design should also be strongly considered for hotel/resort owners. It adds value by attracting a certain niche audience that may bring with them additional exposure of the hotel/resort owner’s business.

Eco-Conscious Guest Preferences

With growing environmental awareness, the focus on client eco-consciousness rises among consumers.

Sustainable Accommodation Trends

Data from “Statista,” show increased consumer interest in staying at an sustainable hotel in 2024. Hotel and resort brand must keep up with trends.

Environmental Certification Importance

Hotel/Resort brands should seek environmental certifications to ensure they meet baseline sustainable accommodations.

Green Marketing Strategies

Brands should market their eco-friendly policies and services that speak to the values of their target audience.

Economic and Market Adaptation

To keep up with changing consumer behavior as well as the external forces that contribute, Economic and Market Adaptation is a must.

Dynamic Pricing Strategies

“Revenue Management Labs” and others suggest that embracing dynamic pricing during these economic times may positively boost their performance.

AI-Driven Rate Optimization

If you can offer promotions during certain times of the year, it will give you a competitive edge against other hotels and resorts.

Real-Time Market Response

Real-time data allows you to view what’s going on as trends change throughout the year. You can make the proper adjustments as the year progresses.

Revenue Management Technologies

You must maximize the value of all forms of communication channels you have at your business to stay top-of-mind with your clients. It includes digital marketing, social media posting, etc.

Risk Mitigation and Resilience

Mitigating risk may mean having flexibility in your business and adjusting. This becomes a competitive advantage as the hospitality space becomes increasingly saturated.

Flexible Booking Policies

Flexible Policies can give hotel/resort brands an advantage over rigid policies set in stone.

Crisis Management Technologies

It is key to have crisis management plans in place to be able to weather through the storm.

Diversification of Revenue Streams

It is important to maximize other means of earnings for your hotel/resort such that you can reach your business goals.

Conclusion

The hospitality industry between 2025 and 2030 presents both formidable challenges and exciting opportunities for hotel owners. By embracing technological transformation, hotel owners can significantly improve operational efficiency, enhance guest experiences, and drive revenue growth. Those hotels that make key adjustments will not only weather current market dynamics but will become adaptive in a changing, globalized community.

Embracing Technological Transformation

The adoption of smart, cloud-based property management solutions will be fundamental to remain competitive. This system provides real-time analytics, mobile accessibility, and centralized operational control.

Importance of Adaptability

Adaptability is vital for long-term success. Hotels that seek to accommodate diverse client experiences will be the most productive.

Future-Proofing Hospitality Businesses

By prioritizing technological innovation, hotels and resorts can provide enhanced services for guests, allowing their business to operate more efficiently, and generate a better overall customer experience.

Closing Thoughts: Preparing for the Next Hospitality Frontier

Preparing for the future requires staying informed about the newest technological trends and making key adjustments such as staff and hotel innovation. This ensures that hotels will be sustainable, productive, and also innovative in the decades to come. By taking the necessary steps, hotel owners and operators can ensure success in the coming decade.

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Pre-check-in: Skip the queue

The technology revolution had allowed the hospitality industry to evolve and transform completely from their traditional operation model into a personalized seamless customer-oriented experience, starting right when the customer journey begins. The epidemic has sped up the implementation process as well as the intervention of customers’ acceptance, opening a new chapter of the contactless era in hospitality.

Pre-check-in gives guests in flexibility in the check-in process.

Pre-check-in allows hotels to comply with strict COVID-19 regulations on distances and hygiene while making customers feel safe and secure.

How does pre-check-in actually work? Why isn’t pre-check-in frequently offered enough? Are you planning to introduce this technology to your property? Let’s cut the queue and dive down into what this technology is really made of.

The ultimate guide to hotel pre-check-in

Hotel Pre-check-in, what is it?

Pre-check-in allows the hotel guests to proceed with their check-in process on their mobile devices prior to their arrival. Hotels usually activate the pre-check-in functionality on their app 24 hours ahead.

Guests can automatically proceed online check-in anywhere anytime 24hrs before the check-in time.

Hotels can activate pre-check-in functionality on their app 24hrs ahead.

Pre-check-in is the latest feature developed for our CiHMS Guest App, a part of our CiHMS PMS. We specially designed this functionality to simplify the checking-in process for staff while offering guests the flexibility to handle the check-in in whichever way they indulge.

Guests have to fill in their contact details, their reservation information and provide personal identification documents. A full-face selfie can be mandatory for verification, it automatically syncs this data to the guest profile on the hotel’s database and enables guests’ facial recognition as soon as they arrive at the lobby.

Depending on the hotel’s preferences and policies, guests can also select the desired vacant hotel room, early check-in or late check-out request, luggage storage payment, other added-value hotel packages such as spas, meals, city tours, etc.

Once completing the check-in procedure, guests may receive their room’s number and digital room key right on their app’s confirmation screen, or choose to pick up their room key physical card at the front desks. Many hotels prefer not to offer guests room numbers until they physically make it to the lobby, in order to give flexibility to their rooms’ allotments.

What are the benefits of pre-check-in?

Your guests just love it

A Data-Driven Look at Hospitality’s Recovery in 2020 report had shown 71% of consumers are more likely to stay in a hotel offering self-service tech. Imagine after the long commute to your destination, the last thing you would want to do is get in line and do all the paperwork onsite. Not ideal for anyone in particular. Say goodbye to the long busy waiting queue at the front desk, get instant access to the hotel room upon arrival. It’s definitely convenient.

Quick online check-in is available for guests to proceed the procedures flexibly.

Online check-in gives guests the freedom and comfort of checking in at their own pace.

Hotel staff adores it

The pre-check-in reduces the administrative workload for the front desk staff tremendously, much faster with group pre-check-in. A pre-check-in functionality integrated into your hotel PMS, like CiHMS deliver reliable automation, smooth synchronization, and alleviate labor shortage issue with delightful traveler’s experiences. Guests are asked to provide their expected arrival time, which allows hotels to better plan and allocate hotel staff’s availability to welcome guests.

Improving customer relationship

As the pre-check-in has done the majority of the work, like collecting guests’ ID, contact details, booking information, etc., your staff can focus on connecting with the customers at a much higher level, taking time to actually understand their personal needs and expectations, overall, better cater to your guests with exceptional comfort.

A great way to upsell or cross-sell

Guests might be skeptical during the booking process where they often compare prices, features, hotel services before making the final decision. However, they are most inclined to purchase a room upgrade, spa treatments, city tours, pick-up service, set meals closer to their arrival date. The decision-making can proceed much faster at home rather than at the busy front desk.

Social distancing compliance boosts guest confidence

Pre-check-in is the perfect solution to keep your hotel in check with the social distancing regulations. It limits physical person-to-person interaction to a minimum, making guests feel safe and secure. Hotels might integrate contactless/cashless payment or facial recognition technology to take this up a notch. With a cloud-based hospitality management solution like CiHMS, this can easily be done.

Thanks to pre-check-in feature, hotel app can proceed cashless payment right on the platform easily and comfortably.

With Pre-check-in, guests may proceed cashless payment with facial recognition technology integrated right on the hotel app.

Any disadvantages to putting into reconsideration

Less human contact and interaction

While the advantage of pre-check-in is allowing guests to feel safe and secure by avoiding physical contact with hotel staff altogether, it can’t help create the invisible untouchable personal bubble surrounding guests throughout their stays. For business travelers, things can be tough as they have been used to communicating and exchanging stories with hotel employees on their trips in the past. Many would prefer the traditional check-in process, as they truly enjoy human interaction.

Unstable internet connection

Similar to any hospitality contactless technology, it is required to have sufficient good quality internet coverage across your properties. Otherwise, the cloud computing hospitality management solution won’t be synchronized and unable to work properly. Making sure no internet disruption and an outage is significantly important in implementing pre-check-in technology.

New software investment and comprehensive training for the front desk

Your current hospitality management might not offer pre-check-in functionality, merely because they haven’t started with the development yet. Looking out for a new pre-check-in software installation might be messy, expensive, and simply insufficient for your current hotel operations at the moment. Leveraging whether this upgraded feature is worth the process.

Should you or should you not?

Pre-arrival is an essential touchpoint in the customers’ journey. It happens to be the first impression guests have of your hotel even before they get there. Offering guests, a pre-check-in service shows your efforts and intentions in delivering complete customer satisfaction and tapping in personalized customers’ experiences proactively.

Hospitality is known for its competitiveness, if you fail to keep up with the comparable competitors in the area offering the latest technology there is, most likely, your guests will choose them over you in a heartbeat. Being a highly customer-centric industry, adopting innovative technologies to deliver experiences that your customers are happy with, as their demands grow.

It might surprise you how easy it is to get started with pre-check-in. There is a wide range of hospitality management solutions offering this feature as an added feature in their system. Ask your hotel PMS providers for this option, or contact our team to book a demo to discover the possibilities of contactless pre-check-in for your hotels.

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Smart technology – The key to hotel recovery 2022

The novelty of technological innovations has become a necessity in hotel operations and shaping the new normal in hospitality. Incorporating advanced technology to strengthen customer confidence while safeguarding employees’ health and mitigating losses during this recovery stage. Smart hotel technology empowers hotel operations in navigating the uncertain turbulence of the year 2022 and beyond. Let’s look at a few possibilities in how smart technology adaptation matters:

Smart technology empowers hotel operations to advance.

Smart technology empowers hotel operations to advance.

Contactless experiences all the way

The post-pandemic effects have reshaped hospitality and heightened customer expectations to the extent that the “same old days” experience might not cut it for them. Especially post COVID-19 pandemic has multiplied the difficulties in the hotel sector, leaving the hospitality professionals with questions about how to upgrade their technology stacks while dealing with the current crisis.

Contactless technology has firstly introduced a decade ago it’s nothing new, just staying low-key all this time. The emerging technology has recently gained momentum in both the public and private sectors and is widely accepted in hospitality and tourism. Transforming the hospitality standard into a complete contactless experience from check-in/to check-out, ordering food and room services on the guest app, facial recognition payment, etc. to execute all relevant tasks without physical contact with hotel employees, reducing the risk of exposure to undesirable infection in this “sensitive” era.

According to Skift’s report, 26% of customers extremely agreed and 45% favorably agreed that they preferred to stay at hotels providing self-service options to avoid direct physical contact with hotel staff. This opened up the customers’ acceptance of the technology adaption in the hotel sector.

Up to 80% would download the hotel app to proceed with check-in / check-out and receive the latest promotional information and notifications (based on the Criton Hospitality Survey). The majority of guests (62%) have been looking forward to using digital hotel room keys and communicating/ordering room services, and housekeeping through the hotel apps, while 30% would love to proceed with them on the hotel website, and 8% would carry these out the traditional way.

The above statistics have spoken for themselves on the important role of smart technology in today’s hotels’ operations. It gradually has become the business core value, essential criteria for guest accommodation choice. This might be the hotel management software to help optimize the hotel’s operations with ease. With CiHMS – the complete hospitality management solution, streamline hotel procedures from the front desk to housekeeping, monitor individual tasks right at your dashboard within your fingertip, and improve your guest’s experiences simultaneously at their very first stay.

Hotel apps are within their fingertip.

Contactless experience throughout a typical guest journey at a hotel is now possible.

Better guest communication

Generating all guests’ data, including guest preferences, habits, purchased packages, etc., storing them on your system for further analysis. For instance, guest A always orders an extra pillow for his sleep comfort, guest B loves a king-size bed instead of a queen, etc. In their next stay, offer these adjustments ahead.

Personalizing guests’ experience shows that your hotel “do care” about your customer, you remember them perfectly, and always looking forward to welcoming them back. Giving them a sense of familiarity, hospitality, and empathy. It gives your employees the confidence to communicate with guests openly on a much more personal level.

Communication goes both ways. Two-way communication involves receiving feedback from your customers as well. According to Zingle, only 25% of customers would submit feedback only if their experiences have been affected negatively, only 42% would come back to give hotels the second chance to make up for their previous worst experience. How to get it done fairly comfortable for your guests to freely send out constructive feedback in time and retent your customer without losing them forever?

The digital world has come in as a rescuer for such circumstances. We all can easily find a deliberate version of ourselves online. Taking the advantage of social media messenger integration via Open API, communication to your guests through one of these tools can easily be applied, an open communication gateway for your guests to share their difficulties and unfortunate occurrence with you immediately. From there, quick actions and crisis resolution can help to put all your guests’ problems behind, exceed their expectations, and ensure to meet your guests’ satisfaction before they leave.  Add in a touch of VR (Virtual Reality) and AR (Augmented Reality) technology to differentiate your hotel marketing and improve guests’ experience during their stay.

AR Technology in hospitality to heighten customers experience

VR and AR Technology in hospitality to heighten customers’ experience

Unlocking your employees’ full potential

Technology does not only close the gap between guests and hotels but is also a middle man bridging the void among hotel departments, making sure all procedures are in check and intact. The hospitality management solution allows hoteliers to monitor hotel operations easily, hotel room status is synchronized across the system. Instead of the traditional phone call to get the status updated, now can be seen directly on the CiHMS dashboard, helping to streamline and speed up all departments’ processes smoothly, and kick up hotel employees’ performance up a notch.

Also cutting down the excessive timeline in doing these manually. Taking the time in delivering exceptional customer service, and shift the focus on the guests – is an important factor in the hospitality industry.

The backbone hotel’s development platform

A direct booking portal via the hotel’s website or through OTAs distribution channels increases brands’ awareness, making your brand “discoverable” while approaching your target audiences naturally. These technological tools assist your hotel in better maximizing your hotel room occupancy and avoiding the under/over-booking common situation.

The detailed reports with real-time statistics allow hotel managers to make strategic decisions at the right time. AI technology also powers up precise allotment planning and forecast room plans to ensure revenue stabilizing throughout the low-peak periods. Keep hotels stay proactive instead of “inactively” reacting to the overload high peak season.

AI technology in hospitality has always played such important role in the industry.

AI technology has developed rapidly in assisting hotels to forecast hotel room occupancy, allocate labor force efficiently, and build hotel big data to serve hotel operations.

Undeniably, the power of technology has catalyzed hotel operations to breakthroughs and advance along the side. Catching up with the current technology innovations might be challenging but blissful in return with all the benefits and conveniences it brings along. Utilizing technology in hotel operations with a decent hospitality management solution, like CiHMS is the key to starting their hotel recovery in this new normal post-COVID-19 pandemic at a much faster pace, gaining a competitive advantage against other competitors.

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AI Applications in the hospitality

If we have briefly talked about AI technology in hospitality in the previous blog, in today’s blog we shall be digging a bit deeper into how AI application in the hospitality industry and its potential to manage hotel operations efficiently.

Robots in the move

The majority of robots in use today are performing human tasks precisely, especially after the pandemic outbreaks to reduce unnecessary physical contact to a minimum and ensure guests stay safe and secured while keeping the current labor force at bay. Vietnam has only applied robotic technology to the manufacturing industry and is skeptical of the service industry, plus the initial upfront investment in robotic technology ain’t nowhere near affordable. Hence, putting robots into your business daily practice eventually gains competitive advantages over your competitors. Guests shall be curious enough to find the need in visiting your hotels and try out your services, boosting your revenues and profits tremendously.

Having robots at your hotel is the biggest step-up to your competitors in attarcting customers' attention and curiosity.

The applications of AI can be seen in hospitality easily through having robots serving in public areas, delivery services, etc.

In-room voice assistant

We all might have been familiar with voice recognition technology such as Siri, Google Assistant, or Alexa – the virtual assistants developed by Amazon, which have been making life at home a lot more comfortable: from browsing the web, weather, checking the time, setting timers, turning on TVs, changing the light brightness level to just about anything you can imagine. Bringing voice assistance technology into the hotel room to enhance guest in-room experiences significantly.

According to a recent study from Juniper Research, it shows 8.4 billion mobile users shall be interacting with the virtual voice assistant in the year 2024. This technology plays an important role in connecting hotel employees with their guests. Simply input their requests via the in-room virtual assistant integrated equipment. Thanks to AI technology, these virtual assistants can communicate and confirm guests’ requests before filing them onto the system to get them to queue up.

Once successfully filing these requests, the virtual assistant shall be following through with a set of procedures given by the hospitality management solution, like CiHMS. The request then gets filtered and direct to the related department to be carried out promptly. It cuts down the human labors time in delegating tasks, communications, and more. You’ll be surprised how easily these tasks get sorted out.

Virutal Assistant has become the new norm at many households, Bringing the same experience at home into hotel room shall help them settling in faster.

Bringing virtual voice assistant experience into hospitality makes guests to settling in easier in a much more comfortable way.

Room occupancy maximization

Thanks to the support of AI technology, the room rate, and room management can easily be solved, such as Insufficient room inventories and unable to optimize room occupancy to an optimum rate due to an overhauled reservation system. With machine-learning ability, AI can help hotels to be in control of targeting the ideal audiences, arrange the room reservations adequately, limit the time gap between two bookings of the same room, and lower the risk of having an empty room stand-by. Mobile friendly allows housekeeping staff to attend to room service requests quickly as soon as the guests are checking out, and update the room status simultaneously across the system easily with the cloud-based hospitality management solution, like CiHMS.

Optimize room rate and room occupancy forecast

Marketing and Sales Departments can quickly get the promotional campaign, available discounts for membership, etc on the hotel management system. The hospitality management solution integrated with AI technology shall automatically detect the price pattern, and match it with current hotel operations and labor force to start “learning” the hotel inside and out to have a hotel room occupancy forecast ahead of time. It allows the system to come up with a strategic operations plan based on the data analyzed from the campaign, and suggest the optimum room rate for guests. The system can also recommend a proper advertising campaign on social networks, one of the surging and well-loved trends in hospitality, to target and convert potential leads into actual customers.

Reports regarding room rate management generated from the machine-learn process of the AI technology can easily be found in the complete hospitality management solution, such as CiHMS. For instance, once in a while, your guests are in need of postponing their reservation due to whatever personal reason it might be, either their flights are delayed or canceled from bad weather, as soon as you update this information onto the hotel PMS, the room status shall be synchronized across the system, as well as on OTA channels. AI technology lets the hotel run short promotion packages for these outstanding rooms on all booking platforms, search engines, social networks, etc. to get this room filled as soon as possible. Make sure no room is left vacant while maximizing hotel revenue at its best.

AI boosts hotel room occupancy rate and maximize reservations across OTA channels.

AI boosts hotel room occupancy rate and maximizes reservations across OTA channels.

Be in check with the room rate strategy from the competitors, monitor your hotel pricing plan, and catch up with the trends to optimize your room occupancy and rate effectively, all thanks to the artificial intelligence found in the powerful Room Rate Management System within our cloud-based hospitality management solution CiHMS.

Personalize guest experiences

Integrating the AI in the hotel management system shall enable customers’ data such as their spending preferences and behaviors during their stay to be stored and analyzed by a set of algorithms. It may recommend guests to take a questionnaire or survey, collecting an adequate amount of information to gather customer insights and use them to deliver an exceptional personalized guest experience in their next stay like: suggest appropriate room packages within their financial budget, favorite value-added services, meal plans and more. The customers feel appreciated and well taken care of, while hoteliers can maximize their profits by successful upsell and cross-sell without being oversold.

Applying AI technology in the hospitality industry now can be found in leading hospitality management solutions on the market, like CiHMS. Be up with the innovative technology on the market and customers’ expectations set your hotels apart from the others. A step up with a future trend, and a step closer to a smart hotel model.

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Artificial Intelligence in the Hospitality Industry: An Overview

Artificial Intelligence (AI) was first introduced at The Dartmouth Conference in 1956. Initially, its potential in business and operations was not fully recognized due to its developmental stage. Fast forward to today, AI has become a cornerstone in various industries, especially tourism and hospitality. This article explores how AI fits into hotel technology and whether it can completely replace human roles in the sector. Let’s dive into today’s blog and get this sort out with CiHMS.

What is Artificial Intelligence?

AI encompasses a broad range of computer science focused on creating smart machines capable of performing tasks that typically require human intelligence. This includes learning, memory, and decision-making. Core elements of AI include machine learning and big data. Common examples of AI in daily life include virtual assistants like Siri, Alexa, ChatGPT, Gemini, and Copilot, email spam filters, and personalized recommendations on platforms like Netflix.

We have been using AI technology on a daily basis without knowing it.

AI technology has been surrounding human beings for the last decades without us acknowledging it.

Why does AI matters?

The tourism and hospitality industry has faced numerous challenges in recent years, including labor shortages and the need for enhanced guest experiences. AI has emerged as a crucial solution to these challenges, helping to alleviate labor shortages and streamline operations.

Hotels were shutting down as the result of the social distancing curbs across the country, hardly meeting 20% occupancy compared to the previous period. As a matter of fact, even well-thought-out plans and scarcity marketing policy such as half-price room rate promotions, buy 1 get 1 extra night off for free, etc. didn’t seem to work out. Hoteliers had to come up with budget cuts and excessive laying off to survive through the pandemic. Consequently, the labor shortage has become a major issue for the industry alarmingly. AI technology has become the optimal solution amidst this chaos.

Ngành khách sạn đang đối diện với khủng hoảng nhân lực trên toàn cầu, công nghệ AI góp phần giúp nhân viên khách sạn tối ưu các công việc với nguồn lực có hạn.

Contributing to relieving the labor shortage crisis, AI technology has helped hotel employees to executive tasks in a much shorter timeframe.

Thanks to AI, your front desk shall no longer have to be hesitated among welcoming a long-line of guest check-in, picking up the disturbing phone ringing, determining whether or not to answer the series of questions from the guests standing by, or your colleagues. All the phone calls shall be routed to the relevant departments based on the algorithm of past phone calls. Guests can proceed with online check-in right at the phone and skip the front desk. All housekeeping requests are synchronized across the system. Perspectively, with AI technology as a back-bone, hotels are getting very close to the smart hotel model – the ideal hotel model of the future.

Applications of AI in the hospitality

AI has revolutionized hotel operations by automating tasks and improving efficiency. For instance, AI can handle guest check-ins, route phone calls to appropriate departments, and synchronize housekeeping requests. This reduces the workload on staff and enhances the guest experience. AI-powered systems are also used to forecast room occupancy rates and optimize pricing strategies, maximizing revenue.

  • Robots: Used for delivering room service, cleaning, and providing guest information, reducing physical contact and enhancing safety. For instance, Hilton Hotels introduced “Connie,” a robot concierge powered by IBM’s Watson AI. Connie assists guests with information about hotel amenities, local attractions, and dining options, providing a unique and interactive guest experience.
  • Predictive Analytics: AI forecasts room occupancy and helps in strategic planning to maximize profits. AI algorithms analyze data from various hotel systems to predict when maintenance is needed, preventing equipment failures and reducing downtime.
  • Personalization: AI analyzes guest data to offer personalized experiences, improving guest satisfaction.
  • Real-Time Translation: Solutions like CiHMS offer real-time translation chat via QR Service Center, supporting more than 103 languages, enhancing communication with international guests.
  • Analyze guests’ data to elevate their experience on future stays.
  • And more can be found throughout hotel operations that CiHMS shall go into more details in the later blogs.

Challenges and Considerations

Despite its advantages, AI is not without flaws. Complex algorithms and machine learning models can still make errors. Additionally, the financial investment required to implement AI can be significant, making it crucial for hotels to balance costs and benefits effectively.

Conclusion

AI is now an integral part of the hospitality industry, driving operational efficiency and enhancing guest experiences. Solutions like CiHMS have demonstrated significant improvements in hotel performance and revenue. As AI continues to evolve, its role in the hospitality sector is expected to grow even further.

Thanks to AI’s high reliability, safety, and security, CiHMS has delivered exceptional growth for hotels’ revenue and performances. Interested in our solution? Contact our consultants to dig a bit deeper into CiHMS.

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QRMenu – The future of FnB

Contactless technology has altered the hospitality daily operations landscape completely, while has become the main reason behind the resurgence of QR code technology during the epidemic. According to Bit.ly – a link management service, QR code downloads have soared 750% over the last 18 months. It has been contributing a great share in minimizing the inevitable ordering workload for the hospitality sector. Digitalize your restaurant, spa, and room services’ menus with a scannable QR code in just a few easy steps. Thanks to the new update of the POS – Food And Beverage system in the cloud-based hospitality management solutions – CiHMS: the QRMenu would allow you to turn the fancy above into reality. How does it work and how to get this technology implemented at your business today? We’ll get you all covered here in this blog.

A recent feature upgrade for the POS - Food and Beverage system in CiHMS ultimate hotel management system.

QRMenu – a great updated feature of the POS – Food and Beverage system in the ultimate hospitality management solution – CiHMS.

What is QRMenu?

As its name might have given it all away, the QRMenu practically is a digital menu that you can access via a scannable QR code with your mobile phone. If you have not familiar with QR code or Quick Response code, it is the square matrix barcode, invented almost two decades now by a Japanese automobile company.
Starting to come back around hotels and restaurants ever since the COVID-19 pandemic crisis hit, the scannable QR code helps to prevent the risk of spreading infection and reassure customers’ hesitancy and doubts in the physical dine-in experience. The QR code could be printed right off the printers as you wish, then stuck on tables, front desk, or just anywhere hoteliers see fit. Customers can easily get directed to the hotels’ menu, make orders, pay, and submit feedback – a massive step-up from your standard paper menu version.

The bright sides of QRMenu

Plenty of benefits the QRMenu brings into the pictures that are hard to miss out on:

  1. Quick modification and high versatility: By replacing with a digital menu, restaurants can add/remove a dish on the menu without re-printing the menu all over again. The perk of having a digital menu means you can do everything digitally: changing the price tag during the day, locking in a promotional price for a certain period, or having a varied menu for breakfast, lunch, dinner is also possible.
  2. Unique and creative marketing tool: Allows hoteliers to be creative with their menu design layout and force them to test out which layout brings their best conversion rate. This sounds outrageous but is not. Play out different types of design on your menus, move sections up and down and see what best serves your business. Be bold with promotional campaigns and discounts on your menu with flashing titles, colors, and fonts.
  3. Sustainable hotel technology: Yes, indeed! The QRMenu is, in fact, contactless technology and contributes its big share in promoting the hotels to stay in check with the sustainable hotel technology. Guests go through a complete contactless experience using QRMenu: from scanning the QR code to receiving their orders.
    Keep up with the contactless technology with QRMenu, bringing an absolute contactless dining experience within your fingertip.

    QRMenu is a form of hospitality contactless technology, that helps stop the spread of infection transmission for guests and employees.

  4. Being actively eco-friendly and cutting expenses: QRMenu eliminates the paper menu off your hotels’ system entirely. No more printing or re-printing a menu seasonally or per promotional campaign. Imagine how much paper and money a digital menu can save a hotel throughout the year.
  5. Cutting down the ordering wait-time: Customers can take their time to decide what to order while waiting in line before the event gets seated, especially for a big group of customers. Hoteliers can enable guests to make orders upon access, streamline your hotels and restaurants’ operation from table to the kitchen, accelerate the speed of service, enhance guests’ experience and maximize employees’ performance, cutting out any recessive workflow.
  6. Accumulative big data: Receiving an overwhelmed source of data daily as a reminder for hoteliers have to start taking advantage of them. Keep your data analyzed and “upgrade” your menu accordingly to meet your customers’ expectations. Just as Bo Peabody, co-founder and executive chairman of Seated, had shared: “If you run a restaurant that doesn’t take reservations, you don’t know who your guest is until they pay. What the QR code might allow you to do is learn who that guest is right when they’re sitting down.” The bottom line is QR code helps you to grasp your customers’ insights without the need to spend thousands of dollars on a market research project.
  7. A solution to hospitality labor shortage: QRMenu lets hotels and restaurants operate at a much faster pace with fewer employees – Toast CEO Chris Comparato also agreed. No more taking-order tasks; leave these time-consuming tasks to your customers.

How to set up the QRMenu?

First thing first, you have to set up your hotels/restaurants’ menu beforehand. This part can be both fun and tricky. A Digital menu grants you the power to be creative while staying informative. Going with the classic design or bold typography, selective food dishes photography, or a full-on photographic menu featuring every dish there are on the menu? Should the hotel have different menus for breakfast, lunch, and dinner? Or should they only have an All-day menu? They are all up to you but remember the first impression matters. Test the water and see which one works best for your business. Embrace the beauty of a digital menu.
QRMenu is an upgraded feature recently in CiHMS – the POS – Food And Beverage system, enabling hotels and restaurants to actively generate a unique QR code for each table or room separately at the properties, giving their guests instant access to hotels/restaurants’ menu, from which they can easily make orders at their own pace.

To generate a QR code, hoteliers have to specify which table/room this QR code is for, in the respective fields, including its floor number, the area, and the table’s current status (active/inactive). Upon completion, a QR code can be printed out and stuck on the location where it was created. It is literally all it takes.

The flexibility of QRMenu is impressive. You can configure your guests’ access solely to one specific menu, or different menus depending on the time of the day with just only one QR code or create different QR codes for each menu (breakfast/ brunch/ lunch/ dinner), and allow your guests to fill in their table number themselves.
QRMenu for room service works on the same principles. However, to reduce the excessive work on printing a different QR code for each room, big chain hotels would uniform the same QR code throughout and have their guests declare their room number before proceeding onto the ordering section.
The downside of QRMenu

Poor connection services

Understanding the fundamentals of how QRMenu operates, you might have come to realize that this functionality won’t work without a stable Internet connection. If you are committed to getting this QRMenu installed, please be mindful of your properties’ network. Opt for better Internet infrastructure, which shall be beneficial in the long run, an investment you certainly wish to invest in sooner.

Internet infrastructure plays a vital role in making contactless hospitality technology possible in practice.

Having a stable internet connection in place brings long-term benefits to hotels.

The power of habits

The other cons QRMenu might face is the customers’ reluctance to change. Young consumers or millennials are willing to accept and adapt to new technology innovations. Generation Y has been slowly redefining the hospitality industry, despite the older generations – the baby boomers are skeptical toward recent trends and resist taking the acceptance.

“People have different levels of digital comfort. Some people will prefer and enjoy the QR code and using the phone, and others will rather have the traditional menu.”

– CEO of Dine Brands, John Peyton.

QR code has regained its popularity ‘til recently after being snoozed for almost a decade. The new normal has ushered the hospitality industry to proactively implement sustainable hospitality technology to step out from traditional operations to explore and discover the possibilities to bring customers back in. Apart from QRMenu, there is plenty of other sustainable hospitality technology for hotels to look at. This is nowhere near the perfect solution for all businesses, though it’s pretty close.

The contactless era has already arrived, don’t stay behind! Train your staff well, encourage your customers to engage, and recognize what they have been missing out on all along. Interested in QRMenu and would love to see a demo? Contact the CiHMS team for a detailed consultancy on the product.

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Millennials travel trends redefine the hospitality in 2022

The millennials are considered a typical generation in initiating trends and remarkable milestones. This demographic segment accounts for the major spending expenditure in the tourism industry, willing to pay the extra miles in exchange for the taste of memorable experiences instead of material things. Determine the millennial travel trends shall benefit your hotel operations in better tailoring to their needs and retaining these huge customers segments long-term. What are the travel trends of the millennial generation this 2022, then? Let’s discover them with CiHMS in today’s blog.

Meeting expectations of the millennials is very important to retain this special customers segments - the largest customers with big spending in travel and hospitality.

The millennials are one of the biggest customers segments worldwide, especially in the tourism and hospitality industry.

Who are the Millennials?

The Millennials (also known as Gen Y) are those born between 1981 to 1997. This demographic has fast become the major part of the world population recently, making up for 27% global population, approximately 2 billion people, and roughly 38% of the Vietnam national population, according to the population research done by Pew Research center. The World Economic Forum defines the millennials are those born between 1980 and 1994, about 1.8 billion millennials worldwide, roughly making up for 23% of the world population. This generation has been exposed to revolutionized digital devices, online resources, and ever-changing social networks. By 2020, 50% of the global workforce and purchasing consumers goods or services are the millennials (based on an analyst from Bernstein).
United Nations World Tourism Organization (UNWTO) believes the millennials are the emerging golden generation and the most potential demographic that the hospitality industry should pay close attention to. Passionate about travel, the Gen Y travelers shall reach nearly 300 million travelers annually, and take at least 35 days per year to travel. The high satisfaction of customers service is the important key factor to Gen Y’s loyalty.

The golden generation - the millennials are those born in 1980s - 1990s without an exact end and start numbers.

They were born in the radical technological evolution, get in touch with technology at a very young age, generation Y doesn’t share the same customer characteristics with any of the rest.

Mobile devices and social network orientation

Being digital natives, millennials are tech-savvy at heart. Always on the hunt for new destinations, have their itineraries, ideal accommodations that they shall be visiting on their next trip. Up to 74% researched their trip, 87% of millennials used Facebook to inspire their booking, and over 50% used Twitter (reports generated from Condor Ferries). They search for it to believe it. 97% of millennials confess they share their travel experience on social media. 2 out of 3 would post about it at least once a day.
Understanding Gen Y surfing habits enables the hotel’s marketing department to easily identify and approach this particular target segmentation through the social networks’ platform, to convert leads and maximize their sales revenue. Providing exciting and unique experiences is the essential sales point to attract these demographics in purchasing your added-value products and services during their stays. Encourage them to share on their social media in exchange for vouchers and other free services also a win-win option for hotels to look at.

Take advantage of the millennials being tech-savvy, hotels should approach these segments actively via social networks platforms and other online resources.

Millennials grow up with mobile devices. Being on social networks daily has become an irreplaceable habit. Making them feasible targeted segments for hotels.

Several hotels have been giving away complementary services, promotional products, group discounts, etc. to further upsell the millennials targeted group. Getting the exposure the hotels need to the target customers’ friend circle, at such a lower cost ongoing mainstream and broad social posting advertisement. Exceeding the customers’ expectations while optimizing hotels’ operational expenses.

Experiential travel

If Baby Boomers (the previous generation before the Millennials) strongly believe travel is outrageous to overspend for indulgence, it’s understandable as they entered their childhood amidst national economic decline; the millennials enjoy travel as a crucial and irreplaceable part of their daily life. Travel brings invaluable benefit to the soul and mind, and merely priceless. Millennials yearn for the true experience, the chance to rediscover themselves, to relieve stress after burying themselves in deadlines and projects, to rejuvenate their energies, set themselves back to balance, ready to come back to their normal life.
An Expedia survey has found, 74% of millennials are happy to spend on travel experiences rather than material things. 58% prioritizes hotels with full services, while 35% seeks luxurious stays at premium hotels and resorts. Only a minor prefers to stay at Airbnb accommodations are millennial travelers with kids. This reassures gen Y craves experiences over anything else. By providing immersive accommodations in various levels of personalized experiences: from adventurous to discovery, and finding your inner-self, hotels leverage their services to accustom to all the Gen Y customers.
The millennials focus on making a difference rather than receiving corporate and generalized hotel stays. They embrace local lifestyles, traditional dishes, music, and crafting experiences.

Prefer experience over material things, millennials are seeking for the

Enjoy the cultural, adventurous, and sentimental experiences rather than corporate and organized tour packages, millennials are keen on experimental travel.

Environmentally conscious

Generation Y seems to be the pioneer in leading the sustainable travel trend. Highly responsible for the surrounding environment, they prominently support businesses revolving around sustainable operation models. Especially in Tourism and Hospitality lately, these two industries have been called out to actively up their game in turning “greener” with the community.
This explains why the sustainable travel trend has made such remarkable impacts. In many countries around the world, as well as in Vietnam, the governments have put in their side of the efforts to promote the sustainable trend, making a positive influence to engage the tourism and hospitality industry take on the “greener” path. Thanks to modern technologies, seamless integrations, and functionalities aiming to make the smart hotels‘ transformation possible to existing hotels facilities without the hassles of remodeling. Up to 73% of millennials lean toward eco-friendly hotel models as their preferred accommodations for their next trips.
The millennials’ impacts have been brought into tourism in general and the hospitality industry specifically is undeniably compelling. It helps redefine and reshape the hospitality industry for the year 2022 and more to come, with the majority of customers being the millennial generation. Keeping up with the latest trend to adjust hotel services with a touch of technology, while being personalized to each individual shall help retain this most potential customers segments for the long-term.

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The hotel tech trends to look out for in 2022

2022 is here, and everyone might be having their own forecasting on the hotel tech trends for the year. This helps to project a better strategic plan for your hotels to adapt and transform. Let’s zoom in and detect the upcoming emerging hotel techs, the ones that hotels should be keeping up to for this year.

The technology is constantly changing leaving the hospitality to catching up with the new trends, especially for the year 2022.

Here are our takes on the upcoming trends in hospitality technology for 2022.

Hotel apps

Mobile has been becoming an essential part of any travelers’ experiences. Having a dedicated hotel app for your guests to book and manage a room reservation, making payments, online check-in/check-out, digital key room access, contact the hotel front desk, and more are expected to initiate a total contactless hotel technology experience. Making hotel procedures less complicated, and allowing seamless guests communication.

AI technology

Artificial intelligence (AI) has advanced itself and strengthened itself to be reliable as well as beneficial. Slowly, AI is taking over all the human grunt works, leaving your employees to do what they are best at. Improving work performances and better human resources allocations.

AI technology can also analyze data, statistics to assist hoteliers in making better decisions, helps personalize guests’ experiences based on their previous stays. This collected information contributes to retaining current customers and attracting potential customers profiles.

The advantages of AI technology are undeniable. It brings opportunities and data-driven culture onto the hospitality industry.

AI technology makes such an impact on the hospitality industry, assisting human staff to bypass the grunt work and to focus on what they are better at.

Virtual & Augmented Realities

These technologies are to the simulation of the world, mimicking reality into the digital world. Many hotels have been working on their virtual reality (VR) hotel tours. It gives guests a sense of hotel space, environment, atmosphere, and the property’s facilities.

While VR might take the actual surrounding off the ground completely, and replace them with a digital one. Augmented Realities (AR) technology tends to enhance it in real-time. Hotels can easily apply AR technology with AR headphones, glasses. These enable customers to discover the hotels through the graphic lenses of AR glasses, a lively tour providing in multiple languages translations.

Many have been compared AR to VR without a thorough understanding of both technologies. In fact, they complement each other and cost quite a budget. In return, they provide exceptional guests experiences.

The hospitality has been neglected about the VR and AR technologies due to their limited budget without understanding the wide spectrum of benefits that they come with.

AR and VR technologies have been around for decades, finally taking their steps up in the hospitality industry, bringing visualization benefits for not only hoteliers but the customers as well.

Smart Technology so-called Sustainability Tech

With the current advanced smart technology, hoteliers can program to turn the lighting system on or off, dimmer or brighter in a certain area, adjust AC temperature, and activate the heating system accordingly to the hotel presets thanks to the integrated sensor built-in camera. Everything is automatically carried out by smart technology either in the lobby area or in guests’ private rooms. Such sustainable hospitality technology helps hoteliers to reduce energy waste as much as possible.

Facial Recognition Technology

It might sound futuristic a couple of years back, but absolutely very “in” at the moment. Even your mobile device is having such a feature, there is no reason why not put this technology to use onto the rest. In a few smart hotels around the world, guests grant access to the elevator, their reserved rooms, and other hotel facilities with face recognition devices: quick, paperless/keyless, and data recorded on the system.

Big Data

Hotels welcome guests on a daily basis, the information input received from the customers is massive. Have you ever wondered where those data would go? Data upon entering the system will be categorized and analyzed to interpret customers’ behaviors and later served for the decision-making process.

The above pretty much explains how big data works. A collection of customers data to generate insights helps to further personalize guests’ experiences for future stays.

Big data algorithms enables hotels to thoroughly understand what their customers preferences and deliver personalized experiences for their guests.

The numerous data input daily from the hotel front desk cannot be put to waste. These are big data, which should be analyzed and interpreted for hotels to better serve their guests in future stays.

Cybersecurity

Due to the large data volume from guests including sensitive information such as guests’ identity info, along with their credit card, hackers never miss their chance to attack the hotel’s security. As the result of the recent pandemic, people are found working from hotels, and getting their business info exposed apparently is not on anyone’s agenda. Up your hotel security’s matter is not a question but is crucial to moving forward.

The SaaS

Most of the mentioned technologies are packaged in a SaaS product model. It is cost-effective, built on a cloud-based infrastructure, and grows along with your business. Cutting down a huge budget in hardware investment, complex maintenance/update management, and on-site IT support teams to monitor the system 24/7. The growing adoption of SaaS models has been shaping the hospitality industry in improving its traditional operations to scale up efficiently at a reasonable budget.

The mindset of product subscription has gained the attention in the hospitality industry lately. SaaS products ensure they are built on cloud-based infrastructure, no hardware investment needed, quickly installation and no maintenance is needed. Leave them all up to the providers to take care off.

The SaaS product model has been around for a long, however recently received support from the hospitality industry due to its efficiency and effectiveness.

It meanwhile defines the future hospitality management solutions has to be cloud-based, flexible, integrate effortlessly with other technology. CiHMS certainly fits the puzzle here as being an all-in-one cloud-computing hospitality management solution your hotel would ever need. Thanks to Open API, integration with 3rd party software is straightforward and trouble-free.

Hospitality has always been such a competitive industry. Technology keeps on evolving and is wiggling its way to becoming stable in the future of hospitality. It allows hotels to deliver unrivaled accommodation to their customers while maximizing the current business resources, optimizing its operations, reducing the expenses, and staying afloat and relevant with the present. Helping hotels to be responsive, make data-driven decisions, improve their processes and eventually transform.

Just as Jeanne W. Ross, MIT Sloan’s Center for Information Systems Research did say:

“Clearly, the thing that’s transforming is not the technology — the technology is transforming you.”

Nobody knows what the future holds, knowing all the hotel technology trends in 2022 does not mean you have to implement them all. Pick a few relevant technologies that bring immediate benefits and are most valuable to your hotel to start out with, the remaining shall soon follow.

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