Importance of Digital Transformation in Hospitality

In today's article we discuss why businesses in the hospitality industry should prioritise digital transformation initiatives, as well as some of the ways they can achieve this. 

The author of this page: Conor Flanagan
Conor Flanagan, ERP Team Lead Mar 11, 2024

It is estimated that 2024 will see a record spend of 2 trillion dollars in global tourism, according to the Irish Tourism Industry Confederation. On top of this, Oxford Economics predicts that the number of foreign visitors to Ireland will grow by approximately 11% per annum up to 2025. This means that organisations operating in the Irish hospitality sector need to be prepared for growth and have the technological infrastructure required to manage these numbers effectively. However, a 2021 Digital Transformation of Hospitality Report highlighted that 50% of consumers feel the hospitality sector is behind other leisure and retail businesses in its use of technology, meaning digital transformation is now more important than ever for hospitality businesses that wish to meet rising consumer expectations. Below we discuss some of the key benefits of digital transformation for businesses operating in the hospitality sector, as well as examples of the technologies that can support this.  

Streamline Operations 

Adopting digital solutions can help your business transform day-to-day processes. Tools like artificial intelligence (AI) and automation have the power to reduce the resources required to carry out manual tasks in your organisation and help streamline operations. Comprised of 5 different elements, Microsoft’s low-code Power Platform is a great example of a solution that can be used to propel digital transformation. Power Automate can automate high-volume tasks like processing invoices, data entry, sending ‘review your experience’ emails or routing customer dietary requirements to the relevant staff member. Powered by AI, Power Virtual Agents can be used to create a custom chatbot that can help customers find answers to their queries quickly and easily. Power Pages can be used to create a self-service customer portal that allows guests to self-check-in to their accommodation, helping customers avoid long queues and reducing the manual workload of staff. Leveraging technology to optimise business processes in ways like these will not only reduce the pressure and workload on staff but will help elevate the standard of services your business provides. 

Elevate Customer Experiences 

Technology can help raise the quality of customer service your hospitality business provides. Using data analytics, for example, can help you better understand your customers' motivations and preferences so you can create more personalised experiences. This will create more enjoyable and memorable experiences for your customers, helping your business stand out. Businesses can use customer relationship management (CRM) systems to monitor communications with customers, ensuring staff can keep track of special requests and meet, or even surpass customer expectations and secure those 5-star ratings.  

Using the latest and greatest technologies will help your business stay ahead of the curve and better prepare for the unknown. And with hospitality being a highly competitive industry, remaining agile and ahead of the competition is key to long-term success. 

We have helped leading hospitality groups such as Staycity, The Doyle Collection and Adare Manor digital transform operations, to find out how to kick start your digital transformation journey get in touch with one of our experts today. 

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