Digital transformation in the hotel industry

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“Digital transformation” is one of those buzzwords that gets thrown around, right up there with “big data” and “artificial intelligence.” However, few business owners really recognize how digital transformation impacts their business.

Digital transformation is not just about investing in technology, but refers to the ways in which organizations restructure to adapt and alter corporate culture to empower innovations that leverage technology and take their businesses to new levels of growth.

Hotel owners looking to take advantage of this trend are adding a holistic PMS system like Oracle OPERA to their technology assets. A PMS is a perfect example of a tool that can be deployed to help achieve a specific business goal. Successful digital transformation requires focused planning, targeted technology integration, and professional development, chiropractor email list along with the right PMS. Here’s how hotel teams are bringing digital transformation to their business.

Examples of digital transformation: learning from failure
Unfortunately, less than 30% of digital transformations are successful. There are a few reasons why digital transformations fail, but one common thread among failed transformations is a lack of focus. Consumer goods leader Procter & Gamble ’s failed digital transformation is the perfect example of why focus is imperative.

In 2012, P&G attempted to become “the most digital company on the planet.” If this sounds like a far-reaching goal, it was—and one that was too broad to be achievable. This unspecific goal led to broad initiatives that lacked purpose. In practice, P&G’s initial focus was “shop anywhere, anytime” with the goal of abandoning marketing in favor of “personal conversations” with consumers. It was an ambitious (and ambiguous) goal with surprisingly unsatisfactory results. When the economy crashed, P&G’s digital transformation imploded; the CEO was asked to resign, and the company had to reevaluate its approach.

As Harvard Business Review describes, “P&G could probably have lost little ground to its competitors if it had invested in digital in a more targeted way. Today it does; no digital initiative is undertaken at P&G if it does not closely fit the strategy and if it is not timed to generate value.”

The lesson here? Hotels should break down their digital transformation into small, achievable efforts directly connected to a business outcome. At the brand level, hotel chains should not develop technology in-house and should partner with best-of-breed technology providers in their sector. By definition, successful digital transformation requires integrating new technologies with your processes and people. Hotels should focus on one area of ​​improvement at a time, rather than trying everything at once.

Hotel managers know that there are many goals that a digital transformation can help achieve. The mission when approaching digital transformation is to choose the goal with the greatest impact. Digital transformation can help:

Increase digital revenue and website traffic
Reduce operating costs
Improve the quality of products and services
Improve customer outcomes
Choose one of these goals, or something similar, to begin your digital transformation. Tying your technology acquisition to a specific outcome will drive the operational and personnel changes needed to succeed.

In any case, P&G’s experience shows that your goal should drive the adoption of new technology; and your goal should be specific and focused. Imagine a scenario where your hotel decides to increase digital revenue at its properties. One obstacle to achieving digital revenue is the high volume of overbookings. Overbookings occur when the total number of rooms booked by guests during a given time period is greater than the number of rooms available. Hotels often overbook to mitigate losses from no-shows, cancellations, or early departures; however, overbookings also indicate poorly executed operations.

In this scenario, a potential digital transformation initiative could include adopting a new property management system, such as Oracle OPERA , which includes an intelligent accommodation management tool. This tool prevents overbooking of room types and ensures that rooms are cleaned and maintained in a timely manner. The platform automatically enforces booking rules, schedules, and item inventory availability to provide an excellent guest experience and ensure that there are no additional costs for taking guests to a second location.

A PMS can also play a major role in a second example of digital transformation: improving customer outcomes. In this scenario, a hotel is trying to solve long wait times at check-in. Oracle OPERA is equipped with a mobile version to allow staff to check in guests via any smartphone or tablet. The mobile platform also enables reservation management, room status, task sheet management, room maintenance, and real-time updates on rooms and maintenance requests. Your team can go mobile to improve efficiency on property and meet guest needs quickly, leading to a better overall guest experience and shorter wait times.