Impact of Digital Transformation in Hospitality & Tourism

Since the World Wide Web came into our lives, digital transformation has been constant. But in the last few decades, it's been primarily traditional agencies in the hospitality and tourism sectors.

Even today, some folks still prefer the old-school way of getting information from an agency. You must go there in person; the service is often slow and time-consuming. Plus, there's no guarantee you'll walk out with your ticket or lodging booked.

As the digital world evolved, customer behavior changed, too, greatly influencing the digitalization of the hotel and travel industries. People expect customer-centric experiences. They want to pick their destination with just a few clicks and get all the details about their stay, including customer service, available activities, room features, and more.

What is a digital transformation? 

Many think digital transformation is just about adding updated technology to their existing setups. But that's more like digitalization, which moves your company's operations into the digital world. Digital transformation is a much broader deal—rethinking and doing things innovatively.

In 2018, Forbes reported that 70% of organizations needed to improve digital transformation and missed their initial goals. Just like any big revolution, digital transformation requires a strategic plan.

These days, everyone has at least one digital device for personal use. Technology has shaped how we see and use information, forming our habits. Now, booking a hotel room can be done instantly through your hotel's mobile app or website.

Importance of digital transformation in Hospitality and Tourism

If you're in the travel business and have yet to adopt it, you're probably losing customers to competitors who have. Digital technology has dramatically changed the hospitality industry.

Over the past twenty years, new technologies have transformed how hotels serve tourists. Digital transformation is changing the industry and businesses that keep up stay ahead. Customer behavior has quickly shifted towards engaging, innovative experiences.

Digital transformation is a crucial driver of industry growth today. However, the COVID-19 pandemic has made hotels challenging. Even so, customers still want better solutions and unique experiences. To meet these expectations, the industry is adopting new technologies like one-tap check-ins, digital concierge services, voice-activated devices, chatbots, intelligent room technologies, advanced analytics, virtual assistants, and better direct bookings.

Many hotels are still learning about digital. To make the guest experience smoother, they are automating and streamlining processes and developing the tools they need to make the most of data. As digital transformation grows in the travel industry, hospitality firms should be ready to create and customize travel offers and use data-driven strategies. Travellers today prefer apps for reservations and personalized interactions. The shift towards automation, machine learning, and possibly robots is inevitable.

Impact of digital transformation on tourism

If your hotel uses mobile-first hospitality management software, guests can do much more with their mobile devices. They can check in, order room service, choose their room upon arrival, open their hotel room door keyless, and check out without visiting the front desk.

Some hotels even take it further by offering virtual hotel tools and augmented reality experiences. This means guests can explore the hotel, restaurants, and nearby attractions like beaches, museums, shops, and cafes, all from their devices.

Hotels have been using these perks to stand out from the competition and demonstrate their ability to adapt quickly to the latest technology.

Impact of digital transformation on hospitality

The hospitality sector has fully embraced the Internet of Things (IoT) and taken it further by allowing its Property Management System (PMS) to connect with guests' digital devices.

Internally, this dramatically improves hotel operations. There is no more paperwork for manual check-ins; your  hotel management software keeps everything streamlined and the front desk in sync. Hotels now have built-in sensors for room lights and TVs and use in-room voice recognition to answer guest questions. These innovations save money by reducing front desk staff.

Due to digital technology, your hotel receives constant data from your guests, reflecting their real experiences and satisfaction levels. Analyzing this data allows you to optimize your hotel's operations and better cater to future guests. This ensures a personalized experience and will enable hotels to offer customizable packages that appeal to similar customer groups.

Benefits of digital transformation in Hospitality and Tourism

Digital transformation is a game-changer for many traditional businesses, especially as technology advances. It brings many benefits to both companies and customers. Digitalization has clear advantages like increased brand awareness, better operational efficiencies, and an improved customer experience. Emerging technologies like IoT, Virtual Reality (VR), digital housekeeping, and concierge services offer numerous advantages for business owners and guests.

Here are some ways digital transformation changes things:

• Enhanced Guest Support: Digital profiles allow personalized support, boosting guest satisfaction. This means more customized experiences, increased operational efficiency, and increased revenue for hoteliers.
• Data-Driven Insights: Data analytics help you understand your customers better, revealing their interests and preferences.
• Reduced Wait Times: Self-service options like check-in or airport instructions minimize wait times. Guests no longer have to wait in long lines to check in or access services.
• Up-to-date information: Automatically updated information informs guests about exciting offers or news. It also allows highly targeted digital marketing and easy results tracking.
• Eco-Friendly Initiatives: Implementing IoT can help you go green. Reducing printed key cards, boarding passes, etc, cuts down on paperwork. Plus, using less energy by heating rooms only shortly before guests return rather than keeping them warm all day conserves resources.
• Better Service and Communication: With more customer information, your staff can provide better service. Improved departmental collaboration and communication also enhance overall operations.

Conclusion

To do well in the hospitality & tourism industries, businesses must ensure their customers have an excellent experience from the moment they start planning their trip. This is whether it's flights, hotels, restaurants, or a luxury cruise. But it is not always easy.

Any problem, whether it's accessibility, operations, lodging, amenities, or anything else – can hurt a travel & hospitality business and damage its brand. Customer feedback can improve services.

CodeSuite designs and develops digital apps for travel and hospitality. This includes e-commerce, digital platforms, departure control, passenger management, operations, and fleet management. Our goal is to improve customer experience. 

Need help? Schedule a discussion about digital transformation services to learn more about digital transformation's impact on the hospitality industry.