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  • Next Event

    HITEC DUBAI

    Hospitality Industry Technology Exposition & Conference

    December 5–6, 2018
    Dubai, UAE

  • Upcoming Event

    HITEC EUROPE 2019

    Hospitality Industry Technology Exposition & Conference

    April 10–11, 2019
    Palau de Congressos
    Palma, Mallorca - Spain

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    HITEC MINNEAPOLIS

    Hospitality Industry Technology Exposition & Conference

    Minneapolis Convention Center

    June 17-20, 2019

Article by Binu Mathews

Horizontal Hotel Technology vs. Best of Breed in Emerging Markets - What is the Best Approach?

IDS Softwares 11 October 2018
Over the years, there have been technological advancements that have defined our industry. Changes regarding the operational aspects of a hotel, changes in the way hotel's market and sell their rooms and changes that now affect how hotel's build relationships with their guests. All of this, new and innovative technology is, at most times, disparate for each other. There is a need to connect all of these systems together and this can be a daunting challenge. When you're putting together the best technology solutions for your business, you often have two choices. Either you look for a provider of a platform that addresses most, if not all, technology aspects of your hotel or a "best of breed" approach that marries together many different systems.Is a horizontal hotel technology provider preferable and advantageous than having a best of breed in emerging markets, where you have an array of choices in technologies and services?Should we even debate about choosing one over the other?Yes, we need to understand that even though what works for you may not work for others. Therefore, it matters because making the right technology decision for your hotel could mean profitability or loss.Hoteliers need to be proactive and well-informed about the guest's preferences. They also look for service providers who can develop and deliver simple and uncomplicated horizontal platforms yet can integrate with various other technologies to provide meaningful solutions--and potentially revolutionize the entire hospitality industry.The emerging markets have seen high staff turnover. There are many reasons for this and one of the prime reasons is high growth and demand. While it is great to have high demand, you seldom have enough time to fully engage and train all of your staff who interface with technology and with your guests. Horizontal solutions offer the comfort that there is one vendor to go to and undergo the technological training for all your hotel needs.Hotels can focus on guest loyalty, guest retention and most of all, can focus on increasing profitability by opting for training their staff one a single platform rather than on multiple technology systems.The integration of multiple hotel technology providers is expensive and time-consuming. Hotels today want to acquire open-platform solutions that reduce the friction between new systems and older systems. They also want to acquire new emerging technologies to plug and play with newer solutions.Hoteliers are looking for software products that can seamlessly integrate with third-party systems. This way the communication can flow effortlessly between different units and the central platform.A horizontal technology vendor is preferred for smooth functioning of primary systems such as PMS, Booking solutions, CRS and Distribution. Using a single solution provider could mean more timely support resolution as they tend to be more customer centric in their approach. This also negates the finger pointing of one vendor over the other for any discrepancies that arise related to interface problems and using a single provider enables the hotelier to hold one single vendor accountable.In emerging markets, these challenges are amplified due to the location of properties, the lack of multiple vendors of horizontal solutions and the support readiness of product-based companies. All in all, looking towards the future, a horizontal platform provider of key technology elements will be a hoteliers best bet within global emerging markets.Attendees and media are invited to meet with the IDS Next team at HITEC in Dubai. Come and visit us at stand number #C116 to experience the future of hospitality industry.
Article by Binu Mathews

Emerging Markets and Hotel Technology - What does the Future Hold?

IDS Softwares 27 September 2018
Currently, there are many new hotels in the pipeline in South Africa, and with the explosion of travel into emerging markets, this trend is sure to continue. North Africa, particularly Egypt, Ethiopia & Morocco fares in the top five countries by new number of rooms this year. This rings true for the rest of Africa as well as other developing markets. More so than ever, travelers today are seeking out an authentic "bucket list" trips to exotic locations far from the typical norms such as London, Paris, New York, and Berlin. Companies able to bridgehead into these regions or already have a strong foothold will be the ones to watch when it comes to the implementation of hospitality technology. A recent PWC report focused on the hotel industry and its growth in this area. You can see from the chart that tourist areas in Africa are beginning to see dramatic room revenue growth and this upward trend is expected to continue into the year 2021. This same trend is forecasted for India, the Middle East, and APAC.There are some challenges that the industry faces, one of which is the fact that we are in the midst of what can only be termed as "technological chaos." With so many different companies delivering the promise of innovations that drive revenues and guest loyalty, one must wonder how the General Manager of a hotel or the VP of IT for a larger hotel chain can successfully vet what is most suitable to their respective needs. Is mobile the way to go or does it make more sense to stay with an on a premise-based solution? The decision becomes even harder and more complicated when dealing with newer markets. These regions offer their own complexities, whether it is the lack of IT infrastructure, or the basics of language issues or the proper way to conduct business in these markets.There are several very large players in the hospitality technology industry that have the resources to enter these emerging markets with full force, but do they really appreciate what it takes? Do they understand the impact of what they have built for other regions of the world and if it will even be applicable within an emerging market? Do they know how to foster the sales relationship in different cultures or to support the solutions once they adopted and implemented? Also, will their solutions even function in an emerging market? It will depend entirely on country, region, and location. These are all very important questions to ask when looking at emerging markets within your overall growth strategy and yes, there are many more.Companies that want to enter emerging markets will also need to be cognizant of new technologies and issues that are now impacting our industry - or will do so in the future. Some of these innovations and issues include:Smart Rooms and the associated Mobile DeviceMobile Check-in/out and Mobile KeysVoice IntegrationPersonalizationSecurityAIVRThis isn't to say that emerging markets should just be abandoned because at first glance they appear to be too hard to penetrate and support. However, they need to be well-researched from a business and personal perspective before any organization makes the leap of faith. Emerging markets are indeed the future of hospitality technology growth, but tech companies must do their homework.

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