Technology is a key driver of revenue and high-quality service is hotels today with everything from high-speed internet, A.I. assistants, chat bots, mobile apps, smart rooms, etc. powering hospitality businesses across the world.
While having a sound infrastructure is great, the real decision to be made is how exactly do you manage this plethora of technologies at the hotel. While in-house I.T departments and technology managers can be brilliant, professionals, however, believe the case should be otherwise.
5 Simple Reasons Hotel Brands Should Consider Outsourcing Technology Management
In their 22nd June 2019 article Hotel Tech Report discusses that:
“Most sophisticated enterprise companies (think Nike and McDonalds) understand that they are not tech companies so they effectively outsource their tech R&D spend to 3rd parties that are focused on innovation. Could McDonalds build software to help franchisees manage their listings? Yes, but they partner with Yext.
Nike could definitely build prototyping software in house for its digital products, but it chooses to partner with InVision. Firms like Nike and McDonalds have become innovators by being experts at identifying trends and partnering with top tech companies to meet their core business goals.”
Unlike McDonalds & Nike, most hotel owners today are still unsure about technology and its implications on their ROI. Usually, hotel brands are constrained by two major factors when building in-house technology infrastructures. The first, a significant lack of resources, and second the ability to maintain and secure technologies.
Every technology decision must be carefully evaluated before going through, following a proper technology GAP analysis, a budget, and ROI calculations. Sometimes it is just feasible hiring an established technology management provider to handle the entire hotel infrastructure.
In-house teams have significant cost outlays when they are being setup. This involves hiring, organizing, setting up workplaces, procuring hardware & software, salaries & benefits, create growth opportunities for them, and accommodating their leaves.
An outsourced technology management partner, however, comes with all the above-mentioned factors. These technology companies have a stable expense, that is easy to budget for hotels. As the business grows and technology requirements go up, your technology partner can easily upscale their operations for a minor cost increase.
I.T. & Cybersecurity
User privacy & cybersecurity remain paramount at hotels and other hospitality businesses. A single vulnerability can cause severe downtimes, while a massive trove of data is at threat which includes payment information.
Technology management providers are proficient with handling a variety of I.T and cybersecurity issues. Their immense experience allows them to better understand threats, and how to deal with them efficiently.
Hotel technology providers also partner with popular vendors & suppliers, allowing hotels to save through discounts while getting the best antivirus, firewall, and internet security available to them.
Outsourced companies compared to in-house teams also have more resources to investigate threats. While an in-house technician may be restricted due to expertise, a more experienced manager can easily find solutions and faster.
Compliance of payment systems and data collection services is essential for every hotel. GDPR compliance applies to all businesses serving EU travelers and PCI compliance necessary for any hotel that uses POS machines are the two most popular ones.
In-house personnel with technology compliance knowledge can be difficult to find, and if found can be very costly to the wage bill. Since they encounter these issues on a daily basis, technology management partners can assure their solutions meet all compliance regulations. Hotel technology providers also have the proficiency to educate & train staff according to prescribed standards.
Upgrades & Renovations
To keep up with the industry, hotels need to routinely renovate and upgrade their technology infrastructures. Even an in-house I.T. department will require to consider research and time to find the perfect solutions for the hotel.
External technology management companies tend to have cutting edge trends and popular hotel technologies ready for businesses. In addition, technology partners can also train staff on the new tech allowing seamless integration on all levels.
24 Hour Availability & Access
Hiring an in-house team of technology professionals is a great idea if they will be available 24 hours. Since that is never the case, this will require hiring possibly two or three resources to keep hotel technologies operational.
Several outsourced hotel technology companies offer unique 24-hour engineers, I.T. personnel and support services. This is especially helpful if your technology systems experience errors on an on-going basis.
For instance, at Advanced Hospitality Technologies Inc. we deliver our exclusive 24 hours digital hands service and 24-hour on-site engineering support within our technology management services.
There are over 10 reasons to have an outsourced technology management partner to handle all your hotel needs. An in-house I.T. team can be expensive and less experienced, leaving spaces for issues to occur.
A professional hotel technology consultant can be immensely helpful by saving costs, saving time, negotiating with vendors & suppliers, resolving issues quickly, providing the latest insights, and helping with security essentials.
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