At a point in time when technology simply drives business success, hotels like all other businesses need to make technology budgeting a top priority. Increased guest technology expectations, returns to scale, process efficiencies, robust data management, etc. all require proper capital expenditure to set up technology frameworks to address growing demands.
CFOs have to make tough choices when apportioning finances for staffing, marketing, operations, renovations, technology, etc. In 2019, technology may just be the defining factor in the success of hotels considering the various competencies major tech breakthrough’s offer.
While most hotel owners and CFOs are willing to invest in technology most have a difficult time deciding exactly what to budget for. Advanced Hospitality Technologies brings over 2 decades of technology budget management experience to assist CFOs to devise the most fitting financial forecasts for hotels.
Top 3 Reasons for Professional Technology Budget Management in the Hotel Industry
As technology makes its way to every hotel process and the end product, guest rooms, it is essential to account for new technologies in hotels every year. Technology budget management is now a part of hotel strategy hence requires input from in-house I.T. staff, financial managers, the CTO, and policymakers.
Here are 3 reasons technology budget management is necessary for every hotel in the future.
Make Staff More Efficient with Technology
Adding more staff can add a significant cost on the hotel budget. Alternatively, a one-time investment in technology can offer the same advantage as to hiring additional staff at half the cost. Smart technology budget management also allows hotel owners to identify technology gaps, identify areas of investment, and where to control costs.
With staffing budgets looming, CFOs can budget for technologies that make the tasks of existing staff easier. For instance, updates to the hotel PMS can add significant features allowing existing staff to receive immediate updates and guest requests in real time. Leveraging technology to fill the human resource cost can be fruitful for both hotels and massive for the guest experience.
Hotel CFOs can also hire hotel technology management companies to help them find the ideal mix of technology & human resources. These specialist companies have years of experience and have worked with global hotel brands to add to their expertise.
Enhancing Guest Technology Experience
Every modern hotel needs to invest in smart guest rooms to enhance the guest technology experience. The millennial tech-savvy guest demands a more connected experience that allows them to sync their mobile devices throughout their stay.
High-speed internet, business center services, smart room controls, voice assistants, etc. all require considerable capital investment. Hence, a professional technology management company can be very helpful in determining the ideal technology budget.
A professional technology consultant will have the relevant knowledge and insights to determine where to begin. For instance, hotels with legacy internet connections cannot jump onto the smart room bandwagon without a sound infrastructure for high-speed internet access. A technology management company delivers the essential requirements, taking a step by step approach to making a hotel future proof.
Budgeting to enhance the guest technology experience is an on-going process, as new technologies come out every year. Tablet controlled rooms, biometric & mobile room keys, mobile apps, business centers & conference facilities, and other tech adds personalization to the guest experience.
Magnus Friberg, CEO & President of Zaplox, mentions in his opinion article on HospitalityNet that “… cutting-edge technology can create huge benefits for businesses that are willing to be early adopters. With this in mind, it’s more important than ever for hoteliers to consider technology as a major budgetary item on their list.”
Security & Big Data Management
While guest experience, staff efficiency, mobility, vendor management and other areas of the hotel are critically important, the security and management of big data require a technology budget of its own.
Today the privacy & security of guests digital data is paramount to the success of every business. From banking to health care, every industry has security risks associated when businesses store critical customer data. Businesses that carelessly lose user data experience significantly lose in reputation and guest satisfaction ratings.
Every hotel CFO needs to collaborate with CTO & CIOs to determine the security, storage, and management of local data. The hotel technology budget should accommodate all necessary contingencies and solutions required to protect hotels from data breaches.
Data theft and breaches became very popular in the hotel industry at the beginning of this decade. Marriot already experienced a severe data breach lasting 4 years, so have Hilton holtes, and the famous Huazhu Hotels of China.
A professional technology budget manager can be immensely helpful in understanding the importance of adopting cloud technology, its cost savings, and security compared to local storage servers. Although it may be a large capital outlay at first, it is a decisive factor is delivering a safer cyber-environment for guests.
Professional Technology Budget Management & Consulting Since 1996
Advanced Hospitality has assisted hotels with technology budgets & technology GAP analyses for various franchises across the USA since 1996. Our real-time cost estimates, brilliantly priced service quotes, exclusive supplier rates, and hands-on financial forecasts deliver hotel owners greatest value within their budgets.
Our project management team & CIOs carefully evaluate properties with a defined seamless assessment process to determine technology budget essentials. Our team then involves all the relevant departments to ensure all technical requirements are addressed within the forecast.
Our experienced team can also forecast multiple budgets varying by technology & compliance upgrades to deliver you the optimal solution for your unique hotel. From renovations to hardware compliance, and upgrading the core infrastructure our proficient CIOs are connected with the industry to deliver the latest insights and the most attractive technology quotes to match your hotel’s budget.