Top 5 technology takeaways from HITEC 2023 Toronto

Over 6,000 hospitality professionals and vendors gathered at the HITEC conference in Toronto to explore and discuss the latest technology trends, products and services that are uppermost in hoteliers’ minds today. As the conference progressed, it became clear that hoteliers are concerned with technology ROI, offering guests the streaming services travelers today expect, ensuring that they were offering exceptional WiFi, automating whatever tasks that they could, and cybersecurity. 

1. Hoteliers are seeking to maximize technology ROI: IT leaders said that they need to demonstrate how tech investments drive profitability or assist in delivering revenues, brand equity or better guest reviews. The general consensus appeared to be that investment in technology infrastructure is essential for future growth — and higher revenues. At the same time, they say they’re challenged to show how those investments drive revenue and guest loyalty. In fact,  nearly three-quarters of respondents to a 2023 Hospitality Technology survey opined that it is difficult to measure ROI for technology, with 71% percent reporting that traditional ROI for technology investments may show zero return, even when this is not true.  However, according to research conducted for The 2023 Smart Decision Guide to Hotel Property Management Systems, 92% percent of hoteliers at large properties reported that upgrading their property management systems enabled them to improve revenue by a “significant” or “dramatic” measure. Economic headwinds such as inflation, labor shortages and the threat of a possible recession require CIOs and CTOs to be careful with technology spending. Anecdotally, it appears many hotel technologists are transitioning from a CapEx to an OpEx model to fund technology, as the OpEX model requires much less upfront cost. OpEx investments mean that hoteliers only pay for the capacity they need currently, and can scale up as requirements change, and allow multiple investments across the business since capital isn’t tied up in large upfront expenditures. Partnering with the right managed service provider, for example, can potentially reduce hotel IT costs by 45%.
2. Content streaming and casting to meet and exceed expectations: Casting and streaming content are options that guests have come to expect to have during their hotel stays, including access to services like HBO MAX, ESPN +, Disney +, Netflix, and the like. In fact, 72.6% of guests are likely to return to a hotel if it provides technology for room entertainment. Hotels are seeking partners that can deliver the content guests love in cost-efficient and flexible ways. Economic conditions are forcing some guests to downgrade entertainment at home, and those people may recognize the value of accessing content at a hotel. Discussion at HITEC centered around the idea that while live programming with major sports, news and live events may be seen as a value-added perk for cost-conscious guests such as cord-cutters, for luxury and business travelers robust live programming is considered a necessary option.
3. Connectivity and strong WiFi are foundations of growth: An almost universal opinion heard was that foundational investment in a powerful network is necessary for future growth in the hospitality industry. This need has been underscored by the ongoing advent of AI, Smart Rooms, and more powerful mobile devices. Hotel guests also have come to expect great WiFi connectivity, and are demanding an as good or better  WiFi experience than they have at home and in the office. Not surprisingly, 90% of hotel guests cite the ability to access WiFi as “very important.”
4. Automation and efficiency: The current labor shortage, and other economic headwinds, find hoteliers seeking a modernized network that can help with the automation and cost-saving tools that offer guests and hotel employees more conveniences and a higher perceived value  — without additional costs. Hospitality experiences an annual employee turnover rate of 73.8%, and it can cost up to $3,500 to replace a minimum-wage employee. The need for more automation and cost efficiencies becomes apparent when those two factors are considered. However, while AI/Smart Rooms can solve automation issues, those technologies require an efficient, secure and well-managed network. Some answers are obvious: while IT leaders need to do more with less staff, they also require the expertise to manage a network to be successful in addressing these challenges. Managed services from a trusted partner may be the answer they seek. Managed Network Edge and Enterprise Network Edge with SD-WAN solutions offer integrated WiFi along with motion sensors and cameras to streamline property monitoring and ease automation. These modular solutions provide a simple, flexible way to modernize networks at an individual hotelier’s pace.
5. Cybersecurity concerns: According to Hospitality Net, “One of the most valuable assets of a hotel brand is information – detailed personal information about guests at their hotels, participants in their loyalty programs, and visitors to their websites.”  However, disturbingly, 70% of guests don’t believe that hotels invest enough in cybersecurity protection.  It’s an acknowledged concern, and one much discussed at HITEC 2023. In fact, 56% of hospitality IT leaders name cybersecurity as one of their top-three business concerns. Unfortunately, cybersecurity is a constant battle, and the need to defend against cyber threats is not likely to ever disappear. Hoteliers can benefit from a managed security service that integrates cybersecurity and firewall solutions. A trusted partner should be to able handle all the software updates and install the latest security patches, so the overstretched IT staff that most hoteliers operate with don’t have to. A fully managed service can help hoteliers streamline operations and standardize protections and VPN across all U.S. locations.

How Spectrum Enterprise can help

With over 20 years of experience in hospitality, Spectrum Enterprise can design, implement and manage technology solutions that work within a hotelier’s budget while providing a premium guest experience. We offer a service-level agreement (SLA) that ensures you can count on 24/7/365 network support, voice and TV availability.

Spectrum Enterprise provides technology solutions to over 95% of the top hotel brands in the US. See how we can help you deliver a five-star guest experience and exceed expectations with always-on connectivity.