Why top hotels are moving to a managed NaaS model

Even before the pandemic, hotel operations were quickly moving towards digitization. According to McKinsey research, the pandemic has accelerated that digital transformation by 10 years.¹ Hotels now race to develop apps, embrace new platforms and develop their cloud strategy in their efforts to satisfy ever-evolving guest expectations. In addition, the ongoing labor shortage – which experts believe will continue until 2024² – has 65 percent of hoteliers turning to new tech to automate and streamline processes.³

On top of these challenges, there’s been a profound shift in consumer behaviors regarding business travel. Knowland is forecasting that the volume of U.S. meetings and events business will hit 106.3 percent of 2019 levels by 2023.⁴ However, the line between business and leisure travel is blurring, with remote workers expressing growing interest in “bleisure” travel and digital nomad opportunities.

To meet new tech requirements and keep networks humming smoothly in the face of limited resources, hoteliers are turning to managed Network-as-a-Service (NaaS). The right technology partner can easily connect all hotel properties with a flexible solution built specifically for your needs, delivering critical services such as fast, reliable WiFi, cyber security mitigation and network management. With managed services, hotel operators can get more done in less time with fewer people, and above all at a lower cost.

Guests’ changing demands increase network complexity

Demand for contactless, self-service technology⁵ and the “bring your own device” (BYOD) culture is permeating every aspect of the traveler’s journey. Instead of face-to-face interactions with hotel staff, guests prefer to download apps onto their smart devices, using them to request hotel services, book amenities and place food-and-beverage orders.

In addition, many companies have adopted a hybrid work model, with 22 percent of the American workforce forecasted to work remotely by 2025.⁶ As a result, people are embracing their newfound ability to work from anywhere. And savvy hoteliers are creating new revenue streams by catering to those seeking day-use, co-working spaces and “Workations,” ensuring that they can work just as efficiently on property as they do at home or in the office.

Growing use of digital devices, streaming services and videoconferencing capability, however, is increasing network complexity. And it’s difficult for time- and labor-strapped IT teams to handle the rapidly changing network needs. The right managed services team can provide you with the necessary and secure infrastructure to support these new network demands in one simple platform. Managed service providers can improve network performance with high-speed WiFi and flexible bandwidth to meet your guests’ needs throughout any given day.

The right tech combats the hotel labor shortage

On top of the increased network complexity brought on by evolving guest demands, the industry-wide labor shortage has also created network-related hurdles for hoteliers to overcome.

Since February 2020, the leisure and hospitality industry has shed nearly four million people, almost a quarter of its workforce.⁷ And according to a Bloomberg survey, more than half of U.S. hospitality workers have no plans to return to their old jobs.⁸ To continue growing business and providing elevated levels of service to guests, many hotel operators have adopted the same remote working model for their staff that their guests are enjoying, removing geographical restrictions for back-of-house positions such as accounting, sales and marketing. Moreover, hoteliers are looking for ways to make life easier for those overworked team members who continue to work on-site, by automating processes and streamlining staff-to-staff and staff-to-guest communication.

An advanced managed NaaS provider that offers a unified communication (UC) solution helps improve workflows and staff productivity by enabling remote workers to connect their devices easily and securely for an “in-office” experience no matter where they’re located. Staff can communicate, collaborate and share content with each other in real time via desktop computers, laptops or mobile devices. Integration with your hotel’s PMS empowers team members to deliver fast, personalized responses to customer requests and concerns, enhancing guest satisfaction and loyalty.

Managed NaaS lets you switch from CapEx to OpEx

Hotels need up-to-date technology to satisfy all the new network demands they’re facing. But complicating hoteliers’ ability to replace legacy systems is the fact that occupancy levels are still below 2019 levels,⁹ meaning less revenue is coming in and pressure to reduce capital expenditure (CapEx) budgets is high.

With a managed NaaS solution, you save money by switching from the CapEx to the OpEx side of your budget. Instead of paying large upfront costs for hardware, software, equipment maintenance and repair, you pay a predictable monthly fee and your provider takes care of the rest. You also free up IT teams to focus on higher-value tasks since they no longer have the headache of managing software and security updates, along with tracking each piece of network equipment’s maintenance history, condition, performance and expected useful life.

NaaS expands your IT Team

As the hospitality industry continues dealing with the labor shortage, inflation challenges and increasingly complex networks, partnering with the right managed NaaS provider can have a major impact on your hotel business, potentially reducing your IT costs by up to 45 percent and increasing your operational efficiency by up to 65 percent.¹⁰

Managed Network Edge and Enterprise Network Edge with SD-WAN solutions from Spectrum Enterprise offers integrated WiFi along with motion sensors and cameras to streamline property monitoring. The modular solution provides a simple, flexible way to modernize your network at your own pace, allowing you to focus on connecting with your guests instead of worrying about connecting your network.

¹ “Five Fifty: The Quickening.” McKinsey & Company, 2020, https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/five-fifty-the-quickening.
² “2022 Midyear State of the Industry Report.” AHLA, 27 July 2022, https://www.ahla.com/ahla-research-reports.
³ “Hospitality in 2025 Report.” Oracle & Skift, 2022, https://www.oracle.com/industries/hospitality/hospitality-in-2025-report.
⁴ “Meetings Recovery Forecast.” Knowland, 20 July 2022, https://www.knowland.com/resources/meetings-recovery-forecast/.
⁵ Ibid., 2
⁶ “Statistics on Remote Workers That Will Surprise You (2022).” Apollo Technical LLC, 11 May 2022, https://www.apollotechnical.com/statistics-on-remote-workers.
⁷ Dill, Kathryn. “Four Million Hotel, Restaurant Workers Have Lost Jobs. Here's How They're Reinventing Themselves.” The Wall Street Journal, Dow Jones & Company, 22 Feb. 2021, https://www.wsj.com/articles/hospitality-workers-are-pushed-into-new-careers-as-pandemic-begins-second-year-11613999342.
⁸ Dmitrieva, Katia. Half of U.S. Hospitality Workers Won’t Return in Job Crunch. Bloomberg, 8 July 2021, https://www.bloomberg.com/news/articles/2021-07-08/half-of-u-s-hospitality-workers-won-t-return-in-job-crunch#xj4y7vzkg.
⁹ “U.S. Hotel Results for Week Ending 30 July.” STR, 4 Aug. 2022, https://str.com/press-release/str-us-hotel-results-week-ending-30-july.
¹⁰ “Global Managed Services Market (2022 - 2027): Big Data Stands to Be Driving Factor for Productivity and Efficiency.” Business Wire, 18 Feb. 2022, https://www.businesswire.com/news/home/20220218005441/en/Global-Managed-Services-Market-2022---2027-Big-Data-Stands-to-be-Driving-Factor-for-Productivity-and-Efficiency---ResearchAndMarkets.com.