The hospitality industry is gearing up for the cloud. Are you ready?

Check-out time is near for most remaining hotel legacy network systems. Cloud technology is forcing a wholesale shift that will only deepen as travel continues to rebound from the pandemic. How can hoteliers capture the best of what the cloud has to offer now and in the future, while minimizing adjustment pains?

A transformation in progress

The continued uptake of cloud services in the hospitality industry is redefining a re-emergent business in a multitude of ways. A few of the most obvious and immediate benefits are worth calling out:

• Lower costs and scalability are easier to attain when the cloud facilitates a hotelier’s ability to pay only for services they and their guests need now, and add on as needed over time.
• Reliable connectivity offered with cloud support is proving a difference-maker for business and leisure travelers alike, as today’s increasingly hybrid work culture dictates the ability to connect and do business from anywhere.
• Cloud-based management tools are helping chronically shorthanded staff manage workflows and room availability more efficiently.

The cost of wait-and-see

Incorporating cloud technology and services into a hotel’s operations is fast becoming not only expected but potentially costly to hoteliers who take too passive an approach to this substantial market shift. As the ongoing revolution around smart-room technology becomes less novel and more expected, the cloud’s ability to boost a hotel network’s connectivity capacity by several factors will prove immediately advantageous for several key reasons.

For one, the cloud enables contact-free engagement with guests and prospects by allowing more business to be conducted away from a hotel’s front desk or even its physical premises. While pandemic fears have ebbed since 2021, 35% of prospective guests still want contactless payment options, according to a recent HotelTechReport article. Cloud technology makes such options easier to realize, for hotels and guests alike.

Just as important, especially for hotels seeking to navigate an unpredictable market, cloud technology facilitates the deployment of data analytics, which have become critical to hospitality leaders in anticipating future demand and preparing for the advent of Internet of Things (IoT) environments.

Such cloud-enabled data capture in turn broadens upsell opportunities, an increasing part of the hospitality market for enhancing profitability. “In an experience-driven industry like hospitality, online upselling is one of the easiest strategies a marketer can use to drive additional revenue,” Forbes reported, further noting 61% of travelers surveyed found it favorable to be offered upsell opportunities.

What to look out for during cloud integration

It is not enough for hoteliers to incorporate cloud technology in their future plans. They must do so wisely, balancing the many opportunities inherent with the cloud against the operational capacity of their enterprise and the practical limitations of a hotel’s IT staff.

Security with a cloud-based platform must be closely monitored. Hospitality is a target-rich environment for cybercriminals seeking personal identifiable information (PII); systems designed to protect that information should be prioritized. Hotels can also be targeted by cybercriminals using ransomware and distributed denial-of-service (DDoS) attacks, among other schemes; hoteliers need to be ready with a comprehensive security program that protects a network at the edge.

Compatibility with a hotel’s specific needs is not something that comes in a box. Any cloud-based network system with public interfacing applications and tools specific to the management of an individual hotel or group of hotels must be carefully engineered both for scalability and ease-of-use. Hotel leaders and technology teams should lean on the expertise of a managed service partner who is not only willing to listen but engage in robust planning discussions.

Success can be a challenge, too: Demand on bandwidth can be expected to rise steeply as cloud use grows; taxing existing hotel infrastructure in a hurry even when scalable adjustments are at hand. For example: Are you doing enough to mitigate the peril of data lag on user experience? Think about how an upgrade offer banner popping up on a hotel app or kiosk might create a costly delay and a negative overall service impression. Hoteliers need to have next steps in front of mind to streamline growth and eliminate headaches.

The future is what you make of it

It may be too late now to gain first-light advantage over competitors incorporating cloud technology into hotel operations, but there remains ample opportunity to profit from lessons learned.

Hoteliers seeking to better access the cloud should find a managed solutions partner who understands the business and offers services that allow for peace of mind. Cloud Connect, for example, is a cloud-based solution that emphasizes dependability and privacy along with 24/7/365 support.

A Unified Communications platform, specifically one tailored for hotels, can be a good first-step for introducing a cloud-centric solution to a hospitality enterprise, bringing together management of voice services, customization of guest experience and the promotion of amenities and events. 

Hotel managers should also be prepared to invest in ample connectivity that will grow along with a cloud-services portfolio. Specifically, they should focus on solutions like Dedicated Fiber Internet (DFI) that provide the right scalability for hospitality enterprises of diverse size and services.

Bringing together security and network management are critical and must be central to any hospitality enterprise’s long-term plans. A solution like Managed Network Edge can protect a business at all points of entry while allowing it to maintain a welcoming profile to current and prospective guests.

Look before leaping

The value of cloud-powered services is both clear and immediate for hospitality business leaders, whatever the size of their enterprise. What challenges everyone, large and small, is connecting to the cloud in a way that emphasizes ease of use in the back rooms as much as at reception.

Whether or not cloud integration is instituted with a managed services provider partner, no move should be made without a careful road map that incorporates the unique character of a specific hospitality enterprise. In embracing cloud technology, hoteliers should always take into account both the current needs and service expectations of guests, and how best to attract and retain those guests they are counting on to arrive in the future.

Learn more about how you can exceed your hospitality business objectives with the support of Spectrum Enterprise solutions.