AECCafe Industry Predictions for 2023 – Allbridge

By Todd Johnstone, CEO, Allbridge

Todd Johnstone

New Survey: The Top PropTech Considerations to Integrate into Hotel Construction and Renovation

The US hospitality industry is making a slow but steady comeback from the pandemic, but it’s having to meet the new expectations of today’s clientele. As guests return, they do so with expectations that hotels have changed. The bar has been set higher–particularly when it comes to the technology available to them when and where they stay. In response, the AEC industry is working with hoteliers to integrate PropTech into new hotel builds and renovations.

It is critical to understand how travelers’ demands are driving changes in hospitality infrastructure. The following conclusions are drawn from a survey of decision-makers in the hospitality industry to better understand priorities that sit at the intersection of PropTech and customer satisfaction.

1. Convenience and Smart Tech are Top Priorities

Respondents signaled that tech amenities were among their highest priorities–particularly due to the rise in contactless technology necessitated by the pandemic, and the increasing integration of smart devices in our daily lives.

Guests expect convenience technologies to be present throughout their travel experiences. For example, guests expect ease of movement–aided by mobile keys, keyless entry, or concierge kiosks. They also expect access to seamless WiFi connectivity throughout hotel properties. Not only do these types of technologies help save guests’ time and increase their satisfaction, but they can also add a layer of security to properties.

Integrating contactless connection points throughout a hotel not only streamlines guests’ experiences on-site but also increases peace of mind for COVID-weary travelers and employees alike. Driven by the ubiquity of home smart devices and homesharing platforms, like Airbnb and VRBO, hoteliers are finding that guests are seeking the comforts of home during their stays. Providing in-room smart devices or home assistants can further help guests move comfortably through their daily activities.

2. TV Reigns Supreme

Results from the survey indicate that hoteliers consider TV programming to be even more important than it was five years ago. Despite the rapid rise of streaming services, US households still watch an average three hours of TV per day. So guests still expect to have access to prime TV packages while traveling. To remain competitive, hotels must continue to offer robust TV programming to entertain customers.

A complete hospitality TV system not only entertains guests, with a wide range of TV channels and on-demand or streaming service options; it also provides opportunities to increase top line. For example, hoteliers can leverage in-room TVs to present guests with personalized menus of add-on amenities and services, all in easy-to-access branded hubs. Through a system interface, management can customize in-room experiences and track usage to help better predict guests’ needs. And by wisely choosing a hospitality TV vendor, hotels can shift the burden of tech support from on-site staff to vendor customer support representatives.

3.  The Market Demands Streaming and Casting

With each household subscribing to an average of 4.7 streaming services, TV alone won’t cut it. According to our survey, 44 percent of survey respondents plan to offer both TV and streaming because 73 percent confirmed that guests consider streaming options to be important.

To meet expectations, one in three properties provide streaming as a complimentary amenity, while others offer it as an optional, paid amenity. Importantly, streaming is augmenting, not replacing, TV. Few survey respondents plan to cut the cord in favor of streaming. Providing both TV and streaming or casting can satisfy guests’ appetites for a buffet of entertainment options.

This can be done through a variety of ways. Some hotels have implemented systems that deliver traditional TV services through existing coaxial cables, with streaming services or casting apps delivered via WiFi or ethernet cables. Others may choose to outfit rooms with smart TVs that rely on WiFi or ethernet and include traditional TV programming apps.

Providing casting options also allows guests to stream their favorite content on their in-room TVs. Guests can pair their smart devices directly to the TV or another connected streaming service in order to watch content from their own devices and apps. For hoteliers that do not plan to offer streaming services as amenities, this is a solution that can make guests’ experiences more personalized. It does, however, require investment in the right technology to enable device pairing and casting content.

4. Network Speed and Reliability Must Meet the Needs of Today’s Guests

In 2023, hospitality will continue to see demand growth from business travelers, offsetting slowing leisure-focused travel. Combined with an influx of guests who are combining both work and tourism into one trip, the network infrastructure bar has been set higher. While it may appear to be a challenge, it’s also an opportunity to turn satisfied business travelers into repeat customers. Recognizing this, travel and property managers rank WiFi higher on their priority lists than amenities such as entertainment options or in-room dining service. More than half of our survey respondents said they plan to upgrade their network in 2023 to remain competitive.

For those who are considering eliminating TV, property bandwidth and establishing network upgrade plans will be especially important. But network upgrades aren’t solely for the support of in-room entertainment. As the number of connected devices continues to multiply, network upgrades will also support the system of WiFi-enabled smart devices and convenience technologies that are installed throughout properties. As guests increasingly rely on mobile messaging and digital interactions with hotel staff, having a high-speed, reliable network will also enable more touchpoints and positive interactions. This can boost both guest and staff satisfaction.

The number of devices guests rely on and travel with increases every year, irreversibly accelerated by the pandemic. Without adequate bandwidth to support the volume of traffic surging through guests’ smartphones, laptops, and tablets, hotels will underdeliver on guests’ experiences.

5. Hotels Are Seeking Ways to Consolidate Tech Vendors

Properties typically rely on more than 30 different tech systems and vendors, complicating an already complex ecosystem. Consolidating this array down to fewer providers can reap rewards for a hotel’s PropTech structure. Doing so will provide new-found interoperability, speedier troubleshooting, and issue resolution, simplified support services, and more consistent guest experiences. It’s paramount that hoteliers follow a PropTech strategy that can deliver a strong infrastructure and the best tech to meet the needs of today’s guests.

There are a number of benefits to partnering with a managed services provider (MSP) to oversee and manage a hotel’s vast tech ecosystem. The best partners will provide guests with 24/7×365 technical support, allowing staff more time to handle other business priorities. Additionally, an MSP can own and maintain all equipment as well as own the whole process from pre-installation design to post-installation support. Contracting with a partner that provides cloud-based services can further future-proof property infrastructure with cloud-delivered updates that eliminate the need for cumbersome on-site updates and scale with property growth.

We’ve entered a tech-driven new normal in the hospitality industry. This evolution marks an exciting new era in which hotels are integrating technologies inspired by our years-long, contactless homebound season. Designing a building that can support smart devices, both TV and streaming packages, and high-volume network traffic, plus partnering with MSPs can collectively help the hospitality industry meet customer expectations while increasing operational efficiencies.

Category: Industry Predictions

This entry was posted on Thursday, January 19th, 2023 at 1:15 pm. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.