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Transformation is not a choice ... its about survival

Featured on Hotel Tech Insider Pod Cast

Writer: Howard PhungHoward Phung

Updated: Dec 9, 2024


Transforming Hotel Technology: Insights from My Journey


The hospitality industry is at a pivotal moment where technology adoption is no longer optional but essential to thrive in a competitive market. From my experience transforming tech landscapes at organizations like Pro-invest Group, EVT, and Frasers Hospitality, I've seen firsthand how the right strategies can elevate a hotel's operational efficiency, guest experience, and scalability.


Here’s a breakdown of key insights from my journey that can guide hotels on their digital transformation path.



1. Start with a Clear Vision


Before any transformation begins, it's critical to establish a clear roadmap. At Pro-invest, I inherited a fragmented system with eight PMS platforms and no centralized strategy. Consolidating to three PMSs, and eventually, one, was not just a technological decision but a strategic one to streamline operations and reduce inefficiencies.


Lesson: Define your long-term goals and ensure every tech decision aligns with them.



2. Build for Scalability


Hotel portfolios grow fast, and your tech stack needs to keep up. Moving to cloud solutions, standardizing platforms, and investing in flexible systems were crucial steps in enabling Pro-invest’s 300% growth over just a few years. Scalability doesn’t just apply to technology—it extends to your people and processes.


Lesson: Choose technology and partners that can grow with you.



3. Leverage Data as a Strategic Asset


Data is the backbone of every successful hotel operation. By implementing a unified data warehouse, we eliminated manual data mapping processes, freeing up significant time and reducing errors. This allowed us to:


Deliver near real-time insights through platforms like Power BI.


Predict labour costs and optimize staffing in real-time.


Enhance revenue forecasting and decision-making accuracy.



Lesson: Invest in systems that centralize and clean your data. The payoff is immense.


4. Embrace AI and Generative AI


AI is no longer a luxury but a necessity. From personalizing guest recommendations to optimizing operational efficiency, the potential is limitless. At Pro-invest, integrating generative AI into our tech stack helped automate data matching and create predictive models for operations, leading to substantial time and cost savings.


Lesson: Push your technology vendors to integrate AI into their roadmaps. Hotels that ignore AI risk falling behind.



5. Sustainability is Non-Negotiable


Sustainability isn’t just good for the planet—it’s a core driver of business value. At Pro-invest, our ESG initiatives allowed us to achieve a Neighbours rating of 4.5 to 5 across new builds, positioning us as a leader in green financing. This commitment extended beyond energy savings to social impact programs, such as sponsoring education for underprivileged communities.


Lesson: Sustainability efforts should go beyond optics. Incorporate measurable goals that resonate with investors and guests.


6. Cybersecurity Must Be a Priority


In an industry handling vast amounts of sensitive data, cybersecurity cannot be an afterthought. During vendor evaluations, I prioritize features like two-factor authentication, geofencing, and robust compliance standards like PCI DSS and ISO 27001.


Lesson: A secure tech stack is the foundation of guest trust and operational resilience.



7. The Role of Leadership


Technology transformations succeed when leadership is aligned with the vision. The best CEOs I’ve worked with understood that technology is a strategic enabler. They supported bold decisions, even when costs seemed high because they recognized the long-term value.


Lesson: Choose partners and leaders who share your commitment to innovation and growth.



Conclusion


The hospitality industry is in a transformative phase, and the choices we make today will define the future of guest experiences. As hotels, we have a responsibility to adopt technologies that enhance efficiency, deliver exceptional guest experiences, and support sustainable growth.


If your organization is ready to embark on this journey but feels overwhelmed by the complexity, consider partnering with experts who can guide you through the process. From developing roadmaps to selecting the right vendors and implementing cutting-edge solutions, the right support can make all the difference.



About the Author

Howard is an award-winning CIO with over two decades of experience in hospitality technology. He has led digital transformations for leading hotel groups, focusing on cloud-based solutions, AI adoption, and ESG-driven strategies. Today, Howard consults with organizations to help them scale and thrive in an increasingly tech-driven world.


LinkedIn: Howard Phung

 
 
 

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