Hotels That Adapt Digitation Will Disrupt Markets In The Future

Product differentiation is key to keeping customer demand for change and technology to improve guest experience. The increasing number of technology focused firms are changing the way people travel around the world. The hybrid way of doing pricing in the hospitality performance for travel agency has allowed operators to create a dynamic pricing mechanism. The hybrid consists of online travel agency(OTA) and operators to make a dynamic of 60 million pricing changes every day and has effectively changed the revenue management.

Many other technology firms and sectors have entered the hotel market. The e-commerce future will allow the hotel market to have key-less, cash-less hotel in the future. Currently, China is serving by robots that enable to access the room and hotel facilities through facial recognition. The embracing of change for the key hotel providers will help improve the overall guest experience. The monitoring of online reviews for real time property management will allow for a better guest experience.

The digital transformation will allow for key performance metrics to be under pressure, and it will be essential for hotel owners to operate differently in the future. Managing revenue and differentiating offerings will allow for a disruption in the market. The change is like other companies including FlipKey, Vrbo, Homeaway, and Expedia. The parallel increase of hotel stock and private rentals has a projection of increasing to a mid-market supply for creating additional pressure on key factors in the sector.

Owners in the future have to position the inventory and products to meet a growing need in the global sector. This may be included to delivering hotel grade services, and integrating short term rentals in all sectors. Marriott has recently added Villas and Homes to their international short term rental platform and their loyalty program.

Digital transformation will change with artificial intelligence to leverage new products in the near future. Hotels and companies that adopt this transformation will increase their leverage in the new global economy under digitation and e-commerce.

Source: STR Global

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