Hospitality Management
Article | June 20, 2023
Discover the top hospitality management trends in 2023 to elevate the travel and tourism businesses. Adapt to hospitality marketing trends that are reshaping the hospitality and travel industry.
Contents
1. Introduction
2. Importance of Hospitality Technology for Hospitality Industry
3. Five Hospitality Management Trends Shaping the Industry
3.1 Hotel Work Spaces
3.2 Robots in Hotels & Restaurants
3.3 Hyper-Personalization
3.4 Holistic Hospitality
3.5 Digitalized Guest Experiences
4. Today to Tomorrow: Hospitality Management 2.0
5. Final Thoughts
1. Introduction
The hospitality industry has undergone a significant transformation in recent years, leading to a need for businesses to gain a competitive edge. While some businesses couldn't withstand the challenges, others adapted swiftly, and innovative concepts emerged to cater to the new normal. In 2023, technology will continue to advance rapidly, and the trends in the hospitality industry will harness its potential in exciting new ways. Despite uncertain household budgets, consumer trends indicate a strong desire for hospitality and tourism. However, to thrive in this landscape, hospitality businesses must stay informed about the latest industry trends to optimize costs, maximize profitability, and ensure continued success in 2023 and beyond.
2. Importance of Hospitality Technology for Hospitality Industry
The hospitality industry, characterized by intense competition, prioritizes staying abreast of the latest hospitality management trends. Embracing technology offers many benefits, including streamlined processes, cost reduction, decreased staff workloads, increased revenue potential, and enhanced customer experiences.
By leveraging the latest technology, businesses can achieve work accuracy that surpasses what can be accomplished by human staff alone. Technology solutions make tasks more manageable and enable companies to meet the increasingly high expectations of today's customers. Keeping up with the latest hospitality technology trends is crucial, allowing businesses to stay caught up to their competitors. Failure to do so may grant rival companies, a significant competitive advantage, especially if they adopt technology that resonates with customers while others continue with traditional methods.
3. Five Hospitality Management Trends Shaping the Industry
3.1 Hotel Work Spaces
The rise of remote work has become a prominent trend in hospitality management and is projected to have a lasting impact. Fueled by the global public health crisis, numerous notable companies, including tech giants like Twitter, Facebook, and Amazon, have announced their intention to adopt a hybrid or flexible approach to remote work. The industry's future presents a significant opportunity for hospitality venues to position themselves as remote working hotspots for locals and travelers. Hotels and F&B establishments can capitalize on this trend by adapting their offerings to cater to the needs and preferences of this emerging segment. Providing ample plug sockets, offering free high-speed WIFI, creating well-equipped meeting rooms, and serving great coffee are essential starting points to attract remote workers and cater to their requirements effectively. By embracing and accommodating remote work trends, hospitality businesses can gain a competitive edge, enhance hotel operations and successfully meet the demands of this evolving market segment.
3.2 Robots in Hotels & Restaurants
An intriguing trend that has captured the attention of the hospitality industry is the growing integration of robotics and their application in tasks traditionally carried out by human personnel. A notable example includes the utilization of robots in the role of concierge within hotels, where they can warmly greet guests and provide them with essential customer information.
Moreover, certain hotels have begun implementing robots for cleaning, including vacuuming floors and even employing germ-killing capabilities. This practice holds potential for widespread adoption throughout the broader hospitality industry, including restaurants and other establishments. Integrating robotics in these operational aspects presents an exciting opportunity to enhance efficiency, improve customer experiences, and explore innovative avenues for growth and optimization within the industry.
3.3 Hyper-Personalization
In today's hospitality landscape, guests have elevated their expectations to be recognized and treated as individuals, driven by the increasing demand for personalized interactions. Recent research indicates that 71% of tourists now anticipate personalized experiences. However, many businesses are still limited to personalizing at a segment level, while customer expectations have advanced well beyond that, reaching the realm of hyper-personalization in 2023.
To achieve hyper-personalization, hospitality businesses can adapt trends in tourism industry and leverage technological platforms such as Customer Relationship Management (CRM) and Customer Experience Management (CEM). These platforms utilize big data to create highly tailored one-to-one interactions between guests and hosts at scale. By drawing on data insights into customers' browsing and buying behaviors, hotels, travel providers and restaurants can customize their offers, promotions, and services to align with individual preferences and needs.
3.4 Holistic Hospitality
The current preventive medicine and self-care trend is gaining significant traction in various industries. In particular, the wellness sector is experiencing exponential growth, evolving into a thriving trillion-dollar market. Hospitality venues, especially those equipped with spa facilities, can capitalize on this trend and secure a substantial portion of this lucrative market.
While traditional beauty and relaxation spa services remain relevant, there is a rapid surge in demand for health diagnostic technology and customized treatment plans. Expert professionals are now offering personal or group sessions to foster vitality, facilitate healing, manage stress, achieve emotional balance, promote mindfulness, and enhance sleep quality. This evolving landscape presents a unique opportunity with trends in tourism and hospitality industry to expand offerings and meet the increasing customer demand for holistic wellness experiences.
3.5 Digitalized Guest Experiences
The increasing significance of apps in managing hotel services is reshaping the hospitality industry and revolutionizing the guest experience. The digital and contactless services trend has gained significant momentum, leading to a comprehensive transformation of customer-facing operations. Technology-assisted options, such as mobile check-in, contactless payments, voice control, and biometrics, redefine how guests interact with hotels.
Customers, who have grown accustomed to the convenience of unlocking their smartphones and laptops using facial and fingerprint recognition, will soon expect the same level of ease when accessing their hotel rooms. However, implementing these upgrades may pose financial challenges for establishments that provide these advanced services. To remain ahead of the curve and meet evolving customer expectations, hoteliers should invest substantially in adopting and maintaining the necessary technologies.
4. Today to Tomorrow: Hospitality Management 2.0
The future of the hospitality industry holds several key dimensions that hoteliers need to consider. First, shifting from standardization to personalized experiences is critical as travelers seek tailored services. Second, focusing on niche markets and value creation through customization and specialization lead to increased success. Embracing technology as a business accelerator is the third dimension, as it plays a central role in the hotel experience and enable innovative concepts. Fourth, social responsibility is a moral and economic obligation, with sustainability becoming a key focus. Developing responsive and resilient business models is the fifth dimension, essential for managing the risks and regulations associated with the growing tourist flows.
While the consensus among respondents in recent survey emphasizes the need for the businesses to adapt to hospitality industry trends 2023 to evolve and adapt to the current environment, some participants expressed more extreme views, suggesting that traditional hotel rooms may become obsolete. These individuals point to the growing impact of the sharing economy and the inclination of today's customers to seek alternatives to conventional hotels. They believe that the adjustments in offerings mentioned earlier may not be sufficient and that the industry must undergo a true reinvention to remain relevant.
This perspective highlights the importance of continuous innovation and staying ahead of evolving customer preferences. While personalized experiences, niche markets, technology integration, social responsibility, and resilient business models are key areas of focus, the industry needs to remain agile and open to further transformations.
5. Final Thoughts
As the hospitality industry continues to evolve, businesses must embrace key hospitality management trends to gain a competitive edge and ensure future success. The integration of technology, such as robotics in hotels and restaurants, offer opportunities for enhanced efficiency and improved customer experiences. Hyper-personalization is becoming essential, with guests expecting tailored interactions and customized offerings. The growth of the wellness market presents a chance for hospitality venues to capitalize on preventive medicine and self-care trends. Digitalized guest experiences, including mobile check-ins and contactless payments, are reshaping customer-facing operations. Looking ahead, the industry needs to shift from standardization to personalized experiences, focus on niche markets, embrace technology, prioritize social responsibility, and develop responsive business models. While some experts suggest traditional hotel rooms may become obsolete, it is crucial to continually innovate and adapt to changing customer preferences to remain relevant in the dynamic hospitality landscape.
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Hospitality Management
Article | August 28, 2023
As every department is going through digital transformation in travel companies, finance processes are no exception. The advancements in technology are influencing how travel expense management is evolving. Technology is widely affecting how travel expenses are captured, submitted, audited, processed, and reimbursed. The automated travel expense management is helping most of the corporate travel companies with inclusion of the latest travel management and expense management tools.
In 2016, the share of corporate travel expense management was US$1.3 trillion; therefore, by 2023, it is predicted to hit US$1.6 trillion. Companies today are rethinking modern travel expense management policy and developing corporate travel expense management system including expense management best practices. They are actively using travel management and expense management tools to create a smoother workflow.
Looking at these developments in expense management policy, it’s important to understand what companies were facing before implementation of automated version of expense management system.
Main Hurdles While Managing Travel and Expense
Policy violations
Multiple layers of forms
Delayed submission of expense reports by employees
Increased processing cost
Lack of visibility into the process
Heaps of productive hours were wasted because of the manual processes involved in the expense management policy. Managing the excel reports and cross-verification for policy compliance resulted in increased costs. Delayed submission of expense reports caused late input tax credit claims, which affected businesses to generate revenue. Consequently, to minimize the hurdles of managing travel expenses, an automated travel expense management system, and some best practices for travel expense management were the need of the hour.
An Overview: Modern Travel Expense Management
Modern travel and expense management systems and its practices help employees manage the financial process in real and measurable ways. The system governs how the finance team spends company money on corporate travel and other related expenses. It includes an automated expense management process, which has drawn attention to seamless receipt generation, auditing, reimbursing, submission of finance reports, and cost savings.
To implement modern travel expense management, some best practices for travel expense management are suggested to help build a consistent workflow. Many corporate travel companies have included it to automate the expense management process but are little aware of practices that can enhance their workflow. In this scenario, it's important to know the importance of including the best practices for travel expense management.
Why Talk about Best Practices for Travel Expense Management?
In the finance department, various types of frauds such as multiple reimbursements, overstated expenses, fictitious expenses, and more always stay at the top of the mind for most CFO’s. A well-controlled travel expense management system helps prevent misuse of company assets and prohibits misconduct from dealing with such situations.
According to the Aberdeen group’s research, 43% of top travel companies and their CMOs consider T&E management a critical strategy for their company to handle travel expenses. In comparison, 48% of them say they “need to reduce expense processing costs,” which is why they implemented best practices for travel expense management.
Whether large or small, companies realize the potential benefits of a well-managed travel spend mechanism that had best practices for travel expense management to automate the expense management process. They invested heavily in expense management software, which helped them frame a consolidated expense management policy.
In the end, corporate travel policy best practices need to be tailored specifically to employees to create best-in-class expense management and improve performance. By following expense management best practices, you can also define and implement an accurate policy and ensure your employees implement potential tools to automate the expense management process. This will create an efficient finance process that will lead to a friction-free travel and expense management system. If you are updating your finance functions, this small expense management guide to the best practices for travel expense management will help you far to reach your goals.
Best Practices for Travel Expense Management
Create Ownership of the Policy
Before you start implementing T&E management as a critical strategy, defining ownership of the policy clearly is crucial. Ideally, your finance team needs to understand it thoroughly while using the best expense management software. Creating ownership of the policy will benefit as follows:
First: You will have clear ownership that will ensure that your finance team tracks the policy accurately and makes necessary changes to cater to corporate travelers and their requirements.
Second: Your employees will be able to address queries and concerns related to corporate travel a defined way. This way it will become easier for them to handle multiple queries at a time and cater to possible services.
Include Simple Policies
Your expense management policy should outline what it is accurately. It can only be practiced if you keep policies simple based on the company’s culture and its budget. Using the right travel management and expense management tools, your company’s travel expense management mechanism will be quick and easy for employees to work on expenses claimed by corporate travelers, submit, and audit them. Including simple policies will help employees track receipts through mobile applications and even upload them immediately. This entire process will help minimize errors and lessen receipt loss possibilities.
Accurate Expense Reporting
To include accurate expense management reporting is considered one of the most successful best practices for travel expense management. Around 30% of CFOs believe that to review expenses reporting for policy violation is the biggest pain point. As you automate the expense management process, the mechanism of expense reporting and expense claim management also gets smarter. There are multiple benefits to have a sound reporting system.
It gives budget creators a better understanding of how a specific travel expense budget is consumed.
Finance teams get a proper structure and create a defined spending pattern to identify transactions so that there are no fraud possibilities in the management system.
The reports under expense reporting become accountable because the total spends are available to senior management for a broad review.
Expense Payments Are Timely Processed
The right expense management software usage can help your employees process expense payments on time and faster to reduce errors. By implementing this expense management best practice, your employees can present expense reports timely to managers. An automated expense management system eliminates the tedious job of manually checking expense payment violations and encourages initiating flawless expense payment processing.
Creates Accountability
To keep accountability in expense management is vital for a finance manager. The automated travel and expense management system creates an opportunity to enable accountability option for your company’s expense plan so that managers are made aware of the transactions, submission of reports, expense claims, reimbursements, and more that are taking place. In order to gain high accountability in these areas, the new travel expense management process provides easy access to review and gives appropriate reports. You can easily implement this corporate travel policy best practice to your system and keep a check using expense management software that provides access via mobile applications. Practicing this will give your finance team more power and guide them to generate better revenue annually.
Conduct Regular Audits
By implementing this as best practices for your travel and expense management, you can efficiently conduct regular audits of the travel expense. Many CMOs have followed it and attained success while implementing it. Similarly, a regular audit also identifies areas of improvement and can point variances that could generate exemplary revenue. Practicing this in your finance process will also help uncover expense fraud. In this case, the Association of Certified Fraud Examiners’ (ACFE) reveals, 20% of small businesses and 13% of larger firms reported fraudulent expense reimbursements in 2019. The activities that were highlighted as
Access expenses
Non-characterized expenses
Fictitious expenses
Multiple reimbursements for the same expense
After putting your time and effort into recreating a new travel and expense management system and inculcating best practices for travel expense management in your company, it is crucial to choose the right ways to enforce it. Consistent use of best practices for travel expense management will let you save costs, and there will be no adverse impact on your company's budget. You can make effective decisions for your business as it eradicates your finance team's hurdles that were before.
Frequently Asked Questions
What is a travel and expense policy?
A travel and expense policy is a set of rules that covers the process of reimbursement and claims for expenses that are incurred by employees on corporate travel plans. This policy outlines how a company’s employees should set procedures for corporate travel.
What is business travel management?
Business travel management includes policies that set a company’s function in a strategic way. It includes various types of contracts made with airlines, hotel chains, rental car companies, and other business travel related management services.
What is expense management?
Expense management works according to two key elements—how a business pays for employee-initiated expenses and how to track all employee-initiated spending. In this, management of costs is included mainly for corporate travel, accommodation, meals, flights, and car rentals.
What is expense management automation?
Expense management automation encourages services like collection, storage, submission, reporting to function automatically. It implies the use of analytical tools to help companies maintain accountability and compliance through accurate tracking and reporting process.
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Hospitality Management
Article | July 24, 2023
Technology advancements have changed the way we travel. And some of the new developments promise an improved day-to-day operation and interactive experiences for the customers. With the help of technologies, thousands of companies have transformed their conventional accommodation and traveling experiences.
Travelers have gained free access to chart their journey, arrange required services, and enjoy hassle-free traveling. And the best part of this is, the ability to acquire all without leaving the comfort of home.
However, there has been a paradigm shift in the travel industry with the development of some emerging techs around the world. So let’s check out what these technologies are, how they are going to impact, and the way it is going to change the entire traveling experience.
Key Tech Trends In Traveling
1. AI Chatbots
Chatbots powered by artificial intelligence is the most sensible investment. It helps users to talk with chatbots through messaging platforms like Facebook Messenger, Skype, or Slack. With the data stored in these chatbots, they recommend the best locations, tips, and price-alerts, thus, impact the decisions of the customers. During the trip, it would prompt the traveler about check-in updates and flight delays. Some of the booking sites that use chatbots include Skyscanner, Kayak, Booking.com, etc.
2. AR & VR
Thanks to the development of augmented reality and virtual reality, potential customers can now take a virtual tour of the resort or hotel from anywhere around the world. It assists not only the customer to choose the best option for them but also helps the hotels to promote their facilities. With AR and VR, the possibilities in the travel industry are infinite.
3. Recognition Technology
Due to the Covid-19 crisis, one of the biggest fears a customer faces is coming in contact with an infected person. But, the recognition technology assists in both check-in and check-out from the hotel with the help of retina scanning, facial recognition, and other biometric identifications.
4. Smart Rooms with IoT
A wide number of hotels have moved towards the Internet of Things for their rooms. It enhances the entire customer experience via customized and potential control to the rooms while detecting any problem that can be faced by them.
5. Contactless Payment
Last but not the least, contactless payment is another form of advancement in travel tech that allows companies to process payments quickly and saves time for the customers who don’t have cash or access to their debit or credit card.
What’s Next?
For every company that is operating in the travel industry, it is important to keep up with the technological trends. Understanding and using the tech mentioned will help in providing a better experience for the customer and optimize business along with the overall performance of the business. If you want to know more about these technologies and their adoption then have an IT consultant from experienced experts and acquire the in-depth information.
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Travel Technology
Article | May 5, 2023
Learn how adopting advanced travel technology services can improve your operations in the digital age and evade business complexities. Embrace these technologies for better business growth.
Contents
1. Overview of Travel Technology
2. Importance of Technology in Travel Management
2.1 Artificial Intelligence and Machine Learning
2.2 Virtual and Augmented Reality
2.3 Software and Its Application
2.4 Automation, Analysis and Reporting
2.5 GPS Tracking and Emergency Assistance
2.6 Expense Tracking and Management Tools
2.7 Mobile Wallets and Digital Payments
3. Challenges and Considerations
3.1 Privacy and Data Security Concerns
3.2 Integration with Legacy Systems
3.3 Employee Adoption and Training
4. Conclusion
1. Overview of Travel Technology
Technology has not only influenced the lifestyles of human civilization but also completed them to live with it. With proper technology integration in business travel, they can thrive in today's digital world. The travel technology serviceslike artificial intelligence, machine learning, virtual and augmented reality, software applications, automation, GPS tracking, emergency services, expense tracking, and digital payments enhance travel management.
This article evaluates the importance of technology in the travel management sector. Using artificial intelligence, software tools, and digital channels is vital for travel business growth. With advanced technology, businesses enhance customer experience, convenience, support, and retention. For example, the technology-based 24/7 customer support and risk management services for an emergency can respond even when the employee is absent. Such automation is the future of travel management services.
2. Importance of Technology in Travel Management
2.1 Artificial Intelligence and Machine Learning
Upgrading artificial intelligence solutions increase the reliability and effectiveness of the travel management company's services. There is a vast implementation of AI and machine learning in the tourism sector. Corporate travel technology assists businesses with administrative tasks and customer services. It provides enhanced personalization, valuable advice, and speedy response in the employees' absence. In addition, many hotels and resorts use these tools for better services and brand awareness.
2.2 Virtual and Augmented Reality
Virtual and augmented reality enables hotels and travel-related businesses to enhance the physical environments to encourage customer engagement in local sights and hotel rooms. Customers highly research travel purchases as they require detailed information before arrival, and even after their arrival, it renders relevant information 24/7. Therefore, adopting AR and virtual reality in the travel industry is a must to cope with changing customer lifestyles and behavior toward technology trends. Modern customers often use smartphones, so using augmented reality apps is easy to use.
2.3 Software and Its Application
Travel management software provides users with a platform for planning, purchasing, and recording travel expenses. Travel agency uses this software to simplify purchasing decisions, centralize records of employee travel expenses, and control travel budgets with digital transformation.
2.4 Automation, Analysis, and Reporting
Automation optimizes travel routes according to the choices of the customers. It manages the inventory and analyzes the business travel, maintains the travel reports, and predicts the increase in demand for a particular period. Even with the latest innovation in business travel technology, artificial intelligence like ChatGPT can integrate seamlessly to automate different tasks of businesses from applications like chatbots and others.
2.5 GPS Tracking Its Emergency Assistance
The technology-based solutions for travel businesses ensure the workforce's well-being, safety, and security. With constantly evolving travel risks, enterprises need a permanent solution that can adapt to changing travel circumstances and customize to the needs of companies and customers. It provides not only updated information, location, and incident monitoring during travel but also critical event response for safety, as well as suggesting alternatives to the traveler's existing plan.
2.6 Expense Tracking and Management Tools
Travel businesses generate a vast amount of data on financial transactions, which can become tedious to manage. To address this issue, travel tech companies offer solutions to organize, monitor, and analyze travel expenses while ensuring compliance with policies. In addition, based on past travel experience, it predicts future travel of business travelers.
2.7 Mobile Wallets and Digital Payments
Mobile wallets and digital payments are influencing the growth of travel businesses. The leading travel technology company provides a profitable, convenient, and secure experience to customers. Many use mobile devices for payment using different applications, making it easy to purchase through a simple scan or click.
3. Challenges and Considerations
3.1 Privacy and Data Security Concerns
With the increasing amount of sensitive information being collected and shared, travel management companies must follow all applicable privacy laws and regulations. In addition, they must take precision to protect data from unauthorized access, breaches, and cyber-attacks. It can involve implementing strong data encryption and access controls, monitoring systems for suspicious activity, and ensuring that all employees get training in best practices for data security.
3.2 Integration with Legacy Systems
Many travel companies have invested heavily in legacy systems, which are difficult to replace or upgrade. However, failing to integrate new technologies can lead to inefficiencies, huge data collection, and missed opportunities. Incorporating new technologies involves developing new APIs, migrating data to new systems, or adopting new technologies that work alongside legacy systems.
3.3 Employee Adoption and Training
Employees must get training on using new technologies and learn the resources they need to succeed. It can involve providing ongoing training and support, establishing clear communication channels, and developing incentives for adoption. Travel managers must address any concerns or resistance from employees and work to build excitement for new technologies. Technology and travel are reliant on each other for their business growth and enhancement.
4. Conclusion
The usage of the advanced latest technology in the travel management industry is evolving rapidly. Travel businesses integrate the travel technology company to enhance responses and customer experience and stand out. Modern customers demand personalized travel experiences with 24/7 support of GPS tracking, travel monitoring, optimized travel routes, and quick alerts in emergencies.
Techno-savvy customers rely more on digital payments and prefer mobile wallets for travel booking. Travel businesses must integrate digital channels to retain and attract these customers. There are particular challenges while using advanced travel technology, like privacy and data security and aligning with legacy systems. In addition, travel managers must encourage employee adoption and training for new technologies.
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