Better system integration is often discussed in the hotel sector, but according to a recent survey, improvements could potentially unlock billions in revenue.
The survey, conducted in August by hotel guest acquisition and revenue platform SiteMinder, included responses from 700 hoteliers across different roles and property sizes in markets such as the U.S., France, Spain, Mexico, Indonesia and Australia, among others.
According to survey data, 65% of respondents believe “faster, fully integrated systems could unlock at least 6% more annual revenue.” Per SiteMinder’s estimation, this could equate to billions of dollars in opportunity across the sector.
Nearly all hoteliers (93%) also said that speed has become more important over the last 12 months, with 45% reporting that not being able to act fast enough leads to missed revenue opportunities and 58% saying it's “now business critical.”
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If able to act instantly, hoteliers agree it would result in revenue gains, with 39% predicting 6%-10% increases and 22% predicting 11%-15% increases. Of the hotels surveyed, only 9% said they’re already able to identify and respond to opportunities instantly.
Despite recognizing that better integration is necessary, hotels still have manual processes in place, with 36% reporting that they update pricing monthly or less, while 79% spend more than 11 hours a week on “tasks that could be automated.”
When asked what prevents them from capturing more demand, the most common barrier was distribution channels, with hotels struggling to manage channels (25%). Similar to other recent surveys, hoteliers also said they struggle with resource limitations (15%), system silos (14%) and visibility gaps (14%). Interestingly, however, 17% of respondents said they’re already capturing all available demand.
“Our research reinforces the vision we’ve been advancing within the industry for many years: The future of hotel revenue optimization lies in seamless connectivity that eliminates manual processes and transforms insights into immediate action,” said Leah Rankin, chief product officer at SiteMinder.
Artificial intelligence (AI) is top of mind as well, as 49% of respondents said they’re “actively seeking AI solutions” and 43% said they’re “open to exploring AI-driven recommendations.”
“The overwhelming readiness for AI solutions in this research tells us the industry has reached a tipping point,” Rankin said.
“This combination of appetite for change and technological capability creates an unprecedented opportunity: a future where insights flow directly into action, enabling hotels to better find, convert and optimize their ideal guests at the right price.”
Survey findings are being presented Tuesday at SiteMinder’s Sync event in Sydney, where the company is also unveiling its its AI engine, SiteMinder iQ, and announcing inaugural partnerships for its SiteMinder UltraSync integration.
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