
Op-Ed: Technology take-up in hotels still lags consumer appetite
Exclusive: JLL’s Ross Beardsell and Joseph Sim examine why there is such a gap between potential and adoption when it comes to technological solutions for the hotel industry
There are those in our industry who argue that Australian and New Zealand hoteliers talk far more about technology than actually implement the available options.
For instance, the image of guests queueing at reception desks to check in or check out was meant to have been sorted by now, but it clearly hasn’t.
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Guests were going to be able to use their smartphone to control the whole hotel process, from booking to door entry and use of all hotel services, but again, this is a rarity despite technology being available.
Technology should offer the hotel industry a far greater productivity boost given the relatively simple, often homogenous, nature of the product we offer, but in most cases, we are still underutilising its potential.
This was demonstrated graphically in a Benchmark Research Partners survey of hoteliers in 2022. While respondents were enthusiastic about the potential of technology to enhance the hotel’s operation some 95 percent of respondents were forced to agree with the question “Do you wish your hotel(s) made better use of technology?”
Worse still, when asked whether they had witnessed a “technology implementation/ deployment that failed to meet your expectations?” 89 percent of owners and investors and 92 percent of respondents working in management company corporate offices said they had experienced failed technology implementations.
The 2023 Digital Transformation Report argued that the hotel industry’s failure to adopt new technologies was due to investment costs, resistance to change, operational complexities and data security concerns.

This is despite the fact that in the recent Embracing Digital Transformation study, 73 percent of consumers surveyed said they were likely to return to a hotel that offers important technology features, and 76 percent of respondents were willing to pay a premium to stay in hotels with advanced technology features.
The trending gap between what guests are seeking and what hotels are prepared to deliver is one of our industry’s biggest challenges. A decade ago, the prospect of using smartphones to receive a booking confirmation and then use it as a digital keycard was predicted as a major trendsetter in the industry.
Google Wallet and Apple Wallet now allow hotel room keys to be stored on phones, but despite that, few hotels in Australia and New Zealand have adopted the technology to enable digital entry by smartphone. Some larger American hotel chains have adopted the technology and developed apps supporting digital keys and some have gone a step further and incorporated digital entry capability into their brand standards.;

However, there may be excuses for hotel owners’ reluctance to invest in the technology. Research by American data analytics, software, and consumer intelligence company JD Power found that only 14 percent of guests used digital keys during their hotel stay, and even when they downloaded the app, the overwhelming majority continued to use plastic keys.
The convenience factor of digital key cards might not resonate as much with leisure travellers who may still appreciate the ‘traditional’ human welcome, but streamlined check-in can be a powerful tool for hotels with large corporate and conference markets.
Hotels that have introduced digital key technology regularly receive higher safety ratings than those using plastic or physical keys, and this can be particularly beneficial for hotels targeting women business travellers.
While the adoption of smartphone-enabled room key technology may be slow in Australia, many hotels have looked to improve the check-in process at reception with airport-style kiosks or even robots.
One of Australia’s oldest hotels – Sofitel Wentworth Sydney – has embraced tech-savvy innovations as part of its massive renovation, incorporating digital check-in kiosks and a new online concierge app that gives guests access to all hotel services directly through their smartphone.
Dorsett hotels in Melbourne and Gold Coast have introduced guest services robots called Dorothy and Dexter, and Tim and Tam, respectively that are designed to help complete the check-in process with guests, including distributing keys and dispensing local information. The team at Dorsett Melbourne claimed that the robots were able to free up 51 hours of human time in a single day.

While robots might catch the eye, connectivity and fast internet remain the number one technology priority for most guests, and not just business travellers.
Making video calls and streaming entertainment are now normal, and there is a fair expectation that Wi-Fi and internet should be superior in a hotel than at home or in Airbnb-style accommodation. If it is not, review sites will very quickly highlight the deficiency, meaning hotels need to stay ahead of demand and invest in infrastructure to cater for the highest demand periods.
Hotels are also meant to provide environments that provide ultimate comfort. Flexible and easy-to-adjust air conditioning and lighting are essential, but they are often variable.
Providing guests with technology to personalise their space via an in-room iPad or phone app to adjust the room’s temperature, lights, and TV can attract positive guest feedback. But make it too complicated, and guests will vent their frustration.
Having an enticing website with an easy-to-navigate booking engine remains one of the most valuable technology tools for investment. While the big chains have made some advances in encouraging direct bookings, OTAs still dominate and that means hotels must deal with unfavourable cancellation policies, high commissions, and pressure for substantial discounts.
For hotels, OTAs are often a case of “can’t live with, but can’t live without”, though an argument could be made to divert spending seeking better ranking within the OTAs to investing in a hotel’s own website and direct distribution channels.
For instance, hotel F&B outlets are often poorly promoted on hotel websites, neglecting a reasonably easy-to-capture revenue source.
The same applies to linking destination experiences to the hotel. All the research highlights that travellers are seeking special experiences as a catalyst for travel decisions. A hotel that can bring the destination into its orbit is far more likely to be competitive, especially if those experiences can be booked seamlessly through one direct distribution channel.
This is not an easy process, but a hotel that invests in technology to enable it to be more than just an accommodation provider will widen its customer base. Hotels need to assess their technology priorities, whether focused on operational efficiencies or meeting customer expectations.

While robots might capture headlines, the 2023 Digital Transformation Report says hoteliers’ technology priorities are relatively low-tech with a focus on cloud computing, particularly for processing guests (29 percent), reservation management (26 percent), and providing personalised recommendations and services (23 percent).
There will always be a place for personal interaction with guests and the ultimate goal of technological innovation is to allow hoteliers to have the time and resources to enable them to best attract, retain and maximise the yield from guests.
The new print edition of AccomNews is available now. Read it HERE

Ross Beardsell has over three decades of experience in the hotel industry in senior management roles in operations and development. Working initially with Southern Pacific Hotels, then IHG and the Carlson Group, Ross worked in GM positions across the Asia Pacific. In 2008, he joined JLL’s Hotels & Hospitality Group, providing asset management services on behalf of hotel owners to maximise profitability and to provide strategic guidance. He has provided hotel advisory services to the owners of luxury, upscale, mid-market, new hotels, limited-service accommodation, resorts, convention hotels, and pubs – both nationally and internationally.