Technology Is Only as Good as the Information Behind It
Why understanding your numbers, making informed decisions and delivering genuine hospitality still matter in an increasingly technology-driven accommodation industry.
At a recent conference, I was reminded just how quickly our industry is changing. After presenting a demonstration to accommodation operators around understanding the numbers in your property, I had a conversation with a new accommodation operator who had found the information useful. However, after speaking with a representative from an AI-powered revenue management platform, they began to question whether the practical tools I had shared were still relevant. It raised an important question: as technology becomes increasingly sophisticated, do accommodation operators still need to understand the numbers behind their business? My answer is absolutely yes. In fact, I believe that understanding your guests and your property numbers has become even more important.
There is no doubt that AI and Revenue Management systems are important tools to use in accommodation. They automate dynamic pricing, save hours of manual rate-setting, and respond to market movement faster than any of us can do manually. For independent operators who are often wearing multiple hats every day and can be time poor, these are fantastic tools to have in their tech stack. Technology has an important role to play in accommodation, but the real question is how we use it to improve a property's performance.
The best systems in the world are only as good as the information they're working with. The quality of the recommendations and the value gained from them depend on accurate data, appropriate configuration and an operator who understands the business context. For example, a system might recommend a higher room rate because demand is increasing. But the operator still needs to consider whether the rooms are available, whether the property can deliver the expected guest experience, what the costs are and whether the resulting revenue will contribute to the property's financial goals.
Understanding a property and its guests does not necessarily mean hours of data analysis. Simply tracking occupancy, revenue and ADR in a spreadsheet each week and reviewing the results monthly can help operators identify booking patterns, recognise changes in demand and monitor progress towards their business goals.
For example, a revenue management system may identify a drop in demand and recommend lowering room rates to encourage bookings. However, by looking more closely at their booking patterns and understanding their local market, an operator may discover that the slowdown is linked to a particular event, a change in booking lead times or a temporary lull in their market. Rather than simply reducing rates, they may be able to take other action, such as targeting a different guest segment, reviewing their marketing or identifying opportunities to generate additional bookings.
Likewise, achieving 90% occupancy may appear to indicate strong performance, but if room rates are too low or operating costs and commissions are too high, the financial result may still be disappointing.
Understanding the numbers helps operators look beyond the immediate recommendation or occupancy figure to see what is really happening in their business. By questioning unexpected results, recognising opportunities and investigating changes in performance, they can make informed decisions about the most appropriate action to take.
Technology is great at doing the heavy lifting and time saving, however it’s important the operator remains in the driver’s seat. The best results are often achieved by combining technology with local knowledge and an understanding of the property’s guests. A system may identify a rise in demand, but the operator knows about a local event, a group booking enquiry, a temporary room closure or a staffing limitation that may affect the decision. By asking questions and reviewing the recommendations, operators can remain in control and ensure decisions align with their property's objectives.
Combining modern technology with quality service and a good product is another important consideration. Travellers are increasingly comfortable using technology to search, book and check in, and many appreciate the convenience it provides. However, the opportunity to speak with a knowledgeable and helpful person remains valuable. Good hospitality has never been solely about having someone behind a reception desk. It is about being honest with guests, providing helpful information and taking responsibility when something goes wrong. Technology can make many tasks quicker and easier, giving operators more time to focus on their guests. The challenge is to ensure that the efficiencies gained do not come at the expense of the personal attention and genuine care that make people feel welcome.
Operating an accommodation business in today’s world is not about choosing between traditional operations and modern technology. It is about understanding your property, choosing the right tools for your guests and your business goals and continuing to deliver the service that makes guests want to return.
As someone who was trained in the foundations of “old school” hospitality, I am excited about what technology can bring to our industry. I believe the strongest operators will be those who embrace useful technology while continuing to understand their numbers, their guests and their business.
Technology will continue to evolve, and the opportunities it presents will grow. But the ability to interpret information, make sound decisions and treat people with honesty and care will remain essential.
The technology may change, but knowing your business and looking after your guests will always matter.
