As we look ahead to 2025, the hotel industry is poised for significant transformation driven by advancements in technology. With the rise of automated, staff-less receptions and the integration of generative AI, hotels will focus on cutting operational costs while enhancing guest convenience and comfort. In an environment characterized by low or flat rate growth, hotels must leverage e-commerce, actionable data insights, and innovative strategies to maintain profitability.
The Evolving Landscape of Hotel Performance
The forecast for hotel performance in 2025 suggests continued low rate growth, with a more optimistic outlook for Revenue Per Available Room (RevPAR) in the U.S. compared to Europe. However, the remarkable increases seen during the post-pandemic bounce are unlikely to be repeated. As Robert Holland, Managing Director for UK & Ireland at HotelPartner Revenue Management, notes, “Hotels will have to be more creative in adapting to different ways of working without impacting customer service to combat rising costs.”
Leveraging Guest Data for Revenue Strategies
One of the key strategies hotels will adopt is leveraging guest data to create tailored revenue strategies. By drawing on local experiences and collaborating with technology, hotels can enhance profitability.
The Role of Staff-Less Reception in Hotel Management and Guest Experience
Automated staff-less reception systems are emerging as a game-changer in hotel management and guest experience. These kiosks allow guests to check in, make payments, and receive room keys without the need for front desk staff, streamlining the check-in process and reducing operational costs.
Benefits for Hotel Management
- Cost Efficiency: By minimizing the need for front desk staff, hotels can significantly cut labor costs. This is especially beneficial in an era of rising wages and operational expenses.
- Operational Flexibility: Staff-less receptions enable hotels to operate more flexibly, allowing for extended check-in/check-out hours without the need for additional staffing.
- Resource Allocation: With fewer staff required at the front desk, hotel management can reallocate resources to other areas, such as housekeeping or guest services, enhancing overall service quality.
Enhancing Guest Experience
- Convenience and Speed: Automated check-in kiosks provide guests with a quick and hassle-free check-in experience. This reduces wait times and allows guests to start enjoying their stay immediately.
- Personalization: Many staff-less reception systems can integrate with guest profiles, allowing for personalized greetings and tailored recommendations based on previous stays.
- 24/7 Availability: Automated systems ensure that guests can check in or out at any time, catering to late arrivals or early departures without the constraints of front desk hours.
- Contactless Experience: In a post-pandemic world, the demand for contactless services has surged. Staff-less receptions cater to this need, providing a safer and more hygienic option for guests.
E-commerce as a Revenue Stream
E-commerce is set to be a focal point for hotels aiming to capture ancillary revenue at the booking stage. For instance, the Victoria-Jungfrau Grand Hotel & Spa in Interlaken, Switzerland, successfully ran a digital marketing campaign that generated an additional $34,000 in just six weeks by promoting spa treatments, kids clubs, and other amenities. Similarly, the Lux Le Morne Resort in Mauritius generated $27,000 in ancillary revenue by offering unique experiences like swimming with dolphins.
These hotels partnered with Sabre’s retail growth team to optimize their websites and run conversion campaigns. On average, Sabre’s EMEA hotels see an ancillary spend of $275 per booking. Other providers, such as Journey and Profitroom, are also enhancing e-commerce capabilities, helping hotels increase average order value and automate targeted deals.
The Rise of Actionable Data
Beyond e-commerce, actionable data will play a crucial role in hotel operations. The recent $370 million investment in Lighthouse, a business intelligence (BI) platform with 65,000 hospitality clients, underscores the industry’s shift toward data-driven decision-making. Lighthouse processes vast amounts of travel and market data daily, uncovering patterns that smaller datasets may overlook.
Historically, BI solutions have focused on data collection and reporting. However, the next generation of these services will provide automatic recommendations and trigger actions. John Burns, President of Hospitality Technology Consulting, highlights that this evolution will enhance dynamic pricing, marketing campaigns, labor scheduling, and inventory management.
In November 2024, Sabre launched SynXis Insights, a BI tool featuring multiple dashboards to offer comprehensive insights into hotel performance. Early adopters, including HotelREZ Hotels & Resorts and Hard Rock Hotels, are already benefiting from these advanced analytics.
The Role of AI in Hotel Operations
As hotels integrate generative AI into their operations, the debate continues over whether to keep technology in-house or outsource it. Lionel Anidjar, Hotels Project Director at Global Asset Solutions, argues that hotels with a solid understanding of their business can often achieve the same results using tools like ChatGPT. Conversely, others advocate for specialized external expertise to maximize AI’s potential.
Vibhu Gaind, CIO of RBH Hospitality Management, predicts a shift from indirect vendor use to direct applications of mainstream AI tools. This integration will enhance efficiency and productivity across hotel operations.
As we approach 2025, hotel technology is set to redefine the industry landscape. With a focus on automated operations, e-commerce revenue generation, and actionable data insights, hotels will navigate the challenges of low growth while enhancing guest experiences. The successful integration of AI and data-driven strategies, alongside the implementation of staff-less receptions, will be crucial in ensuring that hotels remain competitive and profitable in an ever-evolving market.
