BELLEVUE, WA—According to a new survey of more than 1,200 hoteliers by Expedia Group, the chain hotels are nearly twice as likely as small independent properties to prioritize technology investment. Alternatively, small independent properties are 1.5 times as likely as chain hotels to prioritize room renovations, indicating a gap in technology investment strategies among different hotelier segments.
Reliance on technology is becoming increasingly important in the lodging industry as hotels begin to recognize how they can gain key competitive advantage with strategic technology investments. According to the latest report by Hospitality Technology, 54% of hotels plan to increase their technology budgets for 2019, while only 8% plan to decrease.
However, cost continues to be the key barrier with technology adoption for many hoteliers, with nearly half of the small independent hotels surveyed indicating that technology investment decisions are based on affordability and value. In contrast, more than half of the chain hotels prioritize technology that seamlessly integrates with their existing systems.
“We’re witnessing chain hotels place significant investments in technology, which opens the potential for a greater divide between properties that are not able to match those investments,” said Ait Voncke, SVP, Expedia Group. “Technology has the power to level the playing field for hoteliers of all sizes. We continue to listen to our partners’ needs and invest in how best to serve all our partners so even the smallest of properties can compete effectively and find opportunities to succeed.”
Among the small independent hotels surveyed, one in four cited complexity as their biggest challenge when adopting technology, with one in three saying ease of use is a priority when evaluating solutions.