Hotel Technology's Paradigm Shift: The Age of Interconnectivity - 0 views
-
itzdchang on 04 Jun 18This article discusses the hospitality industry's developing technology sector, claiming an age of interconnectivity. This industry has long been plagued by the stereotype of being behind technologically, largely due to long standing and set-in ways that utilize old systems. A few numbers worth mentioning include enterprise hospitality spending an average of 3.5 percent of revenue on IT versus 7.9 percent for financial services, 6.1 percent for public sector, and 5.9 for high tech. In a study done by Lodging Technology Study, 53 percent of hoteliers cited that the outdated tech architecture set-in and the effort it would take to change them is what keeps people from investing in new technologies. Fortunately since then, this sector has been gaining momentum, expecting to be the fastest growing IT sector between 2018 and 2021. The article continues on talking about the barrier of integration fees and how tech innovators today are forced to pay massive fees to be compatible with existing systems, which carry on to consumers of these technologies. For hoteliers to utilize these new technologies, large sums of money have to be paid upfront and there's a significant lag in actually getting to try the product. The rest of the article discusses a few points we do in this week's module: pros and cons to two-way interconnectivity in PMS systems and third party technology providers.