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From fragmented to unified: Hospitality-tech future is connected

Collaboration is more valuable than competition when technology intersects with hotels
Mercedes Blanco (The Hotels Network)
Mercedes Blanco (The Hotels Network)
HNN columnist
October 30, 2024 | 12:50 P.M.

As the hospitality industry embraces a broader range of technologies, the integration of these systems presents lots of challenges.

Many platforms struggle to communicate effectively; there are variations in technology standards, different communication protocol structures and data is often stored in diverse formats. These challenges overcomplicate the already tangled web of hospitality-tech distribution players, resulting in operational inefficiencies. Additionally, hotels frequently rely on legacy systems that are incompatible with modern software and technologies.

While we all agree that connectivity is not only essential for our industry, it's vital for our own evolution and existence; API integrations pose significant challenges for tech vendors, especially when differences in sizing or operational speed come into play. If we all agree that achieving interoperability is key to streamline operations in our fragmented industry, what is really standing in the way? What initiatives can we work on? Hospitality tech is at the crossroads toward tech collaboration beyond silos; in other words, our future is connected.

Overcoming the challenges of API integration in the hospitality industry requires of a joint effort and a desire of change. We need to be able to react to future market needs and to deliver timely solutions to our end customer — the hotels — and for that we need to work together.

Here is my humble attempt of identifying some potential solutions to tackle these challenges.

Create best practices for hotel technology at the global level

Create industry common standards to build uniformity. The hotel industry should move toward standardization of APIs to simplify integration and avoid working on extensive one-off customization scenarios. Currently, there is no industrywide standard for API development; we need to build and facilitate global protocols.

Not long ago I learned about “Hospitality ID Initiative” from Robert Cole, a nonprofit global registry that assigns unique identifiers to every hospitality property, regardless of brand ownership or management. This initiative would simplify distribution and technical integration across the industry and its vendors by avoiding unnecessary data mapping. How is it possible that still today each player identifies the same property in different ways?

Collaboration with and among vendors, in other words, collaboration over competition

The Hospitality Women’s Innovation Council (WIC), conducted an online survey earlier this year lead by Michael Frenkel. They concluded that 92% of hospitality leaders want integrations to be improved and to see better collaboration among providers. This is only a clear callout to this problem.

Open integrations. Our hotels have almost infinitive tech providers they can choose from, but while they are our mutual clients, we as vendors do not collaborate among ourselves as much as we should. It is often than APIs are not publicly available, and what it is worse, it is not easy, if at all possible, to call an API even when the interest of our hotels is at stake.

Compatibility control. Better connectivity will prevent from update interruptions, merged systems that talk to each other will prevent destabilizations from those custom integrations. Vendors must be prepared to adapt their integrations as new versions and functionalities emerge.

Tech companies should also collaborate closer with hoteliers to gather feedback and insights on their challenges. This collaboration would enable tech providers to work on solutions to would meet the unique requirements of the hospitality industry, instead of hoteliers outsourcing to big generalists that know little about our ecosystem.

Initiatives such AHLA T-100 — Global Technology 100, previously known as HTNG's Executive Leadership Group, Vendor Advisory Council, and Industry Advisors — can help to lead the future of hospitality tech by facilitating the creation of those best practices and incentivizing the collaboration among industry partners.

Modernization

Hoteliers also have some responsibilities into this, as updating legacy systems into cloud solutions will allow property management systems (PMS) to connect more effectively with everyone else. PMS should always be considered at the center of the equation. Anyone who has worked at a hotel or resort understands the importance of a PMS and how painful and problematic a migration can be. We should be able to reduce operational costs and make it easier for properties to adapt to the market demands while minimizing their potential risk.

Hospitality tech talent

Specialized consultants and developers involve high economic costs plus generate a problem of bandwidth coverage. We risk focusing almost exclusively on long-time integrations, and not being able to get our hands into smaller and quicker integrations with potential great results in the short term.

We should be able to provide ongoing internal training and technical support to our teams and build a network of strategic partnerships that hoteliers can benefit from.

The road to a fully connected and collaborative hospitality tech ecosystem may be challenging, but it is a necessary journey. By prioritizing open standards, fostering vendor cooperation and investing in modernization, the hospitality industry can overcome the fragmentation that holds it back. Tech collaboration isn’t just a buzzword, it is the foundation for sustainable growth, seamless efficient operations and enhanced guest experiences as a result. To meet the evolving needs of both hoteliers and guests, we must commit to breaking down silos. The future of hospitality is about technology, partnerships, adaptability and innovation.

Mercedes Blanco is chief partnerships officer at The Hotels Network and a founding member of Women in Travel Thrive.

The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.

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