In an era in which hotel companies are hyper-focused on profitability, the idea of digital transformation — a term used to described the adoption of technology to streamline business processes and better innovate — is more appealing than ever.
In a webinar session hosted by nonprofit association HFTP titled "The What, Why and How of Digital Transformation," moderator Daniel Connolly, a professor at Drake University, said it's important to understand exactly what digital transformation — or DX — is.
"It's about reimagining and rethinking service delivery models, journey maps, value chains, work flows, competitive methods, et cetera," he said. "It's really transforming the nature of how the work is done, how it's performed, what work is done, and so forth."
Here are some examples of how hospitality businesses are putting digital transformation into practice.
Omni
Omni Hotels & Resorts is deep into the process of reinventing its group booking processes with a priority on moving them online, said Omni's Chief Sales Officer Daniel Surette.
He said the need to move processes online has existed for decades, and it represents a big business opportunity since Omni would be first to market with first-party online group bookings.
"If we can get this right, we can put inventory on the shelves for our customers when they want it and how they want it," he said. "It's really for those customers that are ready for this. Not everybody is ready to book events and meetings online. But the tide is moving and there's enough buy-in in testing and trial."
He noted the challenges of this project include required investments, hurdles with inventory management and building consumer confidence, and defining what types of meetings and events make sense for online bookings.
He said it's also important to define what isn't likely to be included in these efforts in the early phases. He said online group bookings aren't likely to include large conventions, trade shows and expos, or even weddings, since those all require more individualized attention.
"Those are complex events," Surette said. "Maybe one day we'll get to larger events, but I think the planner knows when there are particular options and things they need to have clarified and confirmed. They need to know what space they're in. And for a social event like a wedding, there's a lot of preplanning [for] those personal events."
He said the focus for the next five years is small meetings, day meetings and room blocks.
"That's how we'll learn," he said. "We'll walk before we run."
He noted the booking process even for small meetings can become convoluted, with leads turning into requests for proposals, then proposals and back-and-forth negotiations before signing a contract. He said an updated, streamline process would be more akin to online room bookings.
"It's much quicker, efficient and cleaner for the client," Surette said.
The company is vetting multiple solutions, including two pilots built around third-party platforms and a third internal solution, which will be more focused on room blocks.
The third-party platforms are both slated to be live by the end of the year, and the room block functionality on the brand website is a longer-term project.
As the company moves further into the process, Surette said one of his biggest concerns is maintaining the high level of customer connection inherent with the Omni brand while providing a more convenient platform.
"Does the customer feel it's too transactional?" he asked.
Legoland
James Barton, global head of business transformation, hotels, at Merlin Entertainments, said his company identified multiple areas which could be improved by some digital component.
Merlin operates 130 attractions globally, including nine Legoland theme parks.
The company's resorts are focused on family leisure travel, which necessitates reduced wait times during check in and check out, he said.
"You're talking about 1,000-plus guests a night on a sold-out night, so it's very high volume, which also challenges in terms of food-and-beverage capacity," he said.
He said his company has been dedicated to finding tech-driven solutions to many of those problems, including a streamlined online check-in process that helps guests flow more freely from the resorts to theme parks, and prebooking food-and-beverage outlets.
He said the company's "next-generation" guest experience includes being able to check-in online up to three days prior to arrival, to get a text notification with QR codes when rooms are ready and integrating food and beverage in existing bookings systems, allowing for mobile ordering.