Hospitality’s Achilles’ Heel: Why it’s time to go digital or get left behind?

The hospitality industry is at a crossroads. While other sectors have rapidly embraced technology to improve efficiency and customer experience, hospitality has lagged behind. This failure to digitize is its Achilles’ heel — a vulnerability that could cost hotels dearly in the long run.

Look at Marriott Hotels . They invested in tech like the Bonvoy app, and it’s paid off big time. Now, 70% of guests check in through the app, and direct bookings increased 12% in just one year. That’s not by accident. That’s the power of tech.

And if you’re not following suit, you're not just losing out on efficiency. You’re losing guests. It’s that simple.

Why Most Hotels Are Stuck in the Past

Hospitality has always been about human connection - that’s never going to change. But here's the problem: today’s guests expect instant gratification. If your hotel is still relying on old-school methods, you’re missing the mark.

Here’s some data to drive the point home:

• 80% of travelers expect a seamless digital experience throughout their stay, yet only 34% of hotels are actually offering it. That’s a big gap, and it’s getting wider by the day.
• 73% of guests prefer self-service technology at hotels, such as mobile check-ins and digital keys, over interacting with a staff member.
• 95% of travelers read online reviews before booking, making digital engagement a non-negotiable for attracting modern guests.

Why is this gap there? Simple. Manual processes. Things that could be automated or digitized are still handled the old-fashioned way, and that’s killing efficiency. It’s slowing down your operations, increasing errors, and frustrating guests who expect things to be instant.

Lessons from Other Industries

The truth is, this isn’t just a hospitality problem. Every industry has faced this shift. In finance, Stripe revolutionized payments. In healthcare, Teladoc made telemedicine mainstream. Restaurants have Toast , and laundry services have Cents . They all did one thing: they adopted tech.

Do you think hospitality is different? Think again. Platforms like Airbnb have already shown that guests expect tech-driven experiences, from instant bookings to personalized stays. And if hotels don’t adapt, they risk becoming irrelevant.

The Cost of Not Acting

Here’s where the numbers matter:

• 20% of potential revenue is lost due to inefficiencies in guest management and upselling.
• Hotels using AI for upselling see up to 25% more revenue from ancillary services.
• Digital check-ins reduce wait times by 30%. That’s time, and time is money.

The bottom line: Digitization is no longer optional. It’s a business imperative.

How Hotels Can Go Digital

Going digital isn’t about replacing people with machines — it’s about using tech to make your operations smoother and your guest experience better. Here’s how to do it:

1. Pre-Booking: Simplify the Process Use platforms like Cloudbeds or Mews to make booking fast, easy, and error-free - no more double bookings or manual entries.
2. Pre-Arrival: Personalize Communication Automate pre-arrival emails that send room upgrade offers, local tips, or even a simple "Welcome!" message to build excitement.
3. During the Stay: Eliminate Friction Tech like mobile check-ins, keyless entry, and in-room service requests remove operational bottlenecks. It’s about delivering a seamless experience while saving your team time.
4. Post-Checkout: Stay Engaged Automate post-checkout emails to gather feedback and encourage future bookings. Keep the connection alive.

Why Are Some Hotels Still Hesitant?

If digitization is so clear, why isn’t the whole industry on board?

• Adoption Barrier: Many hotels resist change due to entrenched practices. The longer they delay, the harder the transition, but overcoming this inertia is crucial for staying competitive.
• Staff Resistance: Some teams are used to doing things the old way. Change is hard. But the industry is evolving, and you need to evolve with it.
• Complexity: Integrating new tech can feel overwhelming. But modular, cloud-based solutions are easier to deploy than ever before.
• Cost: Yes, it costs money upfront. But remember, the cost of not doing it is far higher.

These are valid concerns, but not obstacles. The cost of not acting will be much greater in the long run.

The Actionable Path Forward

Here’s how you can get started today:

1. Start Small: Don’t try to digitize everything at once. Focus on the areas with the most pain points. For example, if check-in times are too long, start with a digital check-in system.
2. Choose Scalable Solutions: Go for cloud-based platforms that can grow with you. They’re flexible and cost-effective, and they keep getting better over time.
3. Train Your Team: Technology is only as good as the people using it. Invest in training to get your staff up to speed.
4. Measure Success: Set clear KPIs — like reducing check-in times, increasing upsell revenue, or improving guest satisfaction — and use data to track your progress.

The Takeaway: Lead or Lag

The hospitality industry is on the brink of a digital revolution. Those who act quickly will gain a major competitive advantage. Those who don’t? Well, they’ll be left behind.

Remember, tech doesn’t replace the human touch. It enhances it. The question is no longer whether you should go digital. It’s how soon can you afford not to?