Why is the hospitality tech market growing explosively?

As mentioned in the introduction, the global hotel market is striving for digital transformation (DX). The smart hotel market was valued at over $19 billion in 2023 and is expected to reach $64.47 billion by 2032, with a CAGR of 14.4%. It's a sizable and rapidly growing market.

Here are three reasons why the DX of the global hotel industry is growing, based on conversations DOWHAT had with stakeholders at the World IT Show 2024:

1. Inherent Profitability Challenges: Hotels inherently struggle with profitability due to a fixed number of rooms. Revenue management teams predict demand and set appropriate pricing or develop new packages to maximize revenue. However, improving profitability through these methods alone is often challenging.
2. Shortage of Skilled Labor: The hotel industry faces a severe shortage of skilled labor. According to surveys conducted among key hotel stakeholders, despite wage increases, many positions remain unfilled due to ongoing labor shortages. The complexity of hotelier tasks, especially in handling consumer complaints and tedious tasks, contributes to decreased job satisfaction among employees.
3. Utilizing Big Data for Management Improvement: In the 21st century, data has become a valuable asset. To gain insights into customer behavior and optimize operations, hotels require access to vast amounts of customer data. As a result, there is a growing need for solutions that can manage all aspects of hotel operations on a single platform, driving interest in DX.

DOWHAT addresses these challenges through various means:

1. Mobile and Tablet Orders: Encouraging upselling through mobile and tablet orders helps maximize revenue and improve profitability by providing room services and convenient facility reservations, thereby increasing additional revenue.
2. Streamlining Employee Tasks: DOWHAT offers a user-friendly cloud-based integrated platform that connects with various legacy solutions, allowing for multi-source, one-channel management. Through this platform, employees can conveniently control multiple legacy solutions through a single interface, reducing the complexity of their tasks and improving job satisfaction.

The future of the hospitality market, with DOWHAT in the midst of it, holds promise. With advancements in hospitality tech, what lies ahead as the next stage in hospitality technology? Join DOWHAT on this journey!