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Leveraging the Perfect Storm

Hugh Staunton • Jun 27, 2023

Leveraging the Perfect Storm: Embracing Digital Transformation in Hotels and Resorts

The concept of a "perfect storm" refers to a convergence of events that can lead to either positive or negative outcomes.*


This analogy, in my view, perfectly illustrates the current opportunity provided by digitally transforming non-room operations in hotels and resorts.


If you still have doubts about enabling guests to order and pay, self-service style, for F&B, experiences/activities, merchandise, and services, or empowering them to engage in instant chat using their smartphones, consider the following pandemic-influenced developments that support implementing self-service right away.


The Pandemic and Smartphone Self-Service:

During the pandemic, there was a significant increase in smartphone usage for self-service tasks. The general public relied heavily on their phones for online ordering, food delivery, instant messaging, convenient in-app payments, and more. Initially driven by necessity, this shift has now become a habit for many.


Using smartphones for transactions and engagement offers enhanced accuracy, convenience, digital record-keeping, and a contactless experience within one's personal space.


It does go against the grain for many working in the hospitality industry, but it's crucial to understand that given the choice, many guests actually prefer ordering and paying from their own smartphones, even if the hotel staff is personable and well-trained.


This preference for digital hospitality is not unique to the industry of course; other service sectors have also embraced customer smartphone-enabled transactions and engagement.


QR Code Adoption:

Alongside the rise of smartphone self-service, there has been a seismic increase in QR code adoption. QR codes have been widely accepted by all age groups, driven not just by younger Millennials but also by older individuals who needed to learn how to scan codes for COVID tracing purposes.


This trend was observed worldwide, although QR codes were already well-received before the pandemic.


PWA vs. Native Download Apps:

With the acceptance of QR codes, many brands and ecommerce players have chosen to leverage web apps or progressive web apps (PWAs), while native download apps have seen a decline.


Scanning a QR code that leads to a PWA provides a similar user experience to a native app, with easy access, quick loading, and minimal friction.


In contrast, native apps require visits to app stores, downloading larger files, and dealing with updates, which can be cumbersome and memory-intensive for smartphones. Furthermore, PWAs have become more versatile, as even Apple has relented to market pressures and enabled push notifications for PWA usage on iPhones and iPads.


Ongoing Hospitality Labor Shortages:

Apart from the guest behavioural changes favouring smartphone self-service and the acceptance of QR codes and PWAs, the hospitality industry has been grappling with ongoing labour shortages.


Hospitality staff have been seeking opportunities in other industries that offer better work-life balance and compensation. Consequently, traditional hospitality has struggled to effectively serve returning guests with limited personnel. This labour shortage is expected to persist for the foreseeable future.


In summary, the convergence of guest behavioural changes, the universal acceptance of QR codes, the ease of accessing branded platforms through PWAs, and ongoing labour shortages form a perfect storm of opportunities for hotels and resorts.


It's a good time now to develop your property's digital hotel experience as a valuable choice for guests, not to be leveraged as a replacement but rather by considering to embrace it like welcoming a new team member.


This team member on your team operates 24/7, will always suggest the menu pairings, will enhance the overall guest experience, will drive revenue per available guest (REVPAG) uplifts, and will go a long way in improving operational efficiencies, particularly with the reality of today’s leaner sized teams.


Seize this opportunity to stay ahead in the industry and level up to your guests changing expectations. It’s a perfect storm, in a positive way! Full steam ahead!


** Ref: https://poemanalysis.com/idiom/a-perfect-storm/

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