Niki Johnson: The State of Hospitality Technology in 2024
Hoteliers are increasingly leveraging data to improve operations, and hospitality technology providers have reacted with partnerships and open APIs that make accessing data easier, according to Otelier Chief Product Officer Niki Johnson. For Otelier, this means providing a comprehensive view of hotel performance that allows hoteliers to make informed decisions quickly.
At HITEC 2024 in Charlotte, Johnson sat down with Hospitality Net to share her perspective on the evolving landscape of the industry, including how technologies are working together to keep hoteliers informed. Watch the full interview here. Below is a summary, in which Johnson delves into the industry's current challenges, the impact of AI, and the innovative solutions Otelier is developing to navigate these complexities.
The Impact of AI on the Hospitality Industry
"Last year at HITEC, everybody was talking about the impact that AI might have," Johnson told Simone Puerto, founder of Travel Singularity consulting firm. "Now everybody's talking about what they're doing with AI." This shift underscores the rapid integration of AI technologies into the hospitality industry. AI is not just a buzzword but a transformative tool that is actively reshaping how hotels operate, from guest services to back-office tasks.
AI's role in the industry has evolved from speculative discussions to practical applications. Johnson highlighted how AI-driven automation is helping hoteliers streamline operations and enhance guest experiences. "We're using automation to take away the mundane and let hoteliers actually be hoteliers," she said. This includes automating tasks that typically consume a significant amount of time, such as Accounts Payable (AP) processes.
Addressing Labor Shortages
One of the most pressing issues facing the hospitality industry is labor shortages. "Hoteliers continue to have a lot of struggles just getting the talent in, and then as the talent comes in, keeping that talent and training new talent," Johnson said. This challenge has been persistent over the past few years and shows no signs of abating.
To mitigate the impact of labor shortages, Otelier has developed products aimed at giving time back to on-property employees. Johnson mentioned the launch of DigiPay, an AP automation tool designed specifically for hoteliers. "Doing invoices and paying them and cutting manual checks can be upwards of eight hours a week. So let's just shrink that to a 30-minute activity," she said. This significant reduction in time allows staff to focus more on guest interactions and less on administrative tasks.
Learn more about Otelier’s AP automation tool, DigiPay.
Shifting Focus to Comprehensive Hotel Performance
Johnson observed a notable shift in how hoteliers measure success. "Hoteliers used to be focused on top-line revenue, and now they're really focused a little bit more on the entire performance of a hotel," she noted. Traditional metrics like Revenue Per Available Room (RevPAR) are being complemented by newer metrics such as Gross Operating Profit Per Available Room (GOPPAR) and Revenue Per Square Foot.
This holistic approach to performance measurement enables hoteliers to grasp the full scope of their operations, including various revenue sources and associated expenses.
Learn more about Otelier’s business intelligence tool, IntelliSight.
The Role of Data and Integration in Hospitality Technology
Data plays a crucial role in the automation and decision-making processes in the hospitality industry. "We grab data from all the data sources to give hoteliers the ability to look at their entire performance," Johnson said. This includes revenue data from property management systems and expense data from labor and accounting systems. The goal is to provide hoteliers with a complete picture of their operations, enabling them to make informed decisions quickly.
The integration of various data sources is essential for this comprehensive view, and Johnson says she has observed a shift post-COVID toward suppliers being more open with their data. "We're seeing a level of openness and sharing and integration that we haven't seen before," she said, adding that COVID forced many companies to reevaluate and rewrite their technological goals. Technologies like Integration Platform as a Service (iPaaS) now facilitate seamless integration, allowing Otelier to incorporate these advancements into their tech stack effectively.
Future Prospects: A Plug-and-Play Industry
Looking ahead, Johnson envisions a future where hospitality technology becomes more plug-and-play. The vision is for technology to reach a point where opening a hotel becomes as simple as setting up a plug-and-play device, with all systems and data integrations functioning seamlessly from day one.
The hospitality industry is undergoing significant transformations driven by AI, data integration, and innovative automation solutions. Otelier is at the forefront of these changes, developing tools and strategies to address current challenges and pave the way for a more efficient and responsive industry. By focusing on comprehensive performance metrics, leveraging data, and embracing technological integration, the industry is well-positioned to enhance both operational efficiency and guest experiences.
