Strategic Automation in Hotels

September 19, 2024
Jan Kučera

Strategic Automation in Hotels

Automation isn't just an option for the hospitality industry—it's essential. The dynamic nature of guest expectations and the increasing complexity of hotel operations require a shift from basic task automation to strategic automation. This shift involves adopting technology and leveraging it to create a more efficient, guest-centric, and innovative hotel environment. 

The Need for Strategic Automation

Many hotels have traditionally relied on manual processes for tasks like data entry, reservation management, and administrative duties. These tasks are time-consuming and prone to errors, leading to guest dissatisfaction and a drain on human resources. Staff members often spend hours inputting data into different systems, which could lead to mistakes due to fatigue or oversight. Automation addresses this issue by delegating these repetitive tasks to digital workers, who can execute them accurately and efficiently around the clock. This enables human staff to redirect their efforts towards tasks that require personal interaction, such as enhancing the guest experience through personalised services.

Digital Workers

Unlike human staff, digital workers can operate 24/7 without breaks, ensuring consistent and uninterrupted service delivery. They excel at handling routine tasks such as processing bookings, managing inventory, and responding to standard customer inquiries. A digital worker can instantly update room availability across multiple online travel agencies (OTAs) after a booking, ensuring no double bookings or oversights. Moreover, they can quickly integrate with various hotel technologies, providing a seamless flow of information. By taking over these tasks, digital workers free up human staff to focus on high-value interactions with guests, such as welcoming guests, resolving complex issues, or providing concierge services. This improves efficiency and enhances the overall guest experience by allowing staff to dedicate more time to creating memorable guest interactions.

Four Stages of Intelligent Automation

Hotels typically progress through four stages of automation, each bringing them closer to true operational transformation:

  1. Task Automation
    This stage involves automating simple, repetitive tasks, such as data entry or reservation confirmations. While this saves time and reduces the likelihood of human error, its impact is limited to isolated tasks.
  2. Process Excellence
    At this stage, hotels introduce lean practices to optimise subprocesses within departments. This could involve automating the guest check-in process, including automatic payment processing and digital room key issuance. The goal is to eliminate mundane tasks and improve the efficiency of specific processes.
  3. Cross-Department Automation
    The third stage focuses on automating end-to-end processes across different departments. For example, automating the flow of information from the front desk to housekeeping ensures rooms are cleaned and ready for the next guest more quickly. This stage adds intelligence to the digital workforce, allowing them to make decisions based on predefined criteria, such as automatically assigning rooms based on guest preferences.
  4. Transformation
    In the final stage, digital workers become integral to strategic planning, creating new offerings and capabilities. This could include developing a dynamic pricing strategy that adjusts real-time room rates based on demand, seasonality, and competitor pricing. The ultimate goal is to integrate automation into the strategic core of the hotel’s operations, driving innovation and creating new revenue streams.

Enhancing Guest Experiences

One of the most significant advantages of strategic automation is its potential to enhance the guest experience. By leveraging data collected through automated processes, hotels can tailor their services to meet individual guest preferences. For example, if a guest frequently requests a certain type of pillow or has dietary restrictions, this information can be automatically noted and applied to future stays, ensuring a more personalised experience. Automation also improves efficiency by streamlining interactions such as check-ins, check-outs, and in-room services, allowing guests to enjoy a convenient experience. Additionally, reducing errors in billing and reservations through automated processes builds trust in the hotel's reliability.

Indirect Benefits of Strategic Automation

Beyond direct operational improvements, strategic automation offers several indirect benefits that contribute to a hotel’s overall success:

Focus On Success

To achieve successful strategic automation, hotels must embrace a comprehensive approach.

Conclusion

Hotels can revolutionise operations, enhance guest experiences, and gain a competitive edge by moving beyond tactical automation and embracing a transformation mindset. Strategic automation is not just about implementing technology—it's about rethinking how hotels operate to deliver exceptional value to guests and stakeholders.

Key Takeaways

By adopting strategic automation, hotels can redefine guest experiences and position tmselves for long-term success in a rapidly evolving industry.

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Jan Kučera

Technical Director
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