Geoffrey Toffetti is chief executive of Frontline Performance Group (FPG), a company which has transitioned from a tech-enabled company to full software as a service (SaaS) provider. FPG has developed innovative performance software solutions to automate and support business services to bring to the market FPG’s proprietary IN-Gauge platform, now deployed in nearly 2,000 hotels in over 100 countries.
Tech is advancing at lightning speed, what’s new today can be old tomorrow. How best can hoteliers harness the new tech developments for their competitive advantage?
It is true that technology advances rapidly, however, the problems that the technology is expected to address are not changing at the same pace. For instance, hotels have become reliant on revenue management technology to address the challenges of real-time pricing. The issue of pricing will not change in the short to midterm.
When a hotel company selects their technology partner to handle this challenge, they do not need to worry about newer version being available, they need instead to focus on deriving the maximum value of the system they select.
It can be a huge distraction to a company to try and chase the newest technology. My advice is to conduct a thorough due diligence when selecting a solution and then commit 100% to implementing it and gaining the adoption of your team for the technology you select.
The best tech in the world is only as effective as the users who engage with it.
Covid slowed everything down in hospitality; how quickly have hoteliers taken the opportunity to reset their tech assets to the benefit of guests and staff?
It doesn’t appear that hotel companies have seized the opportunity that the slowdown afforded them to advance their technology. In fact, we are seeing that many companies had to suspend their capital investments in technology, pushing the benefit horizon out even further.
As an example, the shutdown provided a unique opportunity to implement cloud-based PMS technologies without the disruption of migration in active operating environments. Yet, we did not see progress made in this area.
The loss of revenue caused a shelving of many technology projects that were underway in the months leading up to March 2020. Some of these projects are still on hold or have been cancelled. The impact that the pandemic had on advancements in hospitality tech are myriad and are still being recovered from.
Those companies who have invested in labour savings tech investments coming out of the pandemic have seen mixed results in terms of self-service tech guest adoption. That may be skewed somewhat due to the slow recovery of business travel where road warriors are more likely to appreciate streamlined processes. Leisure guests want more service and interaction that adds to their experience.
We have seen tech purchasing activity increase over the last 12 months, but it seems that the tech sector in hospitality still has some catch-up to do for guests and staff to benefit from the opportunities available to hoteliers.
Does the convenience of seamless technology, allowing guests to handle tasks independently, outweigh the value of personal touch in the hotel industry?
The phrase I use when asked about this topic is, “technology is taking hospitality out of hospitality”. This pattern has repeated over the past two decades. Initially, there was a belief that online booking would replace phone-based reservations, but the opposite happened as call centre volumes grew significantly in the post-OTA era.
Another example was the direct-to-room revolution, this was going to make front desks obsolete. In our space we focus on technology that enables front desk teams to better engage and serve their guests.
Initially, there was a belief that online booking would replace phone-based reservations, but the opposite happened as call centre volumes grew significantly in the post-OTA era.
We shared the direct-to-room concern, but it turned out to be a benefit to front desk teams because the travellers who use it are the “road warriors”, not the leisure or casual business travellers. In essence direct-to-room allowed front desk teams to support the guest who wanted a check-in experience better because lines were shorter.
Similarly, do-it-yourself mobile technologies will surely continue to affect the way guests interact but only for those who spend a lot of time in hotels. Those who travel a few times per year find comfort and excitement in their interactions with hotel staff.
It will be very hard for hotel brands to differentiate themselves if they remove humans from the guest experience, after all service is what hospitality is all about.
Who bears the cost of implementing expensive technology in hotels, and how can the return on investment be demonstrated in terms of revenue optimisation and staff retention?
Determining ROI for technology can be challenging, but some solutions, like ours, track direct financial impact tied to revenue generation.
Hoteliers should focus on impact indicators when direct financial ROI is difficult to determine. For example, if addressing guest reviews is a goal, the ROI should be linked to obtaining more or better reviews.
Our platform tracks all transactions, providing clarity on incremental revenue. The level of clarity determines whether the solution is self-funding. Adoption by users is crucial for technology's value, and hoteliers should prioritise effective implementation to drive tangible value. Clear communication and belief in the technology are key.
What are the opportunities offered by FPG to better tailor services to guests as part of hotel revenue management?
FPG's technology platform, IN-Gauge, enables human performance in frontline teams by providing a comprehensive toolkit for motivating and inspiring hotel employees.
While technology plays a role in tailoring guest experiences, FPG believes that exceptional service is key. IN-Gauge utilises years of consulting and training experience to train, enable, and support guest-facing teams while providing analytics for back-of-house teams.
The success of revenue strategies depends on frontline team engagement, and FPG's solution leverages technology to facilitate greater engagement and execution of hotel revenue strategies. The platform offers analytical insights for various touchpoints, helping with revenue optimisation and profitability by executing strategies and delivering exceptional guest experiences.