Technology has become a central force in the hospitality industry, but can it save the hospitality industry from the labor crisis?
Americans are making up for lost vacation time and business travel is skyrocketing, with U.S. hotels outperforming pre-pandemic levels of service. Despite a recovery in travel, hotels are still faced with a massive hurdle: they are struggling to hire and retain staff in the face of the ongoing labor shortage. A recent survey found that half of ex-hotel workers will not be returning to their previous job, and a staggering third say they are not even considering returning to the industry.
Hoteliers need to find ways to meet these challenges and resolve their labor shortage issues in order to recover from the pandemic. Implementing innovative technology can help make hotels more efficient by freeing up staff for other tasks and allowing hotels to reduce their staffing needs.
Hotels have traditionally been quick to adopt new technology, and the pandemic has only accelerated technology trends in the hospitality industry. Contactless services that previously added to the guest experience, such as mobile keys, check-in automation, and even room service robots, are becoming the norm. The big difference is that consumer expectations about safety have now shifted. Hotel technology shouldn’t make guests feel like it was implemented just to tick a box and meet a COVID mandate. Technology carefully chosen to enhance the overall guest experience will bring joy to guests and go a long way in building and maintaining these important guest relationships.
There is also a significant shift towards solutions that meet the needs of employees. By getting started in the technology, hoteliers can overcome one of their greatest challenges – retaining and attracting a talented team.
Guest behavior
Guest-controlled technology allows guests to use their phones to do whatever currently requires ground staff and an on-site POS terminal. Guests can use this technology to order items, split payments, tip, pay, and specify how their order will get to them (e.g. a guest only needs access to a QR code. From there, they can Scan, view the menu and choose how and where to deliver your items. Hotels can also offer two different digital menus, such as a room service menu and a dining room menu.
One of the most important changes for travelers since the pandemic has been hypersensitivity to their health and safety. Travelers paying premium rates expect the best experience – a difficult task when hotels have reduced headcount. Work-related challenges shouldn’t compromise the comfort of the guest experience, and hoteliers can leverage technology to provide their guests with a seamless experience. When dining in an on-site restaurant, the payment technology allows you to pay at the table whenever you want without handling cash, presenting a physical card or touching a POS terminal. This helps to minimize social contacts and make the environment more COVID-safe for employees and guests. And when the guests are satisfied, they leave bigger tips and everyone benefits.
The role of the staff
Given the labor shortage, hotels with restaurants, bars, and cafes on-site should focus on implementing technology that relieves ground staff of annoying touchpoints such as menu delivery, order taking, and payments. Technology like this is incredibly flexible and reduces over-reliance on employees, many of whom were overworked during the pandemic.
At the same time, innovative hospitality technology can make front-of-house staff a stronger role as brand ambassadors. As customers take more control, hotel restaurant, lounge and bar staff can spend less time on logistics and more time building real relationships with their guests. This role transformation can create a more rewarding and satisfying environment for employees, and ultimately lead to a lower turnover rate and lower hiring costs.
Technology trends
Not only can technology help attract and retain employees, but it can also help increase sales and offset rising labor costs. Digital menus promote an environment with increased guest impulse. For example, a guest sitting at a hotel bar sipping a cocktail may want to order an appetizer, but if only one or two bartenders are working at the same time, their attention may be focused on other guests. With digital menus, guests can follow their impulses and order as they please – the average check size increases accordingly.
In venues that have implemented best-in-class technology, tips have increased by up to 26%. When hotels offer sign-up bonuses and free accommodations to attract employees, increasing tips is a great way to increase employee engagement and retention.
As hotels work to rebuild their workforce while delivering exceptional service to record visitor numbers, innovative hospitality technology that was once considered a bonus is essential today.
It is becoming increasingly clear that hotels are facing a profound change in the labor market and this is the new normal. Those who use technology to streamline operations can do more with a leaner team. If hotels can offer a better experience not only to guests but also to employees, then they are in the best position to weather the work crisis and thrive in the future.
