Online Check-in: a remaining challenge for the digital transformation in hotels

Restaurant Tech Live blog post 1

The Internet has brought about a significant paradigm shift in this industry: new channels, 100% digital business models and, with the greatest impact of all, new purchasing habits by customers. All of this has come to an already-mature market with a very high level of competition, and so the challenge is not only to effect a digital transformation, but to do so very rapidly. 

The four keys to digital transformation in the hotel industry

The digital paradigm is changing at a dizzying pace, and as a result the key factors for digital transformation are also changing very quickly. In its presentation, ICAR proposed four key factors that have had a major impact during the past year and that will play an essential role in 2018.

- Regulation: Rapid globalization has changed the regulatory environment dramatically. Hotels must adapt to the new conditions and must do so without sacrificing user experience.

- Technology is no longer just an operational concern; rather, it has taken on strategic importance. It has become the number one priority in many industries and companies.

- The economy: the digital transformation is reducing acquisition costs and improving return on investment. It creates a competitive advantage. But as with every advantage, everything depends on the speed of implementation and the efficiency of the solutions.

- The digital society: Digital natives expect new services, which require new acquisition and retention strategies. It isn’t enough to simply adapt traditional off-line models; strategies must be re-thought based on fully digital assumptions.

Clearly this is a highly competitive industry, and technology is a key element of competitiveness, but...

How is the hotel industry adapting to the digital transformation?

On the one hand, data show that online reservations are growing year by year in Europe. In Spain, they represent 52% of the total. In Northern European countries they represent an even higher percentage, for example, 67% in Denmark and 63% in Finland.

However, only 45% of hotels offer the capability to make a reservation on a mobile device. And fewer than 1% of hotels offer on-line check-in. These figures fall far short of what one would expect.

They reveal a gap between user needs and hotel offerings. The digital experience is not working as it should. 

Both consumers and businesses expect a 100% digital experience. But there is still too much dependence on manual processes, which tend to be inefficient and less then fully secure. In addition, manual processes are costlier, while at the same time it is necessary to increase revenue generation on the digital channel. 

How is the hotel industry adapting to the digital transformation? 

Data show that there is a lot of room for improvement. 

On the one hand, data show that online reservations are growing year by year in Europe. In Spain, they represent 52% of the total. In Northern European countries they represent an even higher percentage, for example, 67% in Denmark and 63% in Finland.

However, only 45% of hotels offer the capability to make a reservation on a mobile device. And fewer than 1% of hotels offer on-line check-in. These figures fall far short of what one would expect.

They reveal a gap between user needs and hotel offerings. The digital experience is not working as it should. 

Both consumers and businesses expect a 100% digital experience. But there is still too much dependence on manual processes, which tend to be inefficient and less then fully secure. In addition, manual processes are costlier, while at the same time it is necessary to increase revenue generation on the digital channel. 

Online check-in, a remaining challenge for the hotel industry

Although there are fully automatic digital solutions for online check-in, the industry has yet to adopt them on a large scale, in spite of being aware that it needs to do so. How does this solution work?

1. The customer captures his or her ID document on a mobile device.

2. In a few seconds, the customer’s data are automatically extracted and validated, and included in the hotel’s PMS.

3. Check-in completed. The guest can enter his or her room directly or go to a fast check-in point.

This On-line check -in solutions, in addition to facilitating compliance with standards and reducing operating costs, have a clear strategic advantage. First, in improves the customer’s experience, helping him or her avoid queues and delays at the reception desk. In addition, it is much more secure and efficient than manual processes. 

To sum up, companies that fail to adapt to the new digital scenarios will increasingly distance themselves from customers. And in this digital transformation, on-line check-in is both an essential element and a challenge yet to be met.

Mitek

Contact Us:
Visit Website
Email
Twitter
LinkedIn