Technology will play a key role in the long road to recovery from the COVID crisis for India’s hospitality industry, according to a comprehensive new report, Indian Hospitality at Tech Tipping Point, produced by RMS Cloud.
The report reveals that hotels using cloud-based property and revenue management technology have been out-performing the market for years – a trend RMS founder Peter Buttigieg believes will accelerate post-COVID.
“There is no question technology will be key to the rebound, enabling hotels who use it properly to better manage demand generation in an online world and reconnect with their customers,” says Mr Buttigieg
“It’s clear that hotels which have embraced technology are doing much better than those that haven’t and we believe this trend will be amplified over time.”
Key report findings:
- Indian hoteliers using the latest technology are strongly outperforming their peers.
- Outperformance by tech-savvy operators is likely to accelerate post-COVID.
- Branded hotels are the fastest growing sector of the Indian hotel market.
- Technology is a major factor in migration from independent to brand.
- Brand hotels are making twice the revenue per room of independent properties.
- Guest data will become more important with demand generation paramount.
- Increased technology uptake will enable Indian hoteliers to diversify distribution.
- Indian internet usage is growing at 18 per cent a year.
- Over time, the dominance of Online Travel Agents will diminish.
- The future of Indian hospitality is bright but hoteliers who do not adapt will flounder.
Opportunity in Adversity
The RMS report urges Indian hoteliers to view the COVID crisis as an opportunity to refresh their businesses and embrace technology.
“The COVID crisis has presented hotels with a chance to re-evaluate their business practices, reset and start again with new tools and a fresh approach for the years ahead,” the report says.
It also suggests that technology will enable Indian hoteliers, many of whom are overly reliant on Online Travel Agents for bookings, to diversify their sales channels.
Tech Investment Required
“As we are now seeing in more mature markets, hotels will gradually embrace a more sophisticated multi-channel approach to distribution with a much greater emphasis on building better websites and driving direct sales,” the report says.
“To achieve this, hoteliers must bite the bullet and invest in a solid technology platform anchored by a robust and reliable PMS supplemented by channel management, revenue management, customer relationship management, financial and administrative tools.
“Those who do not quickly adapt to the new operating environment will be left behind,” the report warns.
Desire for Change
But encouragingly, RMS is seeing a real desire among many Indian hoteliers to move forward, upgrade technology, improve processes and run their properties more efficiently.
“RMS Cloud is confident about the future of India’s hotel industry and excited about the role technology will play.”
Indian Hospitality at Tech Tipping Point is the first comprehensive overview and analysis of the impact technology is having on India’s accommodation sector.
Download: Indian Hospitality at Tech Tipping Point