Making the Most of Your 2023 Budget
2022 will be remembered as the year of travel industry renewal. Throughout the spring and summer, we saw leisure demand surpass pre-pandemic levels globally, laying excellent foundations for a strong Q4 where hotel reservations are outpacing 2019 bookings, according to Amadeus business intelligence data.
With such positive indicators heading into 2023, how are you preparing to allocate your technology budget to tackle your greatest needs? Here are 5 important budget considerations for next year:
1. Lead with data
Comprehensive business intelligence data is critical to inform strategic decision making across all aspects of hospitality – from revenue strategy, to marketing, sales, and operations. The most sophisticated solutions on the market provide both historical and forward-looking performance metrics and market insights, along with air traffic data to position your property or destination for success.
2. Think outside the (marketing) box
How are you connecting with your most profitable audiences today? Through social media? E-mail marketing? If you haven’t yet adopted an omni-channel media strategy, 2023 would be the year to do so if you want to stay ahead of your competitive set. Employ all channels at your disposal (targeted ads, metasearch, GDS advertising, etc.) to truly cast a wide net and elevate your brand’s visibility in front of travelers and travel agents.
3. Boost direct bookings with e-commerce best practices
A strong distribution mix will always be important for capturing bookings where guests prefer to shop, but your Direct channel is likely your most profitable and a key consideration for your strategy. However, consumers want a lightning fast, modern website where they can clearly see what they’re buying with options to personalize and upgrade.
Maximize your online presence by integrating reservations, guest management, and web solutions into a user-friendly experience for guests. Hoteliers using a combination of booking engine + web are already seeing the value, reporting a 25% increase in reservations during beta testing.
4. Automate operations amid continued labor shortages
As travel demand increases amid continued labor shortages, hoteliers are challenged to come up with creative solutions to operational issues. Technology can help manage pandemic-influenced challenges. By giving your staff the ability to work smarter, not harder with service optimization solutions, guest requests will be more quickly resolved, maintenance and housekeeping activities will be automated, and team members will better be able to focus on the guest and on providing a positive overall experience.
5. Prepare for the next generation of meetings and events
It's clear people are ready to leave home and meet in-person again. Consider what’s driving gatherings now. Health and safety, wellness, and sustainability are major concerns, but conference attendees nowadays don’t want to sit through 8 hours’ worth of presentations either – they want rejuvenating activities, healthy snacks, social distancing protocols and food hygiene to be taken seriously, while still having the space and opportunity to connect with others face-to-face.
For more details on Q4 hospitality trends and market insights, as well as a complimentary technology investment handbook to aid your planning efforts, visit our website.
