Overcome Labor Shortages with Technology a Guide to Cost Effective Solutions | By Byron Webster Hospitality Net – Hospitality Net

In 2006, Tourism Australia launched an advertising campaign which coined the phrase So where the bloody hell are you?. Most hoteliers will have been asking themselves that same question over the last two years, albeit with slightly less Australian flavour on the language. After 2 years of the pandemic, the appetite for travel is insatiable. And while guests are returning, and occupancy levels rising, staff are scarce, with many operators now struggling to maintain service standards with what can only be described as a decimated workforce. Many are taking extraordinary measures such as closing restaurants, reducing room numbers, or removing services. Not because the demand isnt there, but because there are no staff to service this demand. So, while operators ponder the question of where the bloody hell are you? as it relates to labour, how can hoteliers provide a high-level guest journey, with fewer resources, and less money? Because as Albert Einstein, one of historys great thinkers says, In the middle of difficulty lies opportunity.

The answer can lie in automation through the use of technology. And luckily, it not only provides a short-term band-aid to the existing challenges facing the industry, but it provides hoteliers an opportunity to transform their businesses for years to come and better service the needs of their customers in a more cost effective and efficient manner. According to McKinsey1, the pandemic accelerated digital transformation in hospitality by 10 years. And those with foresight will take advantage and position themselves for the future. In a fantastic article by Max Starkov titled "No, Guests Do Not Require Human-Provided Services In Hospitality", Hilton CEO Chris Nassetta was referenced as quoting The work were doing right now in every one of our brands is about making them higher-margin businesses and creating more labour efficiencies, particularly in the areas of housekeeping, food and beverage, and other areas.When we get out of the crisis, our brands will be higher margin and require less labour than they did pre-COVID. And thats what leaders do. Thats how innovators think. They seize opportunities for what they are and use them to their advantage.

For hoteliers, implementation of a digital guest journey not only provides significant opportunity to automate the guest experience at multiple guest touch points, but it supports a contactless stay, meets the modern travellers expectations around self-service and do-it-yourself, and can take significant load of frontline staff. But given technology (cloud, mobility, AI, and IoT) can be used to automate almost any task, where should you begin? This is especially pertinent given the cost of automation can be quite capital intensive, which may not be feasible for many operators in todays climate (although the long term labour savings would more than justify the implementation of many technologies).

A good place to begin is with technology that is cost effective, easy to implement, but has the capacity to significantly enhance the guest journey, and remove repetitive tasks from frontline staff, freeing them up to engage in more high-value interactions. To that end, the following provides a nice starting point:

So, there you have it, a few suggestions to get you started on the implementation of your new digital guest journey. And while all properties are different, and are at different stages of their digital transformation, its essential to appreciate that the current environment provides an opportunity. The goal inflicted upon hoteliers in the current environment is simple: do more with less, by embracing technology and thus reducing a properties reliance on physical labour. And its a goal that needs to be embraced, not avoided. And on that note, Ill leave you with this. A thought from one of the great motivators of the modern era, Tony Robins:

Expect change. Analyse the landscape. Take the opportunities. Stop being the chess piece; become the player. Its your move.

1: McKinsey: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/five-fifty-the-quickening

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Overcome Labor Shortages with Technology a Guide to Cost Effective Solutions | By Byron Webster Hospitality Net - Hospitality Net

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