Fragmented Systems Cost European Hotels Time and Money

A recent study by Access Hospitality highlights the inefficiencies plaguing the European hospitality sector due to fragmented systems. The report, titled “AI in the Hospitality Sector,” reveals that the use of multiple unconnected systems is costing hotels thousands of hours and millions in missed opportunities. The findings underscore the need for integration and smarter data use to enhance efficiency and guest experience.

The Scope of Fragmentation

The study shows that 47% of hotel operators use between two and four systems, while 25% use five or more. This fragmentation results in significant time loss, with hoteliers spending between 322 and 470 hours annually switching between systems. In countries like Switzerland, Germany, and Austria, the impact is even more pronounced, with managers losing up to 470 hours per year. This inefficiency not only increases operational costs but also affects the ability to connect with guests.

Data Reliability Issues

The report further reveals that 60% of businesses find their data incomplete or unreliable, and 50% struggle to trace data origins. This lack of data confidence forces operators to manually double-check information, wasting even more time. Nicola Longfield, General Manager for Accommodation at Access Hospitality, emphasizes the need for a single data source to improve forecasting, stock management, and ultimately, guest experience.

Human and Financial Costs

Fragmentation affects not just finances but also the workforce. Operational inefficiency leads to frustration and burnout among staff, who often have to bridge gaps between disconnected systems. Longfield suggests that integration is not about adding more technology but simplifying existing systems to free up staff for guest-facing tasks. This is particularly relevant in markets such as Germany, Austria, and Switzerland, where many properties are independent and rely on less-integrated systems.

The Role of AI

The study also explores the role of AI in enhancing the hospitality experience. While 57% of consumers believe technology has improved their knowledge, more than half prefer the human touch. Longfield argues that AI should be seen as an enabler rather than a replacement, complementing human service by automating routine tasks. Operators see AI’s benefits in areas like forecasting, reporting, inventory control, and scheduling, which directly impact service quality.

Steps Toward Integration

Longfield offers practical advice for hospitality leaders looking to integrate their systems. She recommends starting with core systems, such as the Property Management System (PMS), and then adding additional tools. Quick wins can be achieved by piloting AI in areas like rota management or reporting. Building data confidence and empowering teams through training are also crucial steps. The focus should be on scalability and maintaining the human touch in guest interactions.

Conclusion

The findings from Access Hospitality’s report highlight the urgent need for integration in the hospitality sector. By using technology to streamline operations, hotels can save time, reduce costs, and improve the guest experience. Longfield believes that integration and AI represent a turning point for the industry, allowing technology to work quietly in the background while keeping hospitality human at the forefront.

Download the AI in the Hospitality Sector report.