How Can Hoteliers Convince Leadership to Invest in New Technology?

Hoteliers depend on robust, user-friendly software to streamline workflows, drive guest engagement, and maximize revenue. However, leadership may not always see the value in upgrading. They may believe it’s a passing fad, that their current system is adequate, or it’s just too hard to make the switch (this is why you don’t choose systems with cancellation fees). Sometimes, this is true. 

However, failing to modernize your tech stack to keep up with guest expectations sets your property back in the long term and jeopardizes your market position. Here’s how to convince your leadership team to invest in modern, guest-centric technology that also makes life easier for staff. 

Highlight Poor Revenue Metrics

As with any investment, you need to provide evidence that the new hotel tech solution will eventually pay for itself. This evidence takes the form of revenue and conversion metrics. For instance, if your booking engine’s conversion rate is significantly lower than expected, that shows your current technology isn’t working and a revamp is necessary to compete with OTAs. 

When in doubt, don’t reinvent the wheel. Use basic metrics such as ADR, RevPAR, occupancy, etc. Compare the expense of new technology to lost revenue from outdated systems to demonstrate that upgrading is the most cost-effective choice. One common source of lost revenue is missed ancillary charges, which happens when your property management and point-of-sale systems aren’t integrated. 

Compare System Features and Costs

Evaluate multiple technology partners and gather quotes from each. Any investor needs a clear idea of the initial outlay. Take advantage of free demos to see prospective solutions in action and increase the likelihood of finding a system you’re happy with in the long term. 

Benchmark Against Your Competitive Set

If competitors use your preferred software and generate successful results, let leadership know—a little FOMO goes a long way. The metric to use is market penetration index, which shows if you’re capturing your share of market demand. Take your occupancy rate and divide it by the average of your competitors’ occupancy rates, then multiply by 100. A result of 100 or over means you’ve achieved this share, while under 100 means there’s work to do. 

Visual comparison helps as well. Look at a competitor’s website with your leadership team as you champion your own redesign. Take it one step further and compare their reservation process to yours. If their process is much easier… you have your case for that redesign (and possibly a new booking engine). 

Perform a SWOT Analysis

Before pursuing any software initiative, you need to understand your business’s goals, which is where a SWOT analysis (strengths, weaknesses, opportunities, and threats) comes in. How will this initiative fit in with what the leadership team hopes to accomplish? It isn’t enough to choose the first AI product that aligns with industry trends. Any technology you invest in, AI or otherwise, must drive business goals forward for your unique property. 

Ensure Compatibility

New software must be compatible with your current technological ecosystem and any technology you plan to incorporate in the future. Ensure your proposed addition will integrate with your other systems. If not, look for another solution as having to manually transfer data between systems increases workload and creates errors. WebRezPro integrates with over 150 industry-leading software partners so that you can build your ideal tech stack around your property management system. 

Reference Software Reviews

Demonstrate that other properties have had a user-friendly experience with the proposed system to alleviate fears around adoption. Browse trusted review sites such as Capterra and Hotel Tech Report, paying special attention to the most recent feedback from properties similar to yours. 

Systems that make life easier for staff are usually good for the property as a whole! Use these best practices to convince leadership to invest in technology that not only smooths workflows but future-proofs your hotel.