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OpinionInformation Technology


FOR HOSPITALITY LEADERS, INFRASTRUCTURE SHOULD COME BEFORE THE LURE OF
ARTIFICIAL INTELLIGENCE

By Todd Johnstone
Chief Executive Officer (CEO) at Allbridge
5 min read30 October 2024
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Artificial intelligence is pervasive in hospitality. This is partly due to the
promise of a revolution in bookings, guest engagement, and operations, and
partly to keep up appearances. Hotel operators are enamored with the potential
of AI, as the industry continues to try to fully understand the implications for
its use. And, while there’s no doubt that AI will eventually be everything it
promises, the more important question is:

Do operators have the infrastructure in place to ensure that new technologies
will have a safe and effective impact on their business?


CATCHING UP WITH TECHNOLOGY

The hospitality industry can sometimes fall a step behind in the adoption of new
technology, which is understandable since the core of the business relates to
human interaction and the property itself. There are also several other factors
that have held back advancements:

 * Most properties face very tight margins, which means large-scale upfront
   investment in new technology is difficult to support and can lead to severe
   outcomes if the investment fails.
 * It’s very difficult to show the ROI on technologies that don’t directly
   impact guests (such as Wi-Fi), meaning that hoteliers are likely to reserve
   capital for well known, immediate returns.
 * Conversely, adding too much technology can be overwhelming and can add the
   need to manage more and more products, reducing the time staff spend with
   guests.

This lag in advancement means that many properties aren’t where they need to be
with regard to infrastructure. A lower investment in fundamental technologies
that make everything run means that properties are operating on systems that may
be ill-suited, bifurcated, and disconnected from each other, posing security
risks and potentially negating any ROI a new tool could offer.


SUBSTANCE OVER FLASH

AI is one of the top buzzwords in most industries. Solutions providers are
fitting AI into products wherever they can, but when you look beyond the
marketing it becomes clear many of these solutions aren’t providing anything new
or different. Investing in new technology for the sake of it comes with costs
and risks that can impact a business in the short term via financial,
operational and reputational risks. It’s more important that products provide
the right solution and a tangible ROI.

That being said, there are practical use cases for AI. It is here to stay and it
will continue to evolve to offer new and impactful solutions for properties,
allowing improved guest experiences and retention, and a reduced burden for
staff. But, properties won’t fulfill the AI/AR promise by taking a legacy
approach to technology.

This discussion needs to start at the backbone of the systems that will power
advanced applications, AI and technology in the property – not start at the end.
If a property does not have solid fundamentals in place, the system will not be
able to support advanced products.


A GUIDELINE FOR SUCCESS

Before jumping into new investments, it’s first important to take stock of a
property’s current set up and then develop a long-term strategy to make sure
that upgrades can continue to support new and more substantial software and
connectivity needs. The following steps provide an overview of how hoteliers can
ensure longevity and success for technology.

 * Conduct an analysis of your current infrastructure. Make sure that technology
   is able to manage your current needs properly. Check for blindspots, failures
   or ongoing errors. Assess if all systems are connected and working together.
   If you have ongoing problems or have had to call in multiple technicians, the
   system needs attention.
 * Understand your timeline. Most tech needs to be updated every 3-5 years to
   allow for the increasing bandwidth and software needs. If your system is
   older or just cutting it, you’ll need to update your system and make sure to
   monitor it moving forward.
 * Budgets are tight, but don’t go with the lowest bidder. It’s easy to take the
   lowest bid when budgets are limited. But by taking shortcuts on wiring,
   system hardware and access points, the ability to expand and upgrade a system
   will be impacted, and more will be spent in the long run.
 * Work with a partner that gets it. The more technology added, the more vendors
   needed to manage it, and the more difficult it becomes to keep all the
   disparate parts of a system running. By working with a partner that can
   assess, advise and own your end-to-end technology infrastructure, you can
   limit the time you and your staff spend on management and save money through
   strategic technology selection and management.

To keep up with the industries, hoteliers will need to embrace new technology
solutions, but this needs to be done in a purposeful and strategic manner. By
approaching advancement one step at a time and looking at the total cost of
operation, ROI, the overall system performance, future benefits, and security
and guest satisfaction, properties can ensure that they’re able to implement
modern technology solutions and elevate the guest experience.


ABOUT ALLBRIDGE

Allbridge delivers one connected experience with all data, video, and voice
technologies for Hospitality, Healthcare, and Higher Education organizations.
Formerly Bulk TV & Internet, DCI Design Communications, and EthoStream,
Allbridge currently serves more than one million rooms nationally and positions
properties for the future while strengthening the relationships they have with
their customers. The company is headquartered in Raleigh, North Carolina with
additional offices in Milwaukee, Wisconsin and Garden City, New York. For more
information please visit www.allbridge.com.

Information TechnologyChatbots, Robotics & AI

Todd Johnstone
Chief Executive Officer (CEO) at Allbridge
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