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Technology’s greatest impacts on the hotel industry

The technology advancements in the industry have been tremendous, said Tanya Pratt, global vice president of strategy and product management for provider Oracle Hospitality, reflecting on the significant changes that have impacted the hotel industry since she entered the business. 

“When I think back to 30 years ago, when I first got in to the industry [as a front desk clerk], the night audit procedure would take 12 hours,” Pratt said. “Then, PMS systems as we know them now came online and transformed everything.” 

“Hospitality has always been people-centered, but over time technology has played an increasingly larger role over how service is delivered. Today, we are seeing technology influence virtually all areas of a hotel’s daily operations with cloud computing, mobile apps, and AI driving an entirely new level of transformation,” said Irina Jakovleva, chief marketing officer at BirchStreet Systems. 

The fundamental technology changes are felt across every single area of the hotel industry, Pratt said. “We used to service guests with just a notepad and a pen. When things came online, then there was automated booking, global distribution systems which expanded the reach of hotels to international travelers, as well as the proliferation of loyalty programs.” 

Online booking engines, which have come about in just the past 15 to 20 years, allow guests to make a reservation on their own, instead of calling the hotel or visiting its web site, Pratt said. “Before, they had to call somebody or go to a hotel web site. The power of the decision-making was put into the guests’ hands.” 

Central reservations and global distribution connected supply to worldwide demand, agreed Max Spangler, vice president of technology at Charlestowne Hotels. “The commercial web and the rise of online travel rewired discovery and price transparency. Modern property systems joined operations, guest history, and accounting into one living system,” he said. 

PMS is the biggest advancement, as it affects every facet of the industry, echoed Brandon McConnell, chief commercial officer at Delavan Lake Management Resort in Delavan, Wis., which operates two properties. PMS systems allowed for “drastic reduction in headcount needs during scaling, as well as efficient and uniform communication between departments,” he explained. 

Hotel Operations Are Transformed Through Technology  

Hotel operations have shifted from clipboards to cloud systems and mobile staff apps, Spangler said. “The deeper story is reliability. It now follows a software playbook that favors automation and observability, not just more staff,” he noted. 

Cloud-based platforms are one of the biggest breakthroughs, according to Jakovleva. “These solutions have allowed hotels to finally break down silos between properties, corporate offices, and suppliers. That connectivity means processes like purchasing, compliance, and payment handling are more efficient, more accurate, and easier to scale,” she said. 

Cloud technology together with IoT-enabled devices and services has “really transformed how hotels function and is behind the industry’s shift towards a more unified approach to operations,” said George Winker, Vingcard vice president of sales, North America. “Cloud-based systems when paired with IoT devices such as in-guestroom thermostats, lights and motion sensors are also setting new standards in experience personalization and convenience while allowing properties to reduce operating costs,” he said. 

Equally transformative has been the use of data and analytics. Hotels can now see spend patterns and supplier performance in real time and use that insight to make smarter decisions, which means fewer wasted resources, stronger cost controls, and more ability to reinvest savings into improving the guest experience, Jakovleva added. 

Technology has become the backbone of how hotels run their businesses, analyze performance, and plan their strategies, Jokovleva emphasized. “Procurement, payments, and financial operations are now digital, giving hoteliers the ability to streamline complex processes, improve visibility, and create stronger margins while maintaining a priority on guest satisfaction,” she explained. 

Some of the greatest hospitality tech advancements came between 2008 and 2018 with “tangible and forever altering changes within the commercial line scope,” according to McConnell. 

“Marketing began to leverage the internet and later through apps, digital content including photos and videos replacing the traditional rack cards and printed collateral. Planners within all verticals, including corporate, SMERF and weddings, are reaching out around the clock and hoteliers are leveraging AI to “offer instantaneous information that better qualifies a potential lead well before a sales representative ever picks up the phone,” McConnell added. 

Tech Revolutionizes Guest Convenience and Personalization 

Technology breakthroughs in reservations, check-in and check-out and other areas has put the decision-making in guests’ hands Pratt, McConnell and others agree. 

“For guests, apps and mobile keys allow you to feel like you are not wasting time in line or will be subject to the five-minute-long spiels at some properties during check-in time. I know when I travel I am a mobile key user 99 percent of the time and pick my room well before I even step into the property,” McConnell said. 

AI chatbots and voice assistants are transforming hotel reservations by replacing “clunky, frustrating phone trees with natural, conversational interactions,” said Catherine Donaldson, Canary Technologies director of marketing. “Instead of pressing 3 for restaurant hours or being transferred multiple times, guests can simply ask for what they need—whether it’s booking a room or hotel details—and get an instant answer,” she said. 

AI chat tools can now resolve up to 80 percent of guest questions instantly, freeing staff to focus on high-value interactions, according to Donaldson. 

Guestrooms went from television and keycards to casting and streaming, smart climate and lighting, and the phone as remote and key, Spangler said. 

Among the most important technological breakthroughs are Wi-Fi, in-room entertainment, PMS, mobile technology, and online booking platforms, according to David Goldstone, president of hospitality at Enseo. 

“Wi-Fi and in-room entertainment has become a fundamental guest expectation—in fact, recent data reveals there are two of the most important factors impacting guest experiences,” Goldstone said. 

In-room television options have changed significantly over the past several years. Pratt remembers when only CNN and a few channels were available; now, anything and everything is available streaming content. 

Cloud Tech Dashboard - Sales and Events

Tech Transforms Guest Satisfaction, Personalization 

Guest satisfaction and follow up have progressed from comment cards to unified surveys, reviews, and messaging that detect themes, trigger recoveries, and inform capital planning, Spangler said. "The parallel most people miss is software as a service. Hotels now run feedback loops like software companies. The product just happens to be an on-property experience,” he emphasized.  

Being able to collect data from all the customer touchpoints and applying the analytics — and now AI — has been a tremendous advancement, Pratt said. “To get the right offer in front of the customer, but also to tailor and personalize the experience to exactly who they are as an individual — that was something that was not possible before,” she said. 

Guest-facing communications and follow-up are becoming more effective and personalized with the use of AI-supported and mobile-compatible outreach, Winker said. "These newer platforms are ensuring that any messaging always resonates with a specific guest, while providing them with an easier way to share feedback in a way that mirrors modern mobile-driven lifestyles,” he noted.    

AI is allowing for “instant, personalized service,” which increases satisfaction, while hotel staff can remain focused on providing service to guests in person, Donaldson said. “Digital guest engagement tools can also surface personalized upsell offers—such as late checkout or spa packages—at just the right time. Guests can enhance their stay on their terms, while the hotel generates more ancillary revenue,” she added. 

Reflecting on 150 years of progress, what stands out is not just how technology has transformed hospitality, but how the industry has consistently adapted to meet the evolving needs of travelers, Winker said.  

“Looking ahead, it is clear that the role of technology is not to replace the human element of hospitality, but to strengthen it. The most successful innovations are those that empower staff, simplify processes, and create the space for more genuine, personal interactions with guests,” Winker said. 

Donaldson echoed Winker’s sentiments. “At the end of the day, the story of technology in hospitality has always been about enhancing the guest experience. The tools may change, but the goal remains the same: meeting travelers where they are, anticipating their needs, and delivering service that feels personal and effortless.” 

As a result, in the next 50 year and beyond, the most successful innovations will be those that allow hotel teams to spend less time on administration and more time on true hospitality, Donaldson noted. “Technology will keep evolving, but guest experience will always be at the center of the industry,” she said. 

This article was originally published in the October edition of Hotel Management magazine. Subscribe here.