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At a Glance
The growing adoption of SaaS solutions can effectively shape the future of the broad hospitality industry, which covers various domains. In the future, more SaaS companies would offer hospitality-specific solutions, meeting the needs of managers, business owners, employees and guests within this industry.
The SaaS model has seen an increased uptake by the hospitality industry. More businesses within the hospitality sector are currently abandoning traditionally owned business application software in favor of remote use of said services. Be it for simple office automation or Enterprise Resource Planning (ERP), it is paramount that organizations understand how this new business application model stands to shape the future of hospitality.
To be concise, the revolution of the software industry has trickled down to how IT infrastructure is managed and maintained within the hospitality sector. This is incredibly beneficial as SaaS can have exceptional operational and innovational benefits.
Here are some ways in which SaaS transforms the future of hospitality:
Improving existing operations
SaaS has the capability of creating smoother operations within the hospitality industry. For instance, it can reduce travel agents’ struggle while checking for the availability of destinations without calling the destination provider.
Such a SaaS business model includes a global distribution system that would streamline booking processes without requiring hotels to share sensitive data. Additionally, these SaaS initiatives help booking agents effectively book a traveler’s whole experience, thereby paving the way to attract more travelers, which translates to greater profitability.
Reduction in cost
SaaS provides a cost-effective alternative for businesses in the hospitality industry by eliminating their need to buy, build and maintain software. Instead, these businesses can plug in and subscribe to software services provided on a shared infrastructure over the Internet.
This pricing and delivery of the SaaS model are dependent on the needs of the businesses, including the consumption of new technology. This eliminates additional charges in the form of licensing and creates an ecosystem with a lower entry cost.
Flexibility and Efficiency
SaaS providers offer hoteliers freedom and control over hotel operations. It becomes possible to automate core processes and simplify certain repetitive tasks that managers and other service providers undertake.
An example of how SaaS platforms are changing the future of hospitality is the introduction of fingerprint technology as part of the customer experience. Customers can now pay or move about the facility securely without using cash or cards.
Improvement of Customer Service
Service is a people business. The Economist has reported that about 80 percent of customers in the hospitality industry demand new technologies. It is argued that having a SaaS model for crucial business applications would ensure that guests get personalized experiences.
Here are some SaaS platforms for data protection to improve customer experience in the future. The latter should help with good governance and reduce risk through compliance, improving customer service.
Empowering of Smaller Businesses
With SaaS models, small businesses would no longer need to hire specialized talent, especially in the IT department. This is beneficial as small businesses of the past had to juggle their small budgets between operations, sales and marketing.
SaaS has empowered small business owners to take over some initiatives to improve their travel services. For instance, small travel businesses can now take over selling their accommodation from costly third-party booking platforms. This means that these businesses now have complete autonomy over their booking engines.
Notably, some small travel businesses can now build their own vocational websites using SaaS platforms. It is possible as these platforms do not require specialized coding talent, allowing small businesses to operate on a global scale. Besides, they eliminate the need to advertise on giant booking engines, saving said businesses a huge sum.
SaaS platforms can monitor occupation, customer satisfaction and returns on marketing and sales campaigns. The platforms offer a hospitality dashboard from which managers and hospitality industry leaders can make data-driven decisions.
This new way of gaining and processing data should provide interesting insights into the hospitality industry. It becomes possible to predict trends and custom-make services to ensure competitive growth. Overall, the data from the SaaS platforms is often customer-centric, which is a reliable source of information on the hotel’s performance.
The intelligent use of technology is integral to the success of any business within the hospitality sector. This is primarily true since it is the era of digitization where enterprises move from the traditional model of on-premise software to SaaS platforms, hosted and managed by a third party. It is now increasingly adopted as more businesses seek to migrate to remote business applications.
The future should see more SaaS companies emerge with hospitality-specific solutions that meet the needs of managers, business owners, employees and guests within the hospitality industry. It is expected that these solutions and tools must be increasingly efficient at handling crises, akin to what the current pandemic introduced. Overall, SaaS solutions continue to transform the hospitality industry into being more data-driven and responsive. The future will have better processes, operations and sales due to the greater adoption of SaaS solutions.