What defines a hotel tech stack? Interconnectivity.
NB: This is an article from SiteMinder, one of our Expert Partners
The best hotel tech stacks feature seamless integrations between various software solutions like your property management system (PMS), booking system, payment processor, channel manager and customer relationship management (CRM) system.
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But why do all these tools need to be interconnected in the first place?
Why is it important to build a modern hotel tech stack?
Modern hotel tech stacks need to be interconnected – or ‘integrated’ – because this allows data to flow smoothly between all of the different tools in the stack, allowing them to talk to one another.
Integrated solutions open up endless opportunities for hotel automation. They take the human intermediary out of the equation, saving you vast amounts of time, reducing instances of human error, and generating data-driven insights that you and your team would’ve never otherwise discovered.
Common mistakes when building your hotel tech stack
Hotels attempting to build or refine their tech stack face plenty of challenges. It can be an overwhelming process, and mistakes can be made. A few key hazards to avoid include:
- Choosing the wrong vendor or solution: Don’t rush tech stack decisions. Do thorough research to ensure a solution does what you need it to, will integrate seamlessly, is capable of scaling with your business, and doesn’t lock you in.
- Trying to fix square pegs into round holes: Integration is paramount. While you might prefer the look and feel of an incompatible solution, you should always prioritise interoperability.
- Confusing nice-to-haves with must-haves: Before shopping for solutions, you should spend time identifying the features that are absolute non-negotiables, as these will guide your search.
- Failing to consider total cost of ownership: Long-term costs like maintenance and support are often underestimated, which can seriously erode your profitability. Understand the total cost of ownership (TCO) before you commit to any solution
Key features of a scalable hotel tech stack
What are the key components of a hotel tech stack? The top 3 critical features include:
1. Multi-property management
When crafting your hotel tech stack as a chain or multi-site business, or even as an ambitious hotel with plans to expand, it’s critical to consider how you’ll manage multiple properties within a single tech stack.
There are a number of dedicated tech solutions for multi-property management. At the very least you’ll need solutions with the ability to stretch across multiple properties if you are to maintain consistency across different locations.
2. Data infrastructure and security compliance
Data security and compliance are non-negotiables for any hospitality tech stack. You need to consider how you’ll ensure the safety and security of your business data and your guests’ personal data. Key security features to look out for include GDPR (General Data Protection Regulation) and PCI DSS (Payment Card Industry Data Security Standard) compliance.
3. Total cost of ownership (TCO)
Work to understand the total cost of ownership by identifying software licensing fees, implementation and integration expenses, hardware costs, ongoing maintenance, support, training and system upgrades.
Consider the hidden costs of your tech stack, like downtime and the resources required to manage the stack. Craft a long-term budget that includes a buffer for unforeseen costs and future price rises.
