22. November 2023

How Data Analytics is transforming the hospitality industry

Key Takeaways from Rediscover 2023

The recently concluded Rediscover 2023, organized by Croatian-based PMS Rentlio, emerged as a groundbreaking event in the realm of hospitality, bringing together 250 esteemed guests from Croatia and the Balkan region. This invite-only conference, hosted at the picturesque Falkensteiner Punta Skala resort, marked its second edition with a resounding success. As the only hotel-tech networking event in Croatia, Rediscover lived up to its reputation, providing a platform for hoteliers and tech leaders to delve into the latest trends, challenges, and innovations in the industry. The overarching theme of the conference, "It’s All About the Data," resonated throughout the event, underlining the pivotal role of data in shaping the future of the hospitality sector.

The discussions at the event revolved around several key themes: Direct Bookings vs. Intermediary Platforms, The Power of Word of Mouth, AI as a Business Problem Solver and Leadership vs. Management. 

The CEO at Rentlio PMS, Marko Mišulić, highlighted the evolving dynamics of hotel bookings, advocating for hotels to break free from the constraints of intermediary platforms and invest in direct, lucrative channels. Emphasizing the importance of technology for efficiency and control, Mišulić acknowledged the costs associated with direct channels but stressed their long-term profitability. 

Delving into the influential power of word of mouth, Paul Jeszenszky, Founder and Advisor with a background at Airbnb, Google, and eBay, emphasized the impact of personal recommendations, asserting that authentic, positive guest experiences are crucial for generating powerful word-of-mouth referrals and positive reviews. 

The panel discussion on AI provided a nuanced perspective, positioning AI as a problem-solving mechanism in the hospitality sector, with an emphasis on its potential for economic value and efficiency gains. The importance of personnel proficient in leveraging AI technologies was underlined, emphasizing the human element in successful implementation. 

Finally, Ana Šuper Matana, Manager eMobility at Daimler AG, contributed insights that challenged traditional notions of hotel management, highlighting the distinction between operational management and leadership. Effective leadership, as Matana argued, extends beyond day-to-day operations to inspire and actualize the company's overarching vision.

Changing Hospitality Operations with Sweeply

A standout moment at Rediscover 2023 was the Keynote presentation of a case study by Erlendur Steinn Gudnason, Co-Founder & COO at Sweeply. 

Erlendur Steinn Gudnason, Co-Founder & COO at Sweeply at Rediscover

Erlendur began the keynote by highlighting the core offerings of Sweeply. He underscored the transformative impact of technology on hotel operations, noting a prevalent reliance on traditional methods like printed lists and manual communication within many hospitality businesses.

Navigating staff shortages in the hospitality industry post-Covid

The speech addressed a critical issue faced by the industry - staff shortages - especially after COVID-19. Despite hotels offering incentives to attract personnel, Erlendur emphasized the persistent challenge of finding and retaining enough staff. Technology, he argued, could be a solution by enhancing guest services, reducing manual workload, and subsequently requiring fewer staff members.

To illustrate the efficacy of this approach, Erlendur presented a compelling case study featuring Reykjavik Lights, a 3-star hotel with 105 rooms from the Chain Kea Hotels. The hotel initially faced inefficiencies due to a traditional housekeeping policy where not all guests desired daily housekeeping, leading to wasted time and resources. In response, Reykjavik Lights shifted to an optional housekeeping policy. The results were staggering: 71% of guests declined daily housekeeping, resulting in a remarkable 179 hours less workload in one month.

 However, Erlendur posed a critical question — were these results a one-off or scalable?

To answer this, the experiment's success was presented to the Iceland Hotels management team, overseeing 16 three and four-star hotels with almost 1,800 rooms. The team believed the results could be replicated across their portfolio and aimed to implement the change in just five weeks. This ambitious plan required meticulous change management, focusing on people rather than just technology.

Erlendur outlined the key steps of the project, emphasizing the need for top-down support. The data presented showcased impressive results, demonstrating the scalability of the process across different hotels. The variations observed in skipped daily cleanings were attributed to factors such as stay durations and the effectiveness of staff training in presenting the policy to guests.

Within two months, Iceland Hotels achieved a return on investment for Sweeply, saving a total of 6,400 hours in the first four months. Erlendur highlighted four significant outcomes of the policy change: 

Happier guests

Less work overload for staff

Cost savings through reduced inventory usage

A more environmentally sustainable hotel.

In conclusion, Erlendur summarized the lessons learned from the project:

Experimentation with Modern Tools: Modern tools provide hotels with the opportunity to conduct small experiments on new processes, offering valuable data to measure impact.

People-Centric Approach: Change management is key in implementing new workflows, emphasizing the importance of considering the human element in technological advancements.

Top-Down Support: Getting buy-in from stakeholders from the start is crucial for successful implementation.

Ongoing Monitoring and Training: Continuous monitoring of processes and reinforcement of training are essential for sustained success.

Erlendur's keynote highlighted not only the potential of technology in hotel operations but also the importance of thoughtful implementation and the positive impact on both guests and staff. WATCH THE FULL VIDEO

As Rediscover 2023 unfolded, these themes provided a comprehensive view of the challenges and opportunities shaping the future of the hospitality sector.

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