On average, the Food & Beverage department is the second leading contributor to total revenue in any full-service hotel, although a number of limited-service hotels are expanding F&B offerings and seeing revenue intake as well.

Mobile technology is being applied for various purposes in the hospitality industry, and many hotels are beginning to incorporate it into F&B strategies as well.

The potential benefit to revenue is significant. Research shows that consumers tend to spend more money when making purchases on mobile devices, particularly in-room tablets. Studies at various restaurants have shown that providing consumers with the ability to view a menu and make orders on tablets increases total orders, the amount of tip left behind, and dessert sales.

“I think our impulse levels might be a little harder to control when we’re tablet shopping,” said Boston College researcher S. Adam Brasel.

For example, after installing in-room tablets for guests to order room service, Philadelphia’s The Inn at Penn reported a 12-percent increase in average room service orders and a 10-percent increase in room service usage.

Here are some ways you can capitalize on mobile technology and related systems to improve your F&B strategy and increase revenue.

Streamline F&B operations

Mobile technology provides guests with the convenience of full access to all information they need, such as restaurant locations and menus, as well as the ability to place orders or make reservations through a device. Hoteliers can integrate mobile with other systems, such as point-of-sale, in order to have all information collected in one location for easy review. By going digital rather than relying on manual processes, you can also improve turnaround time, decrease service response delays, and eliminate order errors.

Improve inventory management

Using digital systems to track F&B sales offers an opportunity for better insight into guest behavior, such as which menu items are most popular, the various factors impacting demand, and more. This is useful for developing a comprehensive yield-management plan with more reliable forecasts that allow you to alter inventory as needed to meet demand.

Quickly update menus

In the past, updating menus could be a tedious process that required costly reprints. Technology provides the ability to make immediate adjustments to digital menus, including available items and pricing while saving money on printing. Proactively monitoring F&B activity also makes for efficient revenue management as hoteliers can immediately respond to shifts in demand and supply.

Take advantage of mobile advertising

Mobile advertising is growing in popularity, accounting for more than half of all digital spending in 2015. One of the main reasons for this is that adults spend a significant portion of their day using mobile devices, so it’s a perfect place for brands to enjoy direct visibility. Promoting various F&B services and offerings through mobile, whether through in-app banner advertisements or push notifications, is a great way to get information directly in front of guests and should be included in any hotel’s F&B marketing plan.

For more information about the benefits of technology to not only F&B but all departments in a hotel, please take a look at our hospitality technology platform. Ready to find out how the INTELITY platform can help you increase guest engagement, maximize revenue, and streamline your operation efficiencies, schedule a demo with a member of our team today.

EXECUTIVE INSIGHT
This post provides insight directly from a member of our executive committee, CEO & President David Adelson.

With the hospitality industry thriving, hotel construction on the rise, and the expansion of the sharing economy, hotels are facing more competition to accomplish the goal of heads in beds and establishing guest loyalty. It’s become extremely important for a hotelier to actively consider the unique points of value that his or her property offers target segments in comparison to others in the same market. The ability of a property or brand to be competitive is now about more than just price, although travelers are still definitely looking for great deals.

Mobility has had a major impact on the interaction between consumers and businesses, creating more opportunity for visibility and communication. It’s about listening to guests and providing them with the experience they want. Online social connectivity has revolutionized the ability of the consumer to communicate to brands what they’re looking for, which savvy brands can then use to determine how to improve positioning.

The best hotel brands and properties are the ones that can use new digital channels and tools to distinguish from competitors, reinforce brand awareness, and establish guest loyalty.

Here are a few ways technology can help you accomplish these goals:

Improve the guest experience

You can no longer deny that guests not only want the option to use technology during their stay, they expect it. No matter your target consumer demographic, mobile technology is going to be involved in your guests’ travel journey at some stage, and therefore is a powerful tool for you to utilize. Most importantly, it creates an open line of communication that helps you get to know guests better. Studies show that customers would rather text than place a phone call to solve customer service needs, so why not give them the option by making your staff available via mobile?

Technology can also allow guests to share information with a hotel about preferences and interests for a more personalized experience. Data has become a valuable component of technology use, and 73 percent of consumers are willing to share personal information if they feel they’re receiving sufficient benefit in return. As a result, hotels can apply data collected for more targeted marketing and advertising, and to efficiently push out information about relevant offers so that guests are left feeling more satisfied from interactions.

Monitor social conversations and guard brand reputation

These days, your customers are talking to you around the clock through a number of different channels, whether it’s Twitter, Facebook, TripAdvisor, Yelp, etc. Being an active participant in these digital conversations is vital to maintaining high levels of brand satisfaction and diverting potential crises. Nearly 8 in 10 guests reference online reviews before booking, and they are 3.9 times more likely to choose a hotel with higher reviews if pricing is similar. When negative feedback is shared online, it’s absolutely critical that a brand quickly and appropriately responds in some way – 87 percent of travelers said appropriate management response to a bad review improves the impression of a hotel.

Connecting with guests via mobile provides the added benefit of allowing them to immediately and directly share feedback from their experience via an app or mobile messaging. For example, INTELITY’s hospitality technology platform features a guest feedback solution that guests can use to send a rating of their stay to the hotel. Staff can then be proactive in addressing issues more quickly, even before they leave the property.

Streamline operations for better guest service and staff productivity

Great technology can improve things on the back end as well, indirectly resulting in benefits for guests and improve the perception of your brand. Technology reduces the heavy lifting for your team, making it easier to get through repetitive, tedious tasks. It also increases productivity. About half of all adults with Internet access say they feel more productive at work thanks to technology (compared to only 7 percent who feel less productive), while 35 percent say it increases the number of hours and amount of work they are able to complete. To again use INTELITY’s platform as an example, it includes tools that allow hotel staff to track guest requests to fulfillment. This allows management to gather insight on service response times and adjust procedures as necessary. Similarly, digital systems can help management employ stronger strategies to streamline relationships with customers.

For more information on some of the latest technologies, such as mobile key, to assist you in coming out ahead of your competitors, schedule a demo with a member of our team.

How would you feel if your hotel was literally on the moon?

If you enjoy watching Mad Men, perhaps you’ve seen the episode where the main character Don Draper takes on Hilton as a client. “I want a Hilton on the moon,” says ‘Connie’ Hilton when discussing direction for a brand marketing campaign. Whether he’s being metaphoric or not, the episode isn’t completely based on fiction.

In the 1950s and 60s, the Lunar Hilton was the subject of a long-running marketing campaign by Hilton. It was to be the first hotel constructed on the moon, where guests would be able to enjoy a really interstellar view.

“I firmly believe that we are going to have hotels in outer space,” Barron Hilton once said.

And it looks like he isn’t alone in his vision.

A new survey of Americans between the ages of 18 and 67 found that 35% believed outer space travel would be a reality within the next 15 years.

Other interesting insight provided by the survey into our outlook on travel in 2030:

• 61% said hotels will offer 24/7 virtual concierge services
• 58% believe smartwatches and mobile payments will become popular
• 47% feel that personalized mobile travel guides will be available

Judging from these figures, mobile continues to factor heavily on the priority lists of modern travelers. Surprisingly, most of the items on this wish list are already available, including around-the-clock virtual concierge service, mobile payments, and personalized travel guides on mobile. Now it’s up to the hospitality industry to forge ahead in its implementation of cutting-edge innovation to provide travelers with access to these technologies on a widespread basis.

There are no limits when it comes to dreaming up the next big thing that will have an impact on the way we live or travel, the way our hotel guest room looks, the way we serve travelers looking to explore.

If you want more information and research about the future of the hospitality and travel industries, take a look at some of the solutions our company provides on current and future ways to shoot for the moon when it comes to meeting, or even surpassing, travelers’ imaginations.

EXECUTIVE INSIGHT

This post provides insight directly from a member of our executive committee, CEO & President David Adelson.

I read something this week that really caught my eye and made me pause. A quarter of all hoteliers still currently use pen-and-paper (or manual) methods to manage operations, while nearly 2 in 10 have no structured hotel management system outlined at all, according to a new study by Software Advice.

Although many hotels and brands have begun to embrace technology, mainly to improve relationships with guests, these eye-opening statistics reveal there is still a way to go before hospitality begins to catch up with many other industries.

Here are four ways that the right digital tools can drastically improve an organization’s operations.

Do More with Less

With technology, you can better manage resources to ensure that you’re using what you have to full potential. You’ll be able to monitor guest rooms, inventory and staff more effectively in order to eliminate unnecessary costs.

Increased Productivity and Efficiency

Automating basic processes reduces the need for your management and staff to waste time completing tedious tasks, such as data re-entry, that can be both exhausting and demoralizing. By spending less time on such things, they can instead focus on engaging with your guests and working on projects that will provide greater benefit to your organization.

And by keeping employees feeling fulfilled and satisfied, you actually save money, as losing an employee can cost a business between $10,000 and $30,000.

Reduced Opportunity for Errors

Have you ever had to do something repetitive and accidentally made a mistake because you got distracted or bored? Businesses reportedly lose up to $600 billion each year due to distractions in the workplace. Using digital systems for this kind of work, such as data management, can minimize the number of human errors and reduce time spent on do-overs or corrections.

Get to Know Your Business Better

These days, data is gold, and technology is opening doors when it comes to gaining actionable intelligence about customers and staff. Digital systems can provide a bevy of information instantaneously, using only a fraction of the resources it would have taken in the past to gather the same amount of data.

This information offers a window into learning more about your customers and your operations, and can then applied to make forecasts for your business future and create proactive strategies to respond to these expectations.

As technology becomes more advanced, we’ll see the things it’s able to help us accomplish expand. Hoteliers, make sure you stay aware of what’s available and invest in taking advantage of new innovation to avoid getting left behind.

EXECUTIVE INSIGHT

This post provides insight directly from a member of our executive committee, CEO & President David Adelson.

In some ways, hotel rooms today look much the same as they did 50 years ago. The basics are all there: a bed, a TV, running water. Change has been slowly making its way through hotels, and the differences are not immediately obvious.

Still, if you look a little more closely (or have been paying attention to the recent hospitality industry headlines), you’ll notice that technology is making a big difference in the way hotels operate and interact with guests. Hotels have increased their technology budgets and explored ways to improve the guest experience in and out of the guest room.

Noticeable examples are guestroom tablets and other such devices put in rooms for guests to take advantage of during their stay. These can have a number of benefits for hotels. Most obvious is the impact on a hotel’s reputation. Hotels offering in-room tablets and improved tech features were rated more favorably by AAA when the organization was awarding diamond ratings this year.

And guests have made it clear that they want to be in the driver’s seat when it comes to the details of their stay.

In-room tablets, now provided as complimentary guestroom features by some of the leading hotels in the world, can be perfect tools to this end. Installed correctly, they offer a huge opportunity for hotels to give guests what they want most: options. It also allows hoteliers to go beyond the traditional in-room layout.

Let’s first consider standard in-room entertainment, such as a TV with cable/PPV or a bedside radio.

Reports show that the amount of time spent watching media content online or through streaming services as opposed to traditional cable services has increased, while viewership of traditional TV has declined. In fact, 40% of households subscribe to a VOD streaming service, like Netflix or Amazon Prime Instant Video, and cable giants, such as HBO and CBS, are introducing similar services.

Ericsson predicts that streaming on-demand content will overtake broadcast TV for viewership this year. And Niklas Rönnblom, Ericsson ConsumerLab Senior Advisor, said: “Mobile devices are an important part of the TV experience, as 67% of consumers use smartphones, tablets, or laptops for TV and video viewing. Furthermore, 60% of consumers say they use on-demand services on a weekly basis. Watching TV on the move is growing in popularity, and 50% of the time spent watching TV and video on the smartphone, is done outside the home, where mobile broadband connections are facilitating the increase.”

Sunil Marolia, Vice President of Product Management at Smith Micro, said, “Mobile entertainment has rapidly displaced in-room entertainment for frequent travelers, and today’s hotel guest wants to access a variety of services via their mobile phones or tablets. This presents a huge opportunity for the hospitality industry, as more efficient services, customized promotions, and consumer analytics can be enabled through hotel loyalty applications, which are already popular with 54% of travelers we surveyed.”

TV is certainly not going anywhere, as it’s still the channel most often used by consumers, but hoteliers should be very interested in this shift in media consumption and the future of TV as a whole. Netflix has announced that it will be testing out placement of its service in hotel rooms. CuriousTV, an online education company that serves as a YouTube alternative, is also testing out placement in hotel rooms by offering videos about a number of educational topics, from business to DIY craft tutorials.

Mobile technology will be key to remaining relevant when it comes to the in-room entertainment that guests want. Nearly half of travelers polled in a recent survey said they were “very likely” to order in-room entertainment in a hotel room if it could also be accessed via mobile, a 10-percent increase from only two years ago. With tablets, hotels can offer access to streaming media content that guests choose for themselves.

This includes music and radio.

Studies show that Internet radio services, like Pandora and Spotify, are growing in popularity among 13-35-year-olds, while AM/FM radio listening time has decreased. In-room tablets are a great way to offer guests the ability to listen to music that they select rather than just offering a bedside clock-radio.

In-room tablets also offer other entertainment alternatives, such as the consolidation of printed materials such as magazines, newspapers, and books. In 2014, half of Americans owned a dedicated device, either an e-reader or tablet, for reading eBooks. It’s a great way to have a large quantity of reading material available to guests that can be quickly and immediately changed to keep offerings fresh.

All in all, tablets are a flexible in-room technology that can have a huge impact on the guest’s entertainment experience, allowing them to define exactly what they want rather than having a limited set of options that isn’t aligned with what they’ve grown accustomed to in their daily lives.

It’s not surprising to learn that 80% of mobile apps are deleted after only one use when you consider the vast amount of apps that are available and competing for space on user smartphones.

Despite this statistic, it’s essential for businesses in any industry, including hospitality, to offer an app. Although the rate of app downloads is reported to possibly be in decline, overall usage and engagement are up. Mobile app usage grew 52% from June 2013 to June 2014, surpassing the use of desktop PCs and mobile web browsers, according to the U.S. Mobile App Report from comScore.

If you’ve already developed a mobile guest app (or worked with us to do so), the next thing on the list is making sure you’re getting the highest ROI on your investment by maximizing its reach and making sure that it isn’t among the apps that get deleted.

Have you told people about your app?

OK, this one seems fairly obvious, but you would be surprised at how many people overlook this simple point. If no one knows about your app, how can they use it? Getting the word out about your app is arguably the most important step to take, after careful design. A strong, creative marketing strategy is crucial.

Be excited! You’ve invested in creating this, and you want to brag about it with announcements on your website, social media platforms, to the press, and everywhere else possible. Word of mouth is the strongest tool in your arsenal, so make sure you and all of your employees are spreading the word whenever they have the opportunity, too. And remember, this isn’t a one-time effort. You’ll want to continuously remind people about your amazing app and all of the cool updates you make to it.

InterContinental Hotels Group (IHG) created an elaborate marketing strategy, with the help of Google and Forrester Research, when they launched a mobile-optimized site and an app with the primary message, “Book a room. Whenever. Wherever.” The company saw 100,000 downloads of its app in only the first three-and-a-half months. “By using text specifically aimed at mobile users, we saw revenue from our mobile search activity increased by 91% percent YOY,” said Marco De Rosa, IHG Interactive Marketing Manager EMEA.

Is your app useful?

What’s the point of your app? Is it actually something that users are going to be able to make use of on an ongoing basis? For hotels, this means considering ways to make your app useful to guests even when they’re not on property. For example, making it easy to book a reservation (at a great rate) through the app or do preliminary research for a trip is something that gives long-term benefit. During the design phase, outline what you want users to be able to do and make sure it’s easy for them to accomplish the majority of things on your list.

Is your app boring?

Functional doesn’t have to be less fun or visually appealing. Give your guests what they want. Some of the top categories of apps by time spent are social networking, games, and radio/music. Messaging apps are among the fastest growing categories, up 203% year-over-year in 2013. Older users tend to prefer functional apps, such as Maps. While your app can’t do everything or please everyone, it’s not difficult to incorporate things users love about other apps into your own. Consider adding some leisure and entertainment features as an added bonus. It’ll give guests an extra reason to open up your app and use it, even when they don’t have a specific request or need for information.

Are you providing an incentive for people to use it?

This question ties in with most of the other points, but it can help to give your app a little extra appeal. Making special offers available exclusively through your app or running contests that encourage the use of your app can be a draw. It’s similar to a retail store offering in-store only discounts to increase traffic.