Chris Hemmeter and Kurien Jacob discussed the need for hotel technology to evolve in response to changes in traveler behavior and advancements in technology at Skift’s Data+AI Summit. Hemmeter highlighted how the traditional approach of layering technology on top of existing systems has led to technical debt within the industry. He noted that travelers, especially Gen Z, are increasingly relying on social networks and streaming content for inspiration, planning, and booking decisions. This shift in behavior necessitates a reevaluation of how technology is used in the hospitality sector.
Jacob emphasized the fragmentation within the industry and the challenges of completely overhauling existing systems. He pointed out that even simple tasks like room assignments are often done manually, highlighting the inefficiencies that still exist in many hotels. Automation and technology have the potential to streamline processes and enhance the guest experience, but significant changes are needed to keep up with evolving traveler preferences and expectations.
The discussion also touched on the role of artificial intelligence (AI) and Google in the travel landscape. While there is speculation about whether AI can drive direct bookings and potentially threaten online travel agencies (OTAs), both speakers acknowledged the importance of OTAs in the current travel ecosystem. Hemmeter highlighted the ongoing battle between search engines like Google and OTAs for control of the booking process. However, Jacob argued that OTAs are unlikely to be completely sidelined by Google due to established booking habits and industry dynamics.
Overall, the consensus was that the travel industry is at a crossroads where innovation and adaptation are imperative for survival. The panelists stressed the need for hotels and OTAs to embrace new technologies and automation to meet the changing demands of modern travelers. By optimizing processes, leveraging AI capabilities, and rethinking distribution strategies, companies can stay competitive in a rapidly evolving market. While challenges exist in terms of legacy systems and industry dynamics, there is also great potential for growth and innovation in the intersection of hospitality and technology. Ultimately, the key takeaway is the importance of staying agile and innovative in order to thrive in the ever-changing landscape of the travel industry.
