À SAVOIR: Will hoteliers start investing adequately in technology in 2023 ?
The hotel budgeting season for 2023 has begun in earnest and a very important question is whether hoteliers will budget adequately for technology in their 2023 budgets.
Traditionally, the hospitality industry has been suffering from systemic underinvestment in technology. Normally, hoteliers spend on technology 2.5% of net room revenue. As per STR, IT spending in U.S. hospitality during the pandemic shrank significantly compared to 2019, dropping to as low as 50% in 2020 and rebounding slightly to 70% in 2021 of the pre-pandemic level. Even worse is the drop in payroll (wages and benefits) to hotel IT personnel throughout the pandemic, ending the year at 46% of the 2019 level.
Technology spending in Europe and APAC during the last two years is estimated to be even worse.
Source: Hospitality Net