74% of hoteliers are making technological investments and declare that they will continue to do so in the short term. This information emerges from the results of the Study ‘The keys to digitalization in hospitality’, prepared by EY for ConectadHosthe platform composed of Hospitality of Spainalong with three of the main supplier companies in the sector: COCA-COLA and MAHOU SAN MIGUEL; representatives of the soft drink and beer categories, along with MAKROmultichannel wholesale company for hospitality.
The survey updates the 2021 results, with the aim of gaining in-depth knowledge of the progress in a key field for the sector, such as digitalization, as well as the main challenges and opportunities.
Guillermo Arrieta, Deputy General Director of Transformation of Mahou San Miguelstates that “The fact that 76% of the hoteliers surveyed claim to have an advanced level of digitalization today, data almost four times better than in 2021, is great news, which confirms the impact of what has been contributed in these years and gives us encouragement to continue promoting a transformation that will generate value and guarantee a powerful future for businesses in the sector”
In 2021, only 20% considered that they had a notable/excellent in digitalization, while currently the 38% consider that their business has reached a high level.
The hospitality industry has a degree of digital maturity almost one point above 2021with an average of 5.3 compared to the 4.5 average that emerged from the results of the previous survey. High-end restaurants (with an average score of 6.4) and accommodation (which reaches 7.2 in high-end hotels) are those that present a greater degree of digitalization, while in At the opposite extreme are cafes and bars, with a lower degree of digital development, although they achieve approval.
Challenges and opportunities of digitalization
86% of those surveyed consider that the Digitalization is key to facing business challenges. The trend compared to 2021 regarding the importance of digitalization continues, and it should be noted that the percentage of those who have implemented actions to advance in technology has increased almost ten points to 32% compared to the 21% they assumed in 2021.
In bars, cafes and leisure, there is a positive perception about the benefits of digitalizationits implementation is still limited, but it is perceived as an opportunity for growth and competitiveness.
In this sense, for Eva Zaera, Associate Director Digital Commercial Development of Coca Cola Europacific Partners Iberia, “Digital tools are a clear ally for business growth and we have to continue working on solutions adapted to each type of establishment, as claimed by 32% of those surveyed. As it is a very atomized sector, and composed mainly of microSMEs, 27% ask for tools focused on knowledge of the trends and needs of the sector.”
Both in rural areas as well as cities, lack of budget (35% of respondents in urban, 38% rural), of time (22% urban, 20% rural), are the main barriers that hoteliers express when implementing technological solutions. For their part, hoteliers in rural areas highlight the fear that digitalization implies the loss of personal contact (19%).
The increase in sales leads the motivations of hoteliers when it comes to digitizing, since 75% of those surveyed opt for solutions aimed at improving margins (39%) and tools to increase turnover (36%), while digital marketing (pending change to online advertising) is the main motivation for 43% of those surveyed.
Main digitalization tools applied to the hospitality industry
Regarding the digital tools with the greatest implementation in the hospitality industry, they stand out in the front office all related to digital marketing in the relationship with customers, with social networks at the forefront, with use by 64% of those surveyed, followed by the website and digital letters (51%) and online advertising and promotion (38%).
In addition to digital marketing tools, at the front-office level, “POS/POS software allows you to optimize business management and customer service, improving efficiency and experience in the hospitality industry. Although there is still room to improve the percentage of use, these benefits are not alien to hoteliers, since 54% of those surveyed claim to use this type of software. However, 58% believe that they should improve functionality and efficiency, and that is where companies in the sector have to work to meet their needs. ” points out Yury Schevchenko, Director of Sales and Operations at Makro. ANDIn the case of brand restoration, the percentage of use reaches 70%, those who are already beginning to bet on new solutions, such as cloud-based (working in the cloud), which they claim to use 15% of businesses, compared to 6% implementation in traditional restoration.
On the other hand, 86% of respondents declare they use digital and contactless paymentswith a high degree of satisfaction for 42%.
Digital Kit and Artificial Intelligence (AI)
AI is reaching all sectors, although in the hospitality industry, entrepreneurs still have some misgivings due to the limited applicability associated with the high cost. Only 35% are considering implementing AI for process automation or are in the evaluation phase.
Among the tools that are already being used, the consultation of doubts in tools such as Chat GPT (Generative AI) (18%), virtual assistants (13%), AI software for inventory and reservation management (12%) and use of AI algorithms for data analysis (10%).
Digital Kit, an initiative of the Government of Spain, which aims to subsidize the implementation of digital solutions available on the market to achieve progress significant in the level of digital maturity, it is a program known by 6 out of 10 hoteliers surveyed.
Emilio Gallego, Secretary General of Hospitality of Spain insists that “This program is a important push for the digitalization of the sector, despite the fact that until now only the 17% claim to have benefited, of which 37% show a high degree of satisfaction, while 22% have not been able to qualify for subsidies because they do not meet the requirements.”
Technical data of the study
EY has prepared the Study based on a total of 16 questions divided into three blocks: profiling, digitalization and maturity of the sector and barriers and future initiatives of digitalization. The survey has been carried out between April 3 and May 21, through the project’s driving companies, receiving a total of 1,827 responses. Participation is distributed between urban and rural areas. The survey closed with nationwide confidence data of 99% and a margin of sampling error of 3%.
