By Benjamin Verot, Founder of HotelMinder: HotelMinder myth operations begin with lessons learned from more than 15 years of working with all types and sizes of hotels.
In my 15+ years working with all types and sizes of hotels, providing tech advice and hotel management consultancy, I’ve seen and heard it all.
From hoteliers believing that their Excel spreadsheets were more effective at setting pricing than an automated RMS, to thinking that implementing customer-facing technology would negatively impact their guests’ stay experience, there are many misconceptions and myths that many hoteliers still hold about the role of technology in their operations – 100% to their detriment.
Luckily, nothing makes me happier than helping hotels improve their operations (and if I get to talk all things technology, even better!).
So I’m here today to BUST some of the most common myths that I hear from hoteliers, day in and day out.
So, let’s get started with a controversial one…
MYTH: “The best way to address my specific pain point is to upgrade to the newest and shiniest operational solution.”
The irony of this myth is not lost on me. For years, all of us in the hotel technology industry have been shouting it from the rooftop that hotels need to embrace operational technology, or they risk getting left behind in our increasingly online and highly competitive industry.
However, buying the newest/fanciest/most complicated operational solution is not always the best way to resolve your problems, for many reasons.
Technology Alone Is Not ROI
Technology is only going to provide ROI if it’s the right solution to solve the problem that you are experiencing.
AND if it’s properly implemented and used effectively.
Many hoteliers upgrade to the latest and greatest solution because they’re told it will solve all their problems.
However, they don’t receive proper training or support from the vendor on best practices for using it.
This leaves them overwhelmed, confused, and receiving subpar results.
The Problem With Sales Pressure
Many unscrupulous salespeople sell solutions to hoteliers simply because it’s their job to close sales.
They do this without knowing or caring about whether the technology will solve the hotelier’s problem.
And hotel tech marketers know what they are doing… all hoteliers have experienced it at one time or another.
Tech FOMO is real.
But don’t get sucked in by shiny new solutions and false promises, without doing your due diligence.
Audit Before You Upgrade
Before considering upgrading to the latest, greatest solution, first determine if your current operational solutions are delivering optimal ROI.
If not, contact the vendor and ask for additional training and advice on how to maximise the results that you’ve been experiencing.
Most companies will happily provide free training and support, both because they want to keep your business and but also because they care about their clients’ successes.
A Real Example That Proves the Point
I recently worked with a 75-room boutique hotel that was convinced they needed a brand-new PMS because they couldn’t figure out how to produce the exact accounting reports their accountant needed.
>After a two-hour review of their current solution and processes, we discovered their existing PMS had a little-known feature that would solve 80% of their problem.
>We activated it, conducted a half-day of staff training, and saved them thousands of dollars and months of unnecessary migration headaches by upgrading to a new solution.
Focus on Outcomes, Not Tools
It’s important to remember that the goal isn’t simply owning more technology.
>So it’s important to be clear about what operational problems you are trying to fix and whether there are other ways to address your pain points without a new solution.
When to Seek an Unbiased Expert
If you are unsure about whether to upgrade your tech stack, speak to an unbiased expert who can properly evaluate your current tech stack.
They will assess how it’s being used and the quality of your data.
They can also provide advice on whether that fancy new solution is the best way to address your current problem(s).
This is where hotelminder myth operations helps hoteliers make smarter choices.
MYTH: “Expert consultants only provide real value for large hotels and/or chains.”
MYTH: “They are too expensive for smaller properties and small hotels are nimble and capable enough to solve their problems in-house.”
The Real Cost of DIY Approaches
First, the cost of a failed tech project or the cost of months of operational inefficiency will always be far greater than the cost of targeted expert advice, no matter how much an expert charges.
Your team are experts in hospitality, not necessarily in tech implementation or change management.
By trying to manage these types of projects in-house, your property will often experience expensive delays, high opportunity costs and burnout – often, without you even being able to resolve the problem.
Revenue management isn’t just a task on a checklist; it’s a full-time discipline.
Even if you have a small hotel, a non-dedicated revenue manager (who is juggling ten other priorities at the same time), no matter how talented, simply cannot compete with a dedicated specialist whose only job is to maximise your income.
A Quick Example That Proves the ROI
Let’s do the math for a hypothetical 40-room independent hotel.
If a fractional revenue manager can increase your ADR by just $15 and your occupancy by 5% through improved strategy, that can translate to over $100,000 in additional revenue per year!
Suddenly, a $1,500 monthly retainer for that expert doesn’t look like an expense; it looks like the best investment you’ll ever make.
As you can see, outsourcing your revenue management isn’t an expense, no matter the size or type of property.
In fact, it’s often the single highest-ROI investment.
A revenue management expert can help your property identify places where you’re currently leaving money on the table.
They can also develop and implement new revenue streams to maximize your profitability, no matter how the market changes.
The Value of Fractional Expertise
If you have a problem that you don’t know how to solve, it’s better to invest in a fractional expert who can provide targeted, specialised skills on demand.
They can optimise your operations, help you reach your business goals and increase your profitability.
Experts provide the advice and actionable insights necessary to get the job done right the first time.
This allows your team to focus on what they do best: serving guests.
Many consultants receive commission on technology solutions that they sell to hoteliers.
Before signing with a consultant, you should ask them to clearly state any biases they have.
Whether due to their strong belief in the system because they’ve used it themselves (a good reason!) or because of financial incentives (run!).
Likely, an expert who is biased due to a financial incentive will try to trick you into buying yet another fancy and completely unnecessary operational solution that may not even solve your specific problem (see myth 1).
To be sure you’re working with an expert who has your best interests at heart, their (financial) success should be directly linked to your success.
Don’t be afraid to ask for references and prioritise reviews from hoteliers with a similar type and size of hotel as yours and/or who
have experienced similar issues.
This is one of the guiding principles behind hotelminder myth operations.
MYTH: “AI is the answer to all my problems.”
AI Depends Entirely on Data Quality
The reality is simple: AI cannot solve your problems without high-quality data.
No matter how fancy or innovative an AI solution is, it won’t give you optimal results if your data is incomplete, unclear or poorly organised.
What Bad Data Looks Like in Real Hotel Life
Three different profiles for the same repeat guest because their name was spelt differently each time.
Incomplete booking source information that prevents you from knowing whether Google Ads or Instagram is driving bookings.
Guest preferences stored in random notes instead of structured fields within your PMS.
Why You Must Audit Before Investing
Before investing in a new AI-powered solution, you should do a full data audit.
This determines whether your data is of high enough quality to make the investment worthwhile.
If your data isn’t high-quality enough, implementing new AI will be as effective as a Michelin-starred chef trying to make dinner with rotten ingredients.
The Risk of Poor Data
Best case scenario: AI won’t provide the expected results.
Worst case scenario: it’s a completely inefficient solution with very little ROI and many tech headaches.
Either way, it’s a lose/lose situation.
Proper staff training ensures that data is consistently accurate and structured.
If your staff members don’t understand how to properly input and organise information, your data quality will degrade very quickly.
Data quality isn’t the only factor. Your operational teams also need cross-departmental access to the same data. By unsiloing your data through sophisticated operational solutions, your commercial teams gain the ability to make consistent, accurate, strategic decisions. As they are based on a single version of the truth.
Final Thoughts
Now that you know the truth about these common myths, are you ready to take a hard look at your operations and identify the smartest investments to make to transform your hotel’s performance?
Trust me… your bottom line will thank you for it!
And this is exactly what hotelminder myth operations is designed to help you achieve.