The global hospitality industry has been observing strong signs of recovery heading into 2025. With travel on the rise once more, hoteliers must strategize effectively to capitalize on this revival period by aligning themselves proactively with emerging trends. While macroeconomic uncertainties remain, the indicators indicate immense recovery opportunities for forward-thinking hoteliers. As we plan budgets for 2025, it becomes clear that hoteliers are directing more resources toward technological advancements to stay ahead of the curve and meet the evolving demands of the market.
The latest Skift report finds that 30 percent of hotel IT budgets will be allocated to new implementations, and 86 percent of hoteliers plan to increase investment in tech. This shift towards increased investment in technology can be attributed to several key reasons, each of which underscores the critical importance of embracing digital transformation in the hospitality sector.
In 2025, data management and foundational technologies will be the pillars of successful hotel operations. As the industry contends with economic uncertainties, hospitality leaders are strategically channeling investments into AI-first platforms to optimize revenue, reduce excess expenditures, and automate manual processes. Let’s explore.
Budgeting must prioritize eliminating financial waste. Considering the high workloads faced by staff and the demands for growth and superior service, modernizing outdated systems is indispensable. Automating manual processes, reducing technical debt, generating new revenue streams, and building a robust technological framework should top the priority list. Projects that significantly reduce administrative time should be pursued, even if they don’t yield immediate financial savings.
Moreover, scrutinizing cloud sprawl is essential for hoteliers, eliminating unnecessary and redundant cloud services. Cutting nonessential licenses and contracts, especially in light of recent price increases, can further boost cost efficiency.
Hoteliers are encouraged to revamp revenue processes to align daily operations with enhanced customer experiences. Utilizing generative AI-driven platforms to enable natural and engaging customer interactions will be crucial. AI’s ability to personalize guest experiences by delivering tailored service recommendations based on historical data and preferences represents a substantial advantage.
Guests often express concerns about limited staff availability, long check-in/out wait times, and overcrowding at hotel premises. Implementing contactless check-in and payments, mobile services, and automated messaging can streamline guest interactions and meet service needs. According to Skift data, over 47% of guests are more inclined to stay at hotels providing self-service amenities, highlighting the necessity to cater to diverse guest preferences. While automation handles many service requests, some situations will inevitably require direct human interaction.
Top hoteliers are increasingly adopting advanced technology solutions such as cloud-based property management systems and sophisticated revenue management tools to optimize operations and profitability. Integrating revenue management systems (RMS) with property management platforms allows hoteliers to develop, refine, and execute revenue strategies with remarkable ease and precision. By utilizing data analytics and AI-driven revenue management, hoteliers can provide real-time pricing recommendations, forecast demand, and manage inventory effectively, thus driving revenue growth and maintaining a competitive edge.
Empowering the workforce is a significant driver behind hoteliers’ rising technology investments. Providing staff with current guest insights through advanced data solutions equips them to deliver exceptional service, fostering repeat visits.
Implementing digital solutions streamlines and automates daily tasks, fostering a culture of innovation and efficiency, which helps address staff retention challenges and improves overall operational productivity. Automation is intended to enhance, not replace, human interaction, allowing staff to focus on delivering personalized and meaningful guest experiences. This shift not only increases guest satisfaction and loyalty but also aligns with modern guest expectations and boosts hotel profitability.
Moreover, the role of automation in optimizing hotel operations includes relieving staff from routine tasks, enabling them to focus on more personalized guest interactions. Automation complements rather than replaces human activities, enhancing the overall guest experience and meeting contemporary guest expectations while bolstering hotel profitability,
Investing in new technologies always has challenges, especially during fluctuating economic times. Nonetheless, it is critical not to reduce technology spending: Gartner’s research shows that companies that cut technology budgets during the financial crisis struggled to stay competitive.
As guest demand for digital-first services continues to surge—marked by personalization, automation, and seamless multi-channel integration—leading hoteliers are emphasizing the importance of ecosystem integration that unites automation, data, and personalized service.
By aligning with these priorities and investing in modern technological solutions, hoteliers are future-proofing their operations and ensuring relevance in an increasingly competitive and fast-moving landscape.
So, what is driving your 2025 IT budget decisions? Please share!
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Aaron Stein
Sr. Director, Global Campaigns
Infor
