Here’s a very interesting article about hotel technology innovation by one of our partners, Nicola Seghi of Simple Booking…
Hi everybody, here’s my opinion a tip about what you won’t find at WTM 2015 regarding IT Hospitality world.
You will be able to find Clients, Providers, Partners, small or large Companies from anywhere in the world – even Kirivati or Tuvalu.
What you won’t find is Innovation, which is the most important deal nowadays.
I don’t want to bother you explaining what is or what is not Innovation (even if it would be fun to speak about it)… but what I see in the European Market is that there are almost 200 Hotels Suppliers/Providers offering IT solutions & managing systems to Hospitality Market.
It is a such a fast evolving world: infact the Online Distribution reserves you, every single day after your morning coffee, new deals to be faced.
Despite this, it is quite uncommon receiving really great news about improved Features, new Products or at least something really New by such a large Supply Chain in this Market.
It is a bit strange, isn’t it?
Which are the true reasons of a such low innovation rate?
Why IT Suppliers do not release important and frequent novelties (if we exclude just a few little buttons)?
Here’s my point of view, please consider it neither exhaustive nor complete about this topic:
No innovation by suppliers in IT market as:
- Hoteliers are not willing to pay more for something New. They do not give value to Innovation, honestly.
- 70% of IT delevoper and suppliers are quite small companies (less than 10 employees and 1MLN gross turnover).
- Those companies sell their products or services with very low margin so they don’t really have heavy resources to invest in R&D.
- Those companies are quite satisfied: as “small companies” still alive after the Big Crisis, able to pay salaries and Mr. Boss is getting his money by the activity: not too much, but enough for good family holidays…
- There is a diabolic circle: Hotels are not used to receive Innovation by their actual providers, so they are not soliciting them in that way. Providers, when no one is calling at the office claiming as your products have zero level on innovation in last 10 years, will prefer to go play cricket or billiards.
- By Hotel side, Hoteliers are creatures of habits “like bears”. Don’t change nothing now, I am happy! The largest part, they are simply waiting solutions, never urging technology relevant efforts to providers.
Hoteliers are targeted for Innovation only by shoals of startuppers: so tell me why something new has been not offered by those companies who already have a client portfolio, but by “parvenues” and “desperados” running through the Market with their luggage of determination, ideas, desire to win and little money in the pocket (not enough for good holidays).
Coming back from Mars it really looks like a crazy scenario. If you have some money, some Hotels using your systems, some marketing and maybe a nice brand, here is a splendid business occasion not to do any type of Innovation and to vegetate like a nice tree in your business.
And while discussing this, B2C world changes so quickly and daily.
Hospitality market needs IT providers able to provide the right weapons to smart Hoteliers. Be devoted to this goal, guys.