The 2018 Lodging Technology Study: Travel Outlook, Systems Integrations, and the Cloud

Author: Avanti Joglekar

The 2018 Lodging Technology Study: Disrupting Innovation, published by Hospitality Technology magazine aggregates information and research about the hospitality industry. This year, hotels identified inadequate budgets as the top challenge to their overall information technology efforts. While the information in the 2018 Lodging Technology Study hits on numerous topics of interest to us in the hospitality industry, we pulled out several points of interest for hotel revenue managers. Here, we share key data on the forecasted 2018 travel market, insights about systems integrations, and use of the Cloud with your RMS as key topics to consider this year.


The Future of the Travel Market

Deloitte estimates the U.S. leisure travel market will hit six percent growth, with the market reaching $381 billion by the end of 2017. This momentum is expected to continue through 2018. According to STR and Tourism Economics forecast, RevPAR rates increased in 2017 despite weaker-than-expected ADR growth because demand growth exceeded forecasts.

According to CBRE Hotels’ Americas Research, U.S. hotels “will achieve record occupancy levels and continued growth in profits in 2018. CBRE is forecasting a 0.1% occupancy increase, along with a 2.3% rise in ADR for 2018. This has led to a projected 2.4% boost to RevPAR, with 2018 marking the ninth consecutive year of rising occupancy.”

Systems Integrations and the Cloud

Another challenge facing hospitality IT teams is poor systems integration. Revenue management is frequently cited as an area hoteliers seek to develop this year, so integrating an RMS into your hotel’s tech stack is critically important.


In an executive Q&A on the topic of Integrated Systems, Sridhar Laveti, VP of Products and Customer Support for Agilysis, says that your PMS should “offer seamless integration with ancillary technologies,” which includes your RMS. Hotels indicated that their RMS allocations accounted for 16% of their budgets, but to get the optimal profits in 2018 and beyond, hoteliers must increase their software budgets where necessary so that they can better align with overall tech goals and strategy.

Laveti says that operating using cloud-based solutions reduces capital expenditures while increasing data security and disaster recovery. Cloud-based infrastructures reduce costs via reduced maintenance and support costs, hardware, software, and licensing savings. The 2018 Lodging Study found that 57% of all respondents indicated that by 2019, their revenue management systems would be operating in the cloud.

For access to the full 2018 Lodging Technology Study: Deconstructing Innovation, visit Hospitality Technology here. 

Source: The 2018 Lodging Technology Study is published by Hospitality Technology magazine and findings were evaluated with support from Dr. Mehmet Erdem, Ph.D., CHTP, CHE, Associate Professor, UNLV (University of Nevada Las Vegas) Hotel College.

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