Role of Technology In Hospitality: 11 Important Facts
The role of technology in the hospitality industry is very prominent in modern society. Various growth opportunities within the hospitality and restaurant industry alike rely on tech solutions to succeed.
As these industries evolve, both business executives and consumers are adapting more and more to innovation. Hospitality software companies are making it simpler than ever to elevate a business and offer a greater customer experience.
As one can imagine, the role of technology within the hospitality industry is vast. And, it’s quite interesting! Read on to discover eleven groundbreaking facts about the role of technology in hospitality.
11 Facts About the Role of Technology In Hospitality
Market value is continuing to increase throughout various sectors of the hospitality industry. But did you know that a lot of this growth is a result of innovative restaurant technology?
That’s right–the evolution of food and hospitality is heavily influenced by the role of technology in these ecosystems. So, here are eleven facts about the role of technology in hospitality.
1. Most Americans Order Food Online
Did you know that about 80% of consumers in the United States order food online? Online ordering apps are such a convenience, that this figure shouldn’t be too much of a surprise.
If you’re the business owner of an eatery, don’t sleep on the possibilities of offering takeout and curbside pick up. It’s a proven and foolproof way to raise the restaurant profit margin, and who doesn’t want that?
Once you offer online ordering, you’ll likely experience a surge in sales. Luckily, this is something that should continue as your eatery collects positive customer reviews and gains popularity.
2. Room Service Is Favorable to Most Hotel Guests
Roughly 67% of hotel guests use in room dining features. So whether you offer contactless food deliveries or accommodate formal dining experiences within the walls of any hotel room, it’ll likely be a hit.
During the COVID-19 pandemic, many hotels paused in-room dining. In doing so, they unfortunately saw major decreases in sales. However, the amenity is coming back stronger than ever–and a bit more innovative.
Nowadays, hotels are using apps and tablets for room service. By using tech solutions, hotels are also able to abide by ADA compliance standards. Audio and visual features built into in-room technology makes ordering food accessible to all.
3. The Pandemic Increased the Use of Mobile Technology
When grocery stores are low on various types of inventory and there are mandates to stay home, there are very limited ways to retrieve food. Speaking of the COVID-19 pandemic, this time period resulted in a major surge of online food orders.
Consumers who don’t usually order food online began opting for these methods all throughout 2020. The result was a 17% increase in online orders and deliveries compared to 2019.
Once ordering food online became the new norm, it was a standard process for many customers. Now, it’s more favorable than ever before.
4. DoorDash Is the Most Popular Delivery Platform
According to a recent study, DoorDash has over 50% market share for delivery apps. DoorDash has likely been able to capture the majority of customers by providing a user-friendly experience, great customer service, and a quick delivery turnover rate.
DoorDash has also generated the highest amount of revenue, reaching nearly $3 billion in 2021. It’s also important to note that the app includes helpful features that make the purchasing process easier for customers. When you combine this with a wide selection of restaurants, you create a go-to delivery app.
5. The Hotel and Motel Industry Is Booming
If you’re hoping to grow a hotel or motel business, you’re in the right industry. According to a recent article from Ibis World, this sector of the hospitality industry has grown 50.9% in 2022.
Keep in mind that this industry will likely grow even more in the coming years. Travel companies are booming in popularity and working professionals are finally traveling again for their jobs.
Hotels and motels are also onboarding innovative technology to allure customers and maximize profits. Features like in-room dining and reservation software are two popular amenities that are causing an increase in profitability.
6. Many People Use Apps to Place Orders
There was a time when the only way to place a food order for delivery was to make a phone call. Now, 48% of customers no longer call in orders. Instead, they place it on an app or eCommerce website.
With this statistic in mind, be sure that your food delivery platforms are as seamless as possible. Ensure that the user experience is optimal and efficient. Features like hiding restaurants that are closed, auto-saving payment information, and push notifications are just a few ideas.
Contact us today to learn how a beverage inventory app can help scale your business.
7. Major Cities Rely on Food Tech the Most
It’s no surprise that in densely populated areas like California, New York, and Washington D.C., food and restaurant tech solutions are most popular. More specifically, these three areas alone boast food delivery rates that are about 328% higher than the average.
Major cities and populated states are reliant on food and grocery delivery apps for several reasons. First of all, a higher number of residents will consequently result in more orders. Plus, they’re popular areas for travelers.
Whether people are leaving airports, at a hotel, or leaving a night shift, food ordering for delivery or pick-up is super convenient. And if you operate a quick service restaurant with 24 7 food delivery, that’s even better.
8. Millennials Are Most Likely to Use Restaurant Tech
Consumer data reports show that people between the ages of 18 and 29 are most likely the ones to use food delivery services. It’s also safe to assume that millennial (and younger) consumers are most likely using apps over calling in orders.
If you’re a restaurant manager or digital marketing professional, consider using this kind of customer data when scheduling ads. For instance, you might have content on hand that promotes online ordering. If you’re creating a paid ad in a campaign builder, you want to ensure that the age range is accurate.
If online ordering is a major selling point at your restaurant, incorporate it into your marketing plans. Be sure to always refer to your restaurant data analytics to keep up with trends and make strategy updates accordingly.
9. Cruise Lines Are the Fastest-Growing Hospitality Segment
According to the 2022 Cruise Industry News Annual Report, luxury and expedition cruises are the fastest growing market segments in hospitality. If you ever look into some of the innovations on a high tech cruise ship, it wouldn’t be a shock that this industry is growing so rapidly.
Since 2012, the luxury segment has grown 119%. In 2012, there were 324,512 cruise passengers across the board. In 2022, there have already been 721,078–and the year’s not over.
From robotic technology that serves popular cocktails and delicious cruise ship food, to high-tech entertainment venues, the amenities on cruise ships are futuristic. Innovation is a major factor in a cruise liner’s product development, and it certainly shows in the expansion of this segment.
10. Customer Service Relies on Technology and the Restaurant
Studies show that nearly 60% of customers will blame both the ordering platform and the restaurant when there’s an error. With this in mind, eateries need to be careful of two separate factors.
First, they need to ensure that the wait staff and other employees are delivering optimal service. Second, they need to be aware of any issues that arise with their ordering platforms.
Maybe customers frequently receive cold food. Or, perhaps the deliveries occur long after the ETA. Regardless, restaurant staff need to be aware of all contributing factors that could hinder the business.
11. Dine-In and Online Ordering Are Equally Preferable
Ensure that your eatery is ready to serve customers in-house. This means that you should have updated menu types, tasteful decor, and sufficient seating arrangements.
It’s also important to market both offerings to your ideal customer profile. This way, you’ll be sure to speak to your entire target audience.
Contact us for a demo now to see how our off-premise solutions can help grow revenue and earnings of restaurants.
Frequently Asked Questions About the Role of Technology In Hospitality
The role of technology spans a wide range of businesses, products, and amenities. Read on to learn all about the role of technology as a whole.
What Is the Role of Technology In Hospitality?
The role of technology in hospitality is to increase profits, deliver a memorable customer experience, and rise above the competition. By using the right solutions, hospitality businesses can quickly grow their sales and brand awareness.
What Is the Role of Technology In Today’s Life?
The role of technology in today’s life is to simplify tasks, increase productivity, and connect the dots between people or digital features. It’s the foundation of many things in society and greatly impacts the way we live.
What Is the Role of Technology In the Food and Beverage Industry?
The role of technology in the food and beverage industry is to cut restaurant expenses, eliminate shrinkage, deliver stellar service, and lessen food waste. By using technology, all of these goals are possible.
How Is Technology Helpful to Society?
The role of technology in society strongly correlates to the way we live, thrive, and succeed. In business, the role of technology helps to maximize profits. In our personal lives, the role of technology is to connect with one another.
What Is the Role of Technology In Development?
The role of technology in development refers to the ability to streamline operations with greater efficiency. By using technology, standard processes can become much simpler.