It’s hard to exaggerate just how critical technology and digital transformation are for business in almost every industry. Their importance and influence, which was already substantial, have only grown in the wake of the pandemic and will continue to do so.
However, technology is often overlooked in hospitality, an industry with so much to gain but that many still see as ‘traditional’.
Few industries were harder hit by the pandemic across the Asia-Pacific region than hospitality. But with restrictions easing and international travel back on the agenda, there is a reason for optimism and a transition from survival to thriving. The pandemic has accelerated many trends, and chief among them, particularly for restaurants, bars and cafes eager to stand out from the competition, is data.
Data helps take the guesswork out of running a hospitality business, providing operators with real-time insights that tell them exactly what their guests need, whether ordering online or dining in-venue.
But how exactly is technology, digital transformation and data revolutionising a once-traditional industry in APAC?
Building deeper guest relationships
Customer data is the lifeblood for businesses in so many industries today. Just as Spotify provides tailored music recommendations and Amazon personalised shopping lists through Artificial Intelligence (AI) and customer data, technology allows restaurants, bars and cafes to do the same.
When a guest interacts directly with a venue, for example, via online reservation, a QR code or newsletter sign-up, rather than through a third party, the business can access a goldmine of approved customer data.
Whether a guest is dining in or ordering takeaway, by collecting relevant data, restaurants, bars, and cafes can paint a detailed picture of each customer, from their favourite dishes to their allergies, how often they order and even whether they have a favourite table when they visit.
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Through solutions like SevenRooms, a data-driven guest experience and retention platform, businesses can collect and personalise various data points on every guest.
For example, data tell businesses not to offer oysters to Guest One, who has a shellfish allergy; that Guest Two is a positive reviewer; and that Guest Three visits frequently and spends a lot.
Through this data, once-traditional businesses operate like technology start-ups, targeting customers directly with data-driven personalised experiences that incentivise loyalty and boost revenue.
Driving operational efficiencies
For business owners, time is money. The longer a business spends on mundane, non-revenue-generating manual tasks, the less time it can spend driving value and the exceptional experiences its customers demand. This is true for hospitality businesses, too.
Through data, venues today can automate time-consuming tasks while focusing on the revenue-driving areas of their business. With approved guest data, venues can segment their customers based on shared traits and preferences and use targeted marketing to provide these groups with tailored offers and communications.
Technology, and the data it collects, can also help alleviate the industry’s biggest challenge today: staff shortages. Technology allows operators to do more with less.
For example, QR codes allow customers to order food and beverages directly from their table, eliminating the need for more front-of-house staff. Online reservation and waitlist management removes a burdensome manual process, and historical data can also help identify trends such as the busiest days and times of the week so operators can resource staff accordingly.
Some of the biggest names in hospitality in APAC, like 1-Group and Jigger & Pony, established their position as industry leaders through the quality of their food and drink and the emphasis they’ve placed on guest experience over a number of years. They’ll maintain that reputation for years because they’ve recognised that data and digital transformation drive those experiences today.
Technology can not and should not replace the meaningful, human-to-human interactions we associate with visiting a restaurant, bar or cafe. But it’s enhancing the hospitality industry’s ability to deliver these meaningful experiences that people remember and recommend.
APAC is recognised globally as a melting pot of world-leading restaurants, bars, cafes and hotels. These businesses have innovated to survive over the last two years, and through data, they can innovate to thrive in the coming years.
As consumer demands evolve and industry trends continue to progress, venues that fail to embrace data-driven technology aren’t standing.
Still, they’re moving backwards. In a traditional industry, food, drink, and ambience will always be paramount, but technology, digital transformation and data are their secret ingredient.
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