As branded residences continue to explode into the hotel sector, and hospitality giants as well as consumer brands across Europe and beyond increasingly reach for the shiny “new” toy, technology is emerging as a key area of focus. A key challenge in this respect, experts note, is the inability of traditional hotel technology systems to measure up when applied to dealing with the technological needs of branded residences,
Merilee Karr, founder & CEO of Under The Doormat Group explains that unlike hotels, branded residences involve three distinct stakeholders - the owner/buyer of the residence, the operator and the guest - and this complexity necessitates technological solutions capable of addressing individualized needs.
“In the hotel, you have the hotel owner and operator and you have the guest, and the rooms are sold 365 days a year all to guests. However, in the case of branded residences, there’s the added complexity that the unit is sold to a person who also needs their own controls. And hotel technology systems can't do that because they were never set up to do that.”
And many hotel companies attempting to use their existing systems for branded residences are finding themselves struggling or unable to deliver the return on investment that they may otherwise achieve with a different approach.
Add to that the increasing expectations of guests and buyers, especially those in the luxury segment, and it becomes even more critical for companies to have the supporting systems and infrastructure to help deliver against those expectations.
Bridging the gap
One way to tackle this transition, Karr says, is a building upon and an integration of technologies across portfolios, with this approach allowing for synergies across different asset types within a portfolio
“If you are a hotel company that also does branded residences, what you want is for customers to have a single route in to how they interact. And then underneath the hood, you could have your existing system running the hotel side and a new and more suitable system dealing with the branded residences aspect.”
She adds: “If for example, an owner of a branded residence in Tuscany stays at one of your hotels in New York, they use the same system and interact in one seamless way. But in the back end, how you operate the branded residence is going to be very different to how you operate the hotel. So it’s about having the right back-end systems for each part of the portfolio that actually talk to each other.”
Data as a tool
Data is also an important aspect when seeking to use technology to deliver an elevated branded resi experience, with Maria Adamo, manager global development at Mandarin Oriental spotlighting a focus on understanding guest profiles.
“We have a department purely dedicated to understanding who our clients are and the guest profiles. More attention is being paid to understanding the customer and how to appeal to them through technology,” she says.
And this focus on data is critical, says Tristan Gadsby, co-founder & CEO of Alliants.
“One of the things you’ll find in both hotels and branded residences is that a profile only exists on the primary booker. However, it needs to exist for every single resident. It’s very critical to be able to understand the needs of each individual guest/customer. You need a strong data foundation - if you're going to deliver excellent service, you need to understand in great detail and also at a high quality what that profile looks like,” he says.
This data, when combined with advancements such as AI, has the potential to transform personalisation, Gadsby stresses.
“True personalisation is a challenge that even some of the most sophisticated brands still struggle with today. “Personalisation is much more than changing the colour of your app according to what membership tier you are. It is understanding what their needs are, how you can accommodate those and turning it into anticipation. So starting with that profile is absolutely critical as well as having it in the right structure.”
Karr agrees. “If hotel brands and branded residences get that right and have the data in structures that make it easy for their teams to use and are able to really differentiate themselves, then they’ll have very high-value customers that then become very locked into an ecosystem that deliver that an incredible return. That’s where technology can be an enabler to achieving that customer success.”
Digitalisation, AI and personalisation
Jerome Briet, chief development officer EMEA at Marriott also notes that AI plays a key role, not just to cut waste but also in terms of the guest experience and providing new ways for guests to smoothly interact with employees.
Pushpa Reddy, chief product officer agrees that the shift towards AI will not only streamline operations but also enhance the customer experience.
“AI is set to transform by making SaaS solutions smarter and more efficient. Intelligent systems could manage operations seamlessly—optimising everything from pricing and inventory to staff scheduling and menu planning. Agent-like chatbot experiences will become smarter and handle more customer inquiries, with advanced data analytics providing valuable insights to help hoteliers reduce costs and scale operations to increase productivity and customer satisfaction.”
However, Gadsby stresses the importance of guardrails around AI and data, highlighting the importance of understanding how to manage data security amidst all the technological strides while structuring the information in a way that helps deliver on the brand promise.
A strong data foundation and a smooth digital experience could also be used to maximise the guest revenue opportunity and spend as ancillaries become even more important.
“If you make it easy for people to transact/buy ancillaries whether it be additional services, spa treatments pr any other things that the residences may offer, they will do exactly that. The easier you make that for them, the more they will transact and the more you can drive that ancillary revenue,” Gadsby says.
And this digitalisation is something that hotel brands are increasingly working to improve. For example, Briet highlights an acceleration of the rollout of digital technologies in a bid to enhance the customer experience by offering more personalised request options, live chats between guests and hotel staff, mobile check-in and mobile keys.
“We’re using technology to provide better personalisation. Undoubtedly, digitalisation and the need for personalised experiences will continue to increase so the sector needs to focus on enhancing technology capabilities to better connect with customers and meet their needs,” he says.
Will Meadows, VP of experience design at Plandays adds: “Data will enable hospitality businesses to create hyper-personalised experiences through detailed preference tracking and predictive analytics. Hotels, for example, can track guests' preferred room temperatures, dining choices and check-in times across their entire network. Restaurants can use purchase history to suggest menu items and create targeted promotions based on dining preferences.”
In addition to operational efficiencies, implementing technology in the right way could support community-building within branded residences, Karr points out, noting the desire of the owners and operators to ensure that the right structures are in place and that there are suitable checkpoints to ensure the residences are attracting the right clientele when the owners seek to rent them out to guests.
“It’s about screening and all the processes that go around it that help the operators ensure that they are continuing to build a community that aligns with their brand. And that's where technology can be a great support – in ensuring that there are checks and balances along the way.”
The way forward
Looking ahead, Karr says what will be critical moving forward is simplicity, noting that owners and operators will need an integrated tech stack where data is able to be shared seamlessly across different systems and allowing staff to operate more effectively and deliver a top-notch customer experience.
She adds: “Around the world, we’re seeing that investors and the big hotel asset owners are diversifying their portfolios, and they increasingly want technological solutions that work across their entire portfolios rather than just a single element of it. And that’s a huge opportunity because the ones that get it right are going to be the big winners in the space.”
Personalization goes beyond surface-level changes, demanding a comprehensive understanding of guest profiles. Gadsby emphasizes the importance of robust data foundations, allowing operators to anticipate and cater to individual needs effectively. Maria Adamo underscores this sentiment, pointing to the importance of dedicated departments focused on understanding guest profiles and preferences, which can drive seamless and personalized experiences.
Jerome Briet of Marriott shares similar insights, emphasizing that digitalization has shifted from being a competitive advantage to an expectation. “Over the past two years, we’ve accelerated the rollout of digital technologies, enhancing personalization and offering seamless interactions via mobile-first solutions. AI has also helped reduce waste and enhance guest interactions,” he says.