What are the recent developments in the hospitality space in the
area of cloud services?
During the last few years, the hospitality space has seen a major upsurge inÂ usage and reliance on cloud based services for their marketing,
reservations, customer delight , and a whole range of other internal
productivity applications converge upon cloud based infrastructure
management. With the advent of Big data analytics in the cloud ecosystem,Â the whole apart from being a scalable hosting environment, offers a numberÂ of opportunities such as analytics, predictive market analysis, and insightsÂ into customer behavior.
What is the value proposition for Cloud in the hospitality space?
Cloud based services enable the hospitality business owners to streamline
their infrastructure costs with the usage, thus leading to better customer
satisfaction in a cost effective manner with a pay-as-you-go service model.
Additionally, the use of cloud based services removes the need for the
business owners to manage the day to day infrastructural requirements like
equipment maintenance, security management, software upgrades etc.
Thus, byÂ shifting from an in-house CAPEX model for infrastructure, and letting theÂ cloud service provider to manage those aspects, hospitality companies are nowÂ able to focus more on their core service offerings that are meant to improveÂ end customer retention and experience. Also, with smartphones becomingÂ commonplace, cloud based services provide the business owners with a globalÂ reach to potential customers.
How far is the development in terms of adoption? What are theÂ major challenges?
Cloud based services are being widely adopted in the hospitality space, with
companies like Kempinski and IHG already looking at a full switch from
server based enterprise setups to cloud services. With out-of-the-box cloud
based solutions for hospitality management, even smaller enterprises can
easily switch to cloud without any re-development cost for their software
The major challenges that large enterprises are facing are:
* Shifting from legacy architecture typical to the older in-house
solutions, to the recent state-of-the-art architecture which is essential to
reap the benefits of cloud based services to the fullest.
* Data migration of the existing data to the new cloud based
However, these challenges do not pose a major deterrent to switching to cloud, as the relative advantages to be gained from moving to a cloud based system outweigh the challenges and the initial investments manifolds.
What will be the right strategy for cloud implementation in the hospitality space, both for clients and service providers?
For the clients, it is crucial to be able to move to the cloud
implementation quickly and seamlessly. The service providers can facilitate
this by building cloud platforms specific to the needs of the hospitality
space, with the ability to customize and extend to specific client needs.
Which are the most promising markets globally ?
Travel and Tourism Industry has shown a significant growth in the past
decade or so and has been by far the biggest growth driver for the
hospitality Industry. This growth has been more or less compounded with theÂ spawning up of a number of high quality portals, such as Expedia's and TripÂ advisors of the world at one end, and exclusive portals of hotels, travel
operators and hospitality agencies at the other end. Clocking millions of
hits and a vast growing segment the users relying exclusively upon such
portals for online reviews, reservations etc, the behind the scene cloud
component is a given.
In addition, Cloud based Big data Analytics tools andÂ the whole ecosystem around them, are playing major role as Businesses andÂ Hospitality industry players are relying upon them to generate and gainÂ insights into travel patterns, likes/dislikes, reviews and innumerable otherÂ potential growth opportunities.
Is there is a significant growth happening in the domestic hospitality market?
With more and more big and small players in the hospitality space moving toÂ cloud, the growth in the domestic market is significant. Several of the
Hospitality Management business owners have shown a desire to move theirÂ software infrastructure fully to cloud by 2015.