Of the 150+ senior executives from within the hospitality industry that attended the EP Business and Hospitality latest webinar, a striking insight was revealed: over 48% of participants admitted that their businesses had not yet embarked on their digital transformation journeys. Despite this slow start, there was a clear consensus that by the end of 2026, the majority of these businesses expect to have digitalisation fully integrated into their operations. But with all of this ambition, how will hotels seek to achieve this with the key challenges that stand in the way of progress?
The role of technology within the hospitality industry
A recent HotelTechReport survey highlighted the critical role of technology in shaping the future of the hospitality industry. An overwhelming 81% of hoteliers believe it’s very likely that technology will be more important for the success of hotel businesses over the next five years. Not only that, but 99% of hoteliers think that their peers will increasingly leverage technology to run their operations within this timeframe.
This survey also sheds light on the primary value propositions of technology as perceived by industry leaders. 39% of respondents identified “improving operational efficiency” as the most important benefit, while 31% pointed to “transforming guest journeys.” Smaller but significant portions highlighted “improving business agility” (15%) and “innovating for the future” (13%). These findings underscore a broad recognition that technology is not only crucial for enhancing back-office functions but also for creating transformative guest experiences.
The hospitality industry has always been dynamic, adapting to the ever-changing preferences and expectations of travellers. However, the post-pandemic era has brought about a significant shift in consumer behaviour. Today's guests demand seamless, personalised experiences that incorporate advanced digital tools, from mobile check-ins and AI-powered concierge services to automated room controls. Guest expectations are steadily rising, and hotels must not only meet these demands but strive to exceed them. The challenge for the industry is clear: to create a new narrative that embraces cutting-edge technology while enhancing service levels.
Hotels must rethink the guest journey from start to finish. This means investing in customer-centric technologies that streamline operations and improve the quality of interactions. Digitalisation isn't just a strategy for convenience—it’s now an expectation.
Understanding the most important near-term objectives for technology in the hotel industry adds clarity to these efforts. According to the HotelTechReport survey, 21% of hoteliers believe that the top priority should be transforming business processes and operating models. This was followed by 19% citing “driving revenue,” 18% indicating “better customer experiences,” another 18% highlighting “improving efficiency,” and 11% focusing on “reducing operational costs.”
These varied priorities reveal a balanced approach in the sector, where improving operations and guest experiences go hand in hand with boosting financial performance. Hoteliers increasingly view technology as a pathway to enhance business resilience.
However, while the allure of digitalisation is strong, there is a significant hurdle that over 70% of senior executives identified: a lack of talent and skill shortages within the industry. The successful implementation of new digital systems relies heavily on the people who operate and manage them. The skills required to support this transformation—ranging from data analysis and IT management to customer experience strategy—are often in short supply.
To combat this challenge, hotels must prioritise the development and upskilling of their workforce. Partnerships with educational institutions, industry-specific training programs, and incentives for career development can help close the gap. Upskilling existing staff not only bridges the immediate needs of digital proficiency but also fosters a culture of innovation and adaptability that is crucial for long-term success. It must also begin to look to new technologies to embrace and bridge this gap. For example, carpet cleaning than can provide assistance for cleaning teams where staff are required for more specific cleaning roles, such as room cleaning enabling quicker room turnaround times and guest satisfaction, or autonomous robots that can assist food and beverage teams with quicker and more efficient in room delivery services.
Yet despite a growing focus on innovation, many hotels are still lagging behind their pre-pandemic profit margins. Data from 2023 shows that while some recovery has taken place, the industry as a whole has not fully bounced back to previous financial health. The market’s uncertainty, influenced by global economic shifts and fluctuating travel trends, has raised concerns about whether substantial investments in digital transformation are viable.
Analysts suggest that failing to invest now could lead to greater losses down the line. A digital-first strategy can unlock new revenue streams, improve operational efficiency, and enhance customer loyalty—all factors that contribute to stronger profit margins over time. The key lies in strategic investments, phased implementation, and leveraging technologies that provide quick wins in terms of cost savings and customer satisfaction.
For the hospitality industry, 2026 marks a critical juncture by which many organisations aim to have fully implemented their digitalisation strategies. However, achieving this goal requires more than technology adoption. It demands a holistic approach that incorporates people, processes, and sustainability into the core of business operations, and a knowledge of how to integrate these together in harmony.
Hotels must act now to address the dual challenges of digital readiness and skill shortages. Investing in training, creating new service models, and focusing on sustainable operations will set forward-thinking hotels apart in a competitive landscape. For those willing to take on these challenges, the future holds promise: enhanced guest experiences, improved profitability, and stronger market positioning. Talk to us now to see how SoftBank can help transform your hotel business - contact us.