Hospitality Consulting
Hospitality and the Cannsult Value Proposition
Cannsult understands Hospitality...
The past few years have triggered a transformation within the hospitality industry, which translates to massive
opportunities to improve and keep up with the changes. Many businesses didn't survive, others adapted swiftly, and some were created out of the chaos with innovative solutions tailored to the new environment. Technology has been rapidly evolving, and the hospitality industry has the opportunity to embrace and adopt new technology to better serve customers and create healthier organizations. Travel is once again a high priority for most people, but one thing is for sure, hospitality businesses must be agile and ready to skillfully solve problems and seize opportunities to keep up with the latest industry trends. It’s never been more important for teams to understand how to streamline costs and maximize profitability so that the industry can continue to
thrive.
Some of the most significant changes and trends in the hospitality industry are:
​
-
Customer Expectations: Customers’ expectations and preferences continue to evolve rapidly. They seek personalized experiences, contactless services, sustainable practices, and digital connectivity. Meeting these expectations while maintaining profitability can be extremely challenging.
​
-
Workforce Management: Finding and retaining skilled employees can be a challenge in any industry, but is even more challenging in hospitality. High turnover rates, labor shortages, and the need for specialized skills can make it difficult to maintain a qualified and motivated workforce.
​
-
Technology Integration: The integration of technology into various aspects of the hospitality industry (think online bookings, mobile check-ins, and digital guest experiences) presents both opportunities and challenges. Adopting and implementing technology effectively requires investment, problem-solving and project management skills and overall staying on top of the latest advancements.
​
-
Sustainability and Environmental Concerns: The hospitality industry is under increasing pressure to adopt sustainable practices and reduce its environmental impact. Balancing profitability with sustainability goals, and managing waste, energy consumption, and water usage, are ongoing challenges.
​
-
Competitive Landscape: The hospitality industry is extremely competitive, with new players entering the market and existing ones constantly evolving. Staying ahead of the competition, differentiating the brand, and attracting customers in a crowded market present significant challenges.
​
-
Regulatory Compliance: Compliance with local, national, and international regulations is critical. Keeping up with the changing laws related to safety, health, employment, data privacy, and accessibility requires ongoing efforts, skills, and resources.
​
-
Geopolitical Considerations: Geopolitical events, such as political instability, terrorism, trade disputes, and changes in visa policies, can significantly impact the hospitality industry. These factors can influence travel patterns, tourism flows, and the overall business environment.
The hospitality industry is dynamic. New challenges can emerge at any time and having a skilled workforce who is ready to recognize and act on problems and opportunities is key to thriving in this rapidly changing and uniquely challenging environment.
Understanding the impact of Technology and AI on Hospitality
The impact of technology and artificial intelligence (AI) on the hospitality industry has been significant and continues to evolve. Here are some ways in which technology and AI have influenced the hospitality industry:
​
Enhanced Guest Experiences: Technology has allowed hotels and restaurants to provide personalized experiences to guests. AI-powered chatbots and virtual assistants can handle customer inquiries and provide 24/7 support, improving response times and guest satisfaction. Technology also enables guests to check in online, access their rooms with mobile keys, and customize their preferences, creating a seamless and convenient experience.
​
Efficient Operations: Technology has streamlined various operational aspects within the hospitality industry. For example, property management systems (PMS) help automate tasks like reservations, inventory management, and billing, which reduces human error and increases efficiency. AI algorithms can analyze large amounts of data to optimize pricing strategies and improve revenue management. Additionally, automated systems can handle housekeeping and maintenance tasks, freeing up staff to focus on guest service.
​
Smart Rooms and IoT Integration: The Internet of Things (IoT) has enabled the concept of smart rooms. Guests can control lighting, temperature, and entertainment systems through voice commands or mobile apps. IoT devices can also track guest preferences and adjust the room environment accordingly, which provides a unique experience based on the guest preferences Integration of IoT devices throughout a hotel’s infrastructure allows for efficient energy management, predictive maintenance, and enhanced security.
​
Data-Driven Decision-Making: Technology and AI provide hospitality businesses with access to vast amounts of data. This data can be analyzed to gain insights into guest preferences and behavior patterns. Utilizing this
information, hotels and restaurants can make decisions related to marketing strategies, menu planning, pricing, and operational improvements. AI algorithms can even predict future demand, optimizing inventory levels and staffing requirements.
​
Enhanced Safety and Security: Technology has contributed to improved safety and security measures in the hospitality industry. AI-powered surveillance systems can monitor public areas and identify potential security threats or unusual activities. Biometric systems such as facial recognition or fingerprint scanning can enhance access control and prevent unauthorized entry. Additionally, contactless payment options and digital transaction platforms have become more prevalent, reducing the need for physical cash transactions, and minimizing security risks.
​
Streamlined Marketing and Communications: Technology has transformed marketing and communications. Social media platforms, online travel agencies (OTAs), and review websites provide opportunities for hotels and restaurants to engage with customers, promote their offerings, and receive feedback. AI algorithms can analyze customer reviews and sentiments, helping businesses improve their products and services. Targeted marketing campaigns can be developed based on customer data, enhancing customer acquisition and loyalty.
While technology and Ai offer numerous benefits to the hospitality industry, it is important to maintain a balance between automation and human interaction. Guests still value personalized service and the human touch, which means that hospitality businesses must strive to combine technology with excellence in customer service.
Similarities between Hospitality and other industries
When creating a culture of Continuous Improvement, in some ways, Hospitality is no different from any other industry in that the same high-level steps apply.
Those steps are:
1) Discovery & Planning: Understanding the Organization's Goals and Current Scenario, White Belt training for the whole organization.
2) Prepare Leaders & Infrastructure: Establish Steering Committee, Functional Leaders complete Blue Belt
(Sponsor) Training, Create Functional high-level process maps, and identify KPIs.
3) Implement Daily Problem-Solving: Prioritize and plan for functional daily problem-solving, frontline
employees and supervisors complete Yellow Belt training.
4) Launch and Support Root Cause Analysis Projects: Team Leaders or selected participants complete Green Belt training.
Green Belt projects are launched and supported by leadership.
Cannsult Improvement Examples (Quick Version): HOSPITALITY
-
Developed an executable strategy for managing high transient volume.
-
Increased cleanliness of Guest Rooms.
-
Increased efficiency of the Arrival and Check-in process.
-
Increased efficiency of the Departure and Check-out process.
-
Reduced EPG (Evidence of Prior Guest) complaints.
-
Decreased utility issues. (Heating and cooling)
-
Improved staff interaction scores.
-
Improved customer ratings of food and beverage.
-
Reduced problem incident volume and improve Overall Experience scores.
4 Basic Steps: How we work with you to improve your organization - HOSPITALITY
Step 01: Discovery and Planning
-
Understand the organization.
-
Understand your organizational goals.
-
Understand current challenges and risks facing your organization.
-
Meet the team and understand resource constraints.
-
Prepare a high-level plan including scope, timeline, resources required, and expected ROI.
-
Solidify Statement of Work.
Step 02: Prepare Leaders and Infrastructure
-
Understand current infrastructure to support improvements. (if any)
-
Identify internal Continuous Improvement Lead(s).
-
Meet with each Departmental or Business Unit Leader. (in scope)
-
Perform an initial Assessment to identify opportunities and to be used as a baseline.
-
For each Department/Business Unit:
- Create a high-level process map
- Identify KPIs. (Aligned with Organizational goals)
- Establish Visual Performance Management. (A graphical representation of KPIs)
- Perform a Gap/Opportunity Assessment. -
Prioritize Gaps and Opportunities.
-
Provide training to leaders (Sponsors, Champions) who will be supporting the Improvement Teams. (2-day training)
-
Provide stakeholder training: a high-level overview of the method, tools, and terminology
to ensure organizational alignment. (2-hour training)
Step 03: Implement Daily Problem-Solving
-
Select initial areas of focus, Departments, Functions, or Work Areas). Which may include core
functions, Food and Beverage, Housekeeping, and Concierge. And/or support functions,
HR, Technology, Finance/Accounting, Legal, etc. -
Prioritize and scope based on impact on organizational goals, logical sequence, and resource availability.
-
Select initial daily problem-solving teams.
-
Provide training for daily problem-solving teams. (5-day training)
-
Implement Daily Problem-Solving and Visual Performance Management in each
selected area. -
Identify issues to be escalated; issues that require a higher skill level to resolve. (E.g.,
cross-functional issues, high complexity, high risk, high cost, etc.)
Step 04: Root Cause Analysis Projects
-
With Departmental Leaders, prioritize escalated issues based on impact, logical sequence, and resource availability.
-
Select initial Root Cause Analysis (Green Belt) teams.
-
Provide Green Belt Training (Root Cause Analysis project training) for selected team members; Projects launched during training. (8-day training)
-
Provide project direction and support throughout the project duration. (Estimate 3 to 4 months for each improvement project)
-
Provide direction and support through project closure.
-
Validate improvement results and calculate ROI.