INFORMATION AND TELECOMMUNICATION technology was a major focus of spending by U.S. hotels in 2018, according to Hotstats’ blog. Labor was one of the biggest expenses in that spending, along with updates.
Hotels spent 1.8 percent of TRevPAR, or $4.64 per available room, on I&T expenses last year, according to Hotstats. That included $2.30 per room spent on system expenses, $1.32 in labor costs and related expenses and $1.02 split between the cost of service and other expenses.
Altogether, the I&T expenses decreased 5.1 percent in the three years from 2016 to 2018 that resulted in a $0.25 savings per room. Nearly half of all departmental I&T expenses are dedicated to system updates, and that amount increases gradually over time.
Properties reported 45.2 percent of I&T expenses were earmarked for system expenses in 2016. This number rose to 49.6 percent in 2018.
Most of the hotels in Hotstats’ data were full service, 53.6 percent. 24.1 percent were extended stay and 13.3 percent were luxury. In the select-service segment, 8.9 percent of properties contributed to the data.
Full service and luxury properties, especially convention and conference center connected hotels, tend to spend more money on I&T to attract group business.
Technology was key aspect in the findings of American Hotel & Lodging Association’s Lodging Survey in March. The biannual report is compiled in partnership with STR.