Thought Leadership

How management companies generate ROI from technology: It’s a sum of its parts.

By Paul Peddrick

Here are some highlights from our latest article on

How do you get the management business from a hotel owner? Demonstrate a game plan that drives new revenue from every part of your plan – including your tech stack.

The big challenge with hotel tech is that, while operationally necessary, it is often hard to prove out its return on investment, let alone real, new revenue contribution. But smart managers understand that their tech stack is really a sum of the parts, and revenue-contributing components, like automated upselling, helps demonstrate an ROI of the overall proposed plan. Springboard Hospitality uses ROOMDEX across their portfolio and feel it is a factor in winning contracts. “It is about differentiation, said Brandon Standerfer, Corporate Director of Distribution. “As a management company, we looked at it [our tech stack] as building a curated journey based on a per room, per key cost. So, instead of saying to our current owners and potential new owners, ‘What is your cost of operations?’, we can say, ‘We can offer you all this technology at this per key, per month cost – and it will deliver specific ROI’.”

Automated upselling increases revenue by offering additional services or upgrades to guests during the booking process, pre-arrival, or on-site. It quickly delivers a positive ROI because it works without the overhead of ongoing human administration. With automated upselling solution in your tech stack, you can:

  • Increase Incremental Revenue: Automated upselling generates additional revenue by promoting and selling upgrades. Hotels can capture room revenue above the original reservation that would otherwise be missed.
  • Improve Average Daily Rate (ADR): Upselling allows hotels to increase their average daily rate by encouraging guests to upgrade to higher room categories.
  • Enhance Guest Experience: Automated upselling can enhance the overall guest experience by providing personalized offers that align with guests’ preferences.
  • Improve Operational Efficiency: Automated eliminates manual efforts and reduces operational costs. It allows hotels to optimize staff time, minimize errors, and improve efficiency.

Read the full article here.

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