The hospitality industry is an ever-growing sector of the economy. In addition to generating monetary value for an economy, the hospitality industry employs a large number of people and can be the source of livelihood for a wide variety of other businesses which though not in the hospitality industry, are nonetheless dependent on it for income generation and business opportunities. As such, the hospitality industry is one in which even small incremental gains in efficiency can translate to immense benefits for the industry and society.

Information Technology can transform the hospitality industry and allow it to reach ever new heights in the following ways:

Advertisement through IT

As the disposable income available to the people increase, they increasingly become willing to spend it by traveling and looking at the various tourist sites in the world. The key to attracting such travelers and tourists to one’s own business may be advertising through Information Technology services.

Easy accessibility of information via digital media for potential visitors coupled with prompt query redressal can be the proverbial final straw, which may trigger the potential visitor’s decision to visit a particular place.

With the widespread adoption of smartphones, social media, and accessibility to digital services worldwide, a robust presence in the digital space is assured to give widespread viewership to the advertisements, which will attract more business opportunities.

Payment through IT portals

For the various services rendered to the customer, billing through a computerized system and paying the bills through the available digital transaction modes can be a very lucrative option for the customers. Customers have an inbuilt trust for the automated billing systems wherein each statement is delivered directly to their emails, enhancing transparency and accountability in the billing system.

The business also has an advantage in this scenario. The concern accounts are digitized and stored securely with multiple backups, thus facilitating fast and easy reporting for the management and the ability to flag the areas where the business may exercise financial accountability and prudence.

Online booking

In the past few years, the hospitality industry has seen a significant change. Gone are the days when hotel rooms were booked via phone calls. Now everything is online.

Starting from searching for rooms to booking a cab to flight tickets, everything is done online. And not only that, nowadays everything is connected to one another. Be it a leisure holiday or a business trip, the client expects the hotels to offer them everything – from camp bookings, sight-seeing packages, shuttle to and from the airport and everything in-between, on a platter and that to on competitive rates.

With everything based on artificial intelligence and automation, the hospitality industry needs to have state of the art it infrastructure. This enables them to cross-sell additional services at competitive rates and gain clientele.

Cross-selling and up-selling

The hospitality industry has traditionally relied on cross-selling and up-selling. Whether tied up with sight-seeing services, cab services, travel booking, or other arrangements, hotels had always had those things as a part of their service.

In this digital age, nothing has changed. Customers prefer to stay in those hotels where they have access to everything they need. And once everything is digitally connected, IT services become the backbone.

IoT

IoT or the internet of things might be relatively new, but the hospitality industry is one of the early adopters of this technology. IoT is the idea of connecting various devices and gadgets to automate various basic operations. Hotels like Le Meridian and Marriott have been pioneers in using IoT.

Some basic examples can be keyless entry, switching off the AC when the guest moves out, setting the room temperature to a specified degree as soon as the guest enters the hotel premises, etc. Not only are these fancy and helpful, but they also cut costs to a large extent for the hotels. And for this, robust IT is a must.

Cost-cutting and automation

In the recent global crisis, this industry was the worst-hit industry. And that sadly meant cost-cutting and layoffs. But it is a business and has to make a profit. For various reasons, hotels are now moving towards automation of multiple aspects with minimum human intervention.

There are many benefits of the same – less human contact and social distancing, fewer chances of human error, less requirement of employees, and faster service.

Since more and more players in the hospitality industry are moving towards automation – IT is essential.

Conclusion

With the scope of the tourism and hospitality industry growing every day, a seamless connection is the need of the hour. It has evolved from luxury to necessity. IT acts as a double-edged tool to benefit both the customers and the businesses. It helps to streamline all the different aspects of the hospitality industry, effectively saving both the time and money of the company, leading to memorable customer experiences.

The food and beverage industry is one of the booming industries of present times. With business parties and significant events increasing in numbers than what used to happen five years back and the tourism industry opening up its arms to embrace the customers with the delicious delicacies of land, the food and beverage industry is one of the most critical aspects of the hospitality sector.

F&B industry broadly means providing food and beverage to customers at the location in which they are present or at hotels, restaurants, and other such sites.

F&B services can be further categorized as:

• On-premise- It typically means food is delivered at the location where it is prepared. The customers visit the place to enjoy the food available on the premises of the said place. The site where the food is available is well maintained to attract the customer. E.g., malls, pubs, hotel chains, restaurants, etc.
• Off-premise- In this category, food is delivered to the customer by the vendor through different modes, or food is partially cooked at their premises. Generally, the contract is given to various organizations to cook and serve the food in this method. It may include hostels, hospitals, and other institutions.

 But other than just serving food, this industry also includes manufacturing, shipping, packaging, and delivery of different foods and drinks. Like in any other field, all this requires technology to bring pace in all these various aspects of the operation. The F&B industry is also transforming to serve its customers better and provide world-class services. From small startups in this sector to big players, everyone is using technology to its benefit. They can collect more data related to customer preferences and use it to better their existing services. 

Like every other industry, technological aid can be immensely beneficial to the F&B service industry in the following ways:

Increased quality of services

Quality is the keyword in the F&B industry. Substandard and below-par products will not be able to sustain themselves in these times of tough competition. Digital technology can help in maintaining this high standard of expectation of the customers.

The vast amount of data generated regarding customer preferences and tastes can help the business target its customers more precisely. It also helps in detecting the areas that are having issues and correct those specific areas of operation. Even in the packaging and manufacturing part of F&B, where many functions happen simultaneously, keeping track manually is very difficult. Digital technology can help analyze the data to correct if anything goes awry between different processes.

Integrates different functions to a single point

The most complicated part of the F&B industry is manufacturing and packaging. Besides maintaining the highest quality standards, managing other related activities like equipment, people, and tasks can be challenging. 

To be always present in all the locations physically is not always possible. Technology can be the helping hand that can oversee all the different dimensions of production. It helps the business centrally control the whole operation process and make the required adjustments wherever needed. It is also helpful in reducing errors in the production process and improve the effectiveness of the equipment. With all the data available centrally, if any emergency arises, it can be quickly handled to get back to the production process without unnecessary delays.

Helps in data analysis

Data is the new gold. Especially in this industry, where targeting the right customer, remembering their tastes and choices can reap huge dividends. With such an enormous amount of data, another equally important thing is analyzing this data.

With the help of technology, this enormous amount of data can be analyzed to predict customer choices in the future. It also helps to know what modifications are needed to make the end product last long and if any changes are necessary to incorporate in the production process. It also helps understand the impact of transportation and storage on the product so that the product’s shelf life can be increased. This reduces the cost, thus leading to businesses generate more significant revenues.

The scope of the food and beverage industry is changing at a breakneck pace. With people getting more information and more conscious day by day, food has come to occupy a place of paramount importance in our lives. In these changing times, keeping updated with the latest trends and capturing the markets is essential. Without technology, it is impossible to catch up with these trends. Technology offers innumerable benefits which can be used to jump to the next level.

The word ‘pandemic’ is now one of the critical terms in use. Pandemic has changed the narrative completely. The pre-pandemic normal like going to an office or schools are now almost things of the past. In every field, the old ways of doing things are replaced by new normals. There is a difference in how things used to be done before the pandemic and after the pandemic, be it education, healthcare, supply chains, and other related areas.

In most companies, after the pandemic, Work from Home has become routine. Many companies like Quora, Twitter, Shopify, Atlassian, Coinbase, Dropbox, and others have shifted to a permanent work-from-home system. Some other companies like Google, Ford, Microsoft, Siemens, and other such companies have started following the hybrid model of work, meaning they provide the flexibility to their employees to work from home for some days of the week and report to the office when required. Against this backdrop, the role of Information Technology is like a facilitator who helps in the smooth conduct of all activities. Most of the activities not traditionally related to IT fields have now transitioned to IT facilitated services. It has helped them in many diverse ways, like keeping track of records, helping them connect with the customers, and providing services without the additional cost of setting up a new infrastructure.

Not only companies but even their employees have benefited immensely in this era of IT dependency. Apart from the doorstep delivery of the products, all the other procedures happen in an online mode. It has cut the employees’ travel time, which was a matter of great concern, leading to better output in their work rate. It has shown that provided with a better IT infrastructure; it is feasible to work in multiple locations at the same project from different time zones. It has made the work culture more human, providing space to the employee to find a work-life balance which was not always possible in a proper office setup.

If one has to draw a line between pre and post-pandemic times, the focus would be on IT. It has acted as an engine driving the world to carry out its day-to-day functions with huge boulders like lockdown, curfews, and other measures imposed by authorities to keep everyone safe in its way. In these trying times, let us see how the evolving nature of IT is helping businesses worldwide.

IT provides security to companies.

The movement of people may have stopped due to the pandemic. Still, the businesses or other activities like teaching, healthcare facilities, food delivery platforms, delivery of essential services, financial transactions, etc., never stopped. to keep all these services running, the major contributor was IT and its different services.

But with an increase in these activities in online mode, the question of security also arises. With a considerable amount of data being generated every day and most of the employees working remotely, preventing data leaks and maintaining confidentiality is one of the major concerns of the companies.

To get over this problem, the security services provided by different companies can be used. It keeps data safe and secure from any unwanted attacks and makes remote working possible.

IT helps in data authenticity and integrity.

Maintaining the integrity and authenticity of data are critical factors that ensure traceability, recoverability, and connectivity. It increases the validity and accuracy of data and the reusability of data. All of these combined with confidentiality form the basis of security.

Doing all these when most of the work is done remotely is no mean feat. Without the help of IT services, the authenticity of data can never be checked, especially in the case of accounting and financial transactions where any third party’s modifications can lead to losses in the range of millions.

Many types of encryption protocols help in keeping information private and secure. It has become fundamental in these times of pandemics.

IT has powered the supply chains to function efficiently

In its simplest form, supply chains are the activities undertaken by an organization to deliver a product or service to the end customer. It encompasses everything, including planning, manufacturing, delivery, to returns.

Technology has come to its aid as a great boon to keep track of different aspects of supply chains. IT has helped supply chains keep track of inventory, keeping communication open and wide between various collaborators, and led to increased production. It has also helped in faster delivery of wares and services to the customers.

IT has integrated all these different facets of the supply chain, making it more business-friendly. Without digitization of these services, it would have been impossible.

Information Technology has become of paramount importance in modern lives. It has penetrated almost every domain making it more user-friendly. It has reduced many redundant works that were earlier done manually. It has also improved the speed and accuracy of the business, thus providing them the necessary support to sustain themselves in these difficult times.

Information Technology or IT is the new fuel that powers businesses these days. With the scope of companies growing beyond the borders of the district, state, and even nation, it is impossible to manage multiple aspects of the business from a single point. And every business, be it of any scale, starting from startups to MNCs, need IT support to keep their business up and running. But keeping in-house IT support and the experts to help the company is a costly proposition, especially if the business in question is a non-IT firm or not directly related to IT per se.

To solve these problems, businesses these days resort to outsourcing. Outsourcing is defined as an agreement between two companies in which one company hires another company to perform and handle operations or other related tasks for the parent company. In IT outsourcing, the procedures related to IT are outsourced to a company who are experts in their respective fields and can help the source company to get over their IT related hurdles.

IT outsourcing is mainly of below-mentioned types: –

Nearshore outsourcing means transferring work to countries that share a border with the country where the business originated.

Onshore outsourcing- It is also called domestic outsourcing. It means contracting the work to the company within the country’s borders in which the company is situated.

Offshore outsourcing means transferring your work to a foreign country, not necessarily sharing the border with the land of the origin of the business.

Cloud computing- Giving your IT-related work to other companies to provide the business with IT services like Infrastructure as a Service(IaaS), Software as a Service(SaaS), and others.

Outsourcing your IT-related problems can be a very cost-effective tool in the hands of the business. It can provide a jumping board to the company to achieve new targets and expand its area of operation. Still not convinced if you should outsource for your IT-related hurdles. Here are the top five ways of how it can lift your business.

IT outsourcing is a cost-cutting tool.

All the business nowadays needs robust IT support. The old way of doing things manually is almost over, even if the company is non-IT based. IT support is required at all walks of the business. 

Keeping an in-house expert can help, but that is bound to strain your pockets. The best way to get over this problem is to outsource the IT solutions to accompany that can handle all the complications related to the field. IT companies’ staff are competent enough to handle all the operations related to IT at a nominal fee. It will help you leave the troubles related to IT to them, translating to you focusing on your core strategies. 

 IT outsourcing provides staffing flexibility.

Maybe your business doesn’t need IT support all the time. It may be seasonal or cyclical. Depending on your needs you can hire the services of the IT company for a period that is most suitable to you. IT outsourcing provides you with the flexibility of bringing in additional support when you need it and releasing that support when it is not required.

This flexibility is not available to you if you keep an IT team solely dedicated to your business. When no or negligible IT support is required, you still have to bear the burn from your pocket, which will cost you in the long run. It is not a situation that any business can afford.

IT outsourcing improves performance.

Splitting the work into small fragments is the best way to finish the job faster. It augments the performance of the business. And with faster performance, brand reputation also increases. Outsourcing your IT-related works to an organization is the best way of fragmenting your work.

It doesn’t matter if the outsourcing company is not within your country or area. You can coordinate with them and get the work done reliably and securely through a dedicated project manager. It leads to faster performance that is error-free as the teams are concentrating on small tasks. 

IT outsourcing helps to develop new features of the service or product.

Before actually releasing the product or service in the market, you must test run the service or product at your end. Though most businesses adhere to this rule, sometimes added or extra features are needed to improve the product or service’s efficiency.

In the case of IT-related products, the point mentioned above is even more critical. IT outsourcing gives you the option of testing your MVPs (minimum viable product) and check for yourself if the prototype is self-sufficient or needs further modifications. This helps you to plan your marketing strategies effectively for your target audience. It also leads to better product performance.

IT outsourcing provides you with world-class infrastructure. 

Every business wants to avail themselves the best of everything for its employees to increase their work rate. Sometimes it is not possible to buy and accommodate each of these in limited office spaces.

The same is valid with IT-related equipment. If you want to keep a team to attend to your IT troubles, you have to support them with world-class infrastructure facilities. It is the main requirement of any of the IT teams to perform better. But buying that equipment is not viable for your business, especially if your needs are one-time in nature.

 On the other hand, IT outsourcing companies have all the requisite equipment, hardware, and software at their disposal, which they can employ to your benefit. You can use their services as and when required by paying a minor amount compared to the considerable amount you would have to pay if you were purchasing the equipment.

Conclusion

Businesses worldwide prefer to outsource their business as it provides them with an edge over the rest. It acts as a helping hand of the company by providing professional services at nominal fees.