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How much do urban hotels in Europe spend on digital guest services
Hi there, and thanks for asking Wonder! I understand you'd like a analysis of how much urban, 3-4 star hotels in Europe spend on digital guest services. In short, after exhaustive research through market research reports, and marketing and hotel industry reports, articles and analyses, I have determined that the information you requested is not available in public resources, largely because the specificity of the demographic parameters combined with the breadth of the geographical field is not addressed in publicly available resources. Additionally, my research findings supported my colleagues previous findings relative to the unavailability of hotel annual spend breakout by activity and segmented geography. However, I did learn that the European hospitality industry is subject to more stringent data privacy regulations than exist in other regions; and that the "majority of European hotel properties are independently owned," which could make digital upgrades more financially challenging for them. Below you'll find my methodology and relevant findings.
METHODOLOGY
I began by reviewing the previous research conducted on your question, so as to not duplicate the same research. For this reason, I focused on researching for precompiled market research reports, surveys or industry analyses which would provide the data set you have requested, as this was the only strategy that my colleague did not specifically include. However, my research discovered that while there is a plethora of market research reports specific to digital trends reports in the hotel and hospitality industry (examples here, here and here), none of them focus on spend for digital guest services, either for the industry as a whole or for specific case studies, likely because this is still a disruptive development in the hotel industry and market research tends to require historical data. The nascence of this market is further supported by the presence of benchmark surveys which are in progress specifically to measure it.
Likewise, the information available in industry resources, such as HospitalityTech and focused market reports like Zebra's 2016 Hospitality Vision Study, focus on the trends in services, and do not cover the spend for these services. I reviewed the triangulation prepared by my colleague in the previous response, as well as the sourcing on which it was based; and was unable to perform a different triangulation based on available sources which would provide a more substantial idea of spend for this segment. My own research discovered that "Accor is the leading player in the European hospitality industry [and] its Fastbooking service presents a challenge for other booking platforms and is bound to cause disruption in the market." This analysis supports the assumption that it is reasonable to use Accor as an example of the high potential reach of market spend in the European region, which was previously calculated at $45M per year on spend for new digital services, based on Accor's five-year projected budget of $225M.
Lastly, I attempted to research the cost for implementing QR codes for the hotel industry, as my research discovered that "over 75% of hotels [globally] are implementing QR code applications within the next year." However, research through various software service provider websites indicated that the specificity and complexity of the QR code application significantly impacts pricing, which made it impossible to triangulate an estimate with available information.
RELEVANT FINDINGS
My research indicated one key point specific to the European digital guest services market which could impact the market spend: the stringency of data privacy regulations in Europe as compared to the US and other countries/regions. This is particularly relevant because "the majority of European hotel properties are independently owned. Independent small and medium hotels find large scale efficiencies and economies of scale and scope difficult to achieve, meaning that their use of technology is determined by cost and practicality." Given this, it is reasonable to assume annual spending is lower than it might be in the US or other regions where chain hotels predominate and where data privacy is less regulated.
SUGGESTIONS FOR FUTURE RESEARCH
My research indicates that market research information with the aggregate specificity you are looking for - if available - would be most precisely obtained by conducting market research, which is usually commissioned through a market research firm. If you'd like us to research a list of such firms which might be a good fit for your needs, please let us know! We'll be happy to research that as a separate request.
CONCLUSION
To wrap it up: while extensive research discovered that the information you are seeking is not available in public resources, I did learn that the European hotel industry is subject to more stringent data privacy regulations than are other countries/regions, and that the majority of European hotels may not have the budget to update their guest services to current digital trend projections. Thanks so much for using Wonder! Please let us know if there is anything else we can research for you!