May 11, 2020
Hotels and lodging operators are under enormous pressure to adapt to a new world where the coronavirus has disrupted every aspect of life and business. By mid-March, occupancy fell 24.4% to 53% year-over-year and revenue per available room dropped by 32.5% to $64. A side effect of this is an acceleration in the adoption of new software technology to run hotel companies.
New and incumbent vendors will face high stakes as $7B in hotel software budget is quickly changing hands. While three years ago, 70% of hotels used on-premise legacy software tied to expensive licensing contracts, the picture in 2020 is just the opposite—65% of operations have migrated to cloud-based apps on subscription models.