By Orit Naomi, HTN staff writer - 8.16.2024
Choice Hotels International, a major player in the global lodging industry, is steadily evolving its approach to technology, aiming to improve operations, enhance guest experiences, and support franchisee success. This evolution is evident across various aspects of the company, from its core IT infrastructure to its marketing strategies and guest-facing digital platforms.
Choice Hotels’ journey towards technological advancement began with a big decision: to migrate its IT infrastructure to the cloud. This multi-year project, completed earlier this year with the closure of its last physical data center, has significantly enhanced the company’s technological capabilities. By adopting Amazon Web Services (AWS), Choice Hotels has gained greater flexibility, scalability, and access to a wider range of tools.
“By moving all of our systems to the cloud, we’re ensuring that our franchisees have up-to-the-minute access to the latest innovations, saving time and money while providing industry-leading distribution and digital systems throughout the competitive hotel booking journey,” said Brian Kirkland, Chief Information Officer for Choice Hotels, earlier this year in a company press statement.
The move to AWS Cloud is a key component of Choice’s long-term technology roadmap and involved decommissioning more than 3,729 servers, with over 300 applications retired and more than 250 applications migrated. Choice’s work with AWS began in 2015 with the creation of a cloud-based central reservation system (CRS), choiceEDGE. At the time, choiceEDGE was the industry’s first new CRS from a hotel company in over 30 years.
This cloud-first approach has enabled the hotel group to explore and implement new technologies, including artificial intelligence (AI). The company is using AI to personalize guest experiences, optimize pricing strategies, and streamline operations across its portfolio of over 7,500 properties, including the franchise business, operations and intellectual property of Radisson Hotels Americas that the hotel group acquire in 2022 for approximately $675 million.
Recognizing the changing media consumption habits of its target audiences, Choice Hotels has updated its marketing strategy, increasing its focus on digital channels and leveraging data-driven insights. The company understands that younger guests, in particular, are more likely to engage with brands through social media, streaming services, and online platforms.
This strategic shift is reflected in the company’s “A Stay for Any You” marketing campaign, featuring actor and writer Keegan-Michael Key. Launched in earlier this year, this campaign utilizes a variety of digital channels, including online ads, social media, podcasts, and streaming services, to reach guests in a more targeted and effective manner.
To further strengthen its marketing efforts, the hotel group this week announce that it has partnered with creative and digital media agencies, 72andSunny New York and dentsu X, respectively. These collaborations bring new perspectives and specialized expertise to the company’s marketing initiatives with the stated goal of driving increased direct bookings for its expanded collection of 22 hotel brands, including Radisson, Cambria Hotels, Country Inn & Suites by Radisson, Comfort Hotels, Sleep Inn, Quality Inn, Everhome Suites, WoodSpring Suites and others. “We’re adapting to the ever-changing consumer landscape with a stronger portfolio of brands and a fresh take on our advertising and digital strategy,” said Noha Abdalla, Chief Marketing Officer, Choice Hotels International, in a press statement.
Choice Hotels continues its long-standing partnership with Havas Media for TV media planning and buying, demonstrating a commitment to building a comprehensive and effective marketing ecosystem.
Choice Hotels is also reportedly investing in its guest-facing digital platforms, including its website and mobile app. The company is working to create a more seamless and personalized experience for guests, with a redesigned digital interface, improved booking functionality, and expanded options for Choice Privileges members.
These efforts aim to create a consistent and engaging guest experience across all digital touchpoints, aligning with the company’s overall brand identity.
Choice Hotels’ focus on technology, combined with its dedication to customer satisfaction and franchisee success, is guiding its path forward. The company is leveraging the cloud, data-driven insights, and strategic partnerships to enhance the hospitality experience for its guests.
Last year, the hotel group partnered with Schneider Electric, a leader in the digital transformation of energy management and sustainability, to provide AI-assisted technology to help more than 6,000 franchisees in the United States autonomously track and manage energy consumption and sustainability data. Schneider Electric’s AI-assisted, cloud-based solution enables hotels to automatically track their energy and water consumption while calculating their emissions. It also allows hotels to better manage their utility usage, spot anomalies such as leaks, benchmark themselves against other properties, and help identify cost saving opportunities.
In May, Choice Hotels extended its AI-powered merchandising solution Oracle Nor1 to its portfolio of upscale hotels to help them capitalize on incremental revenue opportunities. With applied AI built into the system, each hotel can present targeted offers via its mobile app or digital marketing channels with relevant and targeted options to have a probability of conversion. This includes offers during the guest’s journey, from initiating a room upgrade at the time of booking to upselling daily breakfast during their stay to offering late check-out.
As the hotel group continues to grow and expand its brand portfolio, its commitment to technological advancement will play a key role in its success. By adopting new technologies and adapting to the changing digital landscape, Choice Hotels aims to provide a more personalized, efficient, and rewarding experience for guests while driving increased profitability and shareholder value.