News Briefs

Despite 59% citing economic uncertainty, 59% of hospitality/travel businesses say the current economic climate will cause them to increase investment in IT over the next 12 months, a move that can help reduce costs, improve scalability, inform decisions, manage risks and build resilience.

Further, 65% of travel/hospitality businesses cited pervasive artificial intelligence as having the highest positive impact on the business/market environment, according to a survey of 1,420 IT professionals across industries sponsored by Rackspace Technology with Dell/VMware in October 2023. 

2024 will be the year AI makes good on its promise to deliver ROI.  This evolution will bring increased regulation to provide the guardrails guiding AI along with the talent acquisition needed to manage AI. The buzz has also generated the ethical use of AI, especially when it comes to plagiarism, data and privacy. 

“These results highlight an evolution in artificial intelligence, signaling a decisive shift from the theoretical exploration of generative AI.  The proliferation of pilot programs we saw in 2023 will result in active implementation in 2024,” said Jeff DeVerter, Chief Technology Evangelist, Rackspace Technology. 

Not only did 45% of hospitality/travel businesses name AI as the most important technology but they listed enhanced products (52%), improved security (48%) and new product creation (49%) as among the benefits they’ve already realized from AI with improved security (54%) as the top expected benefit it will bring near future. AI initiatives gaining the most traction are computer vision (50%), custom engagement (50%) and predictive maintenance (50%).

There is an expansion in AI use cases as companies explore higher-end functions such as computer vision while more traditional AI use cases like sales and marketing analytics seem to be less of an initiative priority.

Cloud Technology, Hybrid Cloud and Private Cloud Grow

Challenging as it can be for organizations to install cloud infrastructure, the cloud has become critical, in part, due to the growth of new generative AI services and the ability to set up large parallel computations with speed.

“In the cloud arena, the increased focus on edge and private cloud indicate that organizations are simultaneously migrating more of their critical workloads while adopting a more sophisticated approach to their overall cloud infrastructure,” DeVerter noted. 

Hybrid cloud solutions prevail and will grow, despite inherent data and regulatory compliance challenges.  In addition, the complexities of cloud migration, limited resources and security concerns will favor a shift toward the expansion of private cloud. Most travel/hospitality businesses use a hybrid or multi-cloud system which utilizes a combination of public cloud, private cloud computing, storage and services in different environments. 

Edge computing, private cloud and public cloud will all increase as a percentage of workloads in the coming 12 months, while data centers, colocation facilities and on mainframes decline.  Hospitality/travel businesses credited public cloud with increased process efficiency (57%), reduced IT spending (48%) and faster testing for new products (46%). They credit private cloud with enhancing a personalized customer journey (55%), creating new revenue streams (50%), increase company growth (52%) and improving the ease of use for customers (44%). 

The survey identified three benefits to adopting a hybrid model throughout their organizations: Improved security (51%), data control (50%) and reduced costs (46%). 

Over half (45%) of respondents said data integration is the biggest challenge in adopting a hybrid cloud model.  Other issues were less challenging like compliance with data sovereignty/privacy (45%), ensuring consistent security compliance (30%) and skills shortage (31%).

Challenges to AI Implementation, Among Them Labor Issues

The biggest challenges to implementing AI into the businesses are measuring business value (41%) and lack of support infrastructure technology (40%).

Market demand and changing technology escalate the need for skilled professionals, outpacing the expertise of talent available.

Navigating the talent landscape presents one of the most complex challenges for the IT sector as we head into 2024. With most companies struggling to recruit for roles that didn't exist a few years ago, the race to onboard individuals skilled in emerging technologies like AI and 5G is intense. The scarcity of seasoned professionals in nascent tech fields is prompting organizations to rethink their talent acquisition strategies. As tech increases, the demand for talent increases as well, increasing costs. 

Most (70%) hospitality/travel businesses are struggling to recruit and hire the kind of talent needed to handle increased cloud and AI technology.  The key roles they’re struggling to fill are 5G specialists (53%), data analysts (46%), data scientists (41%) and cybersecurity experts (36%).  As the need for technology increases, labor costs are increasing 51% to cover salaries, wages, bonuses, benefits, training and recruitment costs.  The main reasons for the increase are advancements in technology (52%), high demand/low supply of qualified employees (46%), remote work (45%) and cloud adoption (40%). 

Survey Methodology

Commissioned by Rackspace Technology and Dell/VMware, the survey was conducted by Coleman Parkers Research October and November 2023, based on the responses of 1,420 IT decision-makers across manufacturing, digital native/technology, financial services, travel/hospitality, retail, government/public sector, and healthcare sectors in the Americas, Europe, Asia and the Middle East.

Coleman Parkes is a full-service B2B market research agency specializing in IT/technology studies, targeting senior decision makers in SMB to large and enterprises across multiple sectors globally.

Domino's Pizza Inc. introduces its new and improved loyalty program. 

Domino's Rewards offers loyalty members even more opportunities to earn and redeem points across its corporate and franchise store locations. Domino's enhanced rewards program allows customers to:

• Earn points for less
  • Loyalty members will now earn 10 points on every order of $5 or more
• Redeem points for even more menu items – and earn free Domino's after just two orders
  • Members can redeem a variety of points for more menu items:
    • 20 points: A free dipping cup, a 16-piece order of Parmesan Bread Bites or a 20 oz. drink
    • 40 points: An order of Bread Twists or Stuffed Cheesy Bread
    • 60 points: A medium, two-topping pizza; pasta; Oven-Baked Sandwich; or a 3-piece order of Chocolate Lava Crunch Cakes
• Earn more rewards
  • Loyalty perks are now even better, as members will have exclusive access to member-only deals, special discounts and opportunities to earn bonus points!

"We are thrilled to give the brand's loyal customers additional ways to earn free Domino's items more often," said Mark Messing, Domino's vice president of digital experience and loyalty. "At a time when most brands are scaling back their loyalty programs and making it more difficult to earn and redeem points, Domino's is doing the opposite. We want to make it easier to reward our customers and give them more options so they can get rewarded faster."

Marketing a LTO 

From now until Oct. 22, 2023, rewards members can take advantage of a limited time offer to redeem 20 points for a free order of Domino's new Pepperoni Stuffed Cheesy Bread, which is normally a 40-point redemption, in celebration of the product's recent launch. 

Chipotle Mexican Grill announced it is investing in Greenfield Robotics, a company founded with the vision of making regenerative farming more efficient, cost-effective, and sustainable by leveraging the latest advances in AI, robotics, and sensing technologies, and Nitricity, a company seeking to tackle greenhouse gas emissions by creating fertilizer products that are better for fields, farmers, and the environment. These minority investments are being made through Chipotle's $50 million Cultivate Next venture fund.

Cultivate Next makes early-stage investments into strategically aligned companies that further Chipotle's mission to Cultivate a Better World and help accelerate the company's aggressive growth plans. As a people-first company, Chipotle is seeking opportunities that will elevate the human experience for its restaurant teams and suppliers as well as increase access and convenience for its guests.

Robots for Regenerative Agriculture 

Conventional farming destroys weeds with chemicals and soil tillage, resulting in escalating costs, soil erosion and degradation of soil, resistant weeds, and health risks for both wildlife and humans. Greenfield Robotics provides regenerative agriculture solutions without chemicals. Their fleets of autonomous robots are lightweight and cut weeds between rows of broadacre crops, day or night, reducing dependence on herbicides while supporting regenerative farming practices and reducing risk for farmers.

With its Cultivate Next investment, Greenfield Robotics will continue its efforts to build out its fleet of autonomous agricultural robots and develop additional capabilities for forthcoming iterations of its robots, including micro-spraying, cover crop planting, and soil testing.

"The work of Greenfield Robotics to build out a tech forward alternative to herbicides plays an important role in ensuring a more sustainable future for the agricultural industry," said Curt Garner, Chief Customer and Technology Officer, Chipotle. "We will help Greenfield Robotics scale their robotic offerings and explore how their robots can be deployed on farms within our supply chain."

"Like Chipotle's commitment to Food with Integrity, we believe in the future of real, responsibly and sustainably raised food," said Clint Brauer, founder of Greenfield Robotics. "In partnership with Chipotle, we can continue to explore creative solutions to some of the biggest challenges facing farmers across the United States."

New Age Fertilizer 

Inspired by the natural occurrence of lightning breaking down nitrogen in the air and rainwater bringing it to the soil as nitrate to create natural fertilizer, Nitricity has pioneered a practice of creating artificial lightning. The company leverages air, water, and renewable energy from the artificial lightning to produce a cleaner, more sustainable, and cost-efficient fertilizer. The current process of producing, distributing, and using nitrogen fertilizer by way of the Haber-Bosch method requires a large amount of fossil fuels and emits significant amounts of carbon dioxide, contributing to 5-7% of total global GHG (greenhouse gases). Nitricity's nitrogen fertilizer has 5 to 10 times less GHG emissions due to its electrified production and field application process. Nitricity is building its production model of fertilizer on or near its end customers to limit the emissions from fertilizer distribution and application. Currently, up to 20% of fertilizer in the U.S. is imported through an expensive and complex supply chain.

Nitricity has started field trials for their fertilizer product with Salinas Valley farmers, including Chipotle suppliers in the region. Funding from Cultivate Next will be used to scale up Nitricity's production of nitrogen, build out the company's infrastructure, and support the launch of its first commercial product within the next two years.

"We're proud to support Nitricity's pursuit of a product innovation whose environmental benefits are complimentary to Chipotle's approach to Food With Integrity," said Jack Hartung, Chief Financial and Administrative Officer, Chipotle. He added, "Fertilizers have experienced steep price increases in recent years due to supply chain issues, fossil fuel price volatility, and rising distribution costs. Nitricity's fertilizer offering not only has the potential to reduce the carbon footprint of the fertilizer industry, but it can be a cost-effective solution for growers in our supply chain."

"Nitricity is committed to producing fertilizer that is optimized for farmers, not factory production or freight distribution," said Nico Pinkowski, co-founder and CEO of Nitricity. "Partnering with Chipotle will unquestionably accelerate our path toward disrupting the industry with climate-smart technology."

Tim McAfee, a Cultivate Next Venture Collaborator and current Chipotle produce supplier noted: "I have visited the facilities of both Nitricity and Greenfield Robotics and am optimistic and enthusiastic about the impact these innovations could have on the growing community."

What's Next for Cultivate Next? 
Chipotle will continue to provide more updates on the Cultivate Next venture fund in 2024 and beyond. Companies interested in collaborating with Chipotle through the Cultivate Next venture fund can apply by emailing [email protected].  

RoomRaccoon, a hotel management system for independent hotels, announced its integration with Roommatik, a self-service kiosk solution for the hospitality industry. This is the first kiosk integration available to RoomRaccoon users, revolutionizing the guest experience and empowering hoteliers with a 24/7 open front desk.

The two-way integration facilitates the seamless exchange of vital guest data, including check-in and check-out information, room availability, and billing details, from RoomRaccoon's PMS to Roommatik's kiosk, all in real-time. By incorporating additional services such as upselling and room upgrades, hoteliers can transform Roommatik into a 24/7 service provider, enhancing the overall guest journey and increasing revenue. 

“At Roommatik, we take pride in offering highly adaptable kiosks that cater to the unique requirements of each establishment in the hospitality industry. We are proud to team up with RoomRaccoon to take hotel operations to the next level. This partnership seamlessly integrates to deliver an enhanced, innovative, and personalized experience for guests,” says Juan Vila, CEO of Roommatik. 

“This is a valuable new addition to the RoomRaccoon Marketplace,” says Steven Reffin, Head of Partnerships at RoomRaccoon. “The integration empowers boutique hotels operating with a smaller team to provide a 24/7 open front desk without physically being on-site. This is a game-changer for small hotels where operating a full-time front desk is not viable due to the huge personnel costs. What’s more, Roommatik's kiosk solution supports an impressive array of 21 different languages, ensuring that language barriers are a thing of the past."

Hotelbeds, part of HBX Group, has unveiled its latest contractual collaboration, joining forces with Bahia Principe Hotels & Resorts. The agreement expands the Bahia Principe brand’s presence in the Caribbean and Spain, thanks to Hotelbeds’ distribution reach in more than 170 markets, serving over 71,000 travel buyers.

Adding 24 Bahia Principe hotels in four countries (Mexico, Jamaica, Dominican Republic, and Spain) to Hotelbeds’ preferred portfolio, travel agents will enjoy access to a wide range of accommodation options, including beach getaways and all-inclusive resorts.

Carlos Muñoz, Chief Commercial Officer of HBX Group, said: “Bahia Principe shares our commitment to innovation, sustainability and offering travelers unparalleled choices and experiences. This partnership enriches our extensive portfolio of hotels, allowing us to offer customers an even wider range of choices. We look forward to the positive impact this collaboration will have on our companies.”

Lluisa Salord, SVP Global Sales, Contracting and Distribution Grupo at Bahia Principe, said: “This consolidation of our existing agreements between both companies will allow us to raise the strength and growth achieved through our joint continuous effort.”

Bahia Principe Hotels & Resorts, known for its commitment to innovation and sustainable growth, has embarked on a five-year strategic plan, emphasizing continual asset renewal and technological advancements. As part of this initiative, the company is investing in comprehensive renovations, including the remarkable 30-million-euro refurbishment of the Bahia Principe Luxury Esmeralda, set to open this month.

WorldVue, a trusted provider of video, advanced connectivity and professional services to guest-centric properties worldwide, announces its partnership with ProSafe to provide a more secure environment for hotel employees at properties throughout the world. This partnership expands the safety capabilities of WorldVue’s hospitality customers with the utilization of ProSafe’s patented smartphone-based security applications.

“We are proud to partner with ProSafe to support the industrywide roll-out of an innovative and valuable smartphone application that benefits hotel owners by providing a safer and more transparent working environment for their associates.” says Robert Grosz, President and Chief Operating Officer at WorldVue. “Recruiting and retaining employees is one of the most complex problems discussed with our guest-centric clients. The ProSafe smartphone application and underlying platform provide a platform for associate safety which can be deployed in hours, not days. Most importantly, the platform does not depend upon property owner provided proprietary networks which makes it highly reliable and affordable.”

Founded to increase workplace safety in the hospitality industry, ProSafe is the only room/area level accurate, geo-location and evidence gathering panic button platform currently available to hotels. The application’s safety first interface is intended to be simple and easy to understand, while helping deliver better associate communication and rapid response, all while decreasing operational costs, and boosting brand reputation. Some notable platform features include:

• Geo-Location – Notification of exactly where an associate’s panic button is pressed

• Multiple Activation Methods – Options for associate to activate alert silently or audibly

• Audio and Visual Evidence Gathering – Assurance of accurate incident details

• QR-RFID Location Reporting – Extra layer of security using NFC-RFID technology

• Incident Reporting – Comprehensive feature including all relevant data

• Push to Talk – Communication channel for general broadcasts or direct contact

• Real Time Translation – Assistance with language barrier via voice message or chat

• Security Checklists – Components designed for security personnel to secure grounds

“The mission behind WorldVue naturally aligns with our values at ProSafe. We are looking forward to supporting the addition of our platform into their customers’ daily operations and safety measures,” adds Yazan Barqawi, Cofounder of ProSafe. “The goal of our founders was to create the most advanced panic button platform for hotels and their associates, so to continue sharing their dedication with new hotels is fulfilling.”

WorldVue’s partnership with ProSafe further solidifies its investment in exceptional hospitality service. The safety and security of hotels is of the utmost importance to owners and decision makers, to ensure the wellbeing of all who step onto each property. To learn more about WorldVue, visit www.worldvue.com. To learn more about ProSafe and each of the features on its patented platform, visit www.prosafehotels.com.