IHG CEO on Fighting Back Tech Disruption to the Hotel Business
Photo Credit: IHG leaders aren't fearful of tech platforms like Kayak getting into the hotel game, but they're also adjusting their own tech offering to better compete. IHG Hotels & Resorts
Skift Take
Disruption is the name of the game coming out of a downturn, and it's only natural some hotel owners will migrate to a lower-cost tech platform. But Keith Barr is pretty comfortable with where his global hotel operation stands on the tech front to keep owners within the IHG family.
A downturn opens the door for disruption in hard hit industries, but the CEO at one of the world’s largest hotel companies says a business like his does more than any tech platform can replace.
The CEOs of Kayak and Sonder in the last week doubled down on the idea a low-cost technology platform could disrupt the hotel business at the property level. The idea is that technology can cut down on costs — who needs a staffed front desk and all those other features of a traditional hotel? — and drive a more efficient line of business for hotel owners.
Kayak is already underway with branded hotels in partnership with Life House while Sonder, which recently went public, continues to build up its business that acts like a hybrid hotel and short-term rental platform. Lower operational costs while maintaining widespread distribution can be music to the ears of hotel owners still financially struggling from the weight of the pandemic.
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