The evolution of software development technologies brings quality-of-life improvements and changes the habits of developers. Cloud computing is one of the most astounding and impactful results of such evolution. In many ways, it changed modern life, similar to the introduction of Wi-fi technologies to the world of landline Internet. In terms of convenience, performance, accessibility, security, and many other aspects, cloud computing was a huge leap forward in comparison to conventional technologies.
What is Cloud Computing
Cloud technologies allow users to access required facilities and services, such as computational or storage resources, using network connections, usually via the Internet. This greatly reduces the need for servers and other hardware located on the premises. Instead, if users or clients require such resources, they may connect to data centers that “rent” access to their hardware.
So, in layman’s terms, the “cloud” is a number of data centers that contain many servers. When information is stored “in the cloud,” it means that it is kept on special servers configured for this purpose. If a software application is deployed “in the cloud,” it runs using the computational resources of one or several servers.
Thanks to cloud services, software developers can create and use a remote distributed infrastructure. This infrastructure can be tailored and easily amended according to the current needs of the development team. Cloud service providers usually have flexible plans and pricing models. Most providers have data centers around the world to offer the best possible speed and accessibility regardless of users’ location.
When developers create a cloud-based application, they essentially split its structure into two parts. The server-side part is deployed on a cloud server in a data center. The client-side part can be installed on a user device in the form of a software program using an installation executable file or a software distribution service that is pre-built in an operating system, such as Google Play in Android, Windows Store in Windows, Apple Store in iOs, and so on. As an alternative, cloud-based apps can be accessed using web browsers without any additional software.
Depending on the ownership and access policies, clouds can be private, public, or hybrid. Private clouds are quite expensive and require extensive management and maintenance. Because of that, they lose some advantages of cloud computing, namely the high flexibility and cost efficiency of public clouds. However, they are essential when a company needs to build a closed digital environment with high levels of control and security. Most often, this is required to prevent leaks of confidential information, for example, in Healthcare, Fintech, research and development (R&D), and other areas.
Models and Practices of Cloud Deployment
The choice of a cloud deployment model depends on the requirements of the deployed software. Those involve the amount of needed resources, the specific infrastructure, such as an operating system, databases, application libraries, runtimes, servers, and so on. Most commonly, providers offer three choices:
Infrastructure as a Service (IaaS)
This is the largest option that gives more freedom and control to software developers. The infrastructure usually involves running a virtual machine with the help of hypervisor software. It comprises computing capabilities, data storage, networking means, load balancers, and other physical and virtual resources. As a popular alternative to hypervisors, a Linux system kernel with isolated containers can be used.
Basically, IaaS is a digital building lot where specialists can install required operating systems and application software. In the IaaS model, users have to maintain applications and operating systems themselves by installing patches and functional updates. The price in this model is calculated according to the amount of resources rented from data centers and the amount of resources that was consumed during the billing period.
Platform as a Service (PaaS)
This model usually comes with a pre-configured environment to install and run applications. A platform often includes an operating system selected by a customer, a specific environment configured for a particular programming language, a database with corresponding management tools, and a web server.
Since many aspects of the PaaS model are managed by its provider, clients have less control over their platforms in comparison to the IaaS model, for example. On the other hand, this means that software developers who work on platforms can focus on their tasks more effectively and do not have to worry about handling a complex infrastructure and its maintenance.
Software as a Service (SaaS)
This model allows users to access and use a particular software product installed on a cloud offered by a cloud service provider. Similar to other cloud service models, SaaS is subscription-based. This means it grants a temporary license to use web-hosted software. However, usually this model has a “freemium” feature, where users can use some basic functions free of charge, but advanced functions require payment. Access to such software is provided through a web browser.
SaaS includes a wide range of specialized computer programs that can be used by software development companies. Most often, they are various enterprise management systems that increase the productivity of different departments. For example, such software includes systems for enterprise resource planning, human resource management, content management, invoicing, and so on. Other types of SaaS are, for example, office software suites, messengers, software for computer-aided design, database management systems, project management tools, and others.
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Applications distributed using a SaaS model have several characteristic features that must be taken into account. First, such applications have only one version or configuration, so there are no version conflicts among various workstations using the same app. Second, SaaS apps are hosted centrally, meaning that if a provider decides to implement an update, all users have to comply. There is no option for users to keep an old version of a cloud-based app, as it would be possible, for example, for desktop-installed software.
The growing demand and diversity of needs from clients resulted in new models of cloud computing. They have appeared relatively recently and have not yet gained the same popularity as the three “conventional” models listed above. The examples of such new types include Function as a service (FaaS) and Mobile backend as a service (MBaaS).
The Benefits of Cloud Computing in Software Development
These days, users are so accustomed to the benefits of cloud technologies that it is hard to imagine a modern world without them. It’s no wonder, considering the level of convenience they bring to everyday life. However, the full range of advantages offered by cloud services also covers many professional aspects.
Cost efficiency. The biggest advantage of cloud computing is its reduced cost in comparison to purchased hardware. Depending on the models, in some cases, there are even free tiers where basic services are provided for free, and the rest require monthly or annual subscriptions.
Location-independent development. Cloud services are available worldwide. Basically, if a place has Internet access, then clients can use cloud technologies from there. This means that the development team can be distributed around the world. For example, in the case of a large project, one group of specialists may work from an office in London, and other groups may be located in San Francisco, New York, Oslo, and other global IT hubs.
Extended user reach. When an application is deployed in a cloud, it becomes available globally. Usually, cloud service providers take required measures to reduce the latency so that users of cloud-based apps have low response times regardless of their location. Additionally, cloud applications require only a web browser, and hardware specifications of user devices are of less importance because most computations are performed in the cloud and not on the client side.
Increased scalability. One of the most convenient features of cloud technologies is their ability to scale up or down. It means that developers may add extra resources when they are needed or remove unused resources to save costs. Additionally, cloud services usually support both horizontal and vertical scaling. For example, to handle a peak load event, they can allocate more RAM and CPU cores or more servers with a load balancer. Scaling may be performed manually or automatically based on a preset configuration.
Less maintenance. Depending on the model, hardware and software maintenance can be the duty of a cloud service provider. Though the cost of maintenance is included in the subscription price, it is cheaper than performing it on the premises. This way, cloud service users do not have to hire technicians for this task, buy parts for server repairs or upgrades, and so on, unless they have a private cloud.
Improved security and disaster recovery. Cloud service providers invest in data protection measures because they have their business reputation on the line. Due to distributed data storage and backup means, the chance of data loss is usually lower than in the case of storing information on the premises.
Higher productivity. Clouds allow multiple people to work on the same project at the same time, which is invaluable for development teams. Besides, cloud technologies include many systems to optimize the management of tasks, projects, departments, and enterprises.
Challenges and Risks of Cloud Computing in Software Engineering
Security issues. Due to data centralization, storing information on a cloud is like putting all your eggs into one basket. A well-configured private cloud is an excellent storage solution, but if it is breached, the results can be disastrous. Public clouds are far less reliable, as proven, for example, by several breaches of WD’s My Cloud and Apple’s iCloud services. As the number of such breaches rises, more IT specialists express their concerns with cloud computing.
Reliance on service providers. To access cloud services, you need both an Internet provider and a cloud provider. If any of them is down or experiences difficulties, clients won’t be able to use their clouds. In such cases, the work processes of teams and entire companies may be compromised. This potential risk factor is among the main disadvantages of cloud computing.
Final Words
Thanks to its numerous advantages, cloud computing in software engineering has become a popular standard. That’s why, in Intellectsoft, we extensively utilize and implement cloud technologies. Our specialists understand the importance of cloud computing and have mastered the skills to implement them in custom software. Contact us and hire a reliable, professional team for cloud computing solutions.
The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor Customer Service
Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.
Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).
When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!
How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.
Examples of Intellectsoft projects
Property management systems (PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.
Existing Customers First: Building Loyalty with Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.
Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.
More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.
Source: Deloitte
How does technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.
Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."
Leveraging Software to Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.
Upselling via Apps
Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource Management Software
Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.
3. Equip Your Team
Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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