Innovating the Hospitality Industry through Digitalisation

David Mendes was born in 1972 in Portugal, is married and is the proud father of two daughters and one son.

I went to a military school at the age of ten and graduated with a Bachelor of Science (BSc) in Electronic and Telecommunications Engineering in 1993 and a Master of Science (MSc) in Information Systems Management in 2013. Holds Scrum Master, Scrum Product Owner, and Project Management Professional certifications.

Experienced Manager with over 25 years of professional experience enabling business transformation through Information Technologies. Has played several leadership roles in software development, project management, risk management, business development, product management, demand management and business analysis teams.

Throughout his career, he has led digital transformation initiatives across diverse industries, leveraging technology as a powerful means to bridge the gap between business objectives and innovative solutions, ensuring agility and competitiveness.

Now, the digital transformation director at Pestana Hotel Group is responsible for Technology alignment, business partnership, and project leadership.

Fostering a Culture of Innovation and Agility in Your Technology Team and Organisation

Pestana Hotel Group’s values are the guiding principles of everything we do, and agility is one of our values. Oriented towards transformation, this value reflects the eagerness to face the challenges of the hospitality sector, being agile in everyday life, valuing mobility, flexibility and seeking to continuously innovate, valuing different ways of working and being.

Encouraging a culture where failure is seen as an opportunity to learn and improve, teams should be empowered to experiment and pivot when necessary.

Pestana Hotel Group collaborates with external partners, start-ups, and industry experts to tap into external sources of innovation and stay up to date with emerging technologies and trends. And organises internal innovation challenges to encourage creative thinking and problem-solving among team members.

We embrace agile methodologies empowering iterative development, collaboration, and responsiveness to change, enabling IT teams to adapt quickly to evolving requirements, and we implement DevOps principles to bridge the gap between development and operations teams, encouraging collaboration, automation, and continuous integration/continuous delivery (CI/CD) for faster and more reliable software delivery. Our IT teams are cross-functional groups that include business analysts, developers, testers, and operations, promoting collaboration and a holistic approach to problem-solving.

In terms of technology, we leverage cloud infrastructure and services to increase flexibility, scalability, and speed of development. Decomposing applications into microservices and using API platforms to promote modularity, scalability, speed, and efficiency in the software development process.

Challenges in Your Business That Current Solutions Are Unable to Solve

The hospitality industry is highly competitive, and it’s essential to follow updated consumer trends and keep up with technological advancements. One of the most relevant and challenging areas for digital transformation is guest experience. Maintaining a consistent experience across various digital touchpoints, such as mobile apps, websites, kiosks, and in-room technology, is essential.

Guest experience must be well-adjusted for both tech-savvy customers and those less comfortable with technology. And balancing technology with the personal touch that hospitality is known for can be challenging. Maintaining a high level of guest satisfaction while introducing automated and digital services is key.

Most Impactful Technologies Used or Planned to Use in Your Digital Transformation Projects

Over the past half-century, and mostly in the last twenty years, the hospitality industry has witnessed a transformation unlike any other in its long history. Technology has not only streamlined processes but also empowered guests, reshaping the way they interact with and navigate the world of hospitality.

In the past, the hospitality industry depended heavily on travel agencies and tour operators; nowadays, with the rise of online and the democratisation of smartphones, bookings are made mainly through digital media. This transformation has emphasised the need for evolution and increasing technological sophistication to match what is effectively a new business model.

Indeed, the Pestana Hotel Group has ensured constant technological updating, investing in equipment, software and people prepared for its operation and management to generate business results.

Some important digital transformation projects include our e-commerce, where we implemented our reservation system early on, a mobile app that provides instant access to services and information, chatbots that address queries in real-time, online reviews and social media further influence choices, but also in CRM (customer knowledge) and business intelligence, which allows us to better understand the market and customers, make smart pricing management, as well as testing and implementing new business solutions.

Advice to Professionals in Similar Role Working In Other Companies

Rather than going for a list of do’s and don’ts, I would like to highlight some relevant key aspects when thinking about digital transformation.

Planning – Successful digital transformation in any industry requires careful planning and a commitment to continuous improvement.

Focus on customers – In Pestana Hotel Group, staying focused on guest experience and satisfaction and customer knowledge is crucial so that we can provide the experience summarised in our motto, which is ‘The time of your life’. That is why investing in understanding guests’ needs and preferences and using data analytics and customer feedback to support digital initiatives is always a priority.

Culture – Change management is one of the biggest challenges of digital transformation for any organisation, and that is why I believe it is so important to foster an innovation and agility culture in the organisation, embracing agile practices and methodologies.

Objectives – I believe in the importance of defining clear objectives for digital transformation and understanding how they align with business strategy. Also, stay focused on business goals throughout the digital transformation process and don’t get distracted by technology trends that don’t align with these objectives.

Data-driven decisions can lead to better business outcomes, so leveraging Data Analytics to gain insights into guest behaviour, occupancy rates, and pricing strategies is always a good proposal.

Technology – The adoption of technology and preparation of the enterprise architecture to provide integration capabilities is essential to increase flexibility, scalability, speed, and efficiency in developing new digital solutions and working seamlessly and securely with existing systems and data.

Data privacy – All the above should be supported by robust security measures to protect guest data and digital infrastructure.