The Price Tag of Tech

At Vouch, we often hear statements like “our budget is not big enough for innovation,” and “digitalisation is too expensive” coming from potential clients, and we recognise that the association of high-tech with high cost is a common misapprehension when it comes to adopting new technology. In this article, we offer an alternative way of considering the cost of innovation, and make the case for how prudent investment in digitalisation can pay substantial dividends for your hotel almost immediately.

Cost Vs Revenue

Frequently, when we hold discussions about cost with potential clients, we notice them struggle to evaluate the overall cost of digitalising against its benefits. In our experience, we find that converting the total cost of adoption into a monthly, per room figure and comparing it against monthly room revenue helps provide clients with an easier way to do the necessary cost-benefit calculations.

Assume, for example, that your property has an Average Daily Rate (ADR) of US$150, and that in a span of a month (30 days), this room would contribute US$4,500 to the hotel’s revenue. The cost to incorporate Vouch’s complete Digital Concierge solution into your hotel works out to approximately US$5 per room, per month. A quick calculation will reveal that it costs a mere 0.1% of each room’s revenue to implement a solution that could save hundreds of man-hours for your operations team monthly, in addition to boosting guest revenue and improving guest satisfaction.

Return on Investment

So, what benefits can you expect to gain in return for a tiny fraction of a percent of your rooms’ revenue?

Some recent metrics from our clients might give you a clearer perspective of the man-hour savings and additional revenue digitalisation can deliver during this period of reopening. 

By leveraging our Digital Concierge’s ability to answer commonly asked guest queries, manage facility bookings and process room item requests automatically, our client hotels were able to realise dramatic labour savings every month, easing manpower shortages and maintaining sustainable labour costs. Additionally, the implementation of Vouch’s all-in-one F&B platform made in-room dining even more convenient for guests than before, leading to an increase in in-room dining orders – and consequently, revenue during their stay.

Viewed objectively, it becomes clear that innovation is only expensive if the returns are poor. In this regard, Vouch is confident that the solutions we offer represent some of the best value in the market today. In fact, we’re pleased to say that we have never lost any hotel clients in the years we’ve serviced the industry.

Only the Best in Class

As the spotlight continues to shine on technology as the future of hospitality, the competition for your tech dollars will only intensify with each budget cycle. When there are more vendors knocking on your door than you know what to do with, how do you decide who to entrust your business with?


While there will certainly be firms offering digitalisation packages at “bargain” prices, basing your purchasing decision on price alone could wind up being a very costly mistake.

One critical factor that determines the level of success achieved in implementing any new technology is user adoption rates. Hotels utilising Vouch’s Digital Concierge were able to reap sizable gains, in no small measure, due to the system’s high usage rates. Having an app-less platform, in contrast to most of our competitors, has made our Digital Concierge more accessible to hotel guests to explore and use, eliminating the hassle and complexity of having to register new user accounts, on top of downloading and installing a new app, simply to facilitate a short stay.

Engaging a subpar vendor to save money could also result in unexpected costs in terms of lengthy implementation delays and frequent service downtimes, resulting in disgruntled guests and necessitating expensive service recovery measures. Just as your guests choose to stay with you because they know their needs will be taken care of, we recommend you put your trust in a vendor that has garnered positive testimonials from within the industry, and a reputation for dependable products and outstanding after-sales service.

Learn more about Vouch and how our Digital Concierges have improved productivity and increased ancillary revenue all in one go. Get in touch with our business development team for a demonstration!