Making the business case: framing technology investment for hotel owners

It's the right question, and one we're seeing more frequently as properties balance capital constraints with rising guest expectations.

Recent data from UK Hospitality shows that 67% of operators struggle to secure approval for technology investments, despite clear operational needs. The disconnect isn't about the technology itself, it's about how we present the case. And it’s about how to frame technology investments as revenue enablers, not cost centres.

The revenue impact framework

When presenting technology investments, shift the conversation from capital expenditure to revenue protection and enhancement. Here's a practical framework that works:

The Challenge

An IT director of a prominent hotel posed this question at a recent event: "How do I justify WiFi infrastructure investment to owners who only see costs, not guest satisfaction scores?"

Start with three key questions every technology investment should answer:

1. Revenue protection

What revenue are we risking without the right technology in place?

• Potential risks could include WiFi failures during high season or system downtime affecting direct bookings

2. Revenue enhancement

What new revenue will this technology enable?

• Faster check-in allowing upsells, reliable systems supporting dynamic pricing

3. Cost avoidance

What future costs does this technology prevent?

• Unforeseen costs could include emergency fixes, manual workarounds and employee overtime

The financial opportunity

A 120-room property recently used this framework to secure approval for WiFi infrastructure upgrades. Rather than leading with the £45,000 cost, they quantified that poor WiFi had contributed to an 8% decrease in repeat bookings among business travellers, representing £180,000 in annual revenue risk.

The owner’s perspective

Property owners and investors think in terms of NOI (Net Operating Income) and ROI timelines. Technology investments compete with room refurbishments, F&B concepts, and marketing spend. To win approval, your proposal needs to speak this language.

Practical template

"This £x investment protects £y in annual revenue, enables £z in operational savings, and delivers payback in [timeframe]. Without it, we risk [specific consequence] during [specific period]."

The key is specificity. Replace "improved guest experience" with "reduced WiFi complaints by 75% in Q4 trial." Replace "better efficiency" with "reception staff save two hours daily, equivalent to £12,000 annual salary cost."

Timing your request

Budget cycles matter. Most independent hotels finalise annual budgets in October-November. Chain properties often work on financial year cycles. Submit technology investment proposals:

• 8-10 weeks before budget finalisation (allows proper evaluation)
• After presenting evidence of impact (metrics from trials or competitor data)
• When you can demonstrate operational risk mitigation (not just opportunity)

Next steps

Talk to our team. Our hospitality specialists will take the time to truly understand your operations and your challenges and help you build your revenue impact framework. No strings. Just actionable insights to support your digital transformation.