The hospitality sector is undergoing a transformation in the asset management of its assets, driven by the technological advances and changing expectations from investors.
It is understandable that owners want to maximize their profits and make sure their products are competitive.
The recent debate has led to several important questions. Should innovation, for example, be focused on increasing operational efficiency or generating new revenue streams? How do new trends in the use of space fit into this equation?
New revenue streams
The innovation can unlock new revenue streams in hotels and benefit asset managers through higher returns. The development of artificial intelligence and sophisticated algorithms, for example, offers the opportunity to develop customized investment products tailored to investor requirements. In turn, this can help to attract new customers and increase revenue. The blockchain technology can be used to simplify processes, cut costs, and create new financial instruments.
When we manage an asset, we always look for innovative ways to interact with our clients. This can range from developing digital platforms to support customized services, to creating educational content or community forums. The platforms are a great way to build deeper client relationships and create cross-sell opportunities.
Focus on operational efficiency
Asset managers must ensure that their product and its partners are able to benefit from increased operational efficiency. Automating back-office processes can reduce errors, streamline tasks and release resources to be used for strategic initiatives. Cloud computing has the potential to increase scalability and reduce costs, while improving data security.
Data analytics advances can also help managers identify investment opportunities to maximize the return on their portfolios and generate more revenue. It can improve risk management and performance, as well as reduce operational costs.
Key role for space utilization
I am a big fan of the concept of space usage, possibly because it’s so overlooked. It is becoming more relevant to efficient asset management. Asset managers must assume the gatekeeper role at a time where brands want to reduce their costs and optimize their footprint. They should start with their office space. It is important to consider co-working, flexible work spaces and technology enabled solutions for remote working.
Balanced approach
It is important for asset managers to pursue new revenue streams, but it is also crucial that they focus on operational efficiency. The most efficient approach is a balanced one that uses innovation to meet both objectives.
We and other asset management companies invest in AI tools that automate the back office while developing new products that utilize this technology. Owners can reduce their costs while increasing revenue.
Innovation is an important tool for asset managers to navigate through the current investment environment. Owners can achieve long-term growth and success by focusing both on revenue generation and operating efficiency.
