Brazil5 essential competencies for hospitality leaders in the age of technology
Leaders in the hospitality sector must be future ready like never before, and their leadership skills will need integration with fast-paced technology. Mark Timbrell, managing partner at Phi Management, shares five essential leadership competencies for hospitality leaders in 2025.
In the past, with each new wave of change from electric to digital, the hospitality industry had to adapt and adjust. Technological changes in hotels didn’t impact everyone simultaneously, with some developments taking years to implement. I recall the introduction of the NCR electronic billing system and a few years later, the first computerized property management system.
Later, it was a back-office system, followed by an energy management system in a new property. Often, years passed between the implementation of different technologies; however, with AI, it has shifted from steady growth to exponential growth. Many hotel chains have already embraced AI, integrating it into functions like revenue optimization, guest personalization and recruitment.
As technology continues to evolve, leaders of the internet age must adapt to this new reality of the AI age. So, what does this mean for future leadership competencies? Here are five essential competencies that will become more dominant in 2025:
Digital fluency
Leaders must be comfortable with data-driven decision-making and understand how to use AI to their advantage. Thus, grasping the basics is essential and quickly embracing new technology is equally crucial for success.
Furthermore, leaders who leverage AI will stay on the curve, if not ahead of it, in their decision-making. For example, consider applications like revenue optimization, cost management, HR processes, predictive maintenance and streamlined check-ins, among others. As an aside, staying up to date is critical.
Future-ready agility
Being able to respond quickly and effectively in a fast-paced environment is crucial to ensuring the business remains future-proof. Leaders must be capable of dealing with a VUCA world, and pivot even faster than ever before. They must possess both the financial and business acumen necessary to gain an advantage in a competitive market. The future will arrive faster than ever.
Driving execution
Managing the process of change is going to be key. It’s not just the implementation of the new technology and how to ensure all the training needed. It is how the workforce responds, learns, reacts and how the customer responds, appreciates and interacts.
Furthermore, leaders will be on the front line dealing with fast-paced changes at an alarming rate. They will need to be competent at making sound and timely decisions.
Purpose-driven leadership
Despite the rapid pace of technological advancements and their applications in the industry, customers still expect hotel operators to lead with purpose. However, leaders must operate responsibly, reduce environmental impact and support local communities at the property level. Furthermore, this sense of purpose can foster loyalty and trust among guests.
While not everything is technology-driven, emerging technologies and AI will undoubtedly play a significant role in supporting these efforts in the coming years.
People-centric leadership
AI will certainly take on more people-facing roles, such as interviewing recruits, delivering packages and anticipating guest needs, among others. However, the hospitality sector remains a people business and that personal connection remains the foundation of great service. While AI will handle more transactional tasks, the human touch will only grow more important, especially in upscale hotels.
Furthermore, it is key for leaders to nurture emotional intelligence, communicate effectively and be culturally aware. In addition, inspiring teams and above all, showing empathy are key leadership traits that will endure despite technological advancements.
