The Tech Edge in Hospitality: Productivity Gains and Implications for Investors
The hospitality industry in emerging markets in the decade has been characterised by a technological transformation. Driven also by trends such as growing populations, domestic consumption and foreign investment, the sector has become full of compelling investment opportunities for investors. In particular, COVID-19 was an accelerator for the implementation of technologies in hospitality and completely shifting how businesses in the sector operate. Nowhere have these developments been seen more prominently than in Latin America, which also has been found to generate higher value from these investment projects than the global average (Ceotto, Franco, Goldfajn, & Stul, 2021).
Why technology in the sector is important
In a sector which is highly competitive and fast-paced by nature, technological implementation is a critical in meeting increasingly high expectations of modern consumers, and failure to adapt could grant a significant competitive advantage to competitors (Barten, 2025).
The importance of the use of technologies in the hospitality sector lies in its varied and comprehensive benefits. The most important advantage comes in the form of productivity gains, through the potential for enabling more autonomation, increasing efficiency in operations, resource management… (Barten, 2025).
Among the most transformative technologies that have been implemented in the hospitality sector, one of the most significant has been Point of Sale (POS) technology (Engine Insights, 2025).
The rise of Point of Sale (POS) technology
The adoption of POS systems in hotels, restaurants and bars in emerging markets has been on the rise for years given that modern POS technology directly contributes to productivity gains.
It does this in several ways. Some, like faster billings, transactions and shorter queues through contactless payment terminals are in plain sight, even for customers. They also allow for higher staff efficiency, permitting them to optimise their time and offer more personalised service. Complementary to this are digital menus accessible via QR codes, a legacy of the COVID-19 pandemic, which also streamline the ordering and service process (Engine Insights, 2025).
There is also a growing trend towards migrating POS systems to the cloud. This helps businesses by centralising data integration, making less time-consuming assessments and decisions on inventory control, personnel and sales optimisation (Engine Insights, 2025).
Moreover, there is additional potential for emerging markets to link POS systems to their broader property management systems, in order to support automated check-in and check-out processes (Engine Insights, 2025).
Despite all these countless benefits and productivity gains to businesses in the hospitality sector and the opportunities to attract more customers, POS systems, like any other technology, comes with some implementation challenges. Mostly, these are associated with barriers to adoption (EHL Insights, 2024). The upfront costs of these system upgrades are significant and may pose a challenge in terms of resources available for the smallest businesses in hospitality in LATAM, and which may just be starting to recover after the financial losses of the pandemic. Integrating the technology with existing platforms and training of staff could also be challenges associated with implementation (EHL Insights, 2024).
The next decade of productivity
POS technology has therefore set the foundation, arguably comprising the advancement of the decade for the sector. However, the next will bring more and faster developments. With AI mainstreamed and customers demanding for these technologies, tech cycles will shorten. 98% of business owners agree that AI foundation models will be important in their long-term strategies (Accenture, 2023). The hospitality industry in emerging markets must therefore continue to adapt accordingly.
Some of these emerging technologies include:
Internet of Things (IoT): to upgrade to smart rooms that use technology for remote control lighting, thermostats etc. (Barten, 2025).
Augmented Reality (AR): will be employed for more personalized experiences, hotel tours, and overall, a better customer experience (EHL Insights, 2024).
Predictive Operations: AI will allow for predictive maintenance, inventory demand modelling, scheduling staff, and optimisation of resources (Barten, 2025).
CRM-POS integration: will connect customer relations tools with transaction platforms, facilitating personalised offers, promotions and adaptive pricing models (Barten, 2025).
Sustainability technology: using smart tech and AI for waste reduction, saving energy and meeting ESG targets (EHL Insights, 2024).
Overall, continuous adaptation will be critical. Technology implementation must be in line with business objectives, and training must be available for staff, so as to sustain any changes smoothly. Organisations that are flexible and treat digital transformation as a continuous process — rather than a single upfront investment — will be benefit the most from the long-term value they provide.
Implications for investors
While these technologies are being implemented globally, the investment case for LATAM is especially attractive for three main reasons (MarkWide Research, 2025). Firstly, the region has a comparatively low baseline technology adoption in its hospitality sector, and thus, productivity gains will be greater and more noticeable. Second, and as mentioned previously, the shock of the pandemic has dramatically increased consumer and operator readiness, making these technologies be more sought after by owners and increasingly expected by consumers. Lastly, the industry is highly fragmented, with no dominant platforms and thus, there is a clear opportunity to support emerging leaders and focus on value creation through consolidation strategies (MarkWide Research, 2025). For all these reasons, LATAM is a unique investment opportunity.
In conclusion, emerging markets, and in particular Latin America have been experiencing shifts in service delivery models after the pandemic, as well as substantial progress in digitalisation, consumer expectations and growing demand in the hospitality sector. This sets up the region as an optimal opportunity for investment, as it also continues to develop its digital maturity and adapts to other industry advancements in the next decade.
References:
Accenture. (2023). Accenture Technology Vision 2023: Generative AI to Usher in a Bold New Future for Business, Merging Physical and Digital Worlds. Retrieved from https://newsroom.accenture.com/news/2023/accenture-technology-vision-2023-generative-ai-to-usher-in-a-bold-new-future-for-business-merging-physical-and-digital-worlds
Barten, M. (2025, February 17). Revfine . Retrieved from The Latest Technology Trends in the Hospitality Industry of 2025: https://www.revfine.com/technology-trends-hospitality-industry/
Ceotto, H., Franco, J., Goldfajn, R., & Stul, F. (2021). Accelerating transformation in Latin American companies. McKinsey & Company. Retrieved from https://www.mckinsey.com/capabilities/transformation/our-insights/accelerating-transformation-in-latin-american-companies
EHL Insights. (2024, December 20). EHL Insights. Retrieved from Key Hospitality Technology Trends to Watch in 2025: https://hospitalityinsights.ehl.edu/technology-trends-hospitality-industry
Engine Insights. (2025, February 13). Engine insights. Retrieved from Leadin IT Services Newsletter: https://www.linkedin.com/pulse/tendencias-clave-en-pos-y-hospitalidad-m%C3%A9xico-latam-yhtpe/
MarkWide Research. (2025, May 2025). Latin America POS Terminal Market Analysis- Industry Size, Share, Research Report, Insights, Covid-19 Impact, Statistics, Trends, Growth and Forecast 2025-2034. Marketwide Research Report. Retrieved from https://markwideresearch.com/latin-america-pos-terminal-market/
Written by Laura Rebollo
