Chris Stock, managing director at Percipient, looks at some of the biggest challenges CFOs across the hotel and leisure sectors are likely to face in 2025, highlighting the increasing importance of digital in addressing these
Transformation over tradition
If 2024 was the year of digital transformation for CFOs in the hospitality industry, 2025 is set to put this transition through its paces. Economic uncertainty in recent years has driven a need for finance departments to reinvent themselves. Expanding on traditional record keeping and retrospective reporting functions, CFOs are doubling down on value creation and intelligence gathering in order to steer their organisations on their respective growth journeys.
A tale of data, metrics and analytics
While many have embraced this shift, implementing modern systems and adopting AI capabilities to expedite automation, the acid test for CFOs in 2025 will hinge on the extent to which they seize the potential of digital. Technology is no longer a necessary evil, or afterthought, but part of the DNA of any modern finance department.
If evidence was needed, a recent survey highlighted that three quarters (75%) of CFOs claim that digital transformation is gaining momentum in strategic importance as we move into 2025. This is in stark contrast to 2023 where financial and economic uncertainty topped concerns. Echoing this sentiment is Gartner’s analysis of CFO priorities for the coming year. In contrast to previous years, data, metrics and analytics out-ranked efficiency, along with time allocation and leadership capacity.
Embracing digital potential
In overcoming obstacles, mitigating risk and embracing market opportunities, it’s reassuring that almost half (47%) of organisations plan to increase technology spending in the year ahead, the top priority after new product development. However, investment alone is not sufficient. The pace of change in the world means that those systems’ potential for automation, value and intelligence must be harnessed to accelerate decision-making and gain a competitive edge via a number of areas.
Cutting the right costs
Any period of economic uncertainty puts cost cutting at the top of the agenda, and the years post-pandemic have been no exception as hotels have had to reinvent business models and adjust to shifts in consumer expectations. Now, cost cutting and efficiency drives must be carefully balanced against investment in growth as we head towards steadier, more optimistic times.
Investing in growth
Understanding where efficiencies can be realised versus where investment is needed to propel growth requires visibility, intelligence and understanding of the various business drivers, dynamics and associated performance. For example, unifying data to achieve this means that trends can be mapped against each other, and dimensions analysed easily to spot opportunities.
Talent acquisition
Skills remain a top concern for the hospitality industry, and digital can automate day to day manual processes, freeing up resources to focus on more valuable, sought after skills. AI won’t replace people and single-handedly bridge this talent dearth, but it will form part of a new, holistic leadership model which balances data-led learning with human understanding and intelligence. As the saying goes, AI won’t replace people, but people with AI at their fingertips will replace those without.
Preparing for the unexpected
Ultimately, 2025 will call for CFOs to demonstrate more resilience and agility as market dynamics and opportunities change at an ever-increasing pace. Long gone are the days where the last five years accounts would be a reasonable barometer for the next half-decade. On the edge of a rolling landscape which encompasses evolving customer demand, a shifting regulatory environment, sustainability goals and heightened risk in the form of cybersecurity threats, digital reigns. In creating a dynamic forecast which can be adjusted as the many variables surrounding a given market change, it not only improves automation and efficiency but is pivotal in risk management, decision-making, resilience and long-term growth.
Exciting times for finance
2025 is undoubtedly an exciting time for hospitality, and an even more exciting one to be a CFO. But with increasing levels of expectation and pressure from CEOs and shareholders, it’s imperative to be informed, equipped with the right tools, and have an understanding of the critical role of technology.
Armed with the right digital mindset, those who embrace this opportunity to drive strategic counsel to the wider business will represent the market leaders of tomorrow.
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