Hotels Are Draining Up to 75% of their IT Budget on Legacy Tech. New Report Reveals What Operators Can Do
Outdated systems are driving up costs, exposing security gaps, and hurting guest satisfaction for multi-location hotel operators.
HOLLAND, Ohio, June 10, 2025 /PRNewswire/ -- An industry analysis from Hotel Technology News reports that outdated systems are draining three quarters of IT budgets across hotel portfolios, and multi-location operators are increasingly under pressure to modernize without disruption. According to new findings from managed technology provider Velocity, legacy phone lines, fragmented vendor contracts, and aging infrastructure are quietly eroding margins and damaging guest satisfaction.
"This isn't just a tech problem, it's a revenue problem," said Anthony Nguyen, Chief Information Officer at Velocity. "Outdated systems don't just increase costs, they impact the overall guest experience, create brand frustration, and ultimately reduce repeat bookings."
The new industry resource released ahead of HITEC 2025 outlines how hospitality management IT and operations leaders can audit their systems, uncover hidden losses, and modernize critical infrastructure without a full-scale overhaul.
Highlights from the guide include:
Up to $240,000 per month in savings for hotel groups managing 1,000 POTS lines by switching to VoIP
An average 16% reduction in telecom spend using expense management tools to identify billing errors and unused services
A direct link between tech performance and retention, with 92% of travelers ranking reliable Wi-Fi as their top in-room expectation
Many hotel operators are juggling disconnected systems across locations, leading to limited visibility, inconsistent guest experiences, and increased cybersecurity exposure. The guide offers practical steps to evaluate vendors, consolidate technology infrastructure, and eliminate operational blind spots.
"Most operators know they're behind on upgrades," Nguyen said. "What they often miss is how deeply those delays are impacting revenue, guest reviews, and staff efficiency."
The guide includes:
A cost-saving audit framework built for hotel groups with 10 or more properties
A vendor evaluation checklist covering SLAs, system integration, customer support, and scalability
Strategic guidance on balancing guest satisfaction, cybersecurity, and long-term cost savings
The Hospitality Buyer's Guide will be available for free at booth #1819 during HITEC 2025 and online.
ABOUT VELOCITY MSCFounded in 2005, Velocity is a technology-managed solutions provider for voice, data, Wi-Fi, POTS IN A BOX®, Free-to-Guest TV, and the Global Expense Management (GEM) platform, among others, supported by a proprietary network backbone across 21 fully redundant fiber data centers for multi-location enterprises across multiple industries.
With its nationwide network of 5,500 certified field technicians, project managers and software developers, over 500 employees, and 450+ carrier agreements, Velocity is a single-source partner dedicated to providing comprehensive support with its 24/7/365 U.S. based technical support complemented by supply chain and logistics services inventory & warehousing, repair depot, as well as digital signage and DOOH media solutions. Velocity delivers an unparalleled scope of services to its clients. As a CLEC licensed to operate in all 50 states, Velocity monitors telecom and technology environments continuously, enabling faster responsiveness and reducing downtime. For more information, please visit www.velocitymsc.com
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SOURCE Velocity, A Managed Solutions Company
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