Choice Hotels Becomes First Hotel Company to Complete Total Data Center Migration to the Cloud
- Choice Hotels International, Inc. is the first hotel company to migrate its entire system infrastructure to the cloud, fully on Amazon Web Services (AWS).
- The move to AWS Cloud is expected to enable Choice to respond to real-time market conditions and provide a flexible, resilient, and scalable platform for owners and operators within the Choice system.
- The migration to AWS Cloud involved decommissioning over 3,729 servers, retiring more than 300 applications, and migrating over 250 applications.
- Choice's work with AWS began in 2015, and the recent migration marks a significant milestone in the company's continued legacy of technology innovation.
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Insights
The recent move by Choice Hotels International to migrate its entire system infrastructure to Amazon Web Services (AWS) marks a transformative step in the hotel industry. This strategic decision aligns with the growing trend of cloud adoption in various sectors, aiming to enhance operational efficiency, scalability and innovation. From a market perspective, this could position Choice Hotels as a more agile competitor, capable of quickly adapting to market demands and technological changes. The scalability of cloud services allows for better management of fluctuating demand, which is particularly relevant in the hospitality industry, known for its seasonal patterns.
Furthermore, the integration of AI and cloud technologies is expected to offer significant cost savings and operational improvements. For hotel owners and operators, the promise of increased profitability through efficient management tools and enhanced guest experiences could translate into a competitive edge. The ability to update hotel-facing operations more efficiently may also lead to increased customer satisfaction and loyalty, potentially driving revenue growth.
Choice Hotels' complete transition to AWS signifies a substantial technological leap, particularly within the hospitality industry, which has often been slower to adopt such advancements. The decommissioning of 3,729 servers and the retirement and migration of hundreds of applications is a notable feat that underscores the complexity and scale of this initiative. The shift to a cloud-first mindset is likely to foster continuous innovation, as cloud computing offers a robust platform for deploying advanced solutions like AI and machine learning.
By leveraging AWS, Choice Hotels can now benefit from a resilient infrastructure that is less susceptible to outages and physical data center limitations. This could lead to improved uptime for their booking systems and operational tools, which is crucial for maintaining customer trust and satisfaction. Additionally, the cloud's inherent security features, combined with AWS's comprehensive security protocols, may provide enhanced protection for customer data, a critical aspect in an era where data breaches are a significant concern.
The financial implications of Choice Hotels' migration to the cloud with AWS are multifaceted. Initially, this move may have required a substantial capital outlay for technology investment. However, over the long term, operating on the cloud can lead to reduced IT maintenance costs and lower capital expenditures, as the need for physical infrastructure diminishes. The shift also aligns with a cost-effective operational model that could improve margins through operational efficiencies.
Investors should monitor the impact of this transition on Choice Hotels' financial performance, particularly in areas such as cost savings, revenue growth from enhanced booking systems and potential market share gains due to technological superiority. The company's history of innovation suggests a focus on leveraging technology to drive business value, which could positively influence future earnings. It will be important to evaluate subsequent financial reports to assess how the cloud migration has affected the company's bottom line and to what extent these technological investments are translating into tangible financial benefits.
The all-in move to AWS cements Choice's technology leadership within the industry, and allows it to deliver cutting-edge services to franchisees
"By moving all of our systems to the cloud, we're ensuring that our franchisees have up-to-the-minute access to the latest innovations, saving time and money while providing industry-leading distribution and digital systems throughout the competitive hotel booking journey," said Brian Kirkland, Chief Information Officer for Choice Hotels.
The migration concludes a five-year process and represents a significant milestone in Choice's continued legacy of technology innovation. The move to AWS Cloud is a key component of Choice's long-term technology roadmap and involved decommissioning more than 3,729 servers, with over 300 applications retired and more than 250 applications migrated.
"Choice Hotels leaned in big and early on the cloud, which helped them innovate, scale, pivot, and become a more sustainable business over the last 5 years," said Matt Garman, Senior Vice President, Sales, Marketing, and Global Services at AWS. "The hotel company has a cloud-first mindset that permeates every part of their business from improved operations to extraordinary customer service, and we're excited to see what they do next."
Choice's work with AWS began in 2015 with the creation of a cloud-based central reservation system (CRS), choiceEDGE. At the time, choiceEDGE was the industry's first new CRS from a hotel company in over 30 years.
"Choice operates at the intersection of hospitality, franchising, and technology, and we are thrilled to leverage our cloud-first infrastructure," said Jason Simpson, Vice President of Cloud Engineering for Choice Hotels. "AWS Cloud was key for us in completing the digital integration of Radisson in record time as well as increasing traffic and booking revenue across our platforms."
Choice Hotels has a history of technological firsts and innovation, including:
- In 1995, Choice launched the first hotel website with real-time rate and availability information.
- In 2003, Choice launched the first cloud-based property management system (PMS), choiceADVANTAGE.
- In 2009, Choice released the first hotel app for iOS.
- In 2014, Choice became the first hotel company to offer instant booking on TripAdvisor. That same year, Choice was the only hotel company listed on Forbes' Top 100 Most Innovative Growth Companies.
- In 2016, Choice became the first hotel company to offer immediate in-app gift card downloads.
- In 2018, choiceEDGE went live for all reservations – the first cloud-based central reservation system (CRS).
- In 2019, Choice was the first hotel company to commit to being
100% on AWS Cloud. - In 2021, Choice launched ChoiceMAX, an AI mobile-first revenue management solution.
- In 2024, Choice completed its migration to the cloud.
Now fully on the cloud, Choice will continue to innovate and leverage the power of AI to drive even more business value for franchisees.
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The challenger in upscale and a leader in midscale and extended stay, Choice® has over 7,500 hotels, representing more than 630,000 rooms, in 46 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
© 2024 Choice Hotels International, Inc. All Rights Reserved
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SOURCE Choice Hotels International, Inc.
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