By Ahmed Mahmoud
Digital transformation and the leverage of technology play an important role in today’s hospitality industry, especially in the post-pandemic era. Facing the challenges of labor shortage, the rising cost of operation, and the changes in consumer needs and behaviors, hospitality businesses need to pivot their services and products with the latest technology in order to keep their competitive edge.
Every year, new technology emerges and dies. hotels either adopt them and thrive, or are left behind by their competitors, but technology doesn’t stop for anyone. Just like the hotel industry.
In 2024, the hotel industry stands on the brink of a technological revolution where emerging technologies are not just enhancing the guest experience but are also streamlining operations, offering personalized services, and redefining the very essence of hospitality.
What Is Hospitality Technology and Why Is It Important?
The hospitality industry is one of the most technology-dependent industries. Without information technology, managing the day-to-day operations of hotels, restaurants, and other hospitality-related businesses would be impossible.
Hospitality technology is the application of information technology, such as robotics, big data, cloud computing, and virtual reality ……etc., with the goal to solve business problems for organizations in the hospitality field.
There are many benefits for hospitality services that technology can bring to the hospitality industry. For example, technologies like artificial intelligence (AI) chatbots can improve guest experience, mobile ordering can increase efficiency, and robots can lower staff workload and minimize costs.
Latest Technologies Transforming the Hospitality Industry
It is critical to not only keep track of the latest technology trends in the hospitality industry, but to move with the times because the industry is highly competitive, and those who do not adapt are left behind. Customer expectations and requirements are continually shifting. In this article, you can learn more about the latest tech trends for 2024, which hospitality companies need to be aware of as below: -.
Hotel Operations are Already High-Tech operating a hotel is already a fairly high-tech endeavor, when it comes to good hotel operations management, guests don’t often see what goes on behind the scenes. But without it, they’d experience chaos.
Long lines in front office check in or restaurant, delayed room service, unemptied trash cans, and poor customer service are just a few consequences of poor hotel operations management.
Creating unique, exceptional guest experiences and maximizing revenue comes down to how slick your hotel operations are, and which technology you are using?
Everything Flows Through the Property Management System
A prime example of this is a property management system, which is an important part of any savvy hotel’s tech stack.
A PMS is a hotel software solution that can facilitate the property’s booking management and administrative tasks. From housekeeping to room service, reservation management and electronic payments, everything flows through the property management system.
The right property management system is a key factor in hotel success. Having a system that makes front desk workflows easy, will create a seamless guest experience.
A Voice-Activated Future
In recent years, voice assistants have revolutionized the way we interact with technology. These virtual companions, powered by artificial intelligence, have permeated our homes, smartphones, cars, and various other devices, making our lives more convenient and efficient.
A growing number of hotels have installed voice-activated virtual assistants like the Amazon Echo or Google Home in their guest rooms. This in-room technology can actually be a way to make guests feel more at home.
In fact, you probably have one in your own home, or even in your pocket. You likely don’t think twice about saying “Alexa, play music by Foo Fighters” or “Hey, Google, what’s the weather forecast for this evening?”
What Makes a Smart Room?
A digital assistant can be a component of a smart hotel room, one that harnesses the power of the Internet of Things, a network of interconnected devices and software systems that work together to automate various tasks and provide personalized services to guests.
These devices can include sensors that detect occupancy and adjust room settings accordingly, voice-activated virtual assistants that allow guests to effortlessly adjust various aspects of their room, and smart locks that allow guests to enter their room using their smartphone or a key card.
Essentially, smart hotel rooms enable guests to adjust factors such as room temperature and lighting to suit their personal needs, often through the use of a mobile app or an in-room device such as a tablet.
Let’s take a look at what hotel technology trends will dominate headlines in 2024.
AI-Driven Personalization
One of the most exciting transformations is the industry’s growing ability to personalize guest experiences. This isn’t just about customization but using data-driven insights and the power of technology to cater to guests on an individual level.
A significant trend in hotel technology is the use of Artificial Intelligence to provide personalized experiences to guests.
Artificial intelligence is the process of simulating human intelligence in a computer, machine, or system. It enables machines to process data and carry out tasks by learning patterns and collecting data. Customers today expect fast responses, personalized service, and smooth processes. To meet this growing need, AI and machine learning have the potential to revolutionize how we serve our customers. AI chatbots allow businesses to talk to customers 24 hours a day, 7 days a week, without any language barriers or day off. Computer systems can forecast and optimize room occupancy on the basis of data, while AI systems can analyze data from previous stays, social media preferences, and online behaviors to offer tailor-made recommendations, room settings, and services.
Impact: Enhanced guest satisfaction through customized experiences.
Example: AI-powered chatbots providing personalized travel tips or room service based on guest preferences.
2- Contactless Technology
In the wake of the global health crisis, and since the COVID-19 pandemic, both greatly disrupted traditional on-premise dining, online orders and mobile pick-ups have become a norm and will grow faster in the coming years, not only this but also contactless technology has gained immense popularity.
Mobile check-ins and check-outs, digital keys, and contactless payments not only offer convenience but also ensure safety by minimizing physical contact, moreover reduce the hotel staff workload.
Mobile ordering systems turn the ordering experience into a one-stop shop for customers and vendors alike. Instead of standing in long lines, customers scan QR codes to access the menu and place their orders at the touch of a button. Restaurants are able to overcome the labor shortage and receive more inbound orders even with fewer employees.
Contactless technology enables guests to order food at hotel restaurants and make payments through their smartphones, eliminating the need for physical menus and cash transactions. Guests can conveniently request room service and additional amenities using their smartphones, ensuring a contactless dining experience and minimizing face-to-face interactions. From ordering in-room dining to requesting extra towels or housekeeping services, guests have full control over their stay through mobile apps.
Besides mobile ordering, POS systems are one of the best technologies to use in hospitality. A POS system turns your mobile device into a cashier. Whether you’re dining in, picking up your food at the curb, or placing an online order, POS facilitates the smooth, quick, and secure transactions that today’s customers expect.
Another area to focus on is mobile check-in hospitality technology, as it can help to enhance the customer experience at check-in. This is especially important because first impressions can have a big impact on how customers feel about their stay.
Upon arrival, guests can complete the check-in process on their smartphones, receive a digital room key, and proceed directly to their rooms. Similarly, at the end of their stay, guests can conveniently check out through their devices, reducing waiting times and enhancing the overall guest experience
Impact: Improving guest safety, reduce hotel staff workload and streamlining operations.
Example: Mobile apps for check-in/check-out, online ordering and room access.
3- Virtual and Augmented Reality Experiences
Augmented Reality and Virtual Reality are changing the way guests interact with restaurants, hotels and hospitality service providers . The restaurant and hospitality industries are slowly but surely embracing the latest technology of augmented and virtual reality. One of the reasons extended reality is gaining traction in hospitality is how much information guests want to know before they book. Hotels are using augmented reality to provide virtual tours of their properties during the guest bookings process. AR is also improving the experience of in-room guests.
Technology helps hotel staff make the booking process easier by allowing guests to see an augmented version of the room they are about to check into. Once they arrive at the hotel, they can get all the information they need in a touch-freeway at any time.
Impact: Improved booking conversions and enriched in-stay guest experiences.
Example: AR-enabled maps and VR tours of hotel amenities.
4- Big Data Analytics
Big data is structured data and unstructured data collected from different sources. In the hotel industry, big data analytics is enabling hotels to gain insights into customer behavior, preferences, and spending patterns and can be used to analyze customer enquiries, complaints, reviews, etc, moreover historical booking patterns, demand trends, competitor pricing, and guest preferences. By utilizing revenue management systems and algorithms, hotels can optimize pricing in real-time, ensuring competitive rates and maximum revenue to identify trends that can be used to improve revenue management strategy. With the help of big data, hotels can understand the preferences and expectations of the guests. hotels can also check social media platforms i.e. Facebook, Instagram, Twitter, etc. to learn about client trends, preferences, etc. In addition, booking data contains important information about demand patterns, and customer behavior. This data is crucial to allows more data-driven approach for personalizing marketing campaigns, pricing optimization strategies and allows hoteliers to better understand current business performance and external influences that affect it and improving service offerings.
Impact: Enhanced decision-making and personalized marketing.
Example: Tailored promotions and dynamic pricing models based on data analytics.
How Can Hospitality Businesses Implement Successful Technology Transformation?
Technology transformation empowers the hospitality sector to adapt to the changing landscape and navigate through uncertain times, as demonstrated during the COVID-19 pandemic. Contactless technologies, virtual experiences, and data-driven insights have allowed hotels to continue serving guests while ensuring their safety and well-being, is not just a passing trend but a permanent shift that is set to continue.
As the industry progresses, embracing digital transformation will be crucial for sustained growth and success. Hotels and resorts that invest in innovative technologies and strategies will gain a competitive edge, foster guest loyalty, and drive revenue growth.
“Successful and effective technology transformation is the process of using innovation technology to create new or modify existing business processes, culture, and customer experiences to meet the changing business and market requirements”
There are several exciting developments on the horizon for the industry and to do this right hospitality businesses need to focus on four key areas:
Understanding guest behavior: Identify and analyze the patterns and changes in guest behaviors and needs, it also allows you to create a more positive experience for each guest that walks through the door. It can also ultimately increase your bookings, improve your reputation, and allow you to gain more word-of-mouth referrals than ever before.
Clear and measurable strategy: setting clear and measurable goals. When you know what you’re aiming for and how to measure it, it’s easier to see if your efforts are working or not–and make adjustments accordingly. Remember any strategy or goals should align with business objectives and be SMART. Then break down these goals into small steps so they’re more manageable! Hence the transformation must tie to a specific business goal that is measurable.
Strong change management: Develop a clear change road map and engage staff in the change process.
Technical capability: Make sure the technology is implementable and equip staff with the necessary technical skills to use the new technology.
Technology’s impact on the hospitality industry is impressive and multi-faceted. It has led to more efficient operations, personalized services, and sustainability efforts. As travelers and diners continue to embrace technology in their daily lives, the hospitality industry must keep up to meet and exceed expectations, not only that but technology has become practically essential to society, and the hospitality industry is no stranger to these digital adaptations. Over the years, the industry has made some changes to accommodate shifting customer preferences, economic fluctuations, and global events such as the pandemic.
“Reprinted from the Hotel Business Review with permission from www.HotelExecutive.com”
