Key Takeaways:
- Research shows a boom in the hospitality industry, along with a digital transformation that streamlines operations and enhances the guest experience
- From online booking platforms, mobile apps to contactless check-in/out and payments and IoT, smart rooms are revolutionizing customer experience like never before.
- AI, robots and chatbots play an important role in catering the growing demand of 24/7 service. Keeping up with new technologies is essential for businesses to stay on top of the competitive market.
- Hospitality industry is adapting technology to improve sustainability through measures like energy-efficient systems, water conservation, and waste reduction which ultimately helps cut costs and optimize energy efficiency.
The global hotel industry is experiencing significant growth
With a compounded annual growth rate (CAGR) of 7%, the worldwide hospitality industry grew significantly from $4,390.59 billion in 2022 to $4,699.57 billion in 2023 (Hospitality Worldwide Industry Report 2023) with global hotel occupancy forecasted to increase by 2.5% this year (EHL Insight). Following the trail of current and future growth, the hospitality sector and its customers will acclimate to the new trends in technology related to hospitality.
Online booking platforms and mobile apps have revolutionized the reservation process
Traditionally, reservations were made through phone calls or in-person visits. Nowadays, online booking platforms and mobile apps have replaced those practices due to the convenience and flexibility it brings in managing reservations for both guests and businesses. Furthermore, the businesses benefit from efficient inventory management capacities.
Contactless check-in, check-out, and payment
Technological advancements have dramatically transformed the guest check-in experience, avoiding long lines and unnecessary in-person/face-to-face interactions. Mobile apps and contactless services allow guests to bypass the front desk entirely by using self-check-in directly to their rooms and ensuring a smooth checkout process.
The rise of contactless payments has revolutionized the way guests settle their bills. McKinsey’s 2023 Digital Payments Consumer Survey reveals that more than 90% of consumers have used contactless payments in the last year, a trend that has been steadily increasing since the onset of the pandemic. With a simple tap of their digital wallets, credit cards, or mobile payment apps, guests can enjoy a faster and more convenient checkout experience, ultimately enhancing their overall satisfaction.
The power of smart rooms
The Internet of Things (IoT), one of the fastest-growing technologies due its growing emphasis on connected environments, is transforming the hospitality industry with the introduction of smart rooms, a space that seamlessly adapts guest’s preference. With just a click, lighting, temperature, and even entertainment systems can be controlled and personalized effortlessly through a dedicated app.
Voice assistants like Alexa and Google Assistant act as companions, readily fulfilling requests for room service and even restaurant reservations. From a calming retreat or an energizing workspace preference from guests, smart rooms can magically grant this request. The ability to craft a personalized and customized experience for guests fosters satisfaction leaving a lasting positive impression and exceptional experience.
Robots and chatbots are on the rise
The hospitality industry is embracing robots to enhance guest experiences and operational efficiency. According to TechNavio’s Hospitality Robots Market Analysis, the global market is projected to balloon at a CAGR of 14.19% between 2023 and 2028. Hotels and restaurants are facing a growing demand for instant service, around the clock. This is particularly challenging when dealing with guests across diverse time zones. Chatbots are no longer just a passing trend; they’ve become a crucial technology to bridge this gap through 24/7 services. Customers demand seamless omnichannel engagement with hospitality providers, expecting prompt responses across all platforms.
Sustainable practices in Hospitality
The hospitality industry is leveraging technology to enhance sustainable practices. Hotels and restaurants are slowly implementing sustainable measures such as energy-efficient lighting and heating systems, water conservation solutions, and waste reduction strategies. Smart sensors and automated systems allow hotels to monitor and optimize their energy use, which not only helps lower operating costs, but fosters sustainability as well. This growing trend not only helps minimize environmental impact, but widens the reach of the business as it also appeals to eco-conscious guests seeking sustainable accommodations.
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