The global smart hospitality market is estimated to reach over 133.7 billion dollars by 2031.
As technology continues to transform the way we live and work, the hospitality industry is no exception.
From personalised room preferences to seamless check-ins, smart technology is enhancing the guest experience and improving operational efficiency.
As hotels and resorts look to stay ahead of the curve, investing in smart hospitality solutions is no longer a luxury but a necessity.
Let's take a closer look at the key drivers behind this market growth and the exciting opportunities it presents for the industry.
What is hospitality technology?
Hospitality technology refers to the use of technological tools and solutions in the hospitality industry to improve the overall guest experience, streamline operations, and increase revenue. This can include a wide range of technology solutions such as property management systems, point-of-sale systems, reservation and booking software, customer relationship management systems, digital signage, mobile applications, and more.
Some specific examples of hospitality technology in action might include the use of mobile check-in and check-out systems to streamline the guest arrival and departure process, the use of automated chatbots to handle customer service inquiries, the use of data analytics tools to gain insights into customer behaviour and preferences, and the use of digital displays to promote special offers or events.
Why is hospitality technology crucial for businesses operating in the hospitality industry?
Hospitality technology is vital for businesses operating in the hospitality industry due to its ability to improve guest experience, enhance operational efficiency, streamline communication, reduce costs, and enable effective data management. The use of technology in hospitality businesses allows them to offer personalised services, gain insights into customer preferences, and develop targeted marketing strategies, resulting in increased revenue and customer satisfaction. Overall, hospitality technology is an indispensable tool for any business operating in the hospitality industry.
Top 7 Technology Trends in the Hospitality Industry
1. Cloud-based PMS
The cloud hotel PMS is a piece of software that consists of various components and features to automate every task in your hotel.
Cloud communications give hotels the ability to enhance back-office productivity while incurring minimal technology acquisition costs, whether it be for handling
reservations, front desk, housekeeping, billing, or anything else.
A PMS performs all management-related tasks, ensuring the company's scalability, availability, and security. PMS even provides lodgings with additional advantages. Even major hotel corporations, in addition to small establishments, are looking into the potential benefits of cloud computing for streamlining operations, lowering staffing requirements, and improving the guest experience. In fact, the hotel property management software (PMS) market is anticipated to expand at a 7.85% CAGR from 2018 to 2028.
So, if you're still hesitating, it's time to alter your mind and choose one of the most progressive trends.
2. AI Chatbots
Since artificial intelligence has made significant strides, hotels are opting for innovative digital guest engagement strategies, freeing up hotel staff to focus on duties that will enhance guests' stays with individualised, high-touch services.
Additionally, artificial intelligence can automate and streamline processes, use conversational technology and natural language programming (NLP) to interact intuitively with guests, and handle most repetitive tasks like responding to frequently asked questions, collecting customer data, and storing it in the hotel's back-end systems.
Conversational chatbot technology also serves as a human-like digital concierge who is available to guests around-the-clock to fulfil their needs and make their stay as comfortable as possible. If you haven't invested in conversational AI just yet, then this is your sign to take that step right now.
3. Internet of Things (IoT)
The world we live in today is all about digital transformation, and in this world, technology has moved way past the limitations of screens. One of the most cutting-edge technological developments in the hospitality industry is IoT or the internet of things. It allows various gadgets to link to the internet and be controlled by one centralised device, like a phone or tablet. As a result, these previously non-intelligent devices become "smart" devices that can gather data and engage with one another online.
Among the uses of the Internet of Things are key cards, a smart hotel room as a whole, as well as voice-activated customer support. IoT also makes it easy for guests to manage and personalise every element of their hotel room. They are also useful for other operations, mainly because the Internet of Things (IoT) serves as a smart hotel technology that can use data to identify issues and address them before they deteriorate.
PwC found in its survey that 70% of hotel executives have active IoT projects, making it essential for all businesses in the hospitality industry to keep up, or be left behind.
4. Virtual Reality
Similar to conversational AI, virtual reality (VR) is a trend taking over every industry. According to projections, the worldwide virtual reality industry will increase at a CAGR of 45.2% from $16.67 billion in 2022 to $227.34 billion by 2029
Businesses and hotels can offer potential clients first-person digital tours of their vicinity using virtual reality (VR) technology. This is especially relevant when customers are ready to make a reservation because it provides prospective clients with a much better idea of what to anticipate when they visit.
Because virtual reality technology enables customers to experience aspects of a hotel and its surroundings or to see the layout of an eatery before booking or being physically present in the vicinity, those in the hospitality marketing industry have an especially excellent chance to take advantage of the technology and gain a lead over competitors. In fact, the most significant advantage of this technology is that it encourages and allows potential travellers to daydream about experiencing all the amenities before their travel, making it much much more likely for them to go ahead and finalise the booking.
5. Wifi 6
One of the key trends in hospitality technology for enhancing both the experience of guests and the experience of hospitality employees is WiFi 6. The next generation and newest version of WiFi technology, known as WiFi 6, boasts an enhanced throughput alongside a speed increase of over 30%.
Wifi 6 may seem like a small improvement in wifi technology, but it is very crucial for establishments to use several IoT gadgets to deliver a better service experience and promote customer loyalty. Wifi 6 also significantly improves connectivity for guests needing the wifi to link with their phones, laptop, tablets and other devices.
Overall, faster and more reliable wifi can make or break a business in the hospitality industry, and call it a trend or not, missing out on such connectivity will push a business way behind its competitors.
6. Sustainable stays
Sustainability will undoubtedly move up the list of must-haves for hotel guests in 2023 as a result of the intense global focus on combating climate change, which requires hotels to do their bit in promoting more eco-friendly solutions.
In fact, it already began in 2022 with the Kind Traveler Impact Tourism Report, according to which a resounding 96% of survey participants said it's critical for their travel spending to have a good effect on the destinations they visit. Finding sustainable and socially responsible lodgings was also cited by nearly half (48%) of survey participants as their biggest travel problem.
To meet these demands, hotels are investing in energy-saving technologies like smart rooms and occupancy-based sensors, along with other changes in their lighting and water-saving tools, and by adding more sustainable lounging amenities to their facilities. In this time and age, moving towards sustainability is the best option for the hospitality industry, as this trend is bigger than any domain and rather is a necessity in a more general and genuine sense.
Definitely one of the coolest hospitality technology trends in 2023. In a society where social distance is still a significant element, robots help to provide contactless services that put customers at ease.
As concierges, they can welcome visitors and give them important information when they arrive. Some hotels have even gotten rather innovative with this idea, like this entirely robot-staffed hotel in Japan.
Additionally, some hotels have even begun using robots for cleaning tasks like vacuuming floors and sanitising surfaces. This procedure can be used in restaurants and the remainder of the hospitality sector.
Robots are an exceptional way to promote the post-covid trend of contactless services while bringing excitement and innovation to one’s services. Robots also attract more families with children and other guests who are looking to experience a little more out of the ordinary. Implementing robots is definitely a trend worth jumping on, as it makes sustainability and safety a little more fun and interesting to follow.
Even with so many different innovations in hospitality technology, there is one that stands out from the crowd and supports most of the others.
Conversational AI technology is growing like no other. From processing technology like chatbots to generative technology like GPT3, AI technology is the merging point for all technological equipment used in all industries. Using automation, NLPs and omnichannel support to connect all IoTs and CRM with the main server without compromising on customer service is the biggest selling point of conversational AI.
A technology that can seamlessly fit in and support all industries.
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