Hospitality Trends:
Technology Trends
in The
Hospitality Industry
Prepared by:
Mary Suleide P. Melendrez
Instructor
09508423675/09665095478
lei22melendrez@gmail.com
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MODULE 4
Week 1-2
Hospitality Trends: Technology Trends in The Hospitality Industry
Learning Objectives
1. Describe the latest trends in technology in Hospitality Industry.
2. Understand the importance of technology in Hospitality Industry.
3. Describe how technology works in Hospitality Industry.
Content
Introduction
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. Keeping your finger on the
pulse is especially essential within the context of COVID, because customer expectations and requirements are
continually shifting. In this lesson, you will learn more about the latest tech trends for 2021, hospitality companies
need to be aware of.
Below, you find general technology trends in hospitality, along with tech trends that serve as a solution to the
coronavirus pandemic and associated shifts in consumer behavior.
1. Contactless Payments
Many of the biggest hospitality trends are concerned with reducing friction and contactless payments have been one
of the biggest examples of this. When contactless payments are accepted, customers save time on sorting through
cash or entering their PIN. The emergence of things like Apple Pay and Google Pay also remove the need to even
carry a wallet.
Aside from removing friction and improving the customer experience, the coronavirus pandemic has also increased
demand for contactless payments. Many customers and staff members feel uncomfortable handling cash and
providing the option for contactless payments may be seen by many as a necessity rather than a luxury.
What is a Contactless Payment?
As the name suggests, this type of transaction enables users to avoid using cash or the physical implementation of
credit cards. It instead relies upon wireless methods such as RFID technology. Debit cards, credit cards and even
some smartphones are able to support this technique. Users will simply place their card or device close to a nearpoint terminal. The transaction can thereafter be completed.
You will also be interested to know that no type of PIN is required in order for a payment to be processed. This is
quite convenient for those who are on the go or who may be within a public area. In order to ensure superior levels
of safety, contactless payments are limited to a certain amount at any given time. The good news is that this very
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same technology has now entered into the hospitality industry and it can have a direct impact upon the experiences
of your guests.
Examples of Contactless Payment Devices
You might be aware that contactless payment methods have existed in one form or another since as far back as
2007. It therefore stands to reason that there are a number of unique devices which can be used other than credit
cards and smartphones. Each of these offers its own set of bespoke abilities and in order to better understand the
options at your disposal. Some of the most well-known devices which can be used to make these types of payments
include:
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•
•
•
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Watches
Key Fobs
Stickers
Fitness trackers
Some types of wristbands
In the future, these devices may even be used for other purposes such as gaining secure access to a building or
opening a specific door.
Examples of Contactless Payment Systems
The hospitality sector can leverage several advantages of modern contactless payment systems and you will be
pleased to learn that a host of options are at your disposal. This provides you and your team with a greater sense of
flexibility; enabling you to adopt the correct software package based around the needs of your current organization.
Let’s take a look at some industries which have already begun to take advantage of tap-and-pay platforms.
Numerous Credit Card Agencies
It only stands to reason that the majority of credit card companies have chosen to employ contactless payment
systems due to the advantages outlined above. Not only does this move indicate that they are able to remain one
step ahead of the curve, but such modern technology helps to ensure that they remain highly competitive within
today’s marketplace.
Banks and Building Societies
Large banks have likewise appreciated the fact that contactless payment systems are here to stay. As most already
provide their customers with dedicated mobile phone applications, it is quite easy for this novel software to be
implemented when making a transaction. Customers can now enjoy a quick, hands-free and simple payment system
which is at their immediate disposal. A growing number of cash points have likewise adopted this software.
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Google Pay
The Internet has been just as keen to adopt these measures. When we consider the fact that consumers now rely
heavily upon purchases within the digital domain, some massive companies now offer contactless payments. Google
Pay is arguably the most well-known provider and physical retailers who are equipped to handle this service can offer
their customers yet another secure means of completing a transaction. As opposed to a standard credit card, an
encrypted code is sent to the appropriate account when a payment is made.
Apple Pay
Those who own a device such as an iPhone or iWatch are likely to already possess the Apple Wallet application.
Apple Wallet enables consumers to purchase goods at brick-and-mortar locations (much like Google Pay) and this
system is supported by addition al third-party apps. It is likewise possible to send funds to family members or friends
via the use of this service.
Samsung Pay
Samsung Pay is a bit different in relation to the two systems mentioned above. In this case, users can store their
personal financial information (such as credit card details) directly within the application. This is then used to make a
payment at any checkout counter equipped with contactless payment software. The process is straightforward. First,
the user will span an image of their credit card or a nearby bar code (such as one found on a product label). Once a
screen tap confirms the purchase, the transaction will take place automatically. Samsung also offers additional
amenities such as rewards points when specific transactions are made.
Fitbit Pay
Fitbit is a popular software package which allows users to track and improve their current fitness levels. This is why
you might be surprised to learn that it also offers a tap-to-pay option. Similar to other systems, users will simply add
their debit or credit card information to the tracker or Fitbit watch. Transactions will remain completely secure and
they are accepted at all locations which support contactless payments.
2. Voice Search & Voice Control
The use of voice search is becoming increasingly common among customers searching for and booking hotels and
restaurants, so you need to respond to this change in behavior and make a clear attempt to capture these customers.
This means, among other things, structuring your website content clearly, so it features properly in voice search
results.
Beyond this, voice control can also be used to control devices within hotel rooms, enhancing the guest experience.
For example, smart speakers can provide guests with answers to questions and can also respond to voice requests
to turn on lights and devices within the room. This can also reduce the number of surfaces guests touch too.
Voice Control: In a Nutshell
Voice control is a type of voice recognition technology, which enables devices like smart phones, smart TVs and
home hubs to understand spoken words and be controlled through simple voice commands and responses. This
eliminates the need for users to perform more traditional control tasks, such as pressing buttons.
The extent of voice control capabilities can vary from one device to another. Some devices can simply be turned on
or off through a ‘wake up’ and ‘sleep’ command, while others can perform intelligent tasks, provide real-time
information, or even control other devices in the nearby vicinity
Benefits of Voice Control in the Hospitality Industry
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1. Personalization
The primary use of voice control technology within the hospitality industry involves improving the level of
personalization offered to customers. Voice controlled smart hubs can be included in hotel rooms, allowing customers
to easily adjust the room temperature and lighting levels, or utilize entertainment devices, all through speech.
Such technology can also be provided with the names of guests, making the entire experience more individual.
2. Customer Experience
Voice control can also help those in the hospitality industry to deliver a superior customer experience, by shortening
response times, streamlining booking processes and allowing customers to make requests for room service, or fresh
towels, without needing to leave their room or lift a finger.
Smart hubs can be connected up to company booking processes, enabling a customer to easily reserve a table at
the restaurant through a few simple voice commands, or obtain an electronic key card to access the gym. Meanwhile,
tourist information or weather forecasts can be provided immediately, at any time of the day or night. Best of all, this
information will be up-to-date, making it more accurate than a human interaction would be.
3. Marketability
Finally, voice control technology is still enough of a novelty that those in the hospitality industry can use it for marketing
purposes, differentiating themselves from competitors and promoting themselves as a forward-thinking, technologyliterate brand, which can offer customers a cutting edge experience.
Videos of the voice control technology can be used across hotel booking websites, while the benefits of the technology
for the customer can be referenced in other promotional material, helping the hotel to stand out.
Examples of Voice Control Devices
There are a huge number of devices or objects that have voice control components, with examples ranging from
smartphones and smart TVs, through to vehicles and machines. However, within the hospitality industry, the use of
voice control primarily centers around smartphones, tablets, smart hubs and other similar devices.
Various companies have developed personal assistant technology, which is powered by voice control, with examples
including Google Assistant, Siri, Alexa and Cortana. Among the best-known and most popular voice controlled smart
hubs are Amazon Echo, Google Home and Apple HomePod, and these hubs are all able to interact with other devices.
How Voice Control Works in the Hospitality Industry
One of the best examples so far of voice control in action
within the hospitality industry is the Alexa for Hospitality service, offered by Amazon. It is based on Amazon Echo
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technology, but can be tailored for each hotel. As a result, guests can speak to the device and control various aspects
of their room, such as lights, heating and music.
The technology has already been adopted by several hotel chains, including Marriott, and Amazon are expanding the
technology in the near future, allowing guests to connect their own Amazon accounts to the hub, meaning they will
be able to easily access their personal music collections, or their audiobooks, and play them through the device.
3. Robots in Hotels & Restaurants
One of the most exciting technology trends the hospitality industry is getting to grips with is the rise of robotics and
the use of robots to carry out tasks traditionally performed by humans. For instance, robots can occupy a concierge
role within hotels, welcoming guests and providing them with important customer information.
Similarly, some hotels have started to use robots for cleaning purposes, such as vacuum cleaning floors and even
for germ killing. This is a practice that can be replicated across the rest of the hospitality industry too, including in
restaurants, and the use of robots can also help to make an environment more COVID secure.
Some Examples of Robots Used in Hotels
As you may have already imagined, there are many types of hotel
robots and each of these is intended to suit a unique purpose. This
is why it is a good idea to take a look at a handful of the most
common robots in hospitality as well as what tasks each has been
designed to address.
1. Robots Intended to Greet Guests
Sometimes referred to by titles such as “guest ambassadors“,
these robots are placed at strategic points within a property in
order to answer common questions. Examples include the location of elevators, the ability to give directions to a
specific room or even to recommend certain types of food. The humanoid-like appearance of these robots is likewise
intended to provide a decidedly welcoming appeal to the property in question; ideal when staff members may not be
immediately able to cater to the needs guests during busier times of the year.
Watch the video: Video: Hotel Robot Greets Guets in Mandarin Oriental Hotel, Las Vegas
https://youtu.be/-45fSFR7Xk8
4. Robots Dealing with Housekeeping
Housekeeping is an important concern within a property, and as a result, there are hotel robots which have
been designed to carry out various services. Let us take a closer look at handful options which hotel
management should consider.
One type of robot has been specifically engineered to clean
and disinfect services that might have been exposed to germs
or bacteria. This is of critical importance in this day and age
due to the recent COVID-19 outbreak. Hotels which employ
such highly precise devices are likely to enjoy amenable
retention rates.
Video: Hotels Are Using Germ-Killing Robots to Cleanse Rooms
https://youtu.be/34DXhM-B068
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4. Chatbots
Chatbots have been an emerging hospitality technology trend for several years, but the importance of this
option is only growing, especially as customers now demand swift answers to questions at all times of the
day. Hotels and restaurants will also often attract queries from people in different time zones, so having
staff available is difficult.
A good chatbot will answer the most common questions
without the need for any human involvement. In more
advanced cases, the chatbot can obtain information from
the customer and then pass the query on to a human staff
member at the earliest opportunity, while also providing
them with access to what the customer has said.
What is a Hotel Chatbot?
A hotel chatbot is a form of digital technology, which can respond intelligently to human interactions, and which can
be deployed on behalf of a hotel, or any other business in the hotel industry. The purpose of a chatbot is to mimic the
kind of meaningful interactions a customer might have with a real employee, usually through text.
In the majority of cases, a hotel bot of this kind will be used as a kind of digital customer service agent, responding to
queries, providing useful information and even answering specific questions. The level of sophistication a hotel
chatbot can deliver will generally depend on the underlying technology and the way it is used.
How Does a Hotel Chatbot Work?
On a basic level, a hotel chatbot works by interpreting or understanding customer interactions and providing relevant
answers to questions, or relevant information upon request. Chatbots can be broadly divided into two types:
1. Rule-Based Hotel Chatbots
Rule-based chatbots are the most basic hotel bot type available. As the name suggests, these bots are able to
communicate using a set of clear rules. This will usually be based around “if/else” statements. So, for example, a
chatbot might be set up to ask: “Would you like to view our special offers?” If the user says ‘yes’, or selects a ‘yes’
option on-screen, they will be presented with special offers. Otherwise, another message may be displayed.
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This kind of chatbot can be operated using labelled on-screen action buttons, with the user clicking the buttons to
progress the conversation. However, more advanced chatbots of this kind operate by detecting specific words within
what a user types, before displaying the next relevant message, based on the established rules.
The main benefit here is simplicity, meaning it can be extremely cost-effective. However, chatbot communication may
be noticeably less natural than an interaction with a human, which can potentially be off-putting.
2. AI-Based Hotel Chatbots
The alternative to rule-based chatbots is AI-based chatbots and these are significantly more sophisticated. Powered
by artificial intelligence, they can understand written communication, interpret it and then respond appropriately,
resulting in highly realistic chat interactions, similar to what a user might get with a customer service rep.
Some of the most advanced AI bots take this a step further, using machine learning to actually pick up information as
they go and adapt their communication accordingly. This can allow a hotel chatbot to find out a series of preferences
from a user, piece the information together, and make a smart recommendation.
AI-based chatbots offer far greater personalization and result in more natural communication. They also tend to be
easier for customers to use and machine learning results in continuous improvement too.
5. Virtual Reality
Virtual reality is another of the major technology trends in the hospitality industry that you need to be aware of. In
particular, this can make the difference at the stage when customers are ready to make a booking, because it will
give potential customers a much clearer sense of what they can expect when they visit for real.
During the COVID pandemic, those working in hospitality marketing have a particularly good opportunity to capitalize
on virtual reality technology and gain an edge on rivals, because it provides customers with the ability to experience
elements of a hotel or to see the layout of a restaurant prior to booking.
Most modern virtual reality tour videos can be viewed within a web browser, making them easily accessible. A greater
level of immersion can also be achieved if users have access to a VR headset.
What is Virtual Marketing?
Virtual reality is a technology based around immersing users within realistic digital environments, which allows users
to look around and see the digital setting, rather than the real-world setting they are actually in. Virtual marketing is
the practice of using virtual reality video and image technology to promote products and services. It is especially
popular with the tourism industry, because it is an industry that is based on ‘experiences. VR video can provide
realistic virtual experiences, which can accurately showcase hotels and attractions.
6. Mobile Check-In
Mobile check-in hospitality tech is another important area to give consideration to, because it can help to improve the
customer experience at the point of their initial arrival. This is especially beneficial, because first impressions can
have a huge bearing on how customers ultimately feel about their visit or stay.
Crucially, mobile check-ins swerve the need for face-to-face customer interactions, meaning customers can
potentially have greater flexibility in terms of when they check-in. This ties in with wider contactless technology trends
within the hospitality industry, and can be especially welcome for those who are nervous about COVID.
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What is Mobile Hotel Check-in?
We are all aware that hotel technology plays an important role within these modern times. As a growing number of
individuals are leveraging the power of wireless connectivity, it only makes sense that these very same services are
becoming present throughout the hotel industry. Mobile check-in methods will now enable guests to secure a room
as well as to gain access the property without the need of a traditional key. However, we are only beginning to scratch
the surface. Let us now take a look at how this innovative solution works in greater detail.
How do Mobile Check-In Services Function Within Hotel Settings?
This type of key-less entry method essentially embraces technology that already exists. For instance, guests are
often provided the opportunity to perform specific actions within a hotel thanks to a dedicated smartphone application.
Examples include ordering food, reserving transportation and discovering nearby attractions. It therefore makes
sense that wireless check-in technology has become a reality.
Typically, guests will first register for some specific type of preferred guest programmed. They can then book a room
directly via the associated smartphone application. Upon approval, the hotel will send a confirmation containing a
personal identification code as well as the associated room number. Customers can then enter the property and
simply place your smartphone in front of the wireless key reader attached to the door. Assuming that the information
is read correctly, the door will unlock and they can enjoy a seamless check-in experience.
Video: Hilton’s Mobile Check-In
Below you find a video about why Hilton’s mobile check-in means staff can focus on customer delight.
https://youtu.be/8muzfDM0dTo
7. Recognition Technology
Recognition technology is one of the most important emerging tech trends in general, but its potential uses in the
hospitality industry are especially interesting. In particular, biometrics is being used to usher in a new age of seamless
authentications, and this could benefit hotel processes and customer purchases.
For example, imagine if a fingerprint or facial recognition technology could be used in your hotel to unlock rooms.
Now consider the uses of the same technology for check-in and check-out purposes. In the future, this technology is
also likely to allow for completely seamless purchases, with payments being authenticated by touch.
Example: Facial Recognition Check-in in Marriott China
https://youtube/qNpsdCPGyCk
What is Facial Recognition Technology?
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Facial recognition systems are an example of biometric technology, and can be used to identify people by analyzing
their faces. This is usually achieved by comparing a scanned image or a frame from a video with the faces contained
within a database, matching them up based on facial features and skin textures.
The technology can also be used more generally to recognize certain things about faces, such as whether a face
belongs to a man or a woman, or what age range the person is likely to be in. Facial recognition is used by security
services, law enforcement and technology companies, and is becoming more prevalent in the hospitality industry.
Facial Recognition Within the Hospitality Industry
The hospitality industry deals with large volumes of customers at once, and for hotel owners, airlines and other
companies, it is a top priority to deal with them efficiently, without compromising on safety. As a result, it is an ideal
field for facial recognition technology to be implemented.
In particular, facial recognition systems can be used to automate certain verification or authorization processes along
the customer journey, and to improve the customer experience. Moreover, the ability to identify specific people, even
in large groups, can be extremely advantageous, helping to make security systems more robust.
8. Artificial Intelligence
In the modern age, customers expect to be able to interact with hospitality companies across a variety of digital
channels and receive rapid responses. Of course, actually having staff monitoring all of those channels and delivering
swift responses can be difficult, if not impossible, which is where chatbots and artificial intelligence (AI) come in.
Chatbots are able to understand simple questions and provide answers almost instantaneously, taking the burden
away from customer service staff and improving the experience for customers. Meanwhile, AI’s uses extend into other
important areas for hotels too, including data analysis. In short: definitely a tech trend to watch out for.
What is Artificial Intelligence?
Artificial intelligence, or AI, refers to the performance of seemingly intelligent behaviours by computers or machines.
Artificial intelligence, as a concept, has existed since the 1950s, but it is only in recent times that technology has
advanced to the point where it can be considered reliable enough to deploy for important business tasks.
Essentially, AI refers to computers or machines carrying out tasks that were traditionally thought to require cognitive
function to carry out. It is associated with concepts like automation and big data.
Today, the collection of customer data, combined with the improvements to computer technology, mean that artificial
intelligence can be utilised for a huge range of functions, from basic customer service, to personalisation tasks, more
advanced problem-solving, and even for sales processes and direct messaging.
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9. Augmented Reality
Finally, augmented reality has exploded as tech trend in a similar way to VR technology, but is even more accessible;
typically requiring little more than access to a smartphone and the internet. Unlike VR, which places users in a digital
environment, augmented reality is about enhancing the real-world environment through information overlays.
Again, this offers limitless potential. Imagine if your hotel provided AR-compatible wall maps, where customers can
point their phone at the map and find out information about specific locations. Alternatively, how about an app, which
allows users to see customer reviews of local restaurants by looking at the building through their phone?
What is Augmented Reality?
Augmented reality serves to alter a person’s perception of their physical surroundings, through the use of computer
technology. Augmented reality is often compared to virtual reality (VR), but while VR replaces the real-world
environment with a completely virtual one, augmented reality enhances the real-world environment in real-time.
The technology itself can be deployed in a number of ways, including through smartphones, tablet devices or
headsets. Essentially, augmented reality introduces digital components into reality, rather than replacing the reality
itself. This often occurs by overlaying information over a live picture of a physical environment.
As a result, augmented reality can be used to add physical graphics to an environment when viewed through a device,
alter the appearance of the environment itself, or make the environment more interactive.
10. Cybersecurity
Finally, the increased need for cybersecurity is among the most vital technology trends in the hospitality industry.
Today, hotels and restaurants are more reliant on data than ever before, and make more use of IT systems than ever
before too. However, this potentially leaves them in a much more vulnerable position.
Some of the biggest threats here include ransomware attacks, phishing attacks, distributed denial-of-service (DDoS)
attacks and human error within the company. For this reason, hotels need to invest adequately in cybersecurity
awareness training, protect their IT systems, keep customer data secure and ensure data is backed up and
recoverable.
Big Data
Data collection has grown rapidly across almost all industries, but can be used to great effect by hospitality businesses
to provide more personalised experiences. As an example, it could be used by travel agents to make intelligent
destination recommendations, based on age, gender, budget, previous locations visited, and so on.
Within the hotel industry, big data allows businesses to identify trends, which can be used for revenue management
purposes. This allows for more data-driven approaches to pricing strategies and enables business leaders to gain a
clearer understanding of current business performance and the outside influences that impact upon it.
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11. What is Big Data?
Big data is the phrase used to describe the extremely large sets of data that come into a business on a day-to-day
basis. The data can be extremely varied and may come from a wide range of different sources. Within hospitality
management, these data sets are most commonly associated with customer behaviour and interactions.
For data to be classed as ‘big data’, it needs to be too large in volume to be processed via traditional data processing
methods. Crucially, it can be used within the fields of both predictive and behavioural analytics, and can help
companies to identify key trends or patterns, which can then inform their business practices.
Video: Big data explained
https://youtu.be/TzxmjbL-i4Y
Reference:
https://www.revfine.com/technology-trends-hospitality-industry/
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