Hotel Industry Trends: From Decades of Evolution — to Digital Transformation
Table of Contents
For over 150 years, the hospitality industry has been a trailblazer in technological innovation. Hotels were among the first to adopt telephones, intercoms, and lighting long before these became household staples. Even the term "elevator" replaced the old "ascending room" in hotels.
Hotels have always been designed to provide top-notch guest services, creating self-contained worlds with the latest conveniences and entertainment. Modern hotels, especially luxury ones, have evolved significantly. Now, the hospitality industry stands on the brink of another technological revolution.
As a result of technology, hotels are increasingly becoming entire universes. While hotels have always aimed to exceed guest expectations, modern technology will allow them to predict and meet them precisely. This will happen automatically, requiring minimal human intervention.
Let's explore the technologies reshaping the hospitality industry from smart room solutions and virtual reality to artificial intelligence in digital transformation services. We'll also explore a real-life case study showcasing these innovations.
Smart Rooms and IoT Integration
The digital transformation of the hospitality industry starts with smart rooms—cloud-based systems equipped with IoT devices that guests can control via in-room tablets. These tablets allow guests to manage lights, air conditioning, and media devices. They can also chat with concierges, book restaurants, and access flight schedules. They also present personalized promotional offers, driving hotel sales.
Smart rooms are set to become standard in hotel experiences. They will spearhead the hospitality industry's digital transformation, enabling better guest experiences, increased sales, and deeper insights into guest preferences.
Smart rooms have quickly become a top hospitality trend, driven by guests' high expectations for convenience, personalization, and unique services. This aligns with the industry's move toward hyper-personalization, which relies on smart room solutions and IoT. Adopting smart rooms is essential for any leading hotel chain aiming to stay competitive.
Transforming the Booking Process
Augmented & Virtual Reality
Airbnb uses augmented and virtual reality for bookings, and hotel chains are expected to follow. These technologies eliminate guesswork about room appearances, aiding booking decisions. Guests can leave notes in the AR environment to inform hotel staff of their preferences.
Previews can be experienced on smartphones, laptops, AR and VR glasses, or advanced headsets. AR and VR let users see and experience their accommodations, whether an exotic resort or a European destination. Marriott Hotels provided VR experiences years ago.
Artificial Intelligence
AI-driven chatbots, powered by machine learning, will enhance the booking experience by learning from call centre conversations and booking behaviour to provide tailored options and anticipate additional service demands, driving sales.
Mobile Application
Mobile technology remains crucial to booking processes. Hotels must ensure their apps are simple, functional, and efficient. For example, a luxury hotel’s app could let guests book fellow travellers, assign rooms, and leave preference notes—all with a few easy scrolls.
AI-Powered Customer Experiences
AI chatbots will become essential virtual assistants for hotel guests in the coming years, handling every step of their stay through hotel apps. These chatbots answer queries like:
- Do you have a two-bedroom available for one night?
- Does your hotel serve vegetarian dishes?
- Can I bring my dog along?
They will provide personalized guidance and offers based on guests' shared data and behaviour in the smart room, hotel app, and other platforms. For example, if a famous yoga coach leads a session, the virtual assistant will notify interested guests and suggest signing up. For first-time visitors, the AI concierge will offer local recommendations. During a weather emergency, the chatbot will send safety tips immediately.
AI concierges will also enhance customer service and boost revenues. For example, guests who regularly stay at the same hotel and prefer the same restaurant will receive updates about upcoming and seasonal menu items.
AI is a crucial trend alongside smart rooms, driving hyper-personalization. This shift began in 2016 when a luxury UK hotel developer launched a smartphone-based AI service for booking and local recommendations.
VR & AR Entertainment
In the next decade, hotels must develop creative ways to entertain their guests, and using gamification correctly can boost hotel experiences. Augmented Reality (AR) and Virtual Reality (VR) are already making waves and will continue in the future. Imagine guests exploring hotel grounds with Pokémon Go-like adventures while kids take on AR quests that fit the hotel’s theme, finding virtual treasures as they roam around.
AR and VR possibilities in hotels are endless, limited by creativity and budget. Take Marriott Hotels, for example—they amaze their guests with VR postcards that let them dive into 3-D travel stories through headsets.
Case Study: Smart Rooms, Cloud, and Mobile in Hotel Industry
Smart Rooms
A leading Asian hotel chain engaged CodeSuite to create a smart room solution for their upcoming property, marking their first outsourced software development. Collaborating closely with the client, we developed a tablet-based system with pre-set designs for each suite.
Features Include:
- Control air conditioning, lighting, windows, and media centres
- Order guest services and food
- Chat with staff
- Access hotel information and flight schedules
- Receive notifications and alerts
Benefits for the Client:
- Enhance guest experience with advanced smart rooms
- Increasing sales opportunities through targeted promotional offers
- Strengthened premium brand experience
- Improved customer insights from updated data
- Cloud-based solutions integrated with other systems
Cloud: A Unified Architecture
Post-implementation, CodeSuite assists the client in transitioning from legacy systems to a unified enterprise architecture with exposed APIs. This enables the flexible and faster business scenario creation.
For example, the hotel app allows guests to book rooms, access loyalty cards, and follow updates. The unified architecture will also facilitate adding existing features like ticket purchases for entertainment parks, reducing costs and time by leveraging existing infrastructure.
Mobile Application
We also developed a mobile app to extend the client's brand experience. The app is simple and visually appealing, allowing customers to quickly book rooms, manage memberships, and manage other options. We integrated the country’s most popular payment service to streamline the booking process.
Conclusion
The hotel industry faces a long road to digital transformation services, but the benefits are substantial. Modern tech can boost the hotel industry, improving guest experiences, driving sales, and adding engaging, exciting elements to vacations and business trips. Our list of technologies is just the beginning. Many upcoming trends will shape the hospitality industry, leading it to a brighter future
