Room for innovation: Hotel technology

Hotel technology, if applied efficiently, is a powerful tool that can strengthen the public image of the hotel, smooth the operational efficiency of the standard procedures, increase loyalty to the brand and considerably minimise operational costs.

But because of the initial capex, technology in hotels has to be adaptive and make a demonstrable return on investment.

So how is technology improving hospitality service and room features?

It’s all about the experience

According to a study conducted by Cornell Centre for Hospitality Research in 2014, it is estimated that the millennial generation will represent 50% of all travellers by 2025.

This clearly emphasises the importance of attracting millennials, among others, by meeting and exceeding their travelling requirements.

Millennials are known to have redefined the parameters of traditional luxury consumption giving more importance to experiences than material products. As such, there is more prestige attributed to travelling and generating memories, than buying expensive items. Millennials are also characterised by their high concerns for, and awareness of, the environment; being constantly online through their social media channels, and fast to post bad reviews, thus exposing the service provider to quick and major reputational risk.

So how are hotels around the world using technology to keep their guests engaged for the duration of their stay?

Experience 1: The Booking Process

The first interaction between a guest and a hotel usually takes place during the reservation process. This is when the decision-making process actually materialises; hence, it is critical for the hotel to provide the most accurate and up-to-date information about the property and its amenities/services. Whether it is an online travel agency or a direct booking channel, hoteliers aim to maximise conversion for their properties. As such, they supply websites with quality visual impressions, facility description and contact details, making the User Interface (UI) and payment procedure as smooth as possible.

Example

Hilton’s HHonors app allows its loyalty programme members to select the exact room location and configuration (king bed versus two separate beds) a day before arrival.

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Experience 2: Sense of Arrival

Traditionally, guests that have arrived at the hotel approach the reception desk in order to check in and receive a room key. However, the trend is now leaning towards automated registration techniques. As more online traffic to the hotels’ websites is now driven through mobile devices rather than computers, hotel operators continue to innovate their reservation systems and check-in procedures. Ultimately, the goal is to minimise the amount of time guests spend, from the moment they arrive in the hotel lobby, to the point they reach their selected room.

As such, hoteliers have introduced a mobile check-in option, which enables guests to use their mobile devices as a key, through mobile applications and Bluetooth.

Example

Starwood has rolled out the Starwood Preferred Guest (SPG) Keyless initiative across some of its Aloft, Element and W properties enabling programme members to skip the reception and related paperwork.
Guests at AccorHotel’s budget hotel chain Formule 1 can open their hotel room directly by swiping their credit card. For a budget hotel, this represents a dramatic saving in costs, as there is no need to maintain receptionists for more than one shift per day.

Experience 3: Hotel room

One of the main draws of any hotel is the room. The basic expectations of room amenities have changed dramatically over the last few years while the physical aspect of the room has in fact not changed at all. Going far beyond just a clean and comfortable bed, guests now want the room layout to be user-friendly and accessible for multiple digital devices.

Regardless of whether travelling on business or leisure, connectivity is nowadays the most valued feature of the room. In fact, many travellers make their booking decisions based on the availability of free Wi-Fi. Yet, brand standards are still based on characteristics such as rooms’ size and type of furniture rather than connectivity. Hoteliers who treat their customers “as kings” by providing large room sizes but then forcing them to spend all their time in the lobby because internet in their rooms is not working properly will not survive — nor will charging for internet access.

Example

Carlson Rezidor has set up its Radisson Red brand with a focus on art, music and technology. The brand intends to tap into the tech-savvy market by introducing an app that will allow guests to adjust the environment within the room in accordance with their moods and preferences.

The article was written by Florian Kriechbaumer (software development & operations manager for INTEREL) and Hanna Falko (consultant at PKF The Consulting House).