Enhancing customer experience with smart hotel technologies

Have you checked into a hotel using a mobile app? Or maybe the light in your hotel room switched off automatically when you opened the door to leave? These features are only the tip of the iceberg in smart hotels.

Source: Unsplash.com

What are smart hotels?

According to Dalgic and Birdir 1, a smart hotel adopts a variety of cutting-edge technologies to provide guests with novel and tech-focused experiences. These hotels demonstrate a rise in smart services, defined as the incorporation of data and connected technologies that anticipate customers’ requirements and permit adaptation in response to any changes in settings or circumstances.2

Smart hotels go beyond a single concept or the straightforward application of technology. Instead, they involve gathering, integrating, analyzing, and concerted use of both general and specific client data via connected and synchronized technologies to enhance and personalize the customer experience.3

Usage of smart hotel technologies

DiPietro and Wang 4 distinguished four key areas that reflect the main effects of ICTs on hotel management—strategic planning and revenue management, operations, marketing, distribution and communication, as well as customer service and relationship management. This paragraph includes some examples of most hotels implement smart technologies nowadays.

Behind-the-scenes operations management technology indirectly improves client happiness by assisting executives in managing hotel operations more effectively and efficiently. Due to its ability to streamline the maintenance of rooms and guests’ requests, software like “Opera” or “CloudBeds” aids hoteliers in providing better client services. It is a property management system that is employed in hotels for the creation of reports as well as for reservations, rate administration, guest profile upkeep, and profit management.5

The cost of a hotel room may be one of the major deciding factors for travellers to choose a hotel, but social media and user review websites’ credibility and content might influence travellers’ booking intentions 6. Because so many individuals use social media to choose their holiday destination, share their experiences, and write reviews about the places they have visited, social media has emerged as a tool of essential relevance for the hotel sector.

In addition to social media, hotels realise that they need to employ technology to develop more cutting-edge services to boost client interaction.

How to create a smart hotel experience?

People love innovative experiences, especially they are open to trying something new when travelling. A stream of research has concluded that one of the keys to a company’s success is to offer a unique client experience. Can you imagine checking into a Marriott International hotel and having smart shower doors? What are those? you might ask.  These doors are made so guests can write down their thoughts while in the shower and subsequently send the image to their personal email. 8

Consumers are increasingly more interested in purchasing experiences, instead of buying goods and products, according to Neuhofer et al. Any successful business should prioritize determining and comprehending consumer demands and desires to improve their customer experience.

Luo & Pan 10 identified five aspects of the smart hotel experience—interactivity, personalisation, accessibility, informativeness, and privacy safety. Interactivity means technologies are easy and fun to use. Personalization means that tourists’ demands are met through customized services, which also enhance their travel enjoyment and make smart tourism hotels more appealing to them. Accessibility refers to how simple it is for a person to access and utilize the information provided. Credibility and information quality are important variables that can majorly impact visitors’ experiences. Last but not least is privacy safety, a necessary component of the technology-mediated environment is the protection and security of personal and private information.

These five dimensions are crucial to create a safe and unforgettable smart hotel experience for customers when designing an innovative experience.

Future of smart hotels

A framework for connectivity and interconnection is being adopted by the hospitality sector as an intelligence system that will revolutionize the sector. A fully integrated smart network should be capable of dynamic data sensing, storing, analysis, and interpretation. The capabilities of IoT and sensors allow for the monitoring and extraction of data from the outside world. Three domains are involved in connecting smart IoT networks: network-centric, cloud-centric, and data-centric. 11

Source: Pixabay.com

Challenges of implementing smart hotel technologies

Even though smart hotel technologies have various advantages for consumers, hotel employees, and hotel owners, there are always questionable points in every technology use.  Some of them are discussed below.

Research

Hotel owners hope that technologies may assist staff in daily tasks, cut financial costs, and improve the customer journey of hotel guests. However, to support management strategic planning and decisions, modern hotel management needs a vast amount of data – hotels have to do a great amount of research.

Control

Smart services can meet client needs even before the customer is aware of them. For instance, without consumer involvement, the room temperature in a hotel room is changed to suit an individual’s demands. However, there is always a chance that the algorithm incorrectly calculated it or that the consumer would like the room to be less hot at that moment. Smart services must therefore give the consumer the option to customize the experience. How many settings or options are required to meet each customer’s unique tastes and provide them control?

Privacy

Many hotel customers are hesitant to provide or disclose their data to hotel employees because they are concerned about their privacy. Furthermore, individuals might not feel safe if they realize that service providers are gathering, storing, and using their data behind their backs. Because of these privacy concerns, some guests, for instance, could complain if a hotel records everything they do, such as what they watch on TV or what they eat or drink while they are accommodated.

Technologies vs. human interactions

While technological advancements are crucial nowadays, many travellers could concur that they alone do not produce great and memorable experiences. Therefore, for many, these experiences are created through encounters with locals, other visitors, and employees. However, many smart services use technology and machines to replace guest-staff interactions, which can occasionally be expensive and time-consuming. However, certain smart services and technologies also have the potential to improve human contact.12 The difficulty lies in creating and implementing smart technologies that enhance existing processes in hotels while maintaining the necessary amount of human involvement.

Source: Author

The mind map above wraps up this blog post and gives food for thought on how to create a customer experience using smart hotel technologies. To conclude, it can be stated that the development, adoption, and implementation of cutting-edge technology across all areas of hotels will result in growth and sustained competitive advantage, therefore enhancing guests’ experiences. Smart hotels should focus on involving consumers in experiences and experiences production. However, each hotel must strike a balance between what it can provide given its resources and what its clients are expecting.

References

1 Dalgic, A., & 1 Birdir, K. (2020). Smart hotels and technological applications. In Handbook of research on smart technology applications in the tourism industry (pp. 323-343). IGI Global.

2 Kabadayi, S., Ali, F., Choi, H., Joosten, H., & Lu, C. (2019). Smart service experience in hospitality and tourism services: A conceptualization and future research agenda. Journal of Service Management30(3), 326-348.

3 Gretzel, U., Koo, C., Sigala, M., & Xiang, Z. (2015). Special issue on smart tourism: convergence of information technologies, experiences, and theories. Electronic Markets25(3), 175-177.

4 DiPietro, R. B., & Wang, Y. R. (2010). Key issues for ICT applications: impacts and implications for hospitality operations. Worldwide Hospitality and Tourism Themes.

5 Law, R., Leung, R., Lo, A., Leung, D., & Fong, L. H. N. (2015). Distribution channel in hospitality and tourism: Revisiting disintermediation from the perspectives of hotels and travel agencies. International Journal of Contemporary Hospitality Management27(3), 431-452.

6 Noone, B. M., & McGuire, K. A. (2013). Pricing in a social world: The influence of non-price information on hotel choice. Journal of Revenue and Pricing Management12(5), 385-401.

7 Kim, H., & Choi, B. (2013). The influence of customer experience quality on customers’ behavioural intentions. Services Marketing Quarterly34(4), 322-338.

8 Morgan, B. (2020). 10 Examples Of Customer Experience Innovation In Hospitality. Forbes.

9 Neuhofer, B., Buhalis, D., & Ladkin, A. (2015). Smart technologies for personalized experiences: a case study in the hospitality domain. Electronic Markets25(3), 243-254.

10 Luo, X., & Pan, Y. (2021). A Study on customer experience design through analyzing smart hotels in China. Journal of the Korea Convergence Society12(3), 115-124.

11 Jin, J., Gubbi, J., Marusic, S., & Palaniswami, M. (2014). An information framework for creating a smart city through the internet of things. IEEE Internet of Things Journal1(2), 112-121.

12 Sharma, D. (2016). Enhancing customer experience using technological innovations: A study of the Indian hotel industry. Worldwide Hospitality and Tourism Themes.

 

Can service robots replace human labor in hotel industry?

Technology human touch background, modern remake of The Creation of Adam

How would you feel if a robot welcomed you when arriving to a hotel instead of a human? Would you be more pleased of robot’s convenience or the real face-to-face interaction that a human being can offer? Robots in hotel industry can bring so many opportunities yet so many challenges. Nobody knows about the future, so would it be possible that robots will replace human labor in hotel industry?

The impact of robot employees has been gaining attention in recent years. It is not a news flash that technology has been replacing human employees for years, but especially after Covid-19, the conversation around replacing humans in customer service has gotten even louder 4. The development of Artificial Intelligence has given more opportunities for developers to take robots to so called “humane” fields, such as hospitality industry. The concern that are robots really replacing humans has become more and more real.

Many faces of Artificial Intelligence

Diving into the world of robotic employees, we need to understand what Artificial Intelligence actually means and how to use it in hospitality field. AI, short for Artificial Intelligence, has ability to collect and handle enormous amount of data to help gain more knowledge of certain subject. According to Knani, Echchakoui and Ladhari, AI is depending on three different attributes, which are algorithm, processing capacities and data. Algorithm, big data and capacities help solve difficult tasks that need intelligence that can take less time than humans do, which is a great advantage for companies.2

AI technology brain background digital transformation concept

AI has been developing robots to manage human services and has gotten attention from different companies in hospitality field. A really good example is Henn-na Hotel, in Japan, which was opened in 2015, is the first fully automated hotel with only robot employees. Customers have no human employee contact in the whole time they are a guest. The reception area is managed by a female android robot and a dinosaur that help guest with room log in and log out. A customer uses different buttons to get a reaction from the front desk robots. Robots are also in charge of cleaning the rooms, and with a help of Tulie, a guest can use a voice-command to control the TV, lights or rooms temperature. In this scenario, AI has been used to run the entire hotel, without usage of human employees. These sorts of hotels are a niche market in the hospitality world and experts have been trying to develop robots to more and more human-like, which can be done by characterizing robots to do certain tasks and add more social elements to the mix. 3   

Robots are coming – are you ready?

Labor shortage, cost-saving and the sanitation policy has increased the number of robot employees in hotel industry. Usage of robot employees are getting more popular in different parts of the world and it lowers the costs and lifts efficiency in work related scenarios.1 Cost-effectiveness in robot employees can be seen in the fast work pace and the fact that employers don’t have to pay them salary, sick leave or bonuses, because, well, they are not human.

Due to Covid-19 pandemic, labor force in hospitality industry has decreased rapidly. When thinking about outside of the efficiency that technology provides to hospitality industry, contactless service and sanitary policies are the ones lifting their heads. Robots can offer no-contact services and can fight against infections which could bring comfort and shut down negative feelings towards hotel industry.4   

Photo by Alex Knight on Unsplash

When talking about AI, we can’t ignore the fact that it can bring negative impact to the mix. Robot employees and other technological features directly affect to hotel employees and it can cause job losses. This can lead to stress, reduced productivity and negative atmosphere among hotel employees and workplace.

Robots also lift questions about privacy and personal data. AI has rapidly grown in recent years and it brings up concerns about ethical issues. Customers share personal information in many settings and collecting and sharing that data would be all in the hands of robots.2 For my own point of view, it would be important to study this subject more in detail and collect customers perceptions on data collection and does it affect customers trust in companies using robots. In this way, we can measure trust and find ways to handle it with more care.

So how do customers feel about robotic employees then?  It has been shown that robots spark more sensorial and intellectual experiences than human employees but creates less affective experience4 . This may not come as a surprise, but robots have a hard time replacing communication with a real human employee and it reduces social interactions rapidly, which is why we move on to the next question – is cheaper always better?

The power of a simple smile

With increasing use of robots in the hospitality sector, it naturally decreases the human interaction. This means, that a robot is responsible for the emotional experience that the customer will perceive. Easy right? Not quite. Kim, Kam Fung So & Wirtz has said that one of the ways a human can read emotions from another human is through their facial expressions, it can be an impossible task for robots to create this sort of interaction6.

Robots can express emotions, but they stay rather superficial and it is not enough to give customer a satisfaction. Fuentes-Moraleda, Diaz-Oerez, Orea-Giner, Munoz-Mazon and Villace-Molinero studied the customer satisfaction between robot and human employees. The study showed that even though customers found robots interesting, they still wanted to rely on human employees instead5 . In this kind of situation, the importance of social presence and interaction enters the picture. With the help of this theory, we will understand more about the importance of communication in different settings and in this case, contact between a customer and hotel employee.

Even though technological features are important in hotel industry and I do believe that robots are giving great amounts of opportunities in hotels as said before, experts are still trying to connect technologies with communication, which explains the need for socialization. Social presence has an effect on customer experience: good, authentic face-to-face experience can be the reason a customer comes back to that certain hotel7 .

Photo by Brooke Cagle on Unsplash

Fast decision-making, problem solving and showing empathy comes more naturally to humans and that is a valuable asset in hotel industry. Human employees can be a link between customers and technology and can bring them closer together and in that way, increase its acceptance.9 Technology and human employees don’t rule each other out, but we can see them helping each other by using both of their strong suit by making customer service and other parts of hotel services as smooth as possible. Robots bring data collection, fast work phase and contactless option to the hotel world as well as human employees bring emotions, problem solving and warmth to the environment.

Photo by Diego PH on Unsplash

Robots and humans – better together?

With understanding the importance of technology, communication and human labor, we must start to see robots replacing different chores, but not jobs. There is still much to be studied, but I believe we need to look at the big picture and see how much robot usage is affecting customer trust in different scenarios, whether it’s handling data or measuring service quality. Suppressing human interaction creates low communication which can lead to unwanted service8.

Robots are still great with handling huge amount of information and can be used in a cost-effective way, but I don’t see the chance that robots could fully replace human labor any time soon. This is due to the fact that robots cannot make connections or build strong customer relationships nor do they have emotional intelligence that humans have. In hospitality industry – and in customer service in general-, problem-solving is an important skill to require and robots are not the first ones to solve issues that calls for sensitivity and understanding. I do see robot employees being used in other various tasks, that includes for example cleaning, luggage carrying or using them as assistants. Hotel industry is and will be more efficient with the help of robots due data collecting and speed, but I see them more in an assisting role to human employees than replacing them fully. I believe real face-to-face communication is too valuable asset to go to waist.

 

References

  1. Song, H., Wang, Y., Yangm H. & Ma, E. 2022. Robotic employees vs. human employees: Customers’ perceived authenticity at casual dining restaurants. International Journal of Hospitality Management, Vol 106 No. 9. Referenced on 27.10.2022. https://reader.elsevier.com/reader/sd/pii/S0278431922001633?token=01F7633DB1DE16A35E947B8648256D8C3299201C46A76DB4AA78B90015BEBC66D3B1A117FF070B2469D79B54BD5F8C16&originRegion=eu-west-1&originCreation=20221026121030
  2. Knani, M., Echchakoui, S. & Ladhari, R. 2022. Artificial intelligence in tourism and hospitality: Bibliometric analysis and research agenda. International Journal of Hospitality Management, Vol 107 No. 10. Referenced on 27.10.2022. https://reader.elsevier.com/reader/sd/pii/S0278431922001797?token=1911CD69B3218590D037275390B968AD012808153CBCC3D629E9F14540CF7FA07934E19BC936A09A465F99F6868E123C&originRegion=eu-west-1&originCreation=20221027122007
  3. Reis, J., Melao, N., Salvadorinho, J., Soares, B. & Rosete, A. 2020. Service robots in the hospitality industry: The case of Henn-na hotel, Japan. Journal of Technology in Society, Vol 63 No. 11. Referenced on 27.10.2022. https://reader.elsevier.com/reader/sd/pii/S0160791X20308290?token=C0D2551AA292530EBD7CEEFEA124ED2129929A7636BAA0FB2656AB1CBA15BEE5533FFC3A151CB92CEBC8291B043A6B0B&originRegion=eu-west-1&originCreation=20221027123614
  4. Parvez, M., Özturen, A., Cobanoglu, C., Arasli, H. & Eluwole, K. 2022. Employee’s reception of robots and robot-induced unemployement in hospitality industry under COVID-19 pandemic. International Journal of Hospitality Management, Vol 107 No. 10. Referenced on 28.10.2022. https://reader.elsevier.com/reader/sd/pii/S027843192200202X?token=67B4516FD32C8D89A5B5A6551917BA65AC4E4DC8887613C2F52D07C0563C211EFC9B31C1D3517E4920BA2A96A1211831&originRegion=eu-west-1&originCreation=20221027120103
  5. Fuentes-Moraleda, L., Diaz-Perez, P., Orea-Giner, A., Munoz-Mazon, A. & Villace-Molinero, T. 2020. Interaction between hotel service robots and humans: A hotel-spesific Service Robot Acceptance Model (sRAM). Journal of Tourism Management Perspectives, Vol 36 No. 10. Referenced on 3.11.2022. https://reader.elsevier.com/reader/sd/pii/S2211973620301185?token=1C98D48EF847CF713F0D290B1BEBDE725CEE7E00F2D5C3F477FFC238AC2F0B89E4DF9F16C3B09654A248AB2A9DE82D1B&originRegion=eu-west-1&originCreation=20221103102134
  6. Kim, H., Kam Fung So, K. & Wirtz, J. 2022. Service robots: applying social exchange theory to better understand human-robot interactions. Journal of Tourism Management, Vol 92 No. 10. Referenced on 3.11.2022. https://reader.elsevier.com/reader/sd/pii/S0261517722000504?token=B0374897BCB3C983F680EE1138A5CD278874BA52211584E1BC67909E1AD421A9DB43160F7E0EE89BC3354BEB20D621AB&originRegion=eu-west-1&originCreation=20221103104545
  7. Wu, C., Huang, S. & Yuan, Q. 2022. Seven important theories in information system empirical research: A systematic review and future directions. Journal of Data and Information Management, Vol 6 No. 1. Referenced on 3.11.2022. https://reader.elsevier.com/reader/sd/pii/S2543925122001048?token=BE259680C2013901F2C313EADAB015919065DA9BCD1760FE185A1779673831EBA58658BB3B380FC8081061449B88D851&originRegion=eu-west-1&originCreation=20221103104327
  8. Osawa, H., Ema, A. Hatori, H. & Akiya, N. 2017. What is real risk and benefit on work with robots?: From the analysis of a robot hotel. Referenced on 7.11.2022. https://www.researchgate.net/publication/314296083_What_is_Real_Risk_and_Benefit_on_Work_with_Robots_From_the_Analysis_of_a_Robot_Hotel
  9. Fan, H., Gao, W. & Han, B. 2022. How does (im)balanced acceptance of robots between customers and frontline employees affect hotels’ service quality? Journal of Computers in Human Behavior, Vol 133 No. 8. Referenced on 7.11.2022. https://reader.elsevier.com/reader/sd/pii/S0747563222001091?token=F989CC8257598A9E209157427B75D22BEF5E57FCDFA7D5E575FF6B821EBBCFAFA653BD244FD215CF15304D2D32E25FC8&originRegion=eu-west-1&originCreation=20221107145658
  10.  Wang, L., Ho, J., Yeh, S. & Huan, T. 2022. Is robot hotel a future trend? Exploring the incentives, barriers and customers’ purchase intention for robot hotel stays. Journal of Tourism Management Perspectives, Vol 43 No. 7. Referenced on 7.11.2022. https://reader.elsevier.com/reader/sd/pii/S2211973622000496?token=89FED05404FE666973AC4E7AD221C2D900A7EDE99855A532EFE0F5875EC60279D5D8055B328EB08FC2E018FF34DD1588&originRegion=eu-west-1&originCreation=20221107160740