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

Does AI in tourism have unlimited possibilities?

Does AI in tourism have unlimited possibilities?

Are all possibilities positive? Will there be a new level of crime, automation and robots displace workers and ICT has stifled human interaction?

Are we ending up in a circle of choises or does this lead us to pilgrimage unknown paths? Have hardcore tourist ended up to be unsung hero of software tourism?

Pixabay
Pixabay

During era of 21st century Artificial Intelligence has made dramatic changes. Tourism has been one of fastest growing industries. Between 2005 to 2015 it has made global change of international tourists from 528 million to 1.19 billion visitors. Most of this increase is studied to be result of digital marketing and would exceed 800 million crosses by the year of 2020. Some studies have been made with some major operators like Google Travel or Trip Advisor and was found out that 85% of the customer used AI serviced during reservation process.¹ Compass to navigate through all these options needs lot of effort, when you have too much to choose from and endless options, I wonder will it start to be harder to makes actual decision.

 

Internet of Things IoT is in key role of all these possibilities that include electronic shopping guides, self-guided tours, electronic navigation, fast data processing combined secure online payment systems giving tourists endless possibilities to plan and execute travels from anywhere and anytime. With all the information available, tourism management sector can provide all the useful data all the way to destinations and local governments, so things are made efficiently.² Here we come to the question how efficiently and effortless should it be or is the actual tour guide still giving extra value to that moment, not to forget if something happens, there is always some one to help or at least knowing where to get help.

 

 

Main role and the star of the show is of course tourists. It has been welcoming sight from both sides of the parties, the service providers and tourism marketing travelers. This leads to better understanding of customer need, by providing more simpler and quicker tourism production, change to conquers wider market and option for destinations to grow independently when they are no longer under the mercy of tour operators. Web marketing is the most cost-effective way to gain access to the customers and provide multiple options for theirs to choose.³

Pixabay

Lord of the holidays sounds like I have American black master card to rule them all and yes, money do make things possible, and it works vice versa.

 

Time of Covid-19 world was basically lock down. Tourism and hospitality were a business that took the biggest hit of all, including flight operators and everything else. Drop in sales was 51% and total of 2.86 trillion U.S dollars. People had more time and they started to use more social media platforms for information, including travel-based apps for more need of more open information from real people, not from google and basic tv news. Many tourists were hold in their hotels as quarantine stations. This gathered data will help tourism businesses to prepare in case of next major happening, but also it has taught improvision and forcing them to find new solutions to keep business alive.⁴ With sustainability in mind digitalization offers chance to overcome the markets for enterprises that had lots of restrictions. Government still has vital role of supporting XR based solutions. ⁶

Fantasy, Virtual Reality, Vr, Vr Glasses
Pixabay

During Covid-19 tourism came to halt and gave time to different destinations to think how to proceed. People from Amsterdam voted that they would rather focus on quality tourism instead of mass tourism. This though will affect to similar cities which most of the money revenue comes from tourists. Over tourism of course will create needs of accommodation and restaurants etc. but also unwanted social acts start to happen like assaults, robberies, money laundry and drug trafficking. ICT gives destinations and smart cities better awareness of present tourism situation at the location so number of police officers can be temporarily increased. ⁹

 

One example, study shows that ICT has leverage to promote agricultural and rural tourism since ICT plays big role in agribusiness and local development. That way farmers can promote their services directly without travel agencies, giving them better profit and control of tourism markets. By time of writing research were most other tourism genres using lot of ICT in their promotion but those small operators at cultural field having lack of money and expertise to use these methods. Taking e-tourism to part of rural tourism enables preserving and balancing to be achievable equation between these two. ⁷

 

Internet began the era when it was key to access to information and it did not happen more than some years ago around 2010 when it changed to be necessity to engage for people. It has been said that if you are not online, you do not exist and for businesses it is true. Measured by citations at tourism studies, digitalization is the largest field and increasing year by year. When these studies are taken to the practice ICT and AI enables to observe customers pre order, on the time and postal ways to make decisions. ⁸

 

We must remember if it is too good to be true, usually it is not true. This also the case of AI too. All these positive things mentioned before in this blog are followed by some critical things to keep in mind. Research done by TripAdvisor shows results of job loss, security issues, privacy concerns and loss of human contact, that might be side effect of technology where AI is involved. AI is in, even huge leaps that has been done in early stage now and it takes several years if not more to solve these unwanted little side effects. ¹⁰

Looking the future scenarios from the customer’s perspective, AI will allow them to prepare their travels more faster, with significantly lower transaction costs and a fully personalized package that suits their needs and interests. They will receive predictive offers that fit their requirements. During the trip, technologies will help tourists to navigate unknown environments seamlessly, reducing the anxiety and fear of the unknown. Language and cultural differences will not be barriers to tourism, but an additional attraction instead. 11
There is almost a vortex in tourism industry how it will operate in the future and most likely we see much more human-AI robots interaction. This may come in form of service consepts or hospitality. Not even AI aircrafts to transfer commercial tourist is not far in the future.

Depending on the purpose of the travel, to destination, it varies how much human based services you encounter, wanted or not. Even remote places it is useful to know nearest hospital and grouser store, little about up coming weather and know a person to ask help from. Still help of ICT companies that use it, can overtake through multiple tasks like online booking and free their staff to serve you better. ⁵ So, I think AI is here to stay and provide many yet unknown possibilities to tourism.  “To bot or not to bot” Would maybe Shakespeare ask in a play today.

 

Pixabay

 

References

  1. Samala, N., Katkam, B.S., Bellamkonda, R.S. and Rodriguez, R.V. (2022), “Impact of AI and robotics in the tourism sector: a critical insight”, Journal of Tourism Futures, Vol. 8 No. 1, 73-87.

 

  1. Wang et al., “Realizing the Potential of the Internet of Things for Smart Tourism with 5G and AI,” in IEEE Network, vol. 34, no. 6, 295-301

 

  1. Nikoli, G., & Lazakidou Α. (2019). The Impact of Information and Communication Technology on the Tourism Sector. Almatourism – Journal of Tourism, Culture and Territorial Development, 10(19), 45–68.

 

  1. Abbas J, Hassan S, Mubeen R, Zhenhuan L, Wang D (2022) Tourists’ Health Risk Threats Amid COVID-19 Era: Role of Technology Innovation, Transformation, and Recovery Implications for Sustainable Tourism

 

  1. Bethapudi A (2013 )The role of ICT in tourism industry National Institute of Tourism & Hospitality Management, Telecom Nagar, Gachibowli, Hyderabad, A.P., India JOURNAL OF APPLIED ECONOMICS AND BUSINESS, VOL.1, ISSUE 4 – DECEMBER, PP. 67-79
  2. Andrei O, Kwok J (2020) COVID-19 and Extended Reality (XR) 1935-1940

7. Shanker D (2008) ICT and Tourism: Challenges and Opportunities, Conference on Tourism in India – Challenges Ahead, 15-17

  1. Gössling S (2020) Tourism, technology and ICT: a critical review of affordances and concessions 733-750
  2. Lee P,Cannon ,Hunter W and Chung N (2020) Smart tourism city: Developments and transformations, Smart tourism city roles

 

    1. Grunder L, Neuhofer B (2020) The bright and dark sides of artificial
      intelligence: A futures perspective on tourist destination experiences Journal of destination marketing & management 18 November 2020, 3-4
    2. Bulchand-Gidumal J (2020) Impact of Artificial Intelligence in Travel, Tourism, and Hospitality. Hand book of E-tourism. Springer, 17