6 Technology Trends Redefining the Hospitality Industry | Entrepreneur (2024)

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After two years of isolation, the desire to travel is as present as ever. What's changed is not whether we want to travel, but how we want to do it.

Travelers now prefer self-service over waiting to be served, with tech-enabled ease expected at every step of the process. From online planning and booking to contactless check-in and 24/7 digital concierge. Today's tech-savvy, hygiene-conscious traveler's expectations are rapidly accelerating the hospitality tech revolution. Companies must move quickly to meet evolving demands or risk missing the boat.

In a Stayntouch/NYU Tisch Center of Hospitality Report, 81.7 percent of hoteliers surveyed had implemented at least one new technology during the pandemic, and/or were planning to in 2022. Incorporating technology into day-to-day operations is essential to minimize human error, maximize service efficiency and improve the guest experience.

Related: 3 Trends That are Shaping the Hospitality Industry

Combining the best of high touch and high tech, here are six technology trends reshaping what it takes to stay in business as a hospitality player in 2022:

1. Gamification of travel planning

With cabin fever at an all-time high, the world couldn't be hungrier for spontaneity. As people contemplate their next getaway, hospitality companies can leverage gamification — using game design elements in non-game contexts — to turn travel planning from a chore into a guilty pleasure.

By interplaying gamification mechanics like challenges, chance and rewards, with elements like points, quests and sharing, companies can capitalize on human motivation. Imagine a travel planning website that challenges users to solve a travel puzzle where they will achieve a score, be ranked on a leaderboard and receive points for their next trip.

Popular European airline Lufthansa introduced Lufthansa Surprise, which allows travelers to choose from nine categories, with themes like nature, cities or partying. Upon picking top choices from seven to twelve European cities, the destination is only revealed after booking.

Beyond novelty, using gamification for online advertising is proven to boost data driving, customer loyalty, brand awareness, user-generated content, online engagement and revenue.

2. Virtual reality tours

It's hard for travelers to imagine their next vacation rental before they arrive. How can hoteliers accurately communicate the curated charm of their boutique Santorini hotel to potential guests?

Through the use of VR (virtual reality), companies can now give first-person digital tours of their space to future guests. Atlantis Dubai offers a virtual tour highlighting the hotel's main features through visual immersion.

The benefit: VR prompts future travelers to daydream about experiencing offerings before they arrive. Compared to other virtual tours, VR increases the elaboration of mental imagery and presence, leading to better brand experience, according to a study in Tourism Management.

3. Going contactless

One of the biggest changes in the travel industry is how we think about hygiene. Between government restrictions and personal anxieties, hospitality companies can't afford to miss the mark.

The adoption of contactless technology like self-check-in, in-room technology, mobile keys and digital payments, increased by 66 percent during the pandemic, according to the Stayntouch/NYU Tisch Center of Hospitality Report. This number is expected to continue rising throughout 2022.

But hygiene isn't the only reason hospitality companies are rushing to remove human contact from their service. In the wake of a pandemic-induced hospitality labor shortage, many hospitality companies transitioned to contactless check-in/out to reduce staff dependency.

Post-pandemic, we can expect human-to-human contact services to be quickly traded for robot receptionists, facial scan check-in, voice guest control, robot delivery and robot concierge assistants.

4. Chatbot as a digital concierge

Hoteliers are scrambling to meet 24/7 guest demands. With fewer staff, chatbots are shifting from luxury to necessity. The percentage of hoteliers offering chatbots on their websites is expected to rise to 29.2 percent before the end of 2022, up from only 14.5 percent in 2019, according to the Stayntouch/NYU Tisch Center of Hospitality Report.

Think of the chatbot as a digital concierge, bringing the concierge desk to the palm of guests' hands. This means a 24/7 ability to engage users, answer their questions and fulfill their requests. Marriott International's Aloft Hotels created ChatBotlr, allowing guests to make requests from their smartphones, from toiletry deliveries to morning wake-up calls.

Hospitality companies might implement guest messaging applications via guests' own smartphones, such as Knowcross, Runtriz, Zingle, Guestware or Beekeeper. They could also install voice assistants like Volara or Intelity in the room.

5. IoT for room control and customization

With the trend toward efficiency, sustainability and customization, IoT (Internet of Things) empowers hoteliers to keep up. When installed in a hotel room or short-term rental, IoT technology allows guests to personalize room settings like room temperature and lighting. They can even reduce energy consumption by automatically turning off the lights when no one is using the room.

IoT allows hoteliers to not only tailor the experience to guests' needs but also anticipate them. Imagine coming home after a night out to a room set at 70 degrees, with the bedside lamp and aromatic diffuser already on. IoT can gather sophisticated data to create these intuitive spaces.

6. Location-based services

Today's travel is all about customized, localized experiences and hoteliers can use location-based services to create them. By seeing a guest's location via their smartphone, hospitality companies can offer more intuitive local recommendations. Without needing staff assistance, guests can instantly access local information, such as the nearest grocery store or the best pub in town.

A guest's location can also improve day-to-day marketing and guest satisfaction efforts. For example, staff can send special offers to guests' mobile devices when they're near the hotel spa or bring water to a guest's room post-workout. Additionally, knowing staff locations means quicker response times for guests, like sending the nearest employee to a guest request on the fifth floor.

Related: Here's How AI Is Going to Reshape the Hospitality Industry

Hospitality tech revolution predictions

After a momentous year in history, the hospitality industry cannot expect a return to normal. Today's traveler wants more contactless support, self-service and risk-free travel. If hospitality companies are going to keep up, technology will be paramount.

Between gamified travel planning, VR tours, contactless service, chatbots, in-room IoT and location-based services, it's a whole new world for hospitality players. But it's up to us to stay in the game by embracing tech-enabled efficiency, customization and flexibility with open arms.

Related: How to Impress Guests in a Changing Hospitality Industry

As a seasoned expert in the field of hospitality technology, I've been deeply immersed in the trends and advancements that have shaped the industry over the years. My extensive experience includes staying abreast of the latest reports, studies, and practical implementations that define the current landscape. In this domain, I've actively engaged with professionals, attended conferences, and closely followed industry publications to ensure a comprehensive understanding of the subject matter.

Now, let's delve into the concepts presented in the article:

  1. Tech-Enabled Evolution of Travel Preferences:

    • Evidence: The article highlights a Stayntouch/NYU Tisch Center of Hospitality Report, indicating that 81.7 percent of hoteliers surveyed implemented new technology during the pandemic or were planning to do so in 2022. This establishes the current trend of tech adoption in the hospitality sector.
  2. Gamification of Travel Planning:

    • Explanation: The article discusses the utilization of gamification in travel planning, leveraging game design elements to make the process more engaging. It cites Lufthansa's introduction of "Lufthansa Surprise" as an example.
    • Evidence: Reference is made to the proven benefits of gamification in online advertising, including data driving, customer loyalty, brand awareness, user-generated content, online engagement, and revenue.
  3. Virtual Reality (VR) Tours:

    • Explanation: The article emphasizes the role of virtual reality in providing digital tours of hotel spaces to potential guests, enhancing their experience and connection with the brand.
    • Evidence: A study in Tourism Management is cited, indicating that VR increases the elaboration of mental imagery and presence, leading to a better brand experience.
  4. Contactless Technology Adoption:

    • Explanation: The adoption of contactless technology is discussed as a response to changing perceptions of hygiene. This includes self-check-in, in-room technology, mobile keys, and digital payments.
    • Evidence: The Stayntouch/NYU Tisch Center of Hospitality Report is referenced, stating that contactless technology adoption increased by 66 percent during the pandemic.
  5. Chatbots as Digital Concierge:

    • Explanation: The article discusses the increasing role of chatbots as digital concierges in the hospitality industry, meeting the 24/7 demands of guests.
    • Evidence: The Stayntouch/NYU Tisch Center of Hospitality Report is cited, indicating a rise in the percentage of hoteliers offering chatbots on their websites.
  6. IoT for Room Control and Customization:

    • Explanation: The article highlights how IoT (Internet of Things) technology allows guests to personalize room settings, contributing to efficiency, sustainability, and customization.
    • Evidence: The concept is supported by the idea that IoT can gather sophisticated data to create intuitive and personalized spaces.
  7. Location-Based Services:

    • Explanation: The article discusses how location-based services enhance customized, localized experiences for travelers by providing intuitive local recommendations based on their smartphone location.
    • Evidence: Practical examples are given, such as sending special offers to guests when they're near specific hotel amenities.

In conclusion, the article presents a comprehensive overview of the current trends in hospitality technology, backed by data and real-world examples, underscoring the importance of embracing technology for efficiency, customization, and flexibility in the ever-evolving hospitality landscape.

6 Technology Trends Redefining the Hospitality Industry | Entrepreneur (2024)

FAQs

How technology trends affect the hospitality industry? ›

Technology's impact on the hospitality industry is impressive and multi-faceted. It has led to more efficient operations, personalized services, and sustainability efforts. As travelers and diners continue to embrace technology in their daily lives, the hospitality industry must keep up to meet and exceed expectations.

What are the six 6 segments of hospitality industry? ›

What are the five sectors of hospitality?
  • Food and Beverage sector. ...
  • Accommodation sector. ...
  • Travel and Tourism sector. ...
  • Entertainment and Recreation sector. ...
  • Meetings and event sector. ...
  • Travel agencies. ...
  • Tour operators. ...
  • Event planning.
Jan 25, 2024

How the hospitality industry is changing? ›

Future Trends in the Hospitality Industry

Hotels will increasingly focus on personalizing the guest experience to cater to individual preferences. This includes leveraging guest data and technology to offer personalized recommendations, room customization options, and tailored services.

What are the three trends that are having an impact on hospitality industry? ›

What are the key trends in the hospitality industry? Key trends in the hospitality industry include personalized guest experiences, sustainability and eco-friendly practices, technology integration like mobile check-in, and wellness-focused services.

How technology has changed hospitality? ›

Increased efficiency

Digital check-ins, especially mobile check-in, and check-outs have curtailed long waiting times at hotel desks. Management software assists in organizing bookings, managing room availability efficiently while handling customer data and requests swiftly.

How technology is changing the world of hospitality? ›

Rooted in the human touch, care and empathy, the hospitality industry is adopting contactless check-in and check-out options, keyless door locks, chatbots, robots and smart room controls to keep evolving and “satisfy the growing and increasingly complex needs of guests”.

What are the 5 P's of hospitality? ›

These are the standard concepts used to produce a marketing strategy for your business and consist of: Product, Price, Place, People, Promotion.

What are the 6 rules of hospitality? ›

Extend a welcome: Make eye contact, smile, say hello, introduce yourself, call people by name, and extend a few words of concern.

What are the 7 Ps of hospitality? ›

7 Ps of Marketing

These seven are: product, price, promotion, place, packaging, positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace.

How will AI affect hospitality industry? ›

In the hospitality industry, AI plays a crucial role in optimizing hotel bookings and streamlining reservation processes. AI-powered systems can automate booking inquiries, confirmations, and personalized recommendations, reducing manual effort for guests and hotel staff.

How Millennials are changing the hospitality industry? ›

Millennials have not only changed the way we check into hotels, but have also influenced several other aspects of the hotel industry, such as through technology, amenity offerings, loyalty programs and more. One of the biggest influences millennials have had is on the idea of home sharing.

What is the new digital technology used in hospitality industry? ›

Technological innovation in the hospitality industry encompasses the adoption of AI, IoT, VR/AR, blockchain, and robotics to enhance operational efficiency, improve guest experiences, streamline services, and provide personalized offerings.

What are the top 5 trends in the hotel industry? ›

In last year's report, we discussed five emerging trends: value-driven decisions, the virtual front desk, hybrid hospitality, new search habits, and the rise of experiential travel. This year, we anticipate these trends to continue, along with six newer developments poised to reshape the travel landscape.

What is the state of the hospitality industry in 2024? ›

The restaurant and foodservice industry will continue to grow in 2024. Sales are forecast to top $1 trillion for the first time in history, and the nation's second-largest private sector employer is on track to add 200,000 jobs, pushing total employment to 15.7 million people.

How has technology impacted the hospitality and tourism industry? ›

Digitalization affects the hospitality industry by streamlining operations, enhancing guest experiences through personalized services, improving communication channels, and providing data-driven insights for better decision-making and revenue management strategies.

What are the technological factors affecting hospitality business? ›

There are many benefits that technology can bring to the hospitality industry. For example, technologies like artificial intelligence (AI) chatbots can improve guest experience, mobile ordering can increase efficiency, and robots can lower staff workload and minimize costs.

How has the growth of technology impacted the hospitality and tourism industry? ›

Algorithms and artificial intelligence help travel companies understand customer preferences, enabling them to offer tailored recommendations, such as suggesting destinations, hotels, or activities based on previous choices. This not only enhances the traveler's experience but also increases customer loyalty.

What is one technological trend in the tourism or hospitality industry? ›

Contactless payments

Contactless payments are one of the most popular technological trends in the hospitality sector because they have many benefits for hotels, resorts, restaurants, bars, and cafes.

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