In a world where connectivity is increasingly valued and digitalization is spreading at a breakneck pace, hotels cannot afford to miss the opportunity to establish themselves in the market. In this context, transforming a lodging facility into an IoT hotel seems like a necessary innovation.
Many companies in the industry are struggling to stay afloat, but the key to survival lies in making significant investments to incorporate new technologies into their accommodations.
Professionals will see a very high cost with no immediate return, but those business owners who go a step further—who have a bit of a visionary streak in their DNA—will understand that incorporating technologies such as artificial intelligence and the Internet of Things and investing in an IoT hotel will be what boosts their profits in the medium and long term.
An old report by HOSPA (Hospitality Finance, Revenue, and IT Professionals) predicted that by 2020, there would be nine internet-connected electronic devices per person. The starting point, in 2013, was one device per person.
The future is here, and many hotel chains have begun to take the necessary steps with their new or most iconic properties, but according to experts, a significant number of business owners in the sector have not yet made a 100% and seamless commitment to incorporating the Internet of Things into their businesses.
Today, around 250 devices or “things” connect every second. If its potential is harnessed—and if it is managed properly—the Internet of Things will have a significant impact on the hotel and tourism industries.
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IoT, or the Internet of Things
IoT technology (short for Internet of Things), also known as the Internet of Things, has been around for years. But not everyone is familiar with the origins of this system, which is set to revolutionize the way we think about hotels. It is a concept that refers to the digital interconnection of everyday objects with the internet.
The term “Internet of Things” (IoT) was first used publicly in 2009, and the credit for this goes to MIT professor Kevin Ashton. He noted that the topic had already been under discussion in research circles for several years prior.
Investing to Adapt to Changes in the Tourism Landscape
For hotels to adapt to this future, they must rely on artificial intelligence as well as incorporate IoT technology into their infrastructure. Even large organizations are working toward this goal. The Hotel Technology Institute has been running the Techyhotel Project 2019 for some time now.
This is a study on the implementation and use of technology in the hotel industry, which seems essential for understanding where the market stands.
With the more traditional tourist on the verge of extinction, it is necessary to adapt to new customers—those who want their accommodations to provide them with valuable new experiences. For this target audience that hoteliers should focus on, spending is less important than comfort and the amenities provided during a stay.
Even without a definitive professional study, it is a known fact that many lodging establishments continue to rely on their outdated business strategies, and it is crucial for the industry to recognize as soon as possible that it must allocate funds to invest in the hotel IoT. Allocating funds to help hotels embrace this technological milestone is essential to avoid losing guests and compromising quality—and ultimately going out of business.
The adaptation of facilities should not be viewed as an expense but rather as an investment with two clear beneficiaries: the business owner and the customer. And digitizing a business of this type does not mean giving up personal service; in fact, one could even say that the opposite will happen. The relationship between staff and guests will become more specialized.
“This transformation must go hand in hand with people and emotions, because we so often forget the human element amid all the technology and when we’re overwhelmed by data that we often don’t have time to analyze,” argues Jorge Marichal, president of the Spanish Confederation of Hotels and Tourist Accommodations (Cehat).
Benefits for Businesses
Making the firm decision to invest in hotels and undertake the necessary construction work can be daunting, but hotel management specialists know it’s necessary. The results of the transition from the current model to the hotel IoT will be evident very soon. This technology will save time and money in many ways.
Efficiency would be the key word associated with this change. According to some experts, the Internet of Things will help reduce carbon dioxide emissions into the atmosphere by 20% over the next ten years.
This could translate into revenue for a business of this type through government incentives. However, we need to focus more on cost savings.
If all accommodations are monitored by this “Internet of Things” for tourism, the system itself will dim the lights when there are no guests in a room, regulate the temperature in unoccupied rooms, and optimize staff time. How? The refrigerator or minibar will alert the department manager via a simple text message when a product is running low.
The business owner can also save a lot of money on advertising, since the hotel would reach potential customers through technological devices at no cost. Without listing all the direct benefits for the investor(s), the focus can also be on leveraging Big Data techniques. By storing tourist data, it will be possible to provide a more personalized service.
This can be leveraged, for example, by offering them stays during the off-season or providing extras such as restaurant services, a gym, or event planning. In addition, predictive maintenance and repairs requested by the devices themselves will be carried out.
Ways to Build Customer Loyalty
The future IoT hotel will also deliver benefits in the most traditional ways. As guests become increasingly demanding and are willing to pay more for experiences rather than just a place to sleep, the Internet of Things will be a great ally. Guests will take charge of their own hotel experience.
It might seem that way because he’ll be the one controlling the temperature in his room, how hot the water comes out of the faucets, and what time he wants the lights to turn on and the TV to turn off. All with simple actions. He also won’t have to worry about where he put his key, because it will be sent to his cell phone or whatever device he’s carrying.
International groups such as Marriott and Wynn are testing technology that includes smart speakers installed in guest rooms and wearable technology—such as watches and glasses—which will enable facial recognition of guests to remember their favorite drinks, what time they want to be woken up… The possibilities are endless.
This benefit for consumers should be viewed as an excellent medium- and long-term strategy. If guests are satisfied, they’ll remain loyal to their go-to IoT hotel and, as an added bonus, will become key advocates for the hotel among others.
You have to be bold with your investment—and, if necessary, work with hotel management specialists—to see all the good news start rolling in. If you’re looking for advice on your hotel investment, you’ll find the perfect partner at IHCS. Contact us!
