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"Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover." ~ Mark Twain
In a clear sign that the hospitality industry is throwing off the bowlines and continuing to sail toward innovation, nearly 7 out of 10 of your peers boosted their tech budgets last year. And 100% of them expect those budgets to hold steady or increase this year. This trend underscores the fundamental role that technology is playing in the industry’s evolution.
From harnessing the brainpower of artificial intelligence (AI) to spearheading technology-driven sustainability initiatives, the world of hospitality tech is brimming with transformative possibilities. To remain competitive, hoteliers must keep up with the latest advancements. Join us as we explore 10 cutting-edge trends shaping the landscape of guest experiences and operational excellence in 2024.
The Internet of Things (IoT) is revolutionizing customer engagement. In 2024, hotels and resorts are leveraging IoT for smart room personalization. Smart thermostats can adjust to a preferred room temperature the moment a guest enters, while smart lighting systems create the perfect ambiance with just a voice command or a tap on a smartphone screen.
IoT sensors can also track guests’ movements, allowing you to optimize services such as housekeeping and room maintenance. Smart TVs integrated with IoT provide customized content recommendations based on guests’ past preferences and behaviors and can simplify routine tasks like ordering room service.
With 67% of guests craving this level of control over their guest room environment, IoT technology isn’t simply about convenience, it’s about differentiating yourself in a competitive market by creating moments that leave a lasting impression.
The topic of artificial intelligence (AI) is definitely a hot one today, presenting hospitality with both opportunities and challenges. While AI can absolutely enhance operational efficiency and the traveler journey, savvy hoteliers remember that the soul of hospitality lies in human connection and providing excellent service.
A 2023 survey finds that 74% of hospitality IT decision makers use AI technology to help increase their understanding of customer needs, and 69% of today’s hospitality businesses focus on using AI to successfully boost customer satisfaction.
AI automation can help your perpetually short-staffed team more effectively serve guests by allowing them to accomplish more with fewer people. And AI-powered concierge services are available to instantly attend to visitors’ needs, armed with customized insights that perfectly align with their preferences and desires.
The industry is also defining guest communication by leveraging AI-powered chatbots to provide immediate assistance at any time — something 77% of guests want during their next hotel stay.
AI chatbots, like Canary AI, are not just efficient, they’re also personalized and intuitive. These digital assistants can handle multiple tasks, from booking inquiries to room service requests. They can speak multiple languages, making your international travelers feel welcome and truly cared for. And they can suggest relevant upgrades that increase customer satisfaction as well as your bottom line.
Harnessing the power of data analytics has become crucial for transforming the amounts of raw data you have into actionable insights that benefit your business.
From a revenue standpoint, turning data into usable reports allows you to analyze booking patterns, market demand, and competitor pricing in real time, letting you proactively optimize room rates and your profit margins. When viewed from a marketing lens, data helps you craft highly targeted marketing campaigns that deliver increased conversions and higher campaign ROI.
Guests will benefit when you prioritize data, too, as 57% of today’s visitors are more likely to choose a hotel that offers personalized service based on their purchase history over one that does not.
A growing desire among travelers for sustainable hotel practices and eco-friendly accommodations has become a driving force reshaping the hospitality tech landscape. According to research from Booking.com, 3 out of 4 travelers desire to adopt sustainable travel practices this year. And an Expedia survey reveals that 90% of travelers are specifically looking for sustainable options when they book a hotel.
From energy-efficient lighting and HVAC systems to hotel automation, hotels are embracing technology to reduce their environmental footprint without compromising guest comfort. Automated systems streamline workflows, minimize waste and reduce costs. As more properties integrate hotel sustainability trends into their operations, they’ll also attract more conscientious guests, build loyalty and lead the charge toward a greener future.
Although it really took off with the pandemic, contactless technology will continue to shake up the hospitality industry in 2024. More and more travelers prefer hotels that allow them to minimize contact with staff and other guests. Hotels that offer self-service solutions such as contactless check-in and checkout options stand to boost revenue and profitability by capitalizing on this want.
The latest iterations of contactless tech involve hotels embracing digital wallets and mobile payment solutions in order to satisfy travelers eager for contactless payment options. Biometric recognition adds an extra layer of convenience and security, while digital tipping helps improve staff retention by ensuring that gratuities can be given effortlessly.
Robotics in hospitality is no longer a futuristic concept, it’s now a reality. With 76% of hotel operators prioritizing initiatives to boost employee productivity, robotics are stepping in to help simplify operations and enhance guest satisfaction.
In 2024, robots assist with check-ins and deliver room service. Other hotels deploy robotic cleaners to autonomously vacuum floors, ensuring rooms are spotless in record time and freeing up human staff for more specialized tasks.
The numbers speak for themselves: the hospitality robots market is projected to skyrocket from $290.5 million in 2022 to an estimated $3,083 million by 2030. With such exponential growth, it’s clear that robotics are here to stay, forever transforming how properties use technology to improve the hotel guest experience.
The more we rely on data to revolutionize hospitality, the more we need to safeguard it. Customers are growing more concerned about their privacy, prompting 76% of hoteliers to bolster data security using technology.
Advanced encryption algorithms and secure payment gateways protect sensitive information during online transactions, delivering peace of mind for visitors and hotel operators alike. Upgraded systems can provide proactive monitoring and detection by flagging any anomalies or potential security threats before they escalate. With fortified data security in place, hotels can build trust with guests and demonstrate their commitment to protecting their privacy in our increasingly digital age.
Virtual reality (VR) and augmented reality (AR) are becoming increasingly popular ways for hotels to gain a competitive advantage. Their use is projected to grow at a staggering CAGR of 34.2% from now until 2028.
Properties can use VR and AR to create unique immersive guest experiences such as destination exploration. For example, Hyatt Hotels uses VR to invite guests to remotely tour properties, explore rooms and check out amenities in advance. This is an especially valuable tool for event planning because it allows planners to visualize and customize event spaces remotely. Hotels that integrate these technologies are poised to leave a lasting impression on guests, leading the way to greater guest satisfaction.
With 69% of properties citing legacy system integration as a top technology challenge, hotels and resorts are bringing systems and platforms together wherever possible to improve operational efficiency.
Cohesive systems that work harmoniously produce a better staff — and guest — experience. System integration, like when your POS system is integrated with your CMS, enables centralized data management, facilitates better decision-making and allows staff to personalize a visitor’s stay based on past preferences and interactions. When systems communicate with each other, properties minimize errors and reduce manual tasks, freeing up staff to focus on delivering exceptional service that fosters guest loyalty and repeat business.
As we look ahead to the future of hospitality, one thing is crystal clear: technology will continue to shape the industry in profound ways. From AI-powered personalization to robotics, contactless digital check-in options to sustainability initiatives, hotels that embrace emerging technologies will gain a competitive edge, drive revenue growth and create unforgettable experiences that keep guests coming back time and time again.
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