A report by Research and Markets reveals that the global smart hospitality market will grow at a 13.14% CAGR between 2020 and 2025, reaching a size of $12.727 by 2025, according to PR Newswire. The rise of innovative technology is transforming everything from how we control appliances in our homes to how cities are managed. And the hospitality industry isn’t an exception to the positive impacts of digital transformation.
In addition to cost savings, technology creates numerous opportunities for hotel owners to achieve their profitability goals. For instance, the use of AI in safety and security allows hotels to enhance the customer experience, resulting in increased sales. Below are other smart technologies reshaping the hospitality industry.
AI-enabled chatbots are becoming increasingly popular in the hospitality industry because they can quickly address guest queries. Typically, chatbots provide 24/7 customer services and offer personalized recommendations to help guests find rooms that suit their budget and preferences. With the help of chatbots, hotel owners can keep website visitors engaged, thereby reducing bounce rates and increasing direct bookings. Other reasons for using AI chatbots in hotels include personalized marketing efforts, efficient customer experience, and enhanced communication through multiple languages.
IoT (The Internet of Things)
There are many benefits linked to integrating IoT in hotels, such as increased hyper-personalized customer experiences, the creation of safe cooking environments, and reduced energy costs. The Internet of Things also helps businesses in the hospitality segment streamline data collection and promote automation. Even more, interestingly, IoT is helping hoteliers innovate ghost kitchens.
Setting up a ghost kitchen or a delivery-only restaurant helps business owners reduce overhead costs while reaching a large customer base. Since ghost kitchens require business owners to use connected devices, they create opportunities to stay ahead of the competition. Generally, connected tech offers hoteliers data about customer preferences in real-time. That way, hotel owners can personalize products and services to meet the unique needs of clients.
Big data provides a clear insight into consumer behavior, thus helping hotel owners create products and services that enhance the customer experience. Moreover, harnessing the power of big data helps hotel managers estimate the demand for rooms and the price point. In turn, hoteliers can develop an effective revenue management system. This intelligent technology also provides an opportunity to improve targeted marketing strategies. That’s because it offers you insightful data regarding customer feedback about their experiences in other hotels.
Innovative technologies like artificial intelligence, IoT, Big Data, and voice technology are transforming hotel and restaurant businesses in many ways. Today, hotels use digital keys instead of plastic keycards, while restaurants leverage IoT and AI to provide ghost kitchens. Other innovative technologies gaining popularity in hotels are AI-powered chatbots, voice assistance, and big data analytics.