Digital Transformation in the Hospitality Industry | Boston Hospitality Review - 0 views
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We are now experiencing the fourth industrial revolution, a period marked by emerging technologies such as artificial intelligence, robotics, virtual reality, the Internet of Things, and fifth-generation wireless technology.
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The recent Covid-19 pandemic has accelerated this digital transformation resulting in a widening technology-mediated customer experience.
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Service robots are “system-based autonomous and adaptable interfaces that interact, communicate, and deliver service to an organization’s customer” (Wirtz et al., 2018, p. 109).
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The core interactive and communicative features differentiate service robots from other self-service machines, which result in unprecedented human-technology interactions in the hospitality industry.
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he service production process, disinfection robots, which emit UV light to kill viruses and bacteria, were announced to be used in airports and hotels worldwide to ensure a safe and clean environment (Greg, 2020).
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The robots drive around autonomously in high-touch public areas and select rooms at the hotel, removing all airborne viruses and bacteria. As an extension of the hotel’s “SmartStaySafety” operation, the use of UVD robots not only provides a safe environment but also assures guests that they are being protected.
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In
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the service delivery process, service robots assist frontline staff in a sequence of service encounters. For instance, the robot concierges assist employees with guest greetings upon arrival, transporting luggage, guiding guests, and delivering room service.
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service robots can effectively respond and interact with guests, even in multiple languages.
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While robots make significant contributions to operational efficiency, they also raise concerns.
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Service robots are still novel in hospitality. Their ability to cope with unexpected, dynamic conditions remains to be fully explored.
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If guests do not follow the pre-set route, service robots may fail to respond, which can lead to a service failure.
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AI-powered online chatbots are also employed to provide swift answers to customers via live chats.
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provide customers with immediate responses 24 hours a day, significantly improving customer engagement.
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customers believed VR simulations would be the best tool for hospitality operators to create a compelling customer experience.
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VR can make a huge difference in a customer’s booking stage.
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Through the digitally accommodated environment, customers can have a much clearer sense of what they are expecting, thus attracting more prospective customers.
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VR application is the virtual tour video,
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This not only offers customers a chance to experience prior to booking, but also allows the hospitality business to benefit from the “try before you buy” marketing strategy.
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Unlike VR, which puts customers in a completely virtual environment, augmented reality (AR) is about enhancing the physical environment and the experience of exploring one’s surroundings in real-time.
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The current applications of AR in hospitality are largely for entertainment and practical purposes.
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One example is the Best Western Hotel Group’s experiment with AR and Disney stars.
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Another application of AR is indoor navigation
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Internet of Things (IoT) refers to “an ever-growing network of connected devices which communicate with a central server as well as with each other” (Car et al., 2019, p. 163).
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IoT provides integrated services, such as automated door locks, light switches, electric blinds, and voice-assistant devices, which are connected on a network.
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These allow customers to control or monitor their devices from a central server, such as a mobile phone or a tablet.
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For example, customers can use their mobile phones for self-check-in and check-out.
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Rooms also become “smart” with the help of IoT, which is also called the “connected room” at Hilton hotels.
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Customers can also use voice-controlled assistants, for example, the Amazon Alexa, to control those in-room features, and order food or drinks, which can be delivered by autonomous delivery robots.
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In addition, devices, such as luggage carts with GPS function and sensors in the parking lot, can help customers to locate their luggage and cars. Thus, IoT helps improve service processes and makes customer experiences smoother.
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It obtains real-time data through continuous tracking from various devices, as well as a collection of customer information that was previously unavailable, such as preferences, routines, and habits (Marek & Woźniczka, 2017).
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there are several emerging issues that hospitality practitioners must take into consideration when embracing digital technologies, which include security, privacy, costs, and human touch in hospitality.
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IoT with locational information can send real-time personalized recommendations to customers based on their stored preferences.
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IoT can collect customers’ preferences for in-room features, and the data can then be used to customize the room settings for their next stay.
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Security is a fundamental issue in digital transformation in any industry, including hospitality.
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Also, t
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he broad connection of various devices brings vulnerability to digital networks.
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Thus,
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hospitality managers must prepare for security implications of digital transformation, which can be accomplished by adopting high-security technologies to reduce software vulnerabilities, building resources to mitigate risk of cyber-attacks, and training employees on cyber-attack prevention.
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Privacy is another important factor as highly personalized services rely on storing and tracking customer preferences and behavior through digital technologies.
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a transparent, strict, and clear privacy policy clarifying what data can be collected and shared, and who can own the data, is necessary.
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Another challenge is associated with the high costs of employing these digital technologies.
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For small businesses, using digital technologies in their daily operations may require significant upfront investments.
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it is becoming critical for hospitality businesses to consider what digital technologies would most benefit their business.
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for small hospitality businesses, they need to prioritize what works best for them when adopting digital technologies.
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the paradox between digital convenience and in-person experience.
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hospitality, particularly in fine dining restaurants, customer-staff interaction is highly valued by customers.
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it is important for hospitality businesses to strike a balance between digital convenience and in-person experiences
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Key considerations include judging what services cannot be replaced by digital tools, preservation of the choice for customers to decide between digital or human services to maximize customer experience, and incorporation of interactive digital features in the process.
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This article talks about the current applications of 3 innovative technologies and how they are used in the hospitality industry.
