How the IoT Will Shape the Hospitality Industry

By Andy Ellicott Chief Product & Marketing Officer, Crate.io | January 21, 2018

Every company is becoming a technology company, and players in hospitality industry are no exception. While friendly service, quiet living quarters and a comfortable bed will always be the cornerstone of the hotel industry, technology already permeates a hotel guest's experience. From the keycards guests use to enter their rooms to the WiFi they purchase during their stay, spending the night at a hotel has become a digital experience - and will only become more so.

The transformation has been happening for quite some time, and bookings were the first area of the hospitality industry to be impacted. By letting guests check for room availability on their own, hotels reduced staffing expenses. By pairing that experience with algorithms, hotels began to automatically optimize pricing depending on availability, helping them sell more rooms at maximum profit. And it wasn't just the large hotel chains - by listing with an online travel agency (OTA) like Kayak or Travelocity, smaller hotels reached a larger audience. And now, thanks to newcomers like Airbnb, even amateur hotel hosts are able to put skin in the game.

Technology led to more choice, a quicker and easier experience for the consumer, and a thriving industry. Annual online-travel spending grew 55 percent between 2012 and 2016, spurring competition between hotels and OTA's - the latter which accounted for two thirds of online spending in the U.S. in 2015.

More recently, mobile devices have begun to disrupt the way consumers book hotels. Consumers use mobile devices about as much as their laptops (46 percent vs 48 percent), which has impacted the way they browse for and book hotels. Dimension Date reports that most hotels and restaurants have adopted mobile-first strategies and increasingly deploy mobile apps, with new mobile offerings like iPhone apps up 61 percent year over year. Marriott alone booked over $1 Billion in revenue through their mobile app in 2015.

But technology can to go much further and deeper in improving a guest's experience than a mere bookings website, or a shift from desktop to mobile. One of the biggest ways the guest experience in hotels will change will be through technologies associated with the Internet of Things (IoT).

IoT is rapidly becoming a trillion dollar market. People already leverage IoT through devices like smart watches (FitBit, Apple Watch), smart home devices (Nest, Canary, Alexa), and connected cars (OnStar, Tesla). By connecting these devices centrally, people can control the temperature of their homes, order a refill of washing detergent using just their voices, or unlock their cars from hundreds of miles away.

Hotel Newswire Headlines Feed  

Rachel Moniz
Anne Sandoval
Peter O'Connor
Carlo Cisco
Sherri Merbach
Joey Yanire
Randa Tukan
Gaurav Varma
Johan Terve
Michael Blake
Coming up in March 2018...

Human Resources: Value Creation

Businesses must evolve to stay competitive and this is also true of employment positions within those organizations. In the hotel industry, for example, the role that HR professionals perform continues to broaden and expand. Today, they are generally responsible for five key areas - government compliance; payroll and benefits; employee acquisition and retention; training and development; and organizational structure and culture. In this enlarged capacity, HR professionals are no longer seen as part of an administrative cost center, but rather as a member of the leadership team that creates strategic value within their organization. HR professionals help to define company policies and plans; enact and enforce systems of accountability; and utilize definable metrics to measure and justify outcomes. Of course, there are always new issues for HR professionals to address. Though seemingly safe for the moment, will the Affordable Care Act ultimately be repealed and replaced and, if so, what will the ramifications be? There are issues pertaining to Millennials in the workforce and women in leadership roles, as well as determining the appropriate use of social media within the organization. There are new onboarding processes and e-learning training platforms to evaluate, in addition to keeping abreast of political issues like the minimum wage hike movement, or the re-evaluation of overtime rules. Finally, there are genuine immigration and deportation issues that affect HR professionals, especially if they are located in Dreamer Cities, or employ a workforce that could be adversely impacted by federal government policies. The March Hotel Business Review will take a look at some of the issues, strategies and techniques that HR professionals are employing to create and sustain value in their organization.