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HOTEL BUSINESS REVIEW

JANUARY FOCUS: Mobile Technology

 

The Future Hotel Guest Experience

By Nadav Cornberg Co-Founder, Virdee | January 2023

The hotel guest experience is undergoing a revolution.

By 2025, experts predict that artificial intelligence will power 95% of customer service interactions.

For hoteliers, this means consumers will become accustomed to using mobile technology in all areas of their lives - and they will expect the same standards in hotels.

The rate of tech adoption in the hotel industry was already advancing considerably before the pandemic. Still, there's no doubt that Covid-19 has accelerated the digitization of customer interactions and travel touchpoints in the hotel space. Not only did the pandemic change travel, but it irrevocably changed consumer behavior, expectations, and preferences - so much so that 77% of consumers say that the amount of in-person interaction required at a business will influence their decision of whether or not they visit moving forward.

The new and evolving demands of guests in a post-pandemic landscape have led hotels to reassess their strategies, and as such, the hotel tech stack has come under scrutiny. Poor integrations, clunky booking systems, and admin-heavy applications have been found to hinder and damage the guest experience - and as a result, hoteliers are seeking streamlined, efficient solutions that simplify and enhance both guest-facing and back-of-house operations.

While these two factors alone are enough to drive the guest experience revolution, the hotel industry also faces headwinds from another direction: a major labor shortage and a staffing crisis. According to AHLA, 87% of hotels are currently experiencing a staffing shortage, 36% severely so.

There's no doubt that it's a challenging time for the industry. But, I do believe the digital era is an opportunity for hotels to transform the guest experience.

Re-Imagining the Hotel Guest Experience

Guests have realized they don't need to interact with staff at every touchpoint in their hotel journey. Many have learned that the labor-intensive nature of hotels slows and hinders their experience - whether it be waiting in line to check in, visiting the front desk for extra towels, or stopping by to pay at the end of a stay.

Today's travelers want instant, on-demand, one-click services they receive in other industries (think on-demand transportation services, instant payments, and self-service check-outs). As such, the future of the guest experience will be driven by automation to provide efficient, convenient, and personalized touchless hotel interactions.

With 78% of hoteliers stating they will increase their investment in tech over the next three years, here's how I predict the industry will leverage mobile and SaaS-based technology to provide a frictionless guest experience...

1. Digital Hotel Experiences

Research shows that there are some considerable disparities between what businesses think customers want and what consumers prefer. 53% of companies believe their customers are very satisfied with their self-service offerings, but only 15% of consumers agree. 81% of consumers expect more self-service options, but 40% of businesses think they already have enough.

To stay ahead of the curve, hoteliers must bridge this gap, understanding that embracing mobile technology doesn't mean abandoning guests; it means meeting their needs by providing flexibility, choice, and convenience. It doesn't mean replacing the human touch; it means empowering hotel staff to focus on delighting guests in other areas.

We can expect to see digital experiences leading the guest journey from start to finish. Small touches like 3D room tours and interactive maps will give guests greater choice and control before they book. In contrast, self-service gift shops and voice-activated guest rooms will provide seamless, personalized experiences for guests.

2. Virtual Check-in

The hotel front desk is already on its way out, but over the next few years, it will disappear altogether. Nearly two-thirds of branded and independent hotels will be offering mobile room keys and more than three-quarters will have implemented self-service check-in options - including contactless kiosks and mobile check-in - by the end of 2022.

Long waiting lines and back-and-forth conversations will no longer restrict check-in; instead, reception will exist in a guest's mobile phone, or a kiosk in the hotel lobby.

Virtual check-in won't just mean skipping the line in the hotel lobby; utilizing mobile technology to streamline the check-in process enables hoteliers to curate a guest experience that can be personalized at every touchpoint. Guests can add late check-out, attach extras to their stay, request to be notified when their room is available, and collect their digital hotel key without visiting the front desk.

This does not mean that hotels will become less personal. On the contrary, the shift to digital interaction tools means that hotels will be able to repurpose staff to provide more personal touchpoints like concierge services. Guests will be able to choose how and when they interact with staff. For hoteliers, removing staffing from mundane manual tasks, like check-in, opens the door to in-depth interactions with guests, creating a more welcoming atmosphere.


3. Digital Identity

Providing proof of identity at every touchpoint on a trip is standard - from boarding a plane to hiring a car, checking in at a hotel, and even ordering an alcoholic beverage to a hotel room. In the not-so-distant future, guests' facial features will be their unique identifiers, enabling them to walk right through these touchpoints without having to dig out their physical ID.

Not only does this empower a frictionless guest journey, but the future of digital identity opens many new doors, fostering hyper-personalized experiences for repeat hotel guests. Data collected from guests' previous stays will allow hotels to recognize, reward, and customize their offerings based on a guest's history and profile. It will also enable hoteliers to identify frictions in individual stays, empowering hoteliers to create 5* stays for each guest.

For example, when a guest heads to their hotel room, it will already meet their exact preferences that have been stored and analyzed since their last stay: a bed that has adjusted to the right firmness, the right room temperature, news updates from preferred outlets, customized artwork projected onto the wall, biometric bathroom tiles that report on a guest's health, and shower water already at the right temperature and pressure. The opportunities to create a hyper-personalized stay will be endless.

4. Mobile Wallets

With guests no longer expected to carry physical hotel keycards and identity cards, mobile wallets will deliver instant and seamless communication between guests and hotel staff - and added transactional security.

Cash and credit cards will become a distant memory, and fast, secure contactless payments will become the preferred payment method - something we're already seeing, with 76% of US hoteliers providing contactless payment options for guests.

The mobile wallet will go further than tap-and-go digital payments. Hoteliers can incorporate dedicated customer loyalty programs into their mobile payment platforms, send promotional material to guests (in the form of spa or restaurant vouchers, for example), and even provide suggested itineraries and guides for the area. Mobile wallets are an opportunity to further connect with guests, providing those digital touches that enable a comfortable and frictionless stay.

5. Mobile Apps

Recent years have seen an increase in hotel apps - no surprise, considering a post-pandemic study found that nearly 90% of travelers would rather interact with a mobile app than a human to manage their hotel stay.

Apps will drive the future of the hotel landscape, providing guests with the complete hotel experience in the luxury of their own pocket.

However, with 2.1m apps currently in the Google Play app store, it's likely guests won't want multiple different hotel apps clogging up their phones. Instead, guests will expect versatile, streamlined apps that enable guests to check into multiple hotels from one centralized platform. Rather than having to download different apps, re-enter personal information, and submit their preferences each time they visit a different hotel, guests will benefit from singular apps that integrate seamlessly with individual hotels and store personal information for future stays.

It will also be important for hotels to provide web-based interactions as much as possible to avoid requiring an app download, especially for check-in. Web portals reduce the friction of checking in digitally, which will in turn result in higher guest satisfaction.

6. Ancillary Revenue Opportunities for Hotels

The average American hotel generates 65% of its revenue from rooms, while 25% comes from food and beverage, and 10% from other outlets.

When executed correctly, SaaS and mobile technology can enhance the visibility of ancillary products at every touchpoint for the guest.

For hoteliers, digitizing the hotel guest experience is an opportunity to upsell and increase ancillary revenue - simply by putting instant upgrades and requests at guests' fingertips. For guests, having the flexibility to add to their stay at any time (whether it be a drink delivered to their room, late check-out, or a last-minute dinner reservation in the hotel restaurant) elevates their experience - and for hoteliers, these small upgrades make a difference.

Compared to airlines, the hotel industry lags in this sense - but new mobile technologies will enable hoteliers to upsell to guests at each stage of their hotel guest journey.

The Digital Guest Experience: A Turning Point for Hotels

With the above in mind, the digitization of the guest experience doesn't just benefit guests; it's a significant opportunity for hoteliers too. An opportunity to increase revenue, reduce operational costs, improve efficiencies, and enhance service quality.

Automating tasks such as checking guests in and out, accepting and processing reservations, sending guest communications, and performing data analysis is a way to optimize operations, but it's also a necessary hotelier strategy to combat the current labor shortage.

With the hotel industry still facing challenges stemming from the pandemic, a major staffing crisis, and heightened guest expectations, expect a period of significant change and opportunity within the industry. Moving forward, hoteliers will realize it is simply unviable to hire hotel staff for a job that technology can automate - and guests will come to expect technology at every touchpoint of their journey.

The front desk will disappear, mobile wallets will replace physical cards, our facial features will become key, and the hotel guest experience will become incredibly personal. I do believe that investing in mobile technology is critical to meeting guest expectations while tackling labor shortages, and we should expect to see the industry playing technological catch-up over the next few years.  

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13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

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