Recent research indicates hotels and accommodation businesses face continued challenges into 2023, with occupancy rates still faltering compared to pre-pandemic levels and the enduring battle for labour and talent.
In this insight we suggest five practical ways digital and robotic technologies can contribute to resilience and differentiate your hotel or accommodation customer offering, converting challenging conditions into competitive advantage. We also consider the risks you need to manage when embracing emerging technologies.
01
Mobilising data effectively can support profitability and enrich guest experiences.
As we highlighted in the recent WTW Leisure and Hospitality Futures Report, hotels can use artificial intelligence (AI) to collect and interpret guest data and identify customer preferences to create bespoke packages and targeted marketing.
But collecting guest data is not without its risks. High profile incidents, such as the 2022 data breach at MGM Resorts illustrate the challenges.
Also, while frequent travellers may be happy you’re collecting their data to creates customized experiences, others may have reservations around data tracking and providing their personal information.
Measures such as multilayer security and staff training to both comply with data privacy regulations and create culture of data security can defend your business against the financial and reputational damage of data breaches. The latter is particularly true where head office staff are working remotely, which could carry greater risks of data breach.
02
The global market for hotel robots is expected to grow from $79 million in 2020 to $338 million by 2025, according to a report by Markets and Markets.
You can use robotics at every stage of the guest journey, from robot luggage concierges, such as the ‘Yobot’ used in the New York Times Square Yotel, to robot waiters and room service delivery at FlyZoo Hotel, Hangzhou, China.
Robotics taking over more service delivery functions creates opportunities to deploy your people resources in ways that make staff feel valued and empowered to create standout guest experiences. However, it’s important to remember that technological change can also drive workplace stress.
As elements of their workload are taken on by digital and robotic technologies, communicating change effectively to your employees helps reduce the potential for workplace stress. Don’t assume what your people want to know but aim for a consultative and inclusive approach to understand their needs and any concerns. This can support worker wellbeing, as well as their loyalty.
03
Investing in recognition technology, such as that launched in Marriott China to shorten check-in times, can lead to improved guest experiences. Facial recognition capabilities can also enhance security, prevent unauthorized personnel from entering specific areas, and be used in conjunction with electronic payments to verify guests’ identity.
When investing in facial recognition it’s worth bearing in mind the level of public unease around these technologies which we may expect to increase as more of public life is perceived as under facial recognition surveillance.
Communicating how and why you use recognition technology can get ahead of any concerns around privacy and the associated reputational risks.
04
Technology can give you a clearer view not just of when your brand is being discussed online, but also on the likelihood of content having traction with your customers.
Algorithms can track conversations in real time, looking both at sentiment and impact. In the event of ‘noise’ being negative, you can be proactive more rapidly, staving off full-blown crises that could impact revenues and share price.
This could prove particularly important in light of the reduced number of customer-facing staff available as labour shortages persist, meaning your staff may not be able to deliver the highest service levels.
Having a proactive and well-organized social media operation, algorithmically informed but also driven by robust reputational risk management processes (such as having pre-approved social media post templates ready to go should things go wrong) enables you to better weather social media storms.
05
Offering augmented reality (AR) and virtual reality (VR) interactions with your hotel or accommodation can engage guests before they reach your site while offer upselling opportunities, for example, around room upgrades.
You could also use cloud and cognitive technologies alongside AR and VR to create digital twins of your hotel or accommodation sites to manage more effectively such as heating, waste management, security, traffic, and parking more effectively.
But with greater reliance on such technologies comes increased cyber risk and a potential loss of clarity around your insurance coverage.
If your systems were hacked by cyber criminals and this turned off the heating system, freezing your pipes, some businesses might discover their property damage coverage classes this as a cyber claim, with the policy wording excluding this.
Carrying out a coverage gap analysis with support from cyber wordings specialists can help avoid these sorts of scenarios as you move to greater digitization.
For more insight on how your leisure and hospitality business can effectively harness new frontiers in technology, download WTW’s Leisure and Hospitality Futures report.
