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Technology in Hospitality Industry: Prospects and Challenges 1 Technology in Hospitality Industry: Prospects and Challenges Prasanna Kansakar, Arslan Munir, and Neda Shabani Abstract—The leisure and hospitality industry is one of the significantly by using an effective technological platform to driving forces of the global economy. The widespread adoption manage the interaction between guests and service providers. of new technologies in this industry over recent years has Digitalization of services is imperative to appeal to fundamentally reshaped the way in which services are provided and received. In this paper, we explore some of the state-of-the- technophile guests. The goal of digitalization of services art technologies currently employed in the hospitality industry is to transition to a digital business model by pushing and how they are improving guest experiences and changing hospitality services to guests’ touch-point [2]. A digital the hospitality service platform. We also envision some potential service platform affords guests the ability to browse, plan future hospitality services we can expect as the Internet of and pick activities at their own convenience thus facilitating things (IoT) technology keeps growing. We recognize that the technological backbone of many hospitality establishments needs seamless integration of technology into their travel experience. to be overhauled in order to facilitate the changing landscape of Booking and reservation services, location-based services and technology in the modern world. We discuss some fundamental personalized communication, and social media integration are challenges that need to be overcome to institute a lasting future- a few examples of digital services that entice technophile proof solution for the hospitality industry. We also touch upon the guests. There are a host of third party applications providing problems these challenges pose for guests and hospitality service providers (HSP). these services which guests are familiar with and rely upon. Revenue erosion to these third party applications and services is a growing concern to HSP [3]. In order to compete with I. INTRODUCTION AND MOTIVATION these third party applications, HSP must develop their own Domestic and international tourism has seen several years of applications which provide better on-property and off-property steady growth. The revenue generated from accommodation, services to guests. Through special incentives such as loyalty food and beverage, and other services provided to this large points, coupons and bonuses, guests can be encouraged to use flux of travelers, has propelled the leisure and hospitality in-house applications over third party applications. Providing industry to become a key driver of the global economy. digital services with the same quality as third party application For sustained growth of this industry, experts in the field services requires a sound technological infrastructure base argue for major improvements in the type and quality of with specialized computation and communication capabilities. hospitality services to adapt to the changing consumption and This warrants the overhaul of current technological framework travel behaviors of the evolving customer base. Specifically, used by HSP. these improvements are targeted towards attracting the The future of hospitality management industry is being new generation of technophile individuals traveling on a shaped by the current boom in the Internet of things (IoT) tight budget [1]. Implementation of these improvements technology. HSP must stay on the leading edge of IoT compounds to a complete makeover of the service packages technology to maintain a competitive edge in the market. and the underlying technological framework currently used The IoT is the interconnection of everyday physical devices arXiv:1709.00105v2 [cs.DC] 6 Feb 2018 by hospitality service providers (HSP). The goal of these like sensors, actuators, identification tags, mobile devices, improvements should be: personalization of experiences and etc., such that they can communicate directly or indirectly digitalization of services [1]. with each other via local communication networks or over Personalization of experiences is necessary to market the Internet [4]. The incorporation of IoT technology in the services to individuals traveling on a limited budget. hospitality industry qualifies hotels as smart buildings which Personalization creates individualized guest experiences by are important facets of smart cities [5]. The IoT paradigm incorporating flexibility and customizability to the offered offers HSP a nuanced means of interacting with guests and service packages [1]. Most of the current packages marketed collecting their real-time data. This opens up new avenues for by HSP offer rigid and tailored experiences. These packages immediate, personalized and localized services as HSP can bundle different combinations of popular services in different gauge guest behaviors and preferences with higher accuracy. price brackets with little to no means of negotiating The IoT also enables HSP to increase back-end efficiency adjustments. This leaves travelers to choose between all or of multiple departments [6] (e.g. front desk, housekeeping, nothing and they usually end up opting for the latter choice. sales and marketing, etc.) as well as enact cost-saving policies If HSP have more flexible service package offerings, then like smart energy management [7] [8]. The IoT technology guests can plan their experience according to their desires is already spreading through the hospitality industry with and their budgets. Crafting personalized value propositions for public terminals, in-room technologies and mobile applications each guest requires a massive effort on both the guests’ and [2] and some of the promising future IoT applications, such the service providers’ parts. This process can be simplified as body area sensor networks, environment monitoring and 2 augmented reality experiences, will certainly usher in new GUEST-FACING SYSTEMS HOSPITALITY SERVICES business prospects. HSP should therefore aim to future proof Housekeeping Room Service their technology framework so that their systems can be Thin Client In-Room Terminal Tablet easily upgraded in tandem with the changing IoT technological landscape. Overall, the new technological upgrade of the hospitality Kiosk Payment Services Loyalty industry should create a mutually beneficial platform by Cell Phone Programs facilitating partnership between guests and HSP. The platform should ensure that guests are treated to an outstanding CREDIT travel experience while also improving the operational and managerial efficiency for HSP. Furthermore, the new Guided Tours Local Attractions Remote Point of Sale technological framework must be future proof; providing an Control Terminal easy upgrade schedule for addition of new/improved services. In this paper, we present a detailed overview of the role Targeted Advertisments of technology in state-of-the-art hospitality services. We also describe potential future hospitality services following the Keyless Entry burgeoning revolution of IoT technology. We then outline the IN-ROOM IoT SENSORS challenges being currently being faced by HSP and discuss Climate Control the need for overcoming these challenges to develop a lasting Temperature Humidity future-proof solution for the hospitality industry. The remainder of this article is organized as follows. Automatic Check In Section II describes the state-of-the-art hospitality services Ambient Light Motion Lighting Control currently offered by providers. Section III envisions future services that guests can expect as hospitality industry continues to grow. Section IV presents the major challenges and issues in designing solutions for the hospitality industry. Finally, Section V concludes our article. Fig. 1. State-of-the-art hospitality services II. STATE-OF-THE-ART HOSPITALITY SERVICES HSP are making large IT expenditures to revamp their satisfaction by allowing guests to control their environment. technological infrastructure base. In 2016, midscale hotels led Guest-facing systems empower guests with services such in IT expenditure (7.3%), trailed by upscale hotels (6.1%) and as automatic check-in and check-out services, keyless entry luxury hotels (5.6%) [6]. The expenditures are largely focused services, control of in-room functions etc. [9] (shown in on digitalization of the service platform to benefit both parties Figure 1). For example, Hilton and Starwood hotels offer of the hospitality service exchange – the guests and the service guests automatic check-in and keyless entry service using their providers. Innovations in smart devices and IoT are driving the mobile apps [11]. Telkonet’s EcoSmart Mobile offers similar reform of technology used in the hospitality service platform. mobile applications with the added features to allow guests to Guest interactions are being migrated towards on-screen and have control of in-room IoT products [11]. Samsung’s Hotel online interfaces through guest-facing systems which apart Management Solutions and SINC entertainment solutions also from being convenient for guests doubles as an opportunity allow guests to control in-room functions as well as check for service providers to collect valuable data and feedback [1]. weather and flight information through a TV remote interface Digitalization, implemented by HSP through back-of-house [11]. Hotels like Mondarian SoHo, The Plaza and The Marlin (BoH) management systems, has helped improve operational are placing
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