During the COVID-19, the hospitality sector was majorly impacted globally due to the lockdown. It is also a period of digital transformation for various hospitality businesses due to the emerging IoT and AI technologies. As per the report of Accenture, AI could potentially double the growth of the hospitality sector by the end of 2035.Today, IoT and AI reshape the customer experience and allow business owners to automate major services, whether customer support, booking rooms, or receiving digital orders.
According to Mordor Intelligence, the size of the hospitality industry in India currently is USD 23.85 Billion, which is expected to reach USD 29.61 Billion. From 2023 to 2028. The hospitality sector of India is expected to grow at a CAGR of 4.73%, in which AI and IoT solutions will majorly decide how people interact with hospitality brands. In the last few years, the digital transformation of the hospitality industry has allowed market leaders to utilise the available tools for creating smart marketing campaigns and tapping the targeted audience.
Whether it is video analytics or creating an AR-based hotel booking experience, the IoT-based hospitality model allows various businesses to increase sales while prioritising the customer experience. Some of the latest IoT and AI technologies that are game-changers for hospitality business owners are Robotics, Virtual Reality(VR), Mobile ordering, and Point Of Sale (POS).
Artificial Intelligence In Hospitality- Automate Repetitive Tasks
AI has become a prevalent topic for discussion in various industries. The hospitality sector, which includes human-led operations, is now shifting towards automation. Today, AI can bolster human interaction and also support strategic decision-making. One such example is hotel operations in which AI is crucial in automating repetitive tasks such as the contactless check-in process, booking, and assigning valets for VIP guests.
Apart from this, Artificial Intelligence also improves the housekeeping room assignment and maintenance by using sensors and cameras to maintain the room temperature, lighting, and security of the guest rooms. The other aspect in which AI innovative solutions change the hospitality sector is to automate revenue management by leveraging the algorithm on predictive modelling to analyse historical data and predict future demand.
In the study of McKinsey on hotels in 2030, it was found that people’s habits changed a lot after the pandemic. How people think and book the hotel for their personal experience will change in the coming years. For the hospitality sector, AI is proving a game changer in getting in front of the right audience with smart marketing campaigns and improving the customer experience by automating the major operational tasks.
Role Of The Internet of Things(IoT) In Hospitality Sector
Another big thing for the hospitality sector after the pandemic is an advancement in IoT solutions to create an integrated ecosystem with connected devices that collect and share data on various pre-set metrics. This technology revolutionised the hospitality industry in the past few years and allows hotel business owners to boost operational health and enhance guest convenience.
For this, various software and smart device manufacturers have also come forward to streamline the process. From a restaurant business perspective, the sensors in IoT-enabled devices like modern refrigerators ensure that the temperature of the space remains consistent with the specific need for foodstuff. Various smart devices installed in the hotel rooms use IoT technologies and let the guests control the atmospheric conditions with a single smartphone.
The introduction of smart lights that gradually operate in response to natural light or sensors that detect the availability of guests also allows owners to optimise power consumption. The IoT adds an extra edge for the hospitality industry to revolutionise the customer experience and automate the time-consuming process.
The Fusion Of AI And IoT Technologies
The hospitality industry, whose success largely depends on the customer experience, goes through the digital revolution. During this, AI and IoT technologies played a vital role and worked towards creating an automation and IoT device-enabled ecosystem for business owners and guests. The fusion of AI and IoT also brings prominent companies like Samsung to develop smart devices for hotels, restaurants, etc.
In addition, advanced algorithms of AI excel in extracting valuable insights and accessing the data sets to provide personalised recommendations and services. For the hospitality sector, the upgrading technologies of AI and IoT provide a deep understanding of guest behaviour and enable executives of companies to curate tailored experiences that go beyond mere accommodation.
With the fusion of AI and IoT, we can also expect new security measures through IoT-enabled devices that ensure the privacy of sensitive customer data, like payment details. The right integration of AI can allow hospitality management to implement the dual layer of encryption and authentication protocol in POS and other systems.
The future outlook of the hospitality sector will depend on other technologies as well, which include blockchain for more accurate record keeping, Robotics which will manage the major events at the hotels that complete the complex tasks error-free. Since this industry embraces both AI and IoT technology, it ultimately improves the customer experience and attains operational efficiency. However, there are also ethical implications associated with it, which also keep in mind while leveraging IoT and AI.
