Automation and The Human Factor in the Hotel Industry: Our Guests

AUTOMATION AND THE HUMAN FACTOR IN THE HOTEL INDUSTRY (1 of 3): OUR GUESTS

This article is an excerpt from the book "HOTEL 4.0 - Artificial intelligence, robotics, big data, virtual reality, 5G and automation technologies for a new generation of smarter hotels". Contents: 0.0 Introduction; 1.0 Definition of Guest; 2.0 What the Customer Wants; 2.1 Customer service and staff friendliness; 2.2 Communication Channels; 2.3 Entertainment; 2.4 Technology; 2.5 Personalisation; 3.0 The Guest Vs technological innovation; 4.0 Guests of the Future.

0.0 Introduction

Hospitality is considered a?"people business."?I like to recall the words of Horst Schulze, when he said, "We are ladies and gentlemen, and we serve ladies and gentlemen." Those of us who work in this sector understand perfectly well the dimension and depth of this quote. There is no doubt that the?h?tellerie?would not exist without its guests, and there is also no doubt that it is the people, collaborators and management who, to a large extent, build the value proposition.

These words may seem contradictory in a book dedicated to technological disruption. However, the opposite is actually true. As technology becomes more pervasive in our lives, it will be the human factor that makes the difference. As robots and Artificial Intelligence automate tasks, creativity, style and empathy, the "human" touch will ultimately become even more critical.

On the other hand, whether technological or not, the success of any innovation will depend on its acceptance by the consumer and on the non-resistance on the part of employees.

Here, we can clarify that those technologies with a more significant presence and impact in the Front of the House (FoH) will tend to be more dependent on customer acceptance. In this case, guests are directly exposed to them, and their attitude will determine whether or not the entrepreneur adopts them. On the other hand, Back of the House (BoH) technologies will depend significantly on the non-resistance to their implementation on the part of the staff. Likewise, in the first case, emotional issues will have greater weight, while in the second case, other issues such as efficiency will have more weight.

1.0 Definition of Guest

Let's start by defining the word guest: a widely accepted definition describes a guest as an individual who is staying in someone else's home or hospitality establishment or who makes use of its facilities.

On the other hand, we can define innovation as a successful creation, introduction and diffusion of new products, services, systems, processes and even business models, which satisfy a need or provide a solution to an individual or societal problem.

Absolutely nothing?a priori?ensures success; decisions must be made according to the context in which we act. Which technologies to implement and when will depend entirely on the context. There are better reasons for acquiring or activating an innovation than just because it is fashionable or seems to be the right thing to do. Our decisions have to revolve around our

customers. Innovation has to elevate the journey of the customer, generate value and be consistent with our business model.

2.0 What the Customer Wants

Technological innovation must be, as we have just mentioned, to the customer's benefit. We could start by asking ourselves what the customer wants. We live in a highly dynamic and vibrant age. It is sometimes hard to recognize just how we were even a decade ago, and the constant evolution of technology is playing an essential social-shaping role in this process.

In 2019, ALICE, a hospitality technology company based in NYC, published a study commissioned from YouGov on the changing expectations of hotel guests. Although the research was conducted for the US market, many of its conclusions are easily extrapolated to the international hotel market. Let’s analyze our guests’ expectations in detail:

2.1 Customer service and staff friendliness

Customer service and hospitality are the cornerstones around which the world of the?h?tellerie?revolves. In today's context, with supply often far exceeding demand, customers are no longer satisfied with just a place to sleep and are looking for all-round experiences with personalized services.

What matters to the customer? 49% rank the friendliness and attentiveness of the hotel staff in the first place.

What causes the most customer frustration? 62% rank unfriendliness or unfriendly staff as the main cause of frustration. 38% of the response time by reception staff to customer requests. 31% waiting time and delays in service by hotel staff.

In summary, customers demand attention and efficiency above all. In fact, according to the study "Customer Satisfaction on the Rise Globally," up to 60% of consumers have changed brands at some point as a result of a service that fell short of their expectations.

We often see one scenario in hotels with highly trained professional staff; people who know how to do their job but who find themselves overwhelmed by secondary tasks, often of a bureaucratic nature. This is where 4.0 tools can act as a catalyst and instrument to automate these tasks, freeing up time to focus on customer service.

2.2 Communication Channels

We live in a world where communication is direct and immediate but where, at the same time, different generations of customers coexist with other preferences in terms of communication channels. Today's hotel faces a scenario where omni-channelling is necessary to respond to the preferences of each customer. A growing majority of hotels consider omni-channelling to be essential with the ability to change channels without losing the thread of the conversation, something which is practically impossible without the support of technology.

What matters to the customer? 17% of customer complaints are due to difficulties in communicating with hotel staff. 32% of all respondents prefer to speak directly face-to-face with a hotel staff member when making a request.

What are the preferred communication channels for hotel guests by segment? 18-34-year-old segment: Their preferred communication channel is messaging applications. 35-54 years old segment: Their preferred communication channel is email. 55+ segment: This segment prefers a phone call.

I think we should consider these responses concerning customer service data. Guests demand that their requests are met efficiently and with immediacy. Once again, the pattern of "service and efficiency" is repeated.

2.3 Entertainment

As mentioned before, the customer is not just looking for a place to sleep but is searching for a complete experience, which is reflected in their willingness to receive information about local attractions, events, restaurants and cultural activities.

What matters to the customer? 81% of respondents would like to receive information and recommendations from the hotel about activities and experiences to do.

Which experiences are of most interest to the customer? 40% gastronomic activities that bring them closer to the local cuisine. 36% tours and guided visits. 33% cultural activities to learn about local life and customs. 27% wine tourism activities such as visiting local wineries and local distilleries.

This data presents a business opportunity, which is being exploited by third parties in many cases. Technology, and more specifically mobile applications and Artificial Intelligence, can be a tool to capture this potential source of revenue.

2.4 Technology

The ALICE study makes one thing abundantly clear: our guests love technology and, therefore, it has become a decisive factor when deciding where to stay.

There are three exciting insights from the study. Firstly, guests want to use their devices such as tablets and smartphones and integrate easily with the hotel's systems. Technology is also a factor when deciding which hotel to stay at and people would be willing to sacrifice other services for technology.

Which technologies matter most to the customer? 52% are interested in using virtual reality and advanced reality to explore and learn more about the hotel. 43% want their devices to be able to integrate with in-room technology.

What would the customer be willing to sacrifice for access to advanced technologies 27% would be willing to give up the gym. 24% would be willing to give up the spa. 15% would be willing to give up room service. 11% would be willing to give up late check-out.

The study also highlights the growing desire by guests to have mobile access to hotel services such as in-room technology, room service, housekeeping, check-in, check-out and restaurant and spa reservations. An increasing number of guests demand total control of their experience at the click of a button.

2.5 Personalisation

I would not be wrong if I were to say that the "home-away-from-home" mantra has become an industry standard and is a very visual and accurate representation of the expectations of the contemporary traveller, the one who seeks the comfort of home away from home.

What makes guests feel at home when they stay in a hotel? 59% a good WiFi service. 38% of their preferred selection of coffee and tea in the room. 33% to find their favourite toiletries. 18% to be able to choose the layout of the room. 16% a good selection of reading books in the room.

Correct gathering and management of information is crucial to trace the guest's preferences and tastes and to meet all their expectations.

3.0 The Guest Vs technological innovation

The question that should now be asked is: How will the customer react to technological innovation within the hotel? The customer's willingness to adopt and use new technology will vary dramatically from subject to subject and will be the result of a combination of different factors:

Objective barriers and impediments:?incompatible devices and operating platforms, such as applications that require the use of certain smart phones, or the need for specific technical skills to use them.

Customer profile:?demographic characteristics such as age and place of origin, level of education, income bracket and personal preferences all influence the customer's relationship with technology. In context, it is essential to know your business and its environment to determine whether or not the adoption of a particular technology is feasible.

Preconceived opinions and attitudes:?such opinions and attitudes exist in the field of technology. There are those with an optimistic, positive or innovative disposition, and others who feel uneasiness or insecurity due to the lack of control and confidence regarding the use of this technology.

Expectations:?customer expectations regarding easy usage and usefulness of a particular technological innovation. The guest must be realistic when it comes to how much technology can positively impact them in their day to day lives. Information is key to setting expectations that match reality.

Social environment:?the customer is very much influenced by the media, opinion leaders, influencers, social values and the status that technology and the possibilities it can offer.

Situational context:?for example, the customer may choose to use an automatic check-in kiosk only to avoid the queue that has just formed at the hotel reception. In this case, the use of the automated check-in kiosk is conditioned by opportunity.

Added value:?added value can be viewed, in terms of improved service quality, as a cost benefit, an improvement in efficiency or even as a new product or service aimed at satisfying a need or solving an existing problem. This added value should be something that is easily perceived by the customer.

All these factors will impact the acceptance by the guest and consequent success or failure of any technological innovation. Any decision made has to be carefully thought through and based on our real needs, the customer profile and context.

4.0 Guests of the Future

The hotel sector, like today’s society, is rapidly changing. Customer expectations are mutating, and new needs are emerging due to social, economic, technological and demographic changes. Anticipating, or at least trying to anticipate change, becomes a matter of success or failure.

Cornell University, a world leader in the hotel educational sector, participated in Amadeus and IHG’s initiative for the elaboration of the?"Drivers of Change in Hospitality”?study, where some of the main factors of change in our industry were addressed. In this study, a profile of the future generation of customers was drawn up to better understand who will occupy our hotel rooms and how they will do so:

Value for money:?these customers look carefully at the price-quality ratio and look for the best opportunities, using all the technological tools available. They compare prices, offers, product features and reviews from other customers on which they eventually base their decision.

Prioritize efficiency:?guests wish to control their all-round experience and they welcome automation and mobile applications as service improvement tools.

Personalization:?guests in the future will continue to appreciate receiving personalized services. In fact, as a result of advancing technology, they expect to receive highly customized offers, experiences and proposals tailored to their personal preferences.

The search for experiences:?the future traveller will continuously search for new experiences, and this represents an opportunity for hotels to capitalize on.

Sustainability and social responsibility:?these two factors are a must. We will have highly educated and environmentally aware customers. Sustainability will most likely be at the heart of the hotel's strategy.

As we can see, the study conducted by ALICE and the customer of the future’s profile that results from the?"Drivers of Change in Hospitality"?study are perfectly aligned in the same direction. We have a hedonistic customer in search of new experiences with a holistic sense of wellbeing.?Having little tolerance for delays of service and inefficiency, customers will demand high levels of personalization. Thus, technology is a strategic tool that provides a means to an end to enhance the customer experience.

*** This article is an extract from the book "HOTEL 4.0?- Artificial intelligence, robotics, big data, virtual reality, 5G and automation technologies for a new generation of smarter hotels". You can consult the book or contact me personally for more information on the subject or the sources I have used.