A majority of travelers are not loyal to a hotel brand. How can hospitality technology improve the state of hotel guest loyalty?

One of the top challenges faced by hospitality marketers, apart from increasing revenue, is better connecting with and engaging hotel guests. Customer experience has become one of the most important considerations for a business, and the hospitality industry is no exception. Hotel guest loyalty is built upon satisfying guest experiences, and the benefits of establishing guest loyalty are plentiful.

For one, it’s a well-known business principle that keeping existing customers is less costly than attracting new ones. Additionally, word-of-mouth and advocacy marketing are among the strongest tools for gaining new business, particularly among hospitality where online reviews are an active part of the pre-booking phase for many potential guests.

Increasing hotel guest loyalty is a major challenge for the modern hospitality industry. About two-thirds (64 percent) of leisure travelers and more than half of business travelers are not loyal to any one hotel brand.

Hospitality technology is beginning to come to the forefront of the hotel guest loyalty conversation. One of the top technology investment in 2014 was for solutions to improve the customer or guest experience, and investments in this area are projected to rise. It’s with good reason that hotels are looking for technology to manage guest experience and relationships.

No longer are there only one or two lines of communication that hotels have to monitor for guest feedback. Now hotel guests are constantly sharing online reviews and feedback through any number of communication channels. From social media to online review sites to blogs, the conversation never stops, creating a never-ending need for businesses to monitor what’s being said.

More travelers (39%) prefer to stay in hotels that know about them compared with hotels that don’t (21%).

Developments within hospitality technology allow management to proactively strategize in order to create fluid two-way communication with guests for improved hospitality brand perception. Creating direct channels for guests to communicate directly with hotel management and staff allows hoteliers to receive instant feedback rather than waiting for guests to post something negative once they’ve left a property. It also helps hotels build a connection with guests that leads to long-term loyalty.

Hotel mobile apps or text messaging services can serve as a convenient bridge to hotel guests. An increasing number of guests carry a personal mobile device and are enthusiastic to use these or complimentary hotel touchscreen kiosks or in-room tablets for active digital engagement with hotel staff.

Mobile guest apps can embed such features as digital comment cards. They can also provide insight into guest behavior and preferences that can be leveraged to increase hotel guest satisfaction and loyalty. This is critical for appealing to modern travelers, who place value on personalized guest experiences.

More travelers (39%) prefer to stay in hotels that know about them and their preferences compared with hotels that don’t (21%). Guests want to know that their hotel is attentively listening to them in order to create a more positive, engaged experience. Thirty-six percent of Millennials and 37% of travelers age 35 to 54 are willing to share personal information in return for valuable benefits such as personal touches in their room.

Investing in the right hospitality technology systems can help hotel management better connect with guests in order to actively improve the guest experience. By doing so, the hospitality industry will find that it is able to better establish hotel guest loyalty in the future.

To learn more about how you can use hospitality technology to create guest loyalty, schedule a demo with a member of our team.

Asian hospitality technology is being spurred by the continent’s love of mobile.

Asia has more mobile technology users than any other continent and is one of the world’s fastest growing mobile markets. On its own, China accounts for 28.3 percent of all smartphone users on the planet, and other Asian countries like Thailand and India are leading growth markets for mobile device adoption.

With figures like these, it is only logical to expect the Asian hospitality industry to be a leader in the adoption of innovative hotel technology.

Global travelers, and in turn hoteliers, are now interested in a lodging experience “grounded in sophisticated social, data, and mobile applications.” And the emphasis on hospitality technology will intensify as it proves to be a way to enhance hotel management efficiencies, increase hotel revenue, and improve guest engagement and communication across borders with all travelers.

Asia provides a perfect environment for hoteliers to experiment with technology to accomplish these goals thanks to the region’s position as home to many new and developing trends. For example, Asia is moving quickly to attempt to be the first to define a next-generation 5G mobile network, which will further the Internet of Things trend by “providing connectivity…to billions of [smart] devices” from cars to smart hotel room features to home appliances.

Two major trends now having a large impact on Asian hotel technology are mobility and cloud computing.

Thanks to digital investments such as this and the generally expanding influence of technology on travel, Asian hoteliers are seeking to create an alternative standard to the traditional guest experience. Two major trends now having a large impact on Asian hospitality technology are mobility and cloud computing. Both of these are contributing to a more flexible, robust hospitality technology infrastructure.

Mobile technology, such as hotel apps for guest or staff use, provides improvements to overall staff and guest experience, workflow structure, engagement, and communication, as well as offering key customer/guest data and staff performance metrics. Hotel cloud technology allows hotel management to create a more scalable digital environment that can be housed off-site with large technology providers or trusted partner vendors to assist in managing hotel information technology needs.

Another major trend within the Asian hospitality industry is the expansion of business travel, as 80 percent of Chinese corporations and 78 percent of Indian companies forecast an increase in enterprise travel and entertainment spending in 2016. This places Asian hotels in the position to have to prioritize finding ways to satisfy the needs of these business travelers. In the coming years, intra-Asian travel will be dominated by large-scale conferences, exhibitions, and meeting groups.

Hospitality Technology 2016 is a biennial exhibition held in Singapore, showcasing the newest developments in the hospitality industry related to technological shifts. This year, there appears to be a large focus on evolving topics like:

• In-Room Technology and Entertainment

• Mobile Enterprise Solutions

• Hotel Data Management

• Hotel Information Technology

• Marketing Technology

• Computer Hardware / Technology Systems

• Security and Safety Systems

As connected and mobile technologies drive rapid change throughout the continent, the Asian hospitality industry will continue to aggressively pursue the implementation of new and exciting operational and guest service technologies. Asia may very well be the birthplace of the next big thing in this regard.

Could the development of African hospitality technology speed growth in the continent’s industry?

The African continent is gaining traction as a major global force in the hospitality industry. The continent’s potential within this industry continues to grow, as several countries experience a boom in tourism and development, driving the necessity to accommodate the influx of international and domestic guests.

North Africa accounts for the majority of the hotel development pipeline (41 percent), and West Africa follows at 34.1 percent. The Sub-Saharan African hospitality industry is forecast to experience growth of over 5 percent every year for at least the next decade, with many major brands increasing the number of hotel rooms in the pipeline.

In 2015, Hilton planned to increase development in Africa by 18 percent over the previous year with 7,250 new hotel guest rooms added to its pipeline, followed by Carlson Rezidor with 6,953 rooms and Marriott with 6,412 rooms. Nigeria is the leading country on the continent when considering current hotel count and rooms in the pipeline.

With the hospitality industry thriving and investors setting their sights on further tapping into this potential, developments in African hospitality technology will have to speed as well in order to provide a competitive level of guest service and engagement. Without such advancement, African hospitality will face challenges in attracting and satisfying global travelers who are used to digital accommodations from a global industry rapidly changing to adapt to these expectations.

Gillian Saunders, a global leader of hospitality and tourism and head of advisory services for Grant Thornton South Africa, noted the significance for the hotel industry to embrace technology as a way to improve the guest experience and compete with sharing economy giant Airbnb.

She said, “Hotels must act now to differentiate themselves. They must make a reality of mass personalization – whilst keeping the human touch – to surprise and delight guests.”

As African nations begin to prioritize expanding the availability of innovative solutions, Internet connectivity, and mobile technology, the hospitality industry is shifting toward embracing technological trends. The market shows strong potential to catch up quickly to its global counterparts already experiencing the benefits of hospitality technology, especially as global brands that have incorporated hotel technology into their identity establish more of a presence in Africa.

African hospitality technology is already making a name for itself through various innovative companies and the fast adoption of mobile technology by African travelers. Ross Kata, online distribution expert and area manager with Expedia, said,

“We’re seeing mobile phones absolutely replacing the desktop. Nowadays people prefer to book their flights and taxis using their phones, a global trend which has not skipped [the African] continent.”

The positive aspects of hotel technology could serve to further speed the surge in African hospitality development and assist hotel management in maximizing resources in a market that often has to import experienced labor. Streamlining operations with digital tools and increasing guest service efficiency are both critical potential benefits that are often associated with hotel technology implementation. The use of mobile apps can also enhance the ability of hotel management to strategically market the African hospitality industry in a way that positions it as tech-friendly and connected to draw in travelers from all parts of the world who will see that their technology needs will be well served during their stay.

Embracing hospitality technology will allow the African hospitality industry to make a strong name for itself as the global industry as a whole competes for the attention of travelers who are more interested than ever in experiential travel uninhibited by borders or oceans.

The Hotel Internet of Things revolution could be here.

The Internet of Things (IoT) has long been a hot topic in the technology industry as the next progression in our digital era, but the hotel Internet of Things may finally also be realized. The simple definition for IoT, if there is one, is the increasing connectivity of the physical world around us.

We’re seeing regular items going online and becoming “smart,” from cars to refrigerators to keys. Even our bodies are now being fitted or embedded with smartwatches, sensors, and devices that allow biological data to be collected and transmitted.

This interconnected network of not just devices, like computers and mobile devices, but physical “things” is what composes the Internet of Things. Research conducted by International Data Corporation (IDC), anticipates the worldwide Internet of Things market to grow from $655.8 billion in 2014 to $1.7 trillion in 2020 with a compound annual growth rate of 16.9%.

With this amount of money at stake, the buzz surrounding the Internet of Things has rapidly picked up speed and discussions are revolving around the potential benefits of the Internet of Things.

All this talk leaves us to wonder, is 2016 truly, finally, the year hospitality technology meets the Internet of Things?

In 2013, approximately one device was connected to the Internet per person on earth. By 2020, with the world’s population estimated to reach 8 billion, the expectation is that this will increase to around 9 devices connected to the internet per person. As of now, the number of ‘things’ connecting to the internet every second is 80, but by 2020 this could increase to more than 250 ‘things’ connecting each second.

Major technology companies, including Apple, Samsung, and Google, have all taken strides to create products that leverage the best of what IoT has to offer. For instance, the HomeKit App, a project Apple is working on, is designed to link all products in your home to your smartphone, allowing you to control all aspects of the home environment with voice controls.

With such substantial growth envisioned for the future of IoT, hoteliers have begun to take hold of various elements of it by embracing a number of innovations, particularly in the arena of mobile technology, such as hotel apps. The recent hospitality technology trend of allowing guests the opportunity to check in and unlock guest rooms via mobile devices is one such example. Other notable hospitality technology upgrades include room control systems that allow guests to perform automated tasks such as adjusting lighting and temperature in a hotel room using a smartphone, in-room tablet, or panel.

Last year we also saw the introduction of robot hotel technology, such as Aloft Hotel’s Botlr, a robot butler being tested at select California hotels that communicates with other machines to perform basic guest service.

There are still potential impediments to the widespread growth of the Internet of Things. For instance, the lack of a universal coding language for communication between devices from different companies or on different operating systems is currently limiting the opportunity for complete interconnectivity, although some are saying JavaScript is emerging as a potential component for just such a framework. Boo Keun Yoon, Samsung CEO, stressed the importance for technology companies to cooperate in creating one language for all devices to talk to each other.

“The Internet of Things has the potential to transform our society, economy and how we live our lives. It is our job to pull together.”

– Boo Keun Yoon, Samsung CEO

But while there are still limitations yet to overcome, it can be expected to see guests bringing more connected devices or “things” to hotels, as well as more aspects of hotel rooms becoming connected or automated. This year will likely bring continued innovation in how the hospitality industry is able to use connected hotel technology and guest devices to improve its ability to increase guest engagement and operational efficiency.

Select-service hotels have to walk the line between full-service and limited-service properties in many regards. However, as demand for select-service hotels increases (topping demand for full-service properties by nearly 150%), investors are realizing that technology is not one of the items that can be cut back on. Overall, the primary appeal of select-service hotels to investors are lower, controlled operating costs and higher profit margins.

Providing guests with a full-service digital experience while reasonably managing technology investments in order to maintain low operating costs has long been a challenge for the select-service hotel industry.

The implementation of hotel self-service technology in select-service hotels is recognized by many as a great fit.

“We’re not taking away services. We’re bringing back a hotel brand and a segment that caters to the needs of today’s travelers.”

– Brian McGuinness, head of Starwood’s select-service and lifestyle brands

“I think except for the large, full-service hotels, guests are handling their needs themselves. Consumers now have so many ways to shop for the kinds of things concierges always were helpful with,” said Bob Habeeb, president and COO of First Hospitality Group, which manages a large number of select-service properties under brands such as Hilton Garden Inn and SpringHill Suites.

A few select-service brands are already looking to leverage the power of the hospitality technology trend by testing out innovation at various levels. For example, Starwood Hotels & Resorts owns Four Points by Sheraton, Aloft and Element, which total 300 properties. The Aloft brand has gotten particular attention as of late because of a variety of innovative features. Aloft recently introduced to its guests SPG Keyless, room control systems, and in-room Apple TV video streaming.

Most eye-catching among the headlines was the announcement of an experimental robot butler called Botlr at two Aloft Hotels in Silicon Valley. It was certainly an interesting move, as the potential of the robot hotel concept has not been fully realized yet.

“We’re not taking away services,” said Brian McGuinness, head of Starwood’s select-service and lifestyle brands. “We’re bringing back a hotel brand and a segment that caters to the needs of today’s travelers. They are interested in fashion, in design, staying on trend but not necessarily trendy, completely wired for the internet age.”

And installing hotel technology to impress guests has become increasingly affordable for hotels beyond the luxury segment. Decreased costs of mobile technology hardware, including quality smartphones and tablets, has allowed them to become a plausible enterprise tool in numerous industries, from healthcare to education. Hospitality is also beginning to embrace mobile technology, led by luxury and upscale properties. For instance, in-room tablets are an increasingly popular way to maximize guest engagement directly in guest rooms, while also improving brand perception and decreasing printing costs through the replacement of traditional print compendiums and menus.

We’ve now reached a time where select-service hotels are going to be able to offer digital and in-room technology features similar to the upscale segment for an overall improvement in guest experience.

Robot hotels made headlines last year as hotels experimented with robot butlers, robot luggage handlers, and more. A hotel in Tokyo, Japan, made waves last year for staffing its front desk with robots. It’s definitely a draw for Henn-na Hotel, a name that means Strange Hotel when roughly translated. Being greeted by automated intelligence in the form of a friendly-faced woman or even a smiling dinosaur is definitely a novelty for guests at this new robot hotel, as well as something that could be more commonly seen in the future.

But while technology in hotels is making life more convenient for hoteliers and guests, there are still limits to how it should be used. Digital systems are only one significant part of a successful guest engagement and service strategy. Hotel management still has to be savvy when it comes to keeping guest satisfaction high.

The primary benefit of hospitality technology has been bridging the communication gap between hotel staff and guests. It’s now easier for hotels to share information with guests, who in turn can directly provide feedback or express needs and preferences. Communication is the key to fostering positive reviews, overall satisfaction, and long-term loyalty. Happy guests are more likely to be repeat guests.

Hospitality technology platforms have also alleviated the burden on operational resources. Manual processes are able to be replaced with automatic digital ones, staff productivity is increased, and human errors are reduced.

Implementing strong hospitality technology can free up staff from doing manual tasks, which leaves them available to interact with guests and handle more complex matters. Increased guest engagement can pay off in multiple ways for hotels.

A large difference between a robot and a human hotel staff member is in the ability to respond intuitively and flexibly to guest needs and concerns. While hotel robot staff are said to be able to have “intelligent conversations,” guests who are looking for more than basic responses will want to speak to a person. In fact, one of the regular quotes from robot staff at Henn-na Hotel is, “Please ask me your request, but don’t ask me a difficult question because I am a robot.”

A recent study from the Center for Hospitality Research at Cornell University School of Hotel administration said guests place “high priority on authentic personal connections with front-line workers.”

In addition, guests appreciate when hotel staff improvises in order to provide service or resolve issues rather than sticking to a set standard operating procedure. “Improvised service can improve guests’ attitude toward a company,” the report states.

Touchscreen tablet kiosks placed in lobbies or other central locations throughout a hotel are another useful form of hotel technology that has become more common than robots when it comes to automating guest service. These can be extremely useful for alleviating demand on hotel staff and helping guests perform simple self-service procedures, such as check-in or looking up general hotel information. But human staff are still needed to serve as a back-up option for guests with more complex concerns or who simply want the option to speak with another person.

In the future, scientists may be able to man robot hotel front desks with sophisticated automated intelligence. For now, human staff is still required to stand alongside even these advanced robots to help provide the right balance between high tech and high touch for superior guest experience.

Learn more about the hospitality technology you can use to alleviate demand on your front desk staff.