Why IoT is the “smart” solution for the hospitality industry

The hotel industry has long been at the forefront of the experience economy, continually evolving to meet changing consumer needs and set new expectations for a home away from home.

With an estimated 17.5 million rooms worldwide, the hotel industry now has an unprecedented opportunity to unlock growth and improve the customer experience by making physical assets, well, smart.

The key to this opportunity is the internet of things (IoT), which has become a critical driver of business growth for enterprises.

In today’s business environment, 94% of organizations that have implemented IoT solutions have seen a return on their IoT investments. By monitoring and tracking everyday assets in real time, businesses can provide everything from shorter wait times for customers, to cleaner, energy-efficient environments, to asset tracking of machines and equipment.

These connected solutions also enhance decision-making and enable employees to work on higher-value tasks.

When it comes to hospitality, IoT connectivity has the potential to solve problems that have long plagued the industry. These include a disconnected customer experience when checking in, not knowing where assets are when they are needed and the inability to lower energy costs.

Asset monitoring improves CX

When guests check into a hotel, they often need help taking their luggage to their room. Or they leave their room service tray out, hoping it will be picked up.

Too often, though, there’s no luggage cart near the registration desk, and a walk down any hotel floor will show you just how many leftover burgers and fries spend the night in the hallway.

Neither of these options pleases the guest or the hotel staff.

What’s the solution? Connected asset trackers. When placed on key assets, including both indoor and outdoor equipment, these devices allow staff to easily track down and manage valuable inventory. Equipment such as luggage carts and room service trays, which can sit in hallways for hours, can alert hotel workers to their location so they can be retrieved.

Moreover, dashboard reporting and analytics can be used in real time not only to make employees more productive but also to empower them to spend more of the workday creating connections with their guests, for example by providing personalized recommendations for sightseeing destinations or inquiring about their stay.

According to PwC's Customer Experience Survey, customers don’t want to choose between human interaction or machines: They want automation to be embedded in their experiences but to still maintain a human element - keeping the high touch of hospitality yet enabled by the seamless experience we’ve come to expect in a digital world.

Energy management saves money... and the earth

Consumers want to support brands that represent their values, and when it comes to hospitality, consumers often prefer brands that support important environmental and corporate social responsibility (CSR) initiatives, including energy efficiency.

According to a sustainable travel report conducted by Booking.com, 87% of global travelers say they want to travel sustainably.

Low-cost, high-value solutions that have a clear business case are a great place for businesses to start their IoT initiative.

PwC

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IoT solutions can help CSR programs. For example, occupancy sensors can provide hotel staff with critical data and alerts that can help them better manage and regulate energy consumption and support sustainability initiatives.

Guests often don’t adjust temperatures in their room and sometimes forget to turn off the TV or lights. IoT solutions can automatically adjust temperatures and turn off lights and TVs when guests leave their room.

It’s difficult to measure energy usage in real time, since many hotels get electricity bills months later, and utility companies don’t allow monitoring devices to be attached to their meters.

However, specialized cameras can read the display on a utility meter and provide immediate updates on energy usage, enabling hotels to make needed changes. And artificial intelligence enables the cameras to read multiple types of meters, so the solution can be used across hotel properties.

What’s more, saving energy saves money, too. Hotels can save up to 25% of utility costs by using IoT solutions. Energy Star found that hotels spend at least 6% of their operating expenses on energy, which adds up to more than $2,000 per room each year. For an industry with a wide range of hotel owners who must bear the costs, this could be meaningful savings.

IoT solutions can also gauge a hotel’s air quality and track the maintenance needs for items such as refrigerators and HVAC units. Predictive maintenance can do more than save money - it can also help businesses avoid equipment breakdowns. On the property outside hotels, IoT sensors can monitor the moisture in landscaped soil and detect water leaks.

These are just a few of the ways that hospitality businesses can improve their energy management, save money and enhance the customer experience with the right IoT solutions.

Say cheers to VIP access

Conferences and other large events that are hosted at hospitality facilities, such as weddings and conventions, require lengthy registration and badge verification processes, along with effective queue management of people waiting in line. VIP guests expect experiences that are convenient and consistent and provide very fast service. They don’t want to wait in long lines.

IoT solutions, such as biometric tokens that support facial recognition and queue management algorithms, can streamline the registration process while safeguarding personal information. And large-scale events that host a variety of guests can adopt IoT solutions that detect suspicious behavior and trespassers.

We’ve already deployed these solutions at scale - and customers noticed the difference in the ease of interaction.

Businesses in the hospitality industry know they need to adapt quickly to emerging technologies, but they also want to ensure that these technologies can be easily integrated into the existing infrastructure and will comply with all data privacy regulations.

IoT solutions can meet those needs by improving asset utilization with connected room service trays and luggage carts, lowering energy costs across connected buildings on a single property and creating a better experience for guests.

Low-cost, high-value solutions that have a clear business case are a great place for businesses to start their IoT initiative.

So, here’s to providing more enhanced, personalized, secure experiences from the moment guests and event attendees enter the property. I think we can all say cheers to that.