The ever booming Global tourism has been a major contributor to the proliferation of the Global hospitality industry by leaps and bounds. Even before the COVID-19 pandemic struck the world, there was corroborative evidence as to a steep shift in the operations of the industry. Things were changing and the industry experienced a major lift because of increased disposable income, a considerable change in lifestyle, ever-evolving travel trends, increased acceptance of the internet, e-commerce, e-banking and an overall increase in the online presence of hotels, tourism institutions and travelers.
The Global hospitality industry which consists of lodging, food and beverage, entertainment, travel et cetera, happens to be one of the fastest growing industries despite the serious dent the pandemic caused in its operations throughout the globe. According to the growth projections of the World Tourism Organization, the number of tourists across the world for the year 2020 was supposed to surpass 1.5 billion. But due to the tremendous fall in the number of travelers, flights getting canceled and the worldwide restrictions, the Global hospitality industry economy was hampered to a large extent.
The hospitality industry is ever changing and ever evolving. As hoteliers, overcoming adversities and rapidly evolving with the changing times isn’t a novelty for the professionals of the industry. However, the pandemic was a notably unforeseen and unprecedented occurrence which nobody could have prepared for. Nevertheless, the only way to keep up with the tide was to recognize opportunities and constantly evolve with the changing patterns.
The New Normal For The Hospitality Industry
The Global hospitality industry is one of the most dynamic industries in the world and its operations have experienced several significant changes as opposed to how the industry operated initially or before the COVID era.
Hygiene, health and safety while being important earlier as well, have now become the foremost checkboxes for the hoteliers to be consistent and immaculate about ticking. There is a growing need among guests as to the strictness of measures that a hotel follows when it comes to ensuring their health and safety. So much so that a star for assurance of health will soon become a part of the star categorization of properties. Safety readiness is another detail that hotels need to stay on the top of.
Keeping up with all the advancements in the technology and incorporating them into the operations of their hotel is another point hoteliers are touching upon to build a sense of security in their guests and eliminate any fear they may have about their safety or security.
The adoption of high-end technology includes, but is not limited to, full body thermal screening, contactless check-ins, check-outs, keyless entry, mobile keys for accessing different public areas of the hotel, smart devices in rooms, apps for guests to order in-room service or housekeeping, embedding HEPA (High End Particulate Air) filters into the air conditioning systems of the hotel to eradicate any air-borne viruses or bacteria as well as the usual dust particles, digital dashboards in the most frequented areas of the hotel like the lobbies and restaurants to display the number of people present, warning mechanisms etc.
New contactless technology solutions are something many guests are now interested in. Even though it’s been a couple of years since the pandemic’s first hit, there is still a rising demand among guests for availing contactless services. Because of the more personalized, time efficient, secure and hassle-free experience these services provide, guests continue to opt for contactless services and further are more inclined towards staying at hotels that offer the said services.
Hospitality Industry Adjusting With The Paradigm Shift
While navigating these unprecedented waters definitely seemed like a herculean task there are basic technological solutions that hospitality organizations have made use of to maximize on efficiency and provide the best of service to their guests.
Digital messaging is a very important tool that has been employed to achieve seamlessness in the communication with guests. According to a guest service report, while around 50% of the guests don’t report the problems they face during their stay because either there is not an easy way to do it or they don’t want to have a confrontation with the service provider, 42% of the guests are likely to return to a hotel that offers them a quick way to get their issues resolved. Hence, digital messaging or having a platform that helps guests communicate with the management is an essential tool that must be taken advantage of.
An automated workflow is also an essential element of coping with the shift that hoteliers have masterfully incorporated. Contactless solutions are not only safe from a health perspective but are also a great way to reduce human error to a zero, especially while handling guest related information like credit cards, registrations and other documents. An automated workflow streamlines the whole process and automates the different operations that otherwise would have required a lot of human participation.
How The Things Have Changed For The Hospitality Industry
When a hotel system is online, the management can make great use of the insights and analytics that the digital hospitality tools provide. They can keep track of their customers every step of their stay and leverage client related data to better their operations and improve on the overall experience they provide.
A robust CRM (Customer Relationship Management) system is another tool that is widely being seen. This system will allow the hotels to create and sustain connections with individual guests and provide them with a more personalized experience. According to a research by Deloitte, guests who are presented with more personalized attention are 29% more likely to share positive reviews.
While going contactless may have seemed too technological at the onset, organizations have done a tremendous job of keeping the hotel experience from becoming soulless. By providing custom/tailored experiences to guests, as per their own pre-set requirements has resulted in a massive increase in the number of satisfied guests. Allowing guests to select their rooms, services and more from the comfort of their homes has contributed immensely to the success of hotels through and post the pandemic.
Facts and Figures
Contactless services have been so well received over the last few years that they have become directly proportional to guest satisfaction. According to a research conducted by Deloitte, contactless experiences have a 23% impact on guest satisfaction. Key-less entries alone contribute to a 7% increase in the guest satisfaction scores. The guests need services fast, so much so that the satisfaction score plummets by 50% if there is a 5-minute wait at the check-in.
For over 46% of the travelers, an on-property mobile key arrangement is an important feature for them when looking at hotels to stay at. And over 49% stated that their booking decisions depend on the in-room high technology features a hotel provides, including but not limited to a mobile key, smart devices etc. In addition to keyless entries, 57% travelers prefer to communicate with the hotel staff through smartphones or voice assistants.
As per the Chief Revenue Officer of StayNTouch, a hotel management platform, when their guests were given a choice, they benefited from about an 81% conversion rate on contactless check-in. For them, these offers were a major success and resulted in an about 18% conversion rate on automated room upgrades, 10% conversion rate on amenity offers and a whopping total of 240% ROI depending only on automated upsells.
Contactless services have not only curbed the time it took guests to complete the whole process of checking-in, but they have also made the hotel experience more personalized, quick and smooth. The guests who receive personalized attention are 29% more likely to share positive reviews, as per a Deloitte study. Hence, personalization has become a major contributing factor to the positive reviews a hotel gets from the guests.
Even before the pandemic, 60% of the participants of another Deloitte study, said they would prefer hotels that offered contactless check-ins and key-less room entries. And at the onset of the pandemic that percentage increased to 71% of the travelers stating that they would be more inclined towards staying at a hotel that offers self-service technology to bring the contact with the staff to a bare minimum.
What to Look Forward To
Automation and self service have made the hotel operations highly efficient.
What started with contactless check-ins has transformed into a whole experience in itself. From booking, to before arriving at the hotel, to upselling, to checking-in and finally checking out, digital engagement now plays a key role in the hotel guest-management interaction.
Contactless is gaining wide acceptance across the globe and stands a chance at becoming a mandate for all hospitality organizations. The incorporation of contactless services and technology has altered the scenario of the hospitality industry forever. Contactless technology is the present and the future of hospitality. With the rise in technology and the ever-evolving advancements in the industry, the idea of a physical hotel shall soon be replaced by a more interactive, engaging and tech-driven experience that wouldn’t compromise on efficiency and will deliver impeccable service that guests would want more of.
