Hospitality sector embraces technology as COVID-19 forces a paradigm shift

The industry has been drastically impacted and irreversibly changed due to the fallout of this pandemic, which is forcing the hospitality sector to follow social distancing as opposed to the core beliefs of close-proximity hospitality on which the industry was founded.

The 2020 outlook for the hospitality sector wasn’t very gloomy in the first place due to visible signs of economic slowdown, protests in a few prominent cities like Hong Kong and Paris, and geopolitical tensions. But the COVID-19 pandemic has blown those projections further out of proportion and even the very survival of a significant chunk of the industry is now in question. The whole world had been brought to a halt by the pandemic and a global recession is now certain. Given hotel performance is generally tied to GDP growth, the economic slowdown in 2019 had an effect on hotel performance and a recession this year will worsen the situation.

The industry has been drastically impacted and irreversibly changed due to the fallout of this pandemic, which is forcing the hospitality sector to follow social distancing as opposed to the core beliefs of close-proximity hospitality on which the industry was founded. From serving guests to taking payments, everything is now different and not forgetting the drastic drop in revenues which has put the better part of the industry in survival mode.

The pandemic has essentially put brakes on the industry, forcing many establishments to suspend operations and layoff or furlough staff to survive. While the economies are in the process of reopening now, many establishments are still operating with a skeleton crew to adhere to strict SOPs, and customers also expect to be served with a minimum human touch.

The hospitality sector has turned to technology to address changing consumer behavior and to prepare for a safer post-COVID environment. While some of the bigger establishments were equipped to switch to contactless check-ins and payments, major changes like robotic cleaning, sanitization, smart assistants, and automated restaurants represent new frontiers for the hospitality industry.

As discussed in an earlier report titled, “Hospitality post-COVID 19: Adapting quickly to better serve customers for revival”, the sector is yet to witness a widespread adoption of robotics despite impressive technological developments in recent years. Risk of losing human touch is often touted as the reason by hospitality giants when they sway away from technology but a potential change in consumer behavior due to increased dependency on technology during the lockdowns could make consumers accept and embrace robots in the hospitality sector. Many hotels around the world are even offering their properties to be used as quarantine centers and to accommodate healthcare professionals dealing with coronavirus cases, which could positively impact recovery as it shows their ability to handle the fallout of pandemic with the help of technology.

The hospitality sector is changing

Hygiene

A cleaning staff employee is simply not as reassuring as a cleaning robot that can’t sneeze or catch an infection. Some new generation of robots are even equipped to clean themselves and its clear the hospitality sector will also need to raise their game when it comes to cleaning tech.

Many prominent hotel chains unveiled their ramped-up cleaning plans in April and May, which are replete with the latest technologies from electrostatic sprays to UV rays to sanitize hallways and other areas.

The likes of Marriott, Hilton, and Hyatt either roped in big brands for consulting or set up in-house councils to help maintain adequate hygiene standards and prepare to provide for a safer post-COVID experience. Marriott International has launched Marriott Global Cleanliness Council to develop new cleanliness standards for its hotels around the world, which include deploying electrostatic sprayers with hospital-grade disinfectant recommended by the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO). To limit person-to-person contact, in more than 3,200 hotels, Marriott plans to allow guests to check-in and access their rooms using their phones.

Hilton, on the other hand, has roped in Reckitt Benckiser, the maker of Lysol and Dettol, and consulting with the Mayo Clinic to develop a new program called CleanStay.

Few companies have also deployed or seriously considering a new kind of cleaning robot that uses UV rays to sanitize hallways and other areas. Such cleaning robots have been developed in India and China, initially for use in hospitals to minimize human contact.

IHG Hotels & Resorts has also launched a global initiative ''IHG Clean Promise'', to give guests greater confidence and hotel teams the protection needed. The hospitality major has partnered with Cleveland Clinic, Ecolab, and Diversey for the initiative which “includes looking at where technology can make a difference, deploying enhanced, highly visible and more frequent cleaning measures,” said IHG’s CEO Keith Barr.

Many other establishments have also kicked off cleaning initiatives from over the past couple of months, promising to use advanced technologies to maintain adequate hygiene and reassure guests.

Contact-less service

Touchless tech is becoming more than a gimmick and features in overhauled cleaning plans of the biggest brands in the hospitality sector, as discussed in the above point. Going a further step ahead of contactless payments and check-ins, hotels are moving those services to the devices of customers which not only reduces costs but also reassures customers. Even before a consumer arrives at the hotel, their smartphones will receive information on what to expect.

United Nations World Tourism Organization (UNWTO) has also recommended contactless options such as ‘guest messaging’ for rapid and direct contact without putting staff or guests at risk.

Smart voice assistants will also become more prevalent across establishments especially due to low prices. These off-the-shelf small devices could reduce the need to touch objects and provide a better experience to guests.

Digital menu boards or tablets with anti-microbial screens can replace paper menus and bringing those menus to the smartphones of customers is also being considered by many establishments.

Technology replacing lack of manpower

Even though economies are reopening, many businesses are wary off filling the workplaces with employees because it is neither safe nor customers want to engage with employees in the traditional way.

Automation and robots are becoming vital in response to changing conditions as establishments try to enforce social distancing and reassure customers. Widespread deployment of robots as receptionists, cleaning staff, and waiters would’ve seemed like science-fiction before the pandemic but the ‘new normal’ has made many prominent hospitality brands to express interest in the technology.

Recently, the Tokyo metropolitan government unveiled robots that will be used in two hotels accommodating patients infected with the novel coronavirus. The aim is to efficiently clean the hotel which accepts asymptomatic patients or those having light symptoms so as to decrease the burden on staff. One of the robots is designed to connect, assist, and share knowledge with them. While the other is a fully autonomous, AI-powered vacuum sweeper that recognizes QR code and can map out the entire floor plan after one full sweep.

L’hotel Island South in Hong Kong has also deployed 3 robots - Genie, Gena, and Genius, to beat the coronavirus travel slump. The AI-powered robots have been deployed since March to serve food and drinks to guests under quarantine stay at the hotel.

While bars and pubs might not seem a very inviting option as of now, these establishments are also preparing for reopening, and technology will again play a critical role in ensuring safety and hygiene. Robotic bartenders are already a reality in casinos in Las Vegas, few lively clubs across Europe, and even in Japan, which faces a shortage of workers, especially in the service sector.

Why hospitality tech is important

Digital tools offer huge benefits, not only improving operational efficiency but also the way hospitality companies complete assessments, audits, checklists certifications, training, and more. Adopting a digital quality management system can help hospitality companies to:

• Update safety and compliance information quickly, easily, and in an error-free manner. A digital management and communication system will help companies to convey vital instructions to all employees, across all locations and shifts. This is essential in a crisis like COVID-19 when instructions could change rapidly.
• Gain better visibility of organizational data that’s seamlessly collected and organized to quickly provide critical insights to the management.
• Ensure essential safety checks are regularly and accurately performed while also indicating issues that require corrections and training.

Some impressive developments have happened in the past few years in the hospitality tech space and the disruptions caused by COVID-19 have further spurred innovation. Major hospitality companies have embraced existing or new technologies to enhance cleaning and disinfecting efforts, implement and enhance safety protocols, train employees, and ensure compliance. It is still far from reaching its full potential but increased demand for these products after COVID-19 could boost investment in the sector and pave way for innovations.

Virtual assistants in the form of smart speakers have already started becoming a part of hotel rooms but widespread adoption of these gadgets would allow hospitality tech to elevate to the next step. Smart IoT devices like kettles, heating, lighting, and blinds will not only enhance the experience of guests but also increase efficiency, minimize energy costs, and provide the best room experience without unnecessary human intervention. Fingerprint and facial recognition can also be integrated along with these devices to increase conveniences like making contactless payments and checkouts.

Many hospitality majors have committed to deploying robots to reassure guests and improve safety standards as they prepare to reopen in the midst of a pandemic. The technological solutions available now include robots that can answer queries of guests, carry the luggage to their rooms, provide room service by bringing snacks and cooled drinks, and manage the cloakroom. But there is more room for innovation, especially in improving the efficiency and speed of the robots available right now.

The use of VR, AR, and chatbots could also overhaul the booking experience for guests and help hospitality sector establishments to assure customers about safety infrastructure in place. VR and AR technologies will enable customers to take a virtual tour of rooms and their surroundings while chatbots can provide them with the relevant information within seconds. These technologies can be deployed widely and enable companies to utilize staff for complex and urgent tasks.

Centre of Excellence on Emerging Development Perspectives (COE-EDP) is an initiative of VisionRI and aims to keep track of the transition trajectory of global development and works towards conceptualization, development, and mainstreaming of innovative developmental approaches, frameworks, and practices.