The impact of 4th industrial revolution on guest experiences 

by | Nov 13, 2024

The hospitality industry has grown alongside technology—adopting technology into its operations to continuously streamline guest experiences. From legacy systems to cloud-native solutions, we are now at the 4th industrial revolution or the 4IR. It is time to explore this new stage of industrialisation and the rising number of automation technologies it offers to the hospitality industry.

What is 4IR?

The fourth industrial revolution is marked by disruptive trends, such as the rise of data and connectivity, analytics, human-machine interaction, and improvements in robotics. At the forefront of this revolution are artificial intelligence and machine learning, cloud computing, predictive analytics, and optimised resource distribution. This has led to many benefits, such as reduced costs and faster operations, streamlined service delivery and allowing hotels to improve guest relationships.

Where can we find 4IR in hospitality?

Elements of 4IR are now widely used within hospitality businesses to enhance and optimise the entire guest journey.

1. Voice assistants

Voice-activated technology has been one of the most popular technologies of the 4th industrial revolution, leading to the rise of smart buildings such as smart homes or hotels. In hospitality, voice assistants allow guests to make use of voice commands in rooms to control aspects such as lighting, music, and electrical appliances. Voice activations can be done using multiple devices, such as smartphones or even hotel-provided tablets, offering high customer convenience. The heightened convenience also adds an additional layer of quality and luxury to guest service, improving their impression of the brand.

2. Cloud check-in systems

Cloud-based check-in systems offer enhanced customer convenience in synchronisation with the Property Management System. This process can include self-service kiosks, mobile apps, or even systems facilitated by AI that allow for a quick check-in and check-out process at any time of day. Cloud check-in management also helps hotels build their customer base, saving crucial customer information to generate digital customer profiles. Online check-in systems can also assist customers in paying on the go and with minimal human interactions.

3. Guest engagement modules

A successful guest application can connect guests with all the necessary points of a hotel, from the front desk to stewards and other necessary agents. Front desk employees can easily provide guests with information regarding local attractions and manage bookings for pick up or drop off using these applications. These applications can also be used for targeted upselling, including the promotion of spa treatments, bar or restaurant offers, fine dining packages or other attributes that can enhance the stay.

4. Chatbots

The number of businesses using AI chatbots is projected to increase by 34% in 2025. Chatbots are a major modification to the traditional method of managing a wide array of customer relationship activities. Rule-based chatbots can manage a defined number of questions with a specific set of answers. In contrast, AI chatbots can handle much more with advanced problem-solving, making hotel reservations, and offering personalised solutions.

5. Digital concierges

A digital concierge, similar to chatbots, is a communication system powered by artificial intelligence. The system allows guests to receive immediate assistance whenever needed, all without hiring additional staff. Whatever the requests that cannot be immediately fulfilled by the digital concierge will be sent to available employees of the relevant department, significantly improving a guest’s experience.

6. Hotel robots

Robotic assistants are helping hotels reduce labour requirements, taking heavy or time-consuming tasks off their employees. For example, hotels are increasingly deploying robots for functions traditionally handled by housekeeping runners. These robots can efficiently deliver amenities, linens, and other items to guest rooms around the clock, further improving efficiency around the property.

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Is AI the answer for the future of hotels in 4IR?

In the hospitality industry, automation of guest services can assist businesses in providing an enhanced guest experience. However, service, unlike a production process, requires human connection and cannot always be pre-made or pre-defined.

Here are some concerns that may arise in hospitality when navigating the 4IR, including AI.

  • Technology, including AI, can improve labour but cannot replicate human emotions; therefore, it cannot always meet guest needs with the right emotional intelligence required.
  • Human interaction is a much-needed asset in hospitality, specially to understand cultural sensitivities, diversified requests and nuances of human needs.
  • The new generation demands high-tech experiences, yet they are not the only demographic that makes up hospitality audiences. Complete digitisation or AI takeover may not be comfortable for every guest.
  • Complete dependency on technology is never the answer. Machines introduce the risk of technical failures, which can impact hotel operations unless employees step up to take over the tasks when necessary.

Conclusion

The bottom line to take away is that technology can complement, not replace, human capital in hospitality. While service automation with minimum human interactions has gained popularity over the last few years, the question remains: How sustainable is complete service automation within an industry that prides itself on human interactions and ‘hospitability’?

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Manoj K Mohanty | IDS NEXT

Author

Manoj K Mohanty

Senior Vice President - Sales, South Asia & South East Asia

He brings extensive industry experience and a track record of success in selling technology and services to global clients across hospitality markets. He has proven to be essential and crucial Sales personnel who is primary involved and contributing to acquiring new clients in South Asia and South East Asian regions.