New-age technologies have fundamentally transformed the travel and hospitality industry, with offerings ranging from online booking forms and mobile check-ins to personalised concier­ge services and in-room automation. Digital solutions have also enhanced operational efficiency for hotel and travel operators to help them streamline processes, automate tasks and make data-driven decisions. Large brands in the industry are already investing heavily in the latest technology to stay ahead of the competition and increase revenue generation.

A look at the key technologies shaping the future of the travel and hospitality industry…

Artificial intelligence

Artificial intelligence (AI) is witnessing ma­in­stream adoption among travel and hospitality companies. AI algorithms an­a­ly­se customer preferences and behaviours to offer personalised recommendations for accommodation, activities and destinations, enhancing the overall trip planning experience. AI-driven solutions are also used for improving the efficiency of back-of-house operations, from inventory management to predictive maintenance. Addi­tio­nally, enterprises are leveraging AI for customer segmentation and personalised marketing campaigns to better target po­tential customers. With predictive analytics, AI can enable businesses to accurately forecast demand and make smarter staffing decisions. According to a report by Mc­Kin­­sey & Company, modern AI analytics techniques are 128 per cent more effective for the travel industry than traditional analytics methods. This is the highest rate among the 19 industries studied.

At Conrad Pune, Hilton’s flagship ho­tel, couples can visualise their weddings and choose from more than 1,000 options for decor, theme and arrangements th­rough an AI-enabled feature called Wedding Studio. It is a 360-degree virtual experience that was launched in April 2023. SaffronStays, a vacation rental platform in India, has integrated AI across its entire value chain. The company has leve­raged large language mo­dels (LLMs) across the entire guest journey, from pre-booking and booking to post-checkout, loyalty and retargeting. Other leading brands such as Marriott Inter­na­tional, the InterContinental Hotels Group and Hyatt Hotels are also deploying AI-driven solutions. A study by the World Travel andTourism Council suggests that AI and machine learning could result in a $1 trillion boost in global economic activity from the travel sector by 2025.

IoT and smart solutions

Internet of things (IoT) has found nu­me­rous use cases in the travel and hospitality industry. IoT technology offers passcode-enabled contactless access, a simpler and more convenient alternative to traditional locking systems. With this solution, gue­sts can get a modern, hassle-free che­ck-in ex­perience. IoT devices can provide personalised experiences to guests. For example, smart mirrors in hotel rooms can offer personalised beauty and grooming recommendations, while smart TVs can be used to suggest movies and TV shows based on user preferences. Smart reserved parking systems use sensors to detect ve­hicle occupancy and allow guests to re­serve parking spots in advance. Addi­tio­nally, IoT devices can improve safety and security in hotels. Smart cameras can be used to monitor premises and detect un­usual activity, while smart smoke detectors can alert staff and guests about potential fire hazards. Further, the deployment of IoT is expected to address environmental, social and governance challenges ac­ross the travel and hospitality sector. Sen­sor-enabled smart lighting and thermosta­ts monitor and adjust lights, fans, air co­nditioners and other appliance settings to improve energy efficiency.

Lastly, asset tracking devices can be us­ed to monitor and manage hotel assets such as linen, towels and cleaning supplies, ensu­ring that they are properly tracked and acc­ounted for. Enterprises in the sector are increasingly incorporating voice-activated assistants, smart mirrors, automated lighting, and temperature and entertainment control via guests’ mobile devices.

Robots and automation

A common application of robots in hospitality is in the performance of repetitive and time-consuming tasks such as housekeeping, security and lawn care. Robotic receptionists efficiently handle guest ar­rivals, ensuring a seamless and expedited check-in process. Robotic bellhops help transport guests’ bags with high precision and speed. They are equipped with advan­ced sensors and navigation systems, allowing them to autonomously navigate throu­gh the hotel’s premises. Interactive robotic concierges, robotic patrols and robotic en­tertainment have also emerged as notable use cases of this technology in the travel and hospitality space.

By implementing robots and robotic pro­cess automation, hotels can automate services such as check-in and check-out pro­cesses, room service requests, and concierge assistance. This enhances effici­ency, reduces waiting times, and provides a seamless and personalised experience for guests. Automation can optimise back-end operations including inventory management, housekeeping schedules and maintenance tasks. Automated pricing and revenue management systems allow businesses to manage their prices and maximise their revenue in real time.

AI-powered chatbots and voice assistants are becoming increasingly prevalent in the travel and hospitality industry. The­se intelligent systems can handle a wide range of customer service requests, such as providing information about fligh­ts, hotels and destinations, and resol­ving common issues such as booking ch­anges and cancellations, providing instant res­pon­ses 24×7. They can also assist with mul­tilingual support, ensuring effective co­m­munication with guests from diverse backgrounds.

In 2014, Aloft Hotels became the first hotel brand to use robot technology, introducing its robotic butler called “Botlr” at its Cupertino location. The robot can travel across the entire hotel to make deliveries. In India, a Vijayawada-based restaurant has started contactless services by stationing robots to attend to customers, take food orders and serve guests. Meanwhile, Book­ing.com has launched a new AI trip planner chatbot to help users plan trips and itineraries by leveraging LLM technology.

Extended reality and metaverse

Extended reality, encompassing augmented reality and virtual reality (AR/VR), is transforming travel experiences, allowing users to experience destinations before they arrive. AR/VR can provide virtual to­u­rs and immersive experiences, allowing travellers to explore and interact with destinations, attractions and landmarks. AR/ VR can also aid in real-time and reliable navigation. Employee training and upskill­ing is another emerging application of VR in the hotel industry. Employee training programmes delivered through VR headsets facilitate practical training of staff in immersive environments.

Meanwhile, metaverse adoption is gradually gaining momentum in the travel and hospitality industry. A notable use case of the technology is marketing and advertising. According to McKinsey, the metaverse has created a $13 billion opportunity for travel inspiration, mostly driven by digital travel advertising. Virtual spa­ces, which can be used to showcase hotel ame­nities, airline classes or entire landmarks, can attract viewers to travel, give a holistic idea of a destination, help in traveller decision-making, showcase broader offerings and raise awareness of unfamiliar locati­ons. Some organisations are ex­ploring the idea of virtual concierges to support users at every stage of the journey with real-time itineraries, information, tro­ubleshooting, visa issues and more. Qa­­tar Airways, for instance, provides a Me­taHuman cabin crew for an interactive customer experience.

Crowne Plaza Greater Noida has an­nounced the launch of the world’s first hotel VR experience centre. Located in the hotel lobby, it will allow users to indulge in an immersive 8K three-dimensional, computer-generated virtual environment that can be explored and interacted with as per the guest’s requirements. In December 2022, Marriott became the first hotel to open a virtual twin of its flagship Madrid Marriott Auditorium Hotel and Confere­nce Center inside the metaverse. Qatar Air­ways recently launched a VR experience called “QVerse” which allows travellers to view cabin interiors, the business-class QSuite and the VIP check-in area at Hamad International Airport.

Although still experimental, the metaverse is expected to transform the travel and hospitality space. Visiting and engaging with destinations virtually is expected to mo­tivate real travel, rather than replace it.

Blockchain

Blockchain helps streamline and fast-track financial settlements between hotels, travel agents, third-party vendors and different aggregators. The centralised, distributed ledger speeds up transactions while ensuring high security, helping companies combat fraud and data theft. In travel and hospitality, blockchain can be utilised for various purposes, such as tracking and distributing reward points, coupons or other loyalty programme benefits. It can also be used to verify customer identities, prevent fraud and improve the efficiency of supply chain management. Other use cases in­clude luggage tracking, non-fungible tok­en rewards, tokenisation and crypto-artist collaborations.

Shangri-La Hotels and Resorts has part­nered with Rakuten to create a block­chain-based loyalty programme. The prog­ra­mme uses blockchain technology to track customer rewards, and provide a more se­cu­re and efficient loyalty experience. Mean­while, Accor Hotels has partnered with Winding Tree, a blockchain-based tra­vel plat­form, to create a decentralised loyalty programme. Radisson Ho­tels has anno­un­ced that it will begin accepting Bit­coin, Ethereum and Shiba Inu currencies for re­ser­vations at its Georgian branch.

Future outlook

Rapid technological advancements, ever-evolving customer expectations and rising market competition are accelerating the digital transformation of the travel and hospitality industry. The travel experience of the future will not be exclusively online or offline. Instead, the sector will most li­kely enjoy a proliferation of hybrid offerings, with virtual events and tours, combined with physical destinations.

Sarah Khan