IoT in Hospitality Industry: Trends & Benefits

From automated check-in to smart room experience, IoT is enhancing hospitality services by providing a comfortable and customizable experience to guests.

In this blog, we will go through what is IoT, its benefits, and trends to get a clear understanding of IoT in the hotel industry.

So, let's start with our first point.

What is Internet of Things (IoT)? 

The Internet of Things is an ecosystem of devices and appliances fitted with sensors and computer systems that can connect and communicate with each other with the help of the Internet.

In other words, this technology makes your fridge smart allowing them to tell when the milk expires and your fitness tracker to check your health records.

With IoT, businesses are changing how they do business and making an impact worldwide.

IoT in Hospitality Industry 

IoT also has a different meaning when applied in the hospitality industry. 

Think of a hotel room that knows your body temperature and adjusts the AC setting according to it, food comes to you with a simple voice order, and curtains that open and close as you like!

These systems are interconnected and work together to offer an experience with a level of personalization but also at great efficiency. 

It is therefore not only about convenience but also about the more intuitive, proactive world that is always ready to help you out with everything you need. So, now look at some trends that are going to reshape the industries.

Top 4 IoT Trends in Hospitality Industry

1. Blockchain

Blockchain is important now as a lot of people are adopting this technology since it guarantees that data is stored in the right manner without being in a single facility. Blockchain when combined with IoT improves the integrity, transparency, and trust between devices.  

The growth of the blockchain IoT market is expected to be accelerated at a CAGR of 45% to reach $2,409 Million by 2026 according to a Markets and Markets report. 

This growth is due to the need for secure networks in IoT systems in various sectors such as the hospitality sector. Blockchain solutions have the potential to transform hotels’ operations by providing secure solutions for guest data handling, supply chain management, and smart contracts for secure payments and better process outcomes.

2. Virtual Reality

Virtual Reality (VR) is transforming the hospitality industry by providing guests with experiences within the hospitality property before checking in.

Hotels have started using VR to showcase the interior of their rooms, services, and nearby attractions.

This not only assists the prospective clients in decision-making but also builds up the anticipation and expectations amongst them.

According to a survey by Pentoz the global Hospitality AR/VR market is to expand at a CAGR of 30% until 2028.

In addition to pre-arrival experiences, VR has been implemented to provide enjoyment during guests’ stay.

People can have fun and even travel on virtual tours around certain places, such as luxury destinations, historical landmarks, etc.

All this can be done while sitting in the hotel room. This combination of technological and conventional services makes a stay unique and informative.

3. Smart Rooms

Smart rooms are the perfect innovation that is revolutionizing guest comforts by using high-end technology.

These rooms have Internet of Things devices that enable guests to control the lighting, temperature, and entertainment systems through voice commands or Smartphone applications.

According to recent statistics, the number of smart hotels is expected to reach$133.7 billion by 2031 due to the increasing need for technological solutions in the hospitality industry.

Smart rooms also increase operational efficiency as well. For instance, sensors can be used to monitor whether a room is occupied or not and reduce energy requirements when the room is vacant, thus promoting sustainability. 

4. IoT-Driven Energy Management

IoT-Driven Energy Management systems employ connected devices and sensors so that power use by the various systems is continually monitored and managed in real-time to avoid consumption wastage while at the same time considering the comfort of guests.

IoT technology helps the hotel to address external and internal vibrations and control light, heat, vents, and air conditioning depending on the occupancy.

For example, self-learning AC/heater controls the temperature in rooms that are not occupied, and energy-efficient lighting control can switch off the lights of rooms, corridors, and offices during specified hours when they are not in use.

This not only saves energy but also encourages the conservation of our environment.

However, many hoteliers and business owners are beginning to adopt these ideas to make the best use of the Internet of Things.

Benefits of the Internet of Things (IoT) in Hospitality Industry

From hyper-personalized guest experiences to enhanced security, IoT is transforming how hotels operate and interact with their guests. 

Here’s a closer look at some of the key benefits IoT brings to hospitality:

1. Hyper-Personalization

One of the major aspects that can affect is personalized Guest Satisfaction. When the guest gets to the hotel room, the same time AC changes automatically to the preferred temperature, the favorite music is gently playing in the background and the lighting is set perfectly. 

Thanks to IoT, it is possible to achieve hyper-personalization. Connected devices gather information about the guests and use it to personalize every aspect of their stay.

For example, smart thermostats and lighting systems can learn the preferences of a guest from previous stays and set the room appropriately. This level of personalization increases guest satisfaction and ensures that guests will return repeatedly.

2. Predictive Maintenance

Those days of equipment breakdowns that cause an interruption of the service delivery to the guests are now a thing of the past.

IoT allows for the real-time tracking of the state of hotel premises and equipment, including HVAC systems, elevators, and kitchens to achieve predictive maintenance. 

Technology can identify changes that point to potential equipment failure, making it easier to schedule maintenance appropriately. 

For example, a smart system for heating, ventilation, and air conditioning can help the maintenance team know about a likely breakdown ahead of time, thus keeping the guests comfortable during their stay.

3. Enables Mobile Access

Today's traveler demands convenience and IoT provides mobile accessibility. Smartphones are used for check-in, room door unlocking, regulation of the in-room facilities, and ordering services. 

The integration is smooth not only for the guests but also helps to minimize the contact points, which is crucial in the current global situation. 

For instance, Hotel "Hilton’s" Digital Key enables guests to bypass check-in and go directly to their rooms and use their phones for every service they may require during their stay.

4. Voice-Controlled Assistants

Smart voice assistants such as Alexa and Google Assistant are increasingly being integrated into hotel rooms to allow guests to access different services and products available in the room through voice commands. 

It allows guests to control the temperature, order a cleaning service, order food, or get information about points of interest around the area. 

For instance, "Marriott International" has introduced Alexa for Hospitality, enabling guests to control room features and access hotel information through voice commands, thus making it easier and fun to use.

5. Enhanced Security

Security is crucial in the hospitality industry, and IoT plays a vital role in it by implementing smart security systems, contactless access, and monitoring. 

Smart security cameras that are connected to the IoT can offer live footage with HD quality, identify suspicious events, and notify security services right away.

RFID(radio frequency identification)or smartphone-based solutions provide security benefits by minimizing the chances of losing or stealing keys. 

Furthermore, monitoring network and physical infrastructure in real-time helps to avoid breaches and guarantee safety for guests. 

For instance, Hotel "Wynn Las Vegas" has incorporated IoT-based security and access systems to provide a safe atmosphere for guests and employees.

Final Thoughts

The concept of the Internet of Things is not just a trend but a revolution in the hospitality industry. 

With the help of IoT technologies, hotel chains can create personalized experiences, adopt smart maintenance, enable convenience through mobile and voice-controlled assistants, and enhance security. 

With the advancements that are being seen in IoT, there is even more room for growth in the hospitality industry.

Using BOTSHOT's “Hotel in a Box” solution, you can handle hotel administration work like a piece of cake. 

It also comprises a channel manager, revenue manager, PMS, and more to help hotels improve their effectiveness and increase their revenues. 

Become closer to the future of hospitality with BOTSHOT the innovative tool that can provide unmatched levels of comfort and efficiency in the hotel business.