Travel and Hospitality
The rise of smart infrastructure: Shaping the future of hospitality
With a market size of approximately $530 billion in 2015 and steadily making its way to becoming a $5.5 trillion industry in 2024, the hospitality industry has witnessed significant growth globally. To achieve this quantum leap, the sector has consistently reinvented itself to meet the ever-increasing consumer demands. Furthermore, hospitality technology has played a vital role in helping businesses stay relevant to mutable consumer behaviour.
Today’s traveller is neither limited, nor a simpleton, but a global citizen with increasingly sophisticated needs. Experience personalisation, seamless services and enhanced safety are benchmark expectations of the average consumer. Consequently, the need for innovation and differentiation has resulted in smart infrastructure playing the lead role in the present chapter of the industry.
Smart infrastructure in hospitality
An integral component under the umbrella of hospitality technology – smart infrastructure is how businesses are reshaping how guests experience their services. For instance, a McKinsey coverage highlighted younger consumers value personalisation 2.5 times more than people born between the mid-40s to mid-60s. Factors like these, alongside shifting consumer behaviour, operational inefficiencies, and the need for technological advancements, underscore the increased necessity for enhancement in hospitality technology.
Smart infrastructure, simply put, is integrating advanced technologies in hotel operations to improve processes and outcomes. It includes employing automation systems, Artificial Intelligence (AI), data analytics, the Internet of Things (IoT) devices, and other technologies. Let’s look at a technology we are getting increasingly accustomed to – the Internet of Things (IoT).
IoT In Hospitality
An integral component of smart infrastructure, IoT technology plays a pivotal role in real-time data collection, communication, guest experience, and service automation. As per a leading global research agency, 70% of all consumer interactions in the hospitality sector will involve IoT devices by 2025.
By connecting systems and devices to the internet, this technology significantly improves consumer satisfaction, operational efficiency, and continuity of customer support. Let’s look at a few examples of how IoT in hospitality has supported industry players:
- The ‘Smart Room’ permits guests to control lighting fixtures, temperature and entertainment systems through smartphones or voice assistants like Alexa.
- IoT-enabled energy management systems track energy consumption in real time across properties. These systems automatically adjust cooling and heating based on occupancy levels without the need for human intervention. Consequently, the system allows reduced operational expenditures and significant energy savings. A by-product attributed to the implementation of IoT in hospitality also extends efforts towards sustainability and environmentally responsible business practices.
- IoT in hospitality is established on the premise of enhancing customer satisfaction through seamless control. This initiative allows guests to interact with their rooms and devices through their mobile devices, delivering a highly personalised experience.
- Chains with a large inventory of properties employ IoT sensors to track the performance of equipment like HVAC systems, elevators, and other machinery that requires periodic maintenance. The sensors are programmed to predict the maintenance cycle of machinery and provide timely inputs and insights before failures occur. This system minimises operational downtime and consequently enhances guest satisfaction through consistent and seamless experiences.
Smart infrastructure positions organisations to optimise customer experience, improve financial outcomes, and plug operational leakages.
The benefits of smart infrastructure in hospitality
The convergence of various hospitality technologies allows for hyper-personalised guest experiences, hyper-efficient operations, and an unprecedented level of sustainability — all powered by data and real-time insights. In an increasingly competitive market, hotels that embrace this transformation not only enhance their service offerings but also position themselves at the forefront of innovation and operational excellence.
Enhanced guest experience: Smart infrastructure enables the integration of IoT devices and AI algorithms to create dynamic, guest-specific experiences. This level of personalisation enhances guest satisfaction, fostering loyalty and repeat business.
Operational efficiency: Automation reduces manual interventions and human error across multiple touchpoints. For instance, AI-driven systems can dynamically adjust room rates based on demand, optimise housekeeping schedules based on occupancy data, and even automate check-in/check-out processes.
Energy management and sustainability: Smart buildings leverage real-time data from sensors and IoT devices to optimise energy usage. Predictive analytics can forecast energy needs, allowing for proactive energy management that supports both sustainability initiatives and the bottom line.
Predictive maintenance: Advanced IoT sensors monitor the health of critical systems like HVAC, plumbing, and elevators. These devices gather data and trigger alerts before issues escalate into costly breakdowns.
How can Infosys BPM help with hospitality technology?
While intrinsically defined by human connections, hospitality, for what it’s worth, is a numbers game. By leveraging its extensive experience and industry expertise, Infosys BPM offers pragmatic solutions that enhance efficiency, promote operational streamlining, and positively impact customer satisfaction across the hospitality sector. With Infosys BPM, hotel chains can leverage cutting-edge technology to deliver smart solutions for unforgettable experiences.
