Automotion in the Hospitality and Tourism

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Table of Contents

Main Factors Driving Global Trends within the Hospitality and Tourism
Brief History
Current Use of Automation and Future Impact
Criticism and Concerns of the Automation
Conclusion
References

Global digitalization, generated by the fourth industrial revolution, leads to dramatic changes in all spheres of society’s socio-economic life. The most significant trends in humanity’s development are currently accelerating technological innovation, globalization, and digitalization of all processes. Tourism is one of the first to experience the impact of global digitalization. It is an information-rich industry that responds quickly to all changes. Digitalization is mainly manifested in introducing digital technologies into the business processes of enterprises in the tourism field. Automated management systems for hospitality and tourism primarily ensure the smooth implementation of internal processes. Such technologies in practice make it possible to modernize the service, increase data processing speed, and eliminate errors due to the human factor. However, there are some critics and concerns about this trend, being implemented in hotel and tourism services annually.

Main Factors Driving Global Trends within the Hospitality and Tourism

Over the past two decades, the number of international travel has doubled. Consistently growing demand ensured the same increase in hotel rooms. According to the Deloitte report (2019), at the beginning of 2019, there were more than 184 thousand hotels in the world, including about 17 million rooms. Investors are keeping an eye on new tourist destinations; simultaneously, a significant part of the funds is invested in premium hotels. They are the first to innovate technology, use new marketing techniques, and follow the trends.

Consumer needs are driving the development of the hotel industry. New formats and brands are emerging in the budget and economy segments, representing an alternative to well-known hotel chains. For instance, Radisson develops the Radisson Red brand, Marriott relies on Moxy, and Accor Hotels depends on Mama Shelter (Deloitte, 2019). The industry is also opening hotels targeting specific tourism types, such as food, agro, and ecotourism (Deloitte, 2019). The construction of apart-hotels for a long-term stay of tourists continues. Investors buy numbers in them and transfer them to the management of a specialized company.

Brief History

Automation continues to grow in the hospitality industry and has long been an integral part of many business processes. First of all, these technologies and systems make it possible to save resources and optimize personnel work (Brondoni, 2016). There are several stages in the creation of automation systems. According to Ivanov and Webster (2019), in the 1950s, various electromechanical calculating machines were used for payroll and invoice processing. Such actions resulted in an inevitable reduction in costs and savings in time when working with paper documents. The second stage in the 1960s was characterized by a change in people’s attitudes to information technology (Ivanov & Webster, 2019). In the 1960s, the three largest hotel chains Hilton, InterContinental, Sheraton, together with the ABM corporation, financed the creation of the first hotel management system and called it Hotel Information System (HIS) (Ivanov & Webster, 2019). In developed countries, a part of the employed population is connected with the preparation, storage, processing, and transmission of information.

Therefore, it is forced to master and practically use information technologies (IT). The beginning of the 1970s – 1980s is marked by its widespread introduction in management (Ivanov & Webster, 2019). At the end of the 20th century, profound changes are taking place in using IT (Ivanov & Webster, 2019). According to Ivanov and Webster (2019), information and computer technologies turn into strategic information sources and are applied in business entities of various spheres at all management levels. Due to information systems, enterprises perform successful activities, develop and introduce innovations, and find new sales segments.

Modern automated solutions for hotel infrastructure can be divided into two main groups. The first is the Building Management System (BMS), responsible for managing the climate, lighting, and water supply of the entire hotel building (Ivanov et al., 2017). The second one is the Guest Room Management System (GRMS) standard, designed to create comfortable conditions directly in the room stock (Ivanov et al., 2017). It helps control and manage the lighting and room temperature as quickly and conveniently as possible, adjusts the curtains’ position, interacting with the room’s electronic filing.

Current Use of Automation and Future Impact

The most advanced GRMSs can interact with the BMS, the door lock control system, and the Property Management System (PMS) of the hotel. For instance, it allows the hotel personnel to remotely exercise centralized control over room equipment, change settings, and set operational statuses depending on current tasks (Naumov, 2019). If all systems are configured correctly, then the room conditions will be dictated by the PMS, based on its data. If the premises are not planned to be occupied soon, the system switches it to the “operational” mode (Naumov, 2019). The room consumes minimal electricity and heat in this status, and all electrical devices are de-energized. As long as PMS has received information about an imminent check-in, such as booking via the Internet, the number is switched to standby mode (“comfort”) (Naumov, 2019). When the guest enters the room, its status changes to “occupied.” The presence sensor on the door opens and detects an arriving person.

Another example of the usage of this approach is the automation of minibars. Due to automated monitoring, hotel staff can determine if the guest has used the minibar, how many drinks and products are left there, thereby saving the time required for personnel to check. It is profitable for large hotels; for example, the Swiss company Minibar Systems offers several automated minibars (Moyeenudin et al., 2020). The most popular is the semi-automatic series with an electronic lock. The device works online, automatically sending information about the fact that the door has been opened. This system saves up to 40% of the working time of the hotel staff (Moyeenudin et al., 2020). A fully automatic system with smart infrared sensors immediately transmits information about the consumed products to a central computer. This solution eliminates abuse by guests and staff, significantly reduces unforeseen costs, while saving up to 60% of the staff time required to service the minibar (Moyeenudin et al., 2020). An automated minibar pays for itself three to five years from the moment of installation, but automation brings benefits for large companies.

Moreover, it also allows the client to use these technologies. For example, at the time appointed by the guest, the TV turns on with a special morning video, which gradually increases the volume. Information about the weather appears on the screen and a wish to the person for a good day. Another use case is that when a room service representative presses the doorbell in the room, the TV and tablet are turned on. Their screens display an image broadcast from a camera installed in the corridor. Thus, the guest can see who is in the hallway and decide whether to open the door or not.

The hotel staff can be relieved of the need to independently monitor the disconnection of devices and provide a comfortable climate in the room in the shortest possible time. It remains for employees to monitor alarms and events and perform preventive maintenance (Ivanov, 2020). GRMS can reduce electricity and heat supply costs by up to 45% with proper setup and operation (Ivanov, 2020). Besides, in addition to the ability to set rooms’ operational status to save money for the hotel, script programs aim to increase guests’ comfort and loyalty (Ivanov, 2020). The most convenient is the guest greeting; after the customer checks in, the PMS system automatically turns on the TV with the hotel’s promo video, and a salutation addressed to the guest personally.

Criticism and Concerns of the Automation

Experts emphasize that, despite the significant advantages of automation, this process also has disadvantages. The main cons of using automated processes include an increase in the unemployment rate due to people’s departure in order to replace manual labor with machine one, development costs, and security threats. (Manthiou et al., 2020). One of the most significant issues associated with industrial automation is unemployment, which is the loss of jobs caused by technological change (McKinsey Global Institute, 2017). This problem gives rise to negative views regarding the introduction of automation. According to the research by McKinsey (2017), by 2030, more than 800 million people around the world will lose their jobs due to growing robotization and automation. Compared to other systems, such as traditional accounting programs, the hotel system works in real-time because guests check-in, pay for services, check out, and receive returns daily. In case of a crash, it cannot be restored based on a paper archive, and a copy made several days before the collision (Buhalis et al., 2019). Another aspect that many entrepreneurs attribute to this option’s disadvantages is training staff to work with new systems.

An integral part of the work of modern hotels is working with payment information. Therefore, building an information security system, it is imperative to take care of certification for compliance with the international PCI DSS standard (Buhalis et al., 2019). Also, any hotel should have modern systems for repelling attacks, support the timely installation of new versions of corporate software and antiviruses (Buhalis et al., 2019). The booking service must have reliable security systems and bear some responsibility for violations.

Companies face the challenge of cyber defense; it doubles the cost of leaks and makes errors in cloud configurations an increasingly complex problem. Employee credentials and misconfigured clouds are vulnerabilities targeted by attackers (Buhalis et al., 2019). Stolen or compromised credentials and improperly set cloud environments are the most common causes of hacks (Buhalis et al., 2019). However, companies that have invested in automated technology can more effectively mitigate the negative impact of data breaches.

Conclusion

The The hotel’s internal automation is essential both for the guests of the hospitality establishment and for the management. The useful application of effective software solutions becomes the basis for analyzing business processes. The hospitality and tourism domains are an integral and significant component of the economy of many countries. A rapid change in economic conditions characterizes the hotel business, a constant process of improving the quality of services provided, attracting new participants to the market, including the world’s prominent hospitality industry leaders. The competitive advantage of enterprises in the hospitality industry largely depends on the active use of information technology innovations. This powerful marketing tool allows hotels and companies to manage customer loyalty.

References

Brondoni, S. M. (2016). Global tourism management. Mass, experience, and sensations tourism.Symphony. Emerging Issues in Management, 1, 7-24. Web.

Buhalis, D., Harwood, T., Bogicevic, V., Viglia, G., Beldona, S., & Hofacker, C. (2019). Technological disruptions in services: lessons from tourism and hospitality.Journal of Service Management, 30(4), 484-506. Web.

Deloitte. (2019). Travel and Hospitality Industry Outlook. Web.

Ivanov, S., & Webster, C. (Eds.). (2019). Robots, Artificial Intelligence and Service Automation in Travel, Tourism, and Hospitality. Emerald Publishing Limited.

Ivanov, S. (2020). The impact of automation on tourism and hospitality jobs.Information Technology & Tourism, 22, 205–215. Web.

Ivanov, S. H., Webster, C., & Berezina, K. (2017). Adoption of robots and service automation by tourism and hospitality companies. Revista Turismo & Desenvolvimento, 27(28), 1501-1517.

Manthiou, A., Klaus, P., Kuppelwieser, V. G., & Reeves, W. (2020). Man vs machine: Examining the three themes of service robotics in tourism and hospitality.Electronic Markets, 1-17. Web.

McKinsey Global Institute. (2017). Jobs Lost, Jobs Gained: Workforce transitions in a time of automation.Web.

Moyeenudin, H. M., Anandan, R., & Parvez, S. J. (2020). Exploration on Revenue Using Pioneering Technology in Infrastructure Facilities of Luxury Hotels. Springer.

Naumov, N. (2019). The impact of robots, artificial intelligence, and service automation on service quality and service experience in hospitality.Robots, Artificial Intelligence, and Service Automation in Travel, Tourism, and Hospitality, Emerald Publishing Limited, 123-133. Web.

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