The Internet of Things (IoT) in the travel and leisure market is expected to be worth $28 billion by 2027 across software, services, and hardware. That’s a lot of connected hotels!
But why is IoT one of the biggest hotel technology trends? It’s not just about cool gadgets—it’s about enhancing the guest experience, streamlining operations, and unlocking savings in energy, staffing, and marketing.
Below, we’ve outlined what IoT is, and how it can benefit hotels, along with ten use cases and some common challenges.
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What is the Internet of Things (IoT) in hospitality?
The Internet of Things (IoT) is a term that describes all smart hardware devices connected to the internet—also usually connected to smartphones via an app—to offer better control, customization, and performance.
For example, smart lights, a smart TV, and a smart thermostat are all part of the “IoT”, because they are all connected to the internet and can be controlled via a connected device.
In hospitality, IoT refers to smart hotel technology tools designed to work in the industry, such as in a hotel room. They could be controlled via the guest’s phone, or an in-room device. For example, a smart lock, lights, or TV controlled by an in-room tablet.
How does IoT benefit hotels?
The main benefits of IoT to hoteliers are:
- Offering guests a more personalized, modern stay. Offering connectivity and personalization in-room and at check-in makes guests’ stay easier, boosting their satisfaction and experience.
- Facilitating common hotel tasks. This includes unlocking room doors, using the TV, connecting to WiFi, asking a question without needing to visit the front desk, or ordering room service.
- Cost savings through greater efficiency and eco-friendliness (e.g. energy-saving smart lights). This can save money and resources, and impress eco-conscious guests.
- Data collection (with permission), from guests digitally. This makes it easier to market to guests, boost engagement, and send more personalized offers that convert.
How does IoT improve the guest experience?
IoT improves the guest experience by making the guest’s arrival, stay, and check-out much smoother and easier, enhancing their satisfaction and tailoring the stay to their individual needs.
For example, IoT:
- Offers a more seamless journey. Guests can do everything using a smartphone (for example, unlocking their door, controlling their TV, or ordering room service) for in-pocket ease.
- Gives guests a more comfortable stay. Guests can personalize their experience easily (for example, turn up the heat or turn down the lights to their liking), check the local area and weather, ask for recommendations, or answer common questions.
- Ensures an easier stay for guests (and staff). IoT can prevent problems that could otherwise require guests to change rooms (for example, a smart AC unit can let staff know it’s broken, so no guest is accidentally given a room without working AC).
What’s more, IoT technology is seen as a positive by guests; a 2022 study found that 71% of guests prefer to stay in rooms with smart technology.
10 use cases of IoT in hospitality
Here are some excellent ways to start bringing IoT and its benefits into hotels.
1. Contactless check-in
Contactless check-in via smart locks (or facial recognition in high-tech hotels) can make it quicker, smoother, and easier for guests to get to their hotel rooms. They can register their details securely in advance via app or phone, get their access code remotely, and unlock their door 24/7 without needing to go to the front desk.
This also makes the check-in process easier for staff, who don’t need to work around the clock or worry about long queues building up. IoT also includes digital check-in devices such as tablets that can provide a digital receptionist service without guests needing to wait for a hotel staff member to become available.
Guests like this; a 2022 study by Oracle and Skift found that 54% of travellers would like hotel contactless check-in and checkout to be permanently adopted by 2025. Similarly, one study found that 67% of guests prefer using a smartphone key over a traditional one.
Contactless check-in also prevents issues with lost or stolen keys, saves costs on replacing keycards, and improves security, as smart lock codes change automatically when guests check out.
2. Smart hotel rooms
Smart lights, thermostats, and TVs are an excellent way to get started with IoT in hospitality.
The ability to turn the lights, heat, or AC down via smartphone offers guests extra satisfaction as they can tailor their surroundings to their liking easily, without having to grapple with a complicated AC unit manual.
For example, a solo traveler may turn their lights down and heat up for cozy relaxation, while a digital nomad may turn their lights up bright for a better working environment.
“We know that our guests expect to personalize almost everything in their lives, and their hotel experience should be no different,” said Stephanie Linnartz, Global Chief Commercial Officer of Marriott International, in a press statement. “Mobile and voice-enabled technology…gives our guests the ability to set up the room to best meet their needs.”
An increasing number of guests are already using smart devices such as smart TVs in their homes—so having similar technology in their hotel room makes them feel at home.
The Hilton hotel chain believes so strongly in this idea that it’s investing heavily in its own in-room app, which works via the guest’s smartphone, explained Hilton CEO Christopher Nassetta to Skift.
This app enables guests to control lighting, air conditioning/heat, and streaming entertainment, making “the smartphone the remote control of the hotel room”, said spokeswoman Julia Burge.
3. Voice technology
Speaking of devices guests are used to from home, voice assistants like Amazon Alexa and Google Home are becoming common additions to hotel rooms. When connected to other devices such as smart lights, TV, or AC, voice assistants can provide a powerhouse of smart tools for guests to enjoy.
Voice assistants can also help answer common guest questions, and be programmed to respond to commands like “Call reception” or “Recommend the best local restaurants”. It’s like having a concierge without the extra cost.
This could be why luxury Las Vegas hotel Wynn Resorts now has an Amazon Echo in every room, and Marriott is among the top chains to have trialed the system in their hotels too, as reported by Skift.
With at least two-fifths of the US population estimated to be using a voice assistant at home as of 2022, and more than 50% of internet users expected to have one in their home by 2026, these tools will help hotel guests feel at home, and give them familiar tech that they expect and know how to use.
As Scott Hansen, Marriott International director of guest technology, told Skift: “The future of the guest room will be voice activation.”
4. Energy management
Smart AC, heat, and lights bring benefits beyond guest satisfaction. They can also save hotels serious money when it comes to energy bills. Hotel managers can program lights, AC, or heat to turn on and off automatically, at sunset or sunrise, or turn them off remotely when they know the room is empty, for added energy savings.
This could also be a plus point for hotels aiming to market to eco-conscious guests. Such guests are more likely to appreciate devices that can save energy and resources.
As an article by Hotel Tech Report put it: “Automating real-time utility reading [of water, gas, and electric meters] has been a decades-long challenge for the industry…IoT is now able to overcome these impediments, allowing hotels to accurately capture, track, and manage consumption like never before.”
5. Security systems
Hotel IoT can improve hotel security too. Giving guests PIN codes in advance means that only those who are authorized can enter rooms, and there is no risk of stolen keys or keycards.
Some IoT devices (like Minut or NoiseAware) can even monitor for security threats such as broken windows, outdoor disturbance, mold, humidity, flooding, leaks, smoking, vaping, and fire smoke—for an even greater level of security, comfort, and protection.
Digital check-in also improves security via digital verification of IDs and fast database checking to prevent credit card fraud. This is usually faster and more secure than human checks, which pays off—a 2022 study by accreditation scheme GSA found that 12% of five-star hotels have been victims of credit and/or debit card fraud, while a 2022 report by IBM Security found that a hotel data breach costs $9.44 million on average in the US, the highest of any nation worldwide.
6. Delivery robots
This may be a step too far for some hotels, but IoT can also apply to more unusual hotel tools such as delivery robots or digital check-in assistants.
Check-in robots can provide a unique touch to the hotel reception experience—such as the Henn-na Hotel in Tokyo, whose check-in robots even speak multiple languages (just about), facilitating the experience for international guests. The hotel is world-famous for its check-in robot dinosaur, to the point where some guests make the journey just to see it.
Robots can also improve tasks such as cloakroom operations (a mechanical arm that automatically checks in and returns guests’ items, never getting tired or making mistakes). Robot porters can carry even the heaviest luggage to guests’ rooms easily. Plus, digital porters can be tracked and don’t get lost.
