iot in hospitality

10 Great Ways to Use The Internet of Things (IoT) in Hospitality

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.

Are you a hospitality tech startup looking to build your brand’s reputation through strategic PR? Drop us a line.

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.

iot in hospitality

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.

7. Predictive cleaning and maintenance

IoT tools can significantly help hotel operations behind the scenes, with connected devices able to set off automated processes and software (for example, hospitality tech companies like Turno or Breezeway) that can schedule cleaning, and auto-populate the housekeepers’ calendars depending on when guests check out.

Hotels can also use smart devices and hospitality AI to set automatic reminders of when in-room items need checking, cleaning, servicing, or replacing. They can connect their systems so they know when a room needs cleaning, and when it’s ready for the next guest.

This can save time, money, and stress; Hospitality Technology’s 2022 Lodging Technology Study found that 58% of hoteliers are looking to reduce operational costs and see technology as a major way to achieve that goal.

8. Smart mirrors

Smart mirrors are another way to bring the IoT hotel innovation into private rooms. Nearly all guests expect and appreciate a mirror in their bedroom or bathroom—and a smart mirror can take this one step further.

Think of a smart mirror as a reflective screen. Hotels can send a welcome message to guests when they check in, or enable them to check the day’s weather via a touchscreen menu.

The Marriott hotel chain’s Smart Guestlab even allows guests to start an in-room yoga session and ask for extra housekeeping via their smart mirror.

9. Occupancy and noise monitoring

Some IoT devices can help hoteliers keep a closer eye on their property, making it easier to monitor all situations, even remotely.

Devices can be set to monitor occupancy and noise (without infringing on guests’ privacy by recording or filming), to ensure that only the correct number of people are staying in any given room (to avoid parties or over-occupancy).

Similarly, the same devices can keep an eye on outdoor activity, and alert managers if there is any disturbance outside the hotel, protecting the hotel’s guests, staff, and reputation.

As noise monitoring specialists Alertify put it: “In the competitive hospitality industry, addressing noise-related challenges is not only about providing guest comfort and guest safety but also about safeguarding a hotel’s financial health.”

10. Welcome guides and upsells

IoT tools can help guests feel at home instantly, and give them all the information they need, even if a hotel’s budget or style doesn’t include a concierge desk.

Voice assistants also provide local recommendations, and allow hoteliers to offer guests a digital welcome guide via smartphone or in-room tablet.

Welcome guides can answer common guest questions, improving the guest’s stay by removing friction and inconvenience (such as needing to call or visit the front desk). Digital welcome assistants can boost hotel income too, by offering upsells such as extra nights, late check-outs, taxi services, and to-hire equipment such as baby cots or sports gear.

This brings extra satisfaction and revenue streams; one accommodation management company in Puerto Rico added 15% to their income through passive upsells via a digital guidebook alone.

The challenges of adopting IoT in hotels

IoT tools can revolutionize the entire guest journey and streamline hotel processes, but they can also present some (perceived) challenges early on, including:

Cybersecurity

Hotel managers and guests might fear that internet-connected devices could compromise security. This may be a particular concern for access tools, such as smart locks or IoT anti-break-in alarms. These could, theoretically, be hacked to enable access to unauthorized parties, so it’s important to be aware of the risks and install measures to reduce them.

Similarly, the more internet-reliant a hotel, the more vulnerable it could be to viruses, malware, data privacy breaches, or hacking. As with any online or digital system, it’s vital to ensure that hotels using IoT and other internet-connected technology have the necessary security software, storage protocols, and backup systems in place to prevent data leaks, viruses, or cyber hacking.

Privacy concerns

Any device that can monitor sound (or anything connected to the internet, theoretically) can present extra privacy concerns. Guests may be worried that devices could be hacked, or fear that they are being watched or listened to, particularly if they’re not familiar with smart devices. In rare cases, some devices could be vulnerable, so it’s important to be aware and take steps to prevent problems.

The vast majority of devices don’t present any privacy issues—for example, occupancy and noise monitors don’t listen in or record, but instead use other methods (such as CO2 level detection). However, it’s still important to ensure privacy at all times and to communicate this well to guests.

Privacy also relates to data collection. If a hotel collects guest data of any kind (for example, names and email addresses), they must store and use this data in compliance with laws in their respective country or state.

For example, in Europe, GDPR applies: hotels may only use data for the explicit reason it was collected and must ask guests to opt in explicitly for marketing purposes. In California, the California Consumer Privacy Act (CCPA) applies, limiting the way that companies can use personal data.

Integration issues

Some hotels may struggle to make the transition between older, legacy systems and newer IoT networks. Older technology may not connect seamlessly with new apps, and staff may be used to the previous systems (even if they are less efficient or user-friendly overall!).

These challenges could present difficult learning curves for employees, who will need to be trained on how to use the new systems.

Yet, in the long run, making the jump saves time, money, and stress, and causes hotel staff to ask how they ever managed without IoT before.

IoT in Hospitality: A must for modern, innovative hotels

From being seen as a novelty and a gimmick a few years ago, to becoming common in everyday life, the Internet of Things (IoT) is now close to imperative in the hospitality industry.

Investing in smart devices and the hyper-connected network that powers them is a major way that operators can appeal to forward-thinking and modern guests, who are familiar with these devices at home and now expect their convenience and customization when traveling, too.

From making a guest stay more convenient and comfortable to streamlining staff operations, saving staff time on common questions, saving energy and resources, adding income, and boosting security, the IoT can bring multiple benefits to hotels.

With Accor, Marriott, and Hilton among the brands surging ahead with IoT and smart devices, hotels that want to stay ahead of the pack (and keep their reputation as a forward-thinking, modern business) need to get behind IoT, and fast.

Are you a hospitality tech startup looking to build your brand’s reputation through strategic PR? Drop us a line.

Frequently Asked Questions about IoT in Hospitality

How is IoT used in the hospitality industry?

In hospitality, IoT simplifies guest stays and streamlines operations to save money and enhance experiences. Key uses include improving check-in, energy management, in-room comfort, staff efficiency, cleaning schedules, personalized recommendations, and passive guest upsells.

What role does IoT play in hotel logistics?

IoT enhances hotel logistics by collecting guest data to better understand behavior and market effectively. Consistent use of IoT devices offers insights into trends, streamlining operations, reducing costs, and optimizing tasks like room cleaning, maintenance, occupancy, security, and energy use.

What are the four types of IoT?

The Internet of Things (IoT) has four main categories: consumer, commercial, industrial, and infrastructure. Hotel IoT bridges consumer and commercial IoT, requiring scalable, commercial-grade applications that remain accessible to consumers, fitting the B2C nature of the industry.

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