Smart hotel technology: Insights from a market research expert

Just a few years ago, smart hotel technology was considered a luxury. Now, it’s a must-have for innovative hotels looking to increase revenue, streamline operations, enhance the guest experience, and ultimately gain a competitive edge.

Wouter Geerts, former Skift hotel-tech research analyst, now Director of Market Research and Intelligence at industry-leading hospitality cloud Mews, shares his insights on the latest hotel technology trends driving this transformation and the benefits for hotels and guests alike.

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What makes a smart hotel?

Smart hotel technology helps hotels achieve a balance between human interaction and technology, offering staff the resources and space they need to enhance guests’ stays.

“A smart hotel knows where human employees can add value to the guest experience, and how technology can help the employees achieve that,” Wouter says.

At first glance, the concept of a smart hotel might suggest replacing all human employees with robots, artificial intelligence, and other technologies. But Wouter insists that an overreliance on tech isn’t where the industry is heading.

Firstly, integration remains an issue. Hoteliers typically rely on five to thirty different software and technology solutions to run their businesses. These systems are often hard to interconnect, which creates data silos. As a result, hotels can’t achieve a seamless flow of information, making it difficult for them to leverage smart technology to personalize guest experiences and optimize revenue.

What’s more, many hotels still operate on legacy systems, further complicating integration efforts. As Wouter points out, “Legacy technology is not cloud-native, and therefore much of the data is locked inside the system, rather than being accessible to the stakeholders that need it.”

Secondly, Wouter doubts whether hotels want to run their operations without any human interaction.  “It’s called the hospitality industry for a reason. It’s about human connection,” he says.

Empathy remains essential in hospitality, and smart hotel technology is designed to enhance this human touch, not replace it.

For example, rather than front desk staff being preoccupied with their computers during check-in, guests can complete the process online and access their rooms with keyless entry. This shift allows front desk staff to focus on providing personalized assistance, like offering dining recommendations or suggesting nearby family activities. This ultimately elevates the guest experience.

What are the benefits of smart hotel technology for hoteliers?

Wouter sees multiple opportunities for hotels that are adopting smart technology.

Reduced friction to improve operational efficiency

“Friction is a word that we love to use in the hospitality industry. And smart technologies make it so much easier for staff to do their work,” Wouter says.

Smart hotel innovation streamlines operations by minimizing obstacles between hotels and guests.

For example, digital check-in frees up time for staff to dedicate to other tasks that can enhance a guest’s stay. With the help of an embedded or integrated housekeeping app, staff can instantly see which rooms are clean and offer guests early check-in, bypassing the typical two or three pm check-in time.

Guest messaging tools and hospitality AI also allow staff to automate tasks that were once done manually. For example, they can set up automatic responses to common questions received via email or the hotel app and schedule guest review requests at a standard time after check-out.

This way, hotels can significantly reduce the hours spent on routine tasks, allowing staff to dedicate more time to meeting guests’ unique needs.

Enhanced guest experience through personalization

Predictive AI and historical data from new property management systems (PMS) enable hoteliers to personalize the guest experience.

Hoteliers can offer returning guests specific amenities and upsells based on the knowledge already acquired during past stays and requests. A guest can arrive at a hotel and find their preferred extra-soft pillow and the room temperature set to how they had it during their previous stay.

But these new systems can also go a step further, providing staff with easy-to-digest information about guests’ likes and dislikes when they need it most. Wouter gives the example of a receptionist checking in a guest. They may notice through their PMS that a guest complained about bar service during their last stay. They can offer them a voucher to use in the bar, improving the guest’s experience and satisfaction while lowering the risk of future complaints or negative guest reviews.

Increased revenue through AI and big data

Nowadays, property management systems (PMS) use AI and big data to deliver the insights hotels need to upsell amenities that align with guests’ preferences based on previous bookings.

For example, if a guest typically arrives early, a smart PMS can alert staff, who can then check room availability and upsell an early check-in. These tools can also reveal to staff past guest preferences so they can offer personalized upsell opportunities, like guided tours or deluxe breakfast options.

While revenue management tools and PMS typically aren’t considered smart technology – when they hear “smart tech”, most people think of IoT and smart rooms – they are some of the smartest solutions out there in the original sense of the word.

“Revenue management is one of the smart hotel solutions that has seen a lot of evolution over the last five to ten years. More and more hotels are utilizing this tech now because they understand that it’s a key revenue driver,” Wouter says.

With their dynamic pricing capabilities, smart revenue management tools use AI and big data to push the right prices at the right times for the right guests in mere seconds. As a result, smart hotels can optimize their sales efforts and increase revenue more easily.

Monetizing a variety of hotel spaces (not just rooms)

“Both in the past and present, most hotels look at their property as a collection of rooms. But they have other things they can sell, like co-working spaces, parking, rental bikes, and more,” says Wouter.

Smart hotel solutions enable hoteliers to go beyond room revenue and monetize other spaces and additional services their hotels offer. Whether it’s the hourly use of a fitness room, meeting room reservations, or daily sun loungers by the pool, hotels can increasingly extend their revenue-making opportunities throughout their property.

What’s more, guests don’t even need to approach the front desk or be in the hotel to book these extra spaces and services. As Wouter notes, if guests want to buy drinks at the pool, the use of a secure payments platform embedded in the PMS allows them to do so without having to show their credit card for each new purchase.

Increased group and events revenue

Wouter believes smart technology and AI can also help hotels increase group and event sales.

“The greatest impact might be behind the scenes. Think tech systems around facility management, maintenance, sales and catering, spa management, and event management. Smart tech will disrupt these areas and help employees be much more efficient and provide a better service,” he says.

According to Wouter, event sales is a time-consuming process for both the guest and the hotel. If someone wants to book a meeting room, a convention hall, or a wedding venue, in most cases, they’d have to send an email, which would kick off a series of back-and-forth messages with hotel staff to discuss details and budget. Only after several exchanges do both parties reach an agreement and finalize the booking.

However, Wouter notes that this is a best-case scenario. Many prospects are in a hurry and don’t want to send multiple messages to one property. Instead, they often send bulk inquiries to multiple venues. Whoever responds the fastest and provides the information they’re seeking lands the sale.

AI can automate much of this exchange, enabling the hotel to capture demand fast and boost revenue. For example, a chatbot can gather most event details before hotel staff needs to step in, ensuring a faster response time.

Greater sustainability and energy efficiency

While motion sensors are already a common feature in hotel public spaces like hallways and bathrooms, smart technology enables hoteliers to take utility savings even further.

The Internet of Things (IoT) can reduce energy costs and improve efficiency thanks to the interconnectedness of various systems. Hoteliers can use this technology to:

• Integrate in-room controls with the building management system so air conditioning, water, and power can be managed centrally and on a set schedule.
• Optimize energy usage by controlling and adjusting schedules, as well as identifying areas for potential energy improvements.
• Offer energy-conscious guests the ability to control in-room services from their mobile devices. For example, allow guests to turn on the AC a few minutes before returning to their room, rather than leaving it on all day, contributing to resource conservation.
• Provide more services like housekeeping or towel changes on demand. This reduces costs and improves efficiency as systems communicate with one another in real time, fulfilling guest requests more quickly.

How can smart hotel technology improve the guest experience?

It’s not just hoteliers who stand to gain. Here’s how Wouter sees smart hotel systems benefitting guests:

Improved security and privacy

Smart hotel technology also enhances guest security and privacy.

For example, with embedded payments, guests only need to provide their credit card details once. Converting their card details into a token before hotel staff handles it ensures that their payment information stays safe. Guests can now order drinks at the bar, snack by the pool, or take tennis lessons without having to share their card details again.

Greater comfort

Thanks to predictive AI and IoT, guests can have the information they need when they need it.

For example, guests can receive automated suggestions on the best times for breakfast when it’s least busy.

Guests who ask about the in-house gym will get an automated WhatsApp message informing them when treadmills are free or when an hour with a personal trainer becomes available.

Enhanced convenience

Smart tech like text messaging and digital check-in reduces guest wait times and makes them feel more independent.

“Offering guest messaging in WhatsApp or the hotel’s app makes it much easier than the guest having to phone the reception or try to figure out where they can find information on their own,” Wouter says.

Personalized offers and experiences

Guests can receive offers that match their preferences and needs through customized marketing that uses big data.

Hotels can cross-reference their CRM and PMS data with market research, social media statistics, and more to provide upselling opportunities that fit guests’ profiles and lifestyles. This means guests can expect more attractive packages and upsell offers tailored to their personal preferences.

Virtual assistants also go a long way to breaking down language barriers. Guests feel more comfortable asking questions any time of day or night and receive support in the language of their choice.

And, with digital concierges tapping into stored guest preferences and historical data, guests can get more personalized recommendations and can build their own experiences as they see fit.

Smart hotel technology for boutique hotels vs large hotel chains

Wouter says that smart technology is accessible to any hotel, no matter its type, size, or location.

In fact, “Smaller hotels are at an advantage because the tech industry has opened up and democratized the implementation of smart technology,” Wouter says.

Thanks to the low barrier to entry, boutique hotels have access to the same cutting-edge technology that large hotel chains use. And, with simpler operations and fewer stakeholders involved, small properties can adopt new tech solutions much quicker than their larger counterparts, which often have more hoops to jump through.

With the ever-increasing number of integrations hospitality tech companies are offering, boutique hotels may find themselves gaining a competitive edge.

The future of smart hotels: Challenges and opportunities

The complexity of integrating various systems and moving away from legacy systems is one of the major barriers to implementing smart hotel technology for every operator.

However, Wouter says the key challenges lie not so much in the tech but in the attitude of hotel operators. “Hoteliers need to do away with the mindset that rooms are the sole revenue generators. Every space in the hotel should be revenue-generating and should be integrated into one system. Everything should be embedded.”

Smart technology offers countless opportunities to capture additional revenue. And guests are often happy to pay for extra services. Whether that’s an early check-in or late check-out, a welcome package, or coffee on arrival, guests appreciate additional services that are seamlessly integrated into their entire experience.

By delivering seamless guest experiences and enhancing efficiency through smart technology, hotels can attract more guests and encourage repeat visits to their properties.

6 examples of smart hotel technology

Here are the types of smart hotel technology currently making the biggest impact:

1. Revenue management technologies

New revenue management tech uses algorithms and machine learning to help revenue managers analyze real-time and historical data to foresee future trends.

They allow hoteliers to optimize rates in less time and with more accuracy to boost occupancy and margins or let pricing be run on complete auto-pilot.

2. AI-powered guest messaging

Automated messages do the heavy lifting for hotel staff when it comes to answering common guest queries. At the same time, they improve the guest experience by allowing guests to use their preferred communication methods like text, WhatsApp, or Meta Messenger.

Although much of automated messaging and digital concierge services are handled by AI-powered chatbots, it’s not all robotic interaction.

Chatbots can escalate more complex queries to human staff, and through machine learning and human programming, they are continuously trained to improve the quality of their responses. This ensures that guests receive accurate information at speed.

3. Check-in automation

Keyless and contactless check-in enhances the guest experience, doing away with long lines at the front desk and allowing guests to get to their rooms quickly.

Hotels can provide smart check-in through an app or digital kiosks to speed up the process and empower guests with more independence during their stay.

4. IoT, smart rooms, and voice controls

IoT can make smart hotel room technology run more smoothly because it connects disparate systems under one roof.

Guests can customize their in-room settings, such as air conditioning, lighting, and music, to their preferences. Beyond these controls, IoT links in-room technology to a broader range of services. Whether through a dedicated app or voice-controlled tech, guests can request digital concierge services, order food delivery, schedule wake-up calls, and arrange housekeeping – all from a single device.

Smart rooms also provide enhanced entertainment options. For example, hotels can provide smart TVs, enabling guests to log in to their favorite streaming apps, like Spotify, Netflix, and Hulu, making the smart hotel room feel like a home away from home.

5. Data analysis

Smart tech allows hotels to personalize the guest experience while optimizing revenue and occupancy through data analysis tools.

Hotels can combine and analyze data from a variety of sources, tapping into both internal data and external statistics. This complex data analysis can boost hotel revenue while making guests’ stays special by anticipating their needs.

6. Facial recognition

Hotels can enhance guest security by providing check-in and hotel access through facial recognition.

Once a hotel stores a facial ID, guests can have keyless access to several areas of the hotel based on their reservation and the extra services booked. This can range from their room and dining areas to deluxe services, like the spa and pool or meeting rooms.

FAQs

How is smart technology used in the hospitality industry?

Hotel operators use smart technology to improve the guest experience and overall guest satisfaction while reducing friction and achieving greater operational efficiency. Tech such as digital check-in, guest messaging, and personalized room settings help achieve this.

What is smart room technology?

Smart hotel room technology connects different systems and devices, enabling guests to automate and personalize settings (like heating and lighting) and services (like entertainment). Often, guests can control this tech through voice commands or interactive touch screens. Smart room tech enhances guest comfort, convenience, and security.

What is a smart hotel system?

A smart hotel system encompasses multiple interconnected technologies, which act in unison to improve services for guests, provide staff with more time, and increase efficiency and margins for hotels. This system includes technology like digital check-in kiosks, smart rooms, guest messaging, AI, invisible payments, and digital concierges.

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