Travel & Hospitality Tech Outlook | Tuesday, February 14, 2023
The rising digital adoption in the hospitality industry and its high implementation costs affect the global smart hospitality industry's growth.
FREMONT, CA: Research shows that the global smart hospitality market will grow to USD 60 261.8 million, representing a CAGR of approximately 29.40 percent.
Hotels using smart hospitality use modern hardware and software to reduce workloads and keep prices low. In smart hotels, artificial intelligence and the internet of things are common, and big data and the internet of things are combined to reduce costs. Guests of smart hotels can control the temperature, check-in and out, and order room service in addition to controlling the temperature.
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The following refers to the factors affecting the growth of the smart hospitality market.
Hospitality technological advancements: Hoteliers can access a dashboard with organized data from all sources. This allows them to curate a personalized view of each guest and counterbalance the operational load by integrating digital platforms such as Property Management System (PMS) and Customer Relationship Management (CRM). The hotel also lowers operating costs and increases guest retention, enhancing its brand positioning. As hotels offer a mobile-centric guest experience, they improve their guests' convenience and self-service, resulting in an increasing demand for smart hospitality.
5G evolution: Hotel owners continuously seek ways to streamline the guest experience using new digital tools and platforms. 5G may enable operators to transform their offerings with cutting-edge in-room and cross-facility services. 5G can accelerate digital transformation in the hospitality sector by connecting wireless devices, applications, and people. 5G technology will enable hotel owners to communicate and learn more about their guests' journeys more effectively. Global smart hospitality technology may be using 5G and ancillary technologies, such as edge computing, to provide visitors with personal recommendations and travel tips tailored to their preferences.
The high expense of implementation: Maintaining smart hospitality technologies in most hotels that use them is expensive. The cost of deployment correlates with the difficulty of integrating the application. A few exceptions exist in the pricing structure of most property management systems. There may be additional fees on top of the monthly price schedule for commissions on direct new reservations, setup and maintenance fees, and interface fees for third-party connections. Hotel management software most often uses pay-per-room as its business model. There is a direct correlation between more rooms and a higher price per tier. There may also be a one-time setup fee charged by some solution providers, which restrains the market growth.
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