IoT in Hospitality: Enhancing Guest Experiences and Security in Hotels

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Key takeaways

• By adopting IoT, hotel businesses can enhance guest experiences with innovative amenities and digital offerings to stand out among competitors.
• Smart room controls, IoT sensors for energy usage, connected guest service interfaces, and intelligent security systems enable personalized guest services.
• Modern hoteliers utilize proactive IoT-based monitoring to enhance efficiency and optimize critical infrastructure for smarter resource allocation.

Guest satisfaction and automation have long been the central objective of travel businesses and hoteliers of any size. Today, this is where IoT in hospitality comes in to address the needs of modern hotels. With the rise of interactive experience and increased demand for safety, hoteliers set their focus on implementing cutting-edge technologies.

The evolution of IoT in the hotel sector enables hotels to automate their services through interconnected devices. IoT offers a pathway to exceptional guest experiences by enabling tailored, integrated journeys with the hotel brand.

In this post, we will break down the reasons why this technology is essential for sustainable hotel growth.

Let’s dive deeper into the role of IoT in the hospitality industry and explore real-world examples of its successful adoption!

What is IoT in Hospitality?

Internet of Things (IoT) in hospitality refers to the implementation of interconnected devices and systems within the industry. At its core, the collective technology enables process automation, data exchange, and seamless communication between various devices and services.

An IoT system comprises three components: smart devices, IoT applications, and a user interface. Smart devices gather data from users or their surroundings, transmitting this information over the internet to an application.

As one of the biggest hospitality technology trends, the Internet of Things in the hotel industry optimizes operations and enhances guest experiences. By utilizing smart devices, sensors, and data analytics, IoT helps improve overall efficiency. Ultimately, hotels can streamline basic processes and provide personalized services in hotels and other hospitality establishments.

The global smart hospitality market is predicted to expand from $14.30 billion in 2022 to $18.31 billion in 2023 with a CAGR of 28.1%. Within the swiftly changing hospitality industry, the smart hospitality market stands out as a vital factor for bolstering operational efficiency.

Advantages of Utilizing IoT in Hospitality Operations

The implementation of IoT in hotels introduces a plethora of advantages, revolutionizing how businesses operate and cater to their guests. From enhancing guest satisfaction to optimizing efficiency and fostering sustainability, the technology presents benefits that improve the essential operational aspects:

• Guest experience
• Overall efficiency
• Cost efficiency
• Security and Safety
• Decision-making

Enhanced Guest Experience

IoT enables personalized experiences through intelligent room controls, tailored recommendations, and seamless interactions via connected devices. Contactless solutions like check-ins, check-outs, and service bookings provide better flexibility to guests, sparking satisfaction and loyalty.

Improved Operational Efficiency

Hotels implement IoT for hospitality tasks like room management, inventory tracking, and maintenance scheduling. The automatically collected and processed data from across the network reduces human errors, allowing for better quality insights into guest experience. The implementation practices of Internet of Things hospitality businesses follow allow for optimizing resource allocation. This results in smoother workflows, which enhances the overall efficiency.

Cost Savings and Sustainability

By implementing advanced energy management systems, optimizing resource usage, and enabling predictive maintenance, IoT helps hotels reduce operational costs.

When integrated with revenue management software, the technology contributes to minimizing waste and promotes sustainable practices. As a result, it ensures long-term financial savings and environmental conservation.

Stronger Security and Safety

Through advanced surveillance, smart control systems access, and IoT-enabled sensors, hotels bolster security measures and monitor premises in real-time. Relying on IoT in hotel management allows hoteliers to swiftly respond to threats or emergencies, ensuring guest safety.

Data-Driven Decision-Making

The IoT hotel industry generates and processes a wealth of data on guest preferences, behavior patterns, and operational metrics. The essential data empowers hoteliers with informed decisions, tailored services, and effective strategies for improved guest satisfaction and business growth.

IoT Use Cases in Hospitality

As hotel facilities’ upkeep, maintenance, and staff training require regular investments, embracing hospitality IoT solutions might pose high expenses. However, the number of practical benefits of installing interconnected devices makes this technology a cost-efficient investment. In the long run, it has the potential to increase revenue.

Let’s explore the possible IoT applications in the hospitality sector with some real-life cases.

Smart Room Automation

Integrating smart devices allows for automated room controls. This way, hoteliers can adjust the lighting, temperature, and entertainment systems based on guests’ preferences before their arrival.

For example, Marriott International has utilized IoT to implement smart room features in their hotels.

They offer guests personalization with amenities like voice-controlled assistants, smart thermostats, and mobile app integration for room controls. With such hotel IoT solutions, the company drives guest engagement and sparks customer loyalty.

Keyless Entry Systems

IoT enables secure keyless entry through smartphones or wearables, providing guests seamless access to their rooms, improving convenience, and enhancing security.

Hilton’s hotels tech assets stand among the brightest examples of the IoT in the hospitality industry. Having adopted digital keys for keyless entry, they provide their guests with smooth mobile room access. Thus, the global hospitality business enhances guest convenience and ensures safe stays.

Intelligent Hotel Maintenance

Utilizing IoT sensors for predictive maintenance ensures equipment operates optimally, reducing downtime and enhancing guest satisfaction by preventing service disruptions.

The InterContinental Hotels Group has implemented hotel IoT solutions for smart energy management, employing systems to control energy usage. They optimize lighting, heating, and cooling based on occupancy, contributing to cost savings and sustainability efforts.

Guest Behavior Analytics

IoT collects and analyzes data on guest behaviors and locations, aiding in understanding preferences to shape marketing strategies.

As an example, AccorHotels has integrated IoT to enhance guest experiences with personalized services. They use IoT technology to track guest preferences and behaviors, providing tailored recommendations and services during their stay.

Advanced Energy Management

IoT in hospitality energy systems optimizes energy consumption in terms of lighting, heating, and cooling. With such an approach, companies reduce costs and promote sustainability in hotel operations.

The Wynn Las Vegas hotel has also embraced IoT for smart hotel maintenance. They utilize sensors and predictive maintenance systems to monitor equipment health, allowing for proactive maintenance. As a result, the company reduces downtime, ensuring a seamless guest experience.

Challenges and Considerations for Implementing IoT in the Travel Industry

It’s imperative to be aware of the challenges that might arise during or before adopting new technologies. If you’re not operating with a custom travel software or hotel management systems, you might face several integration issues. To evaluate whether your business is ready for the upgrade, make sure to consider the following aspects:

• Security Concerns. Connecting numerous devices and systems raises concerns about cybersecurity threats in hospitality. Protecting data and networks from potential breaches becomes crucial to safeguard guest information and hotel operations.
• Integration with Legacy Systems. Integrating IoT with your existing legacy systems can be intricate. Compatibility issues, interoperability challenges, and the need for retrofitting or upgrading infrastructure may arise, requiring careful planning and investment.
• Data Privacy and Compliance. IoT in hotel management collects vast amounts of guest data, which raises privacy concerns. Hence, it’s crucial to ensure compliance with data protection regulations (GDPR or CCPA). With robust data encryption and secure protocols, businesses can maintain guest trust, adhering to legal requirements.
• User Acceptance and Training. Staff and guest acceptance of IoT-enabled services might also pose challenges. Then, you should provide adequate training for employees to manage and utilize IoT for hospitality systems. Additionally, ensure that guests are comfortable and understand how to interact with IoT devices.

Why choose Acropolium?

Acropolium’s distinguished reputation is built on over 12 years of delivering secure and tailored software for the hotel and hospitality sector. Our extensive tech expertise lies in seamlessly integrating SaaS, IoT, AI, and Big Data to enhance business operational efficiency.

We prioritize data privacy and protection, ensuring that our solutions comply with GDPR and safeguarding sensitive guest information. Following ISO-certified processes, we guarantee the highest quality, reliability, and consistency standards in every project.

From comprehensive hotel management systems development to legacy software upgrades, we prioritize security, compliance, and cutting-edge technology.

Acropolium Case Studies

As the IoT technology grows in demand across various industries, we’ve received several inquiries from the logistics and automotive sectors.

IoT-Based Fleet Tracking App Development

In our cooperation with a fleet tracking company, we were asked to develop a GPS fleet tracking solution using IoT. By deriving data from tracking devices, we were to provide visibility over the road in real-time, regardless of the fleet location.

The client also required system code optimization and improvement of integration capabilities. Our objective was to ensure the app displays 1000+ fleet items on a map while visualizing their movements.

Starting as a rudimentary proof-of-concept, the product evolved into one of the premier fleet GPS tracking systems, where we:

• Ensured constant essential data transmission, including location, speed, tire pressure, video records, fuel level, and tire pressure.
• Provided smart automatic reporting.
• Boosted system stability and provided live truck visualization on the map.
• Implemented remote command processing, allowing dispatchers to open the freight remotely upon the driver’s request.

As a result, our dedicated team implemented seamless integration with approximately 1000 IoT devices, including GPS trackers from different manufacturers. We also helped increase the number of units displayed on a map from 100 to 1000, ensuring smooth live visualization.

CRM & Mobile App Development for Charging Stations

An automotive company owning 1000 charging points approached Acropolium to develop a user app and a CRM for its employees. The client wanted to oversee its stations and provide clients with a user-friendly experience. Simultaneously, our solution had to enable company employees to monitor charging points and rates while providing total energy usage reports.

Ensuring real-time data updates posed a key challenge, requiring IoT integration, which was time-intensive. The team navigated technical, logistical, and security concerns for the Tesla charging stations app.

Utilizing the AWS cloud platform, we developed a scalable and secure EV charging station app capable of managing data from 1000 stations, employees, and users. Integrating IoT with the app presented intricate use cases, including continuous signal processing and real-time data reporting.

To create a comprehensive CRM and charging station app, our developers:

• Built a web-based app for electric charging stations that allowed for smooth IoT device registry and data collection.
• Integrated IoT data to visualize the charging points’ status, energy consumption level, and balance.
• Enabled in-app payment balance and replenishment features, allowing users to activate charging points via a QR code.
• Provided a loyalty program to improve customer engagement.

Our cooperation resulted in an intuitive EV charging app, which boosted the number of loyal users by 50%. The platform increased charging point usage, raising revenue by 45%. Additionally, the simplified client charging management led to a 25% surge in daily transactions.

Final Thoughts

The Internet of Things in the hospitality industry holds immense future potential for hotel owners. Understanding and leveraging this technology is vital to streamline operations, enhance guest experiences, and promote cost-saving on hotel maintenance.

However, before adopting the technology, it’s imperative to consider your current legacy systems, integration capabilities, and security measures.

Acropolium has developed over 45 solutions empowering hotels and hospitality businesses to elevate guest experiences and operational capabilities. Whether you need to align data collection from your IoT systems or leverage the technology from scratch, we will be there.

Revolutionizing businesses through technology and client-first vision, we offer flexible subscription-based cooperation where your success and budget are a priority. Contact us to explore new opportunities for your hotel business — let’s see what tech holds for you!

Sources of Information

• Smart Hospitality in Figures — Research and Markets
• Smart Hospitality Market Report 2023 — Markets and Markets