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How Can Digitalization Increase Customer Service In Hotels

Today, guests expect to exist provided with a consumer-centric hotel feel from the give-and-take get, including when they are choosing a destination. They also want new experiences, faster client service, the utmost comfort, ... and the listing continues to grow. So, how can hotel operators come across these needs?

An manufacture that is set up

Equally various new technologies crop up and market disruptors get to their climax, businesses beyond various industries are faced with the demand for a major overhaul. The hospitality industry is no exception. In 2020, the global hospitality market hit the $3486.77 billion mark and is forecasted to grow to $4132.5 billion in 2021. One of the factors driving this growth is the increased adoption of digital transformations. For example, more than restaurants are adopting various technologies to streamline the online food delivery procedure.

The accommodation service businesses are following the same trend. In a 2020 survey, on the master priorities of travel and hospitality companies, approximately 61% of the respondents stated that their priority was to adopt new technologies to better serve customers and/or suppliers. The survey as well revealed that 84% of the respondents had someone tasked with managing digital transformation. These stats are a testament to how dedicated the stakeholders in the hospitality industry are to digital transformation.

How will the hospitality industry be digitized?

For starters, hotel operators need to be aware of the looming cutting-edge technologies and pioneer some of the new features their clients will embrace as being premium. They can also adopt like technology to their competitors to gain an edge. That said, the increased digitalization may disrupt the hospitality industry - servitization could now exist considered as the client-facing component of the fourth industrial revolution. Ahead is an in-depth discussion of how digital transformation is facilitating servitization in the hospitality industry.

Defining servitization

Servitization is typically defined every bit calculation services to a production-focused business to provide customers with the desired outcome continually, often to the betoken where the business becomes solution-focused. Simply put, servitization entails selling entire solutions rather than only products.

The servitization model first gained prominence in the 1980s as a fashion for manufacturers to strengthen their client relations and differentiate themselves from competitors. Even though it'southward mostly viewed in terms of manufacturing, servitization tin can as well exist practical to the hospitality industry to provide clients with consumer-centric products and services.

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Means digital transformation is facilitating servitization in the hospitality manufacture

All industries are grappling with rapid change as well equally the exponential technological advancements driving customer needs. To keep upwards with these dynamics, hotels are majorly focusing on three areas in their digitalization journeying: digital customer date, mobility, and connectivity through the Cyberspace of Things (IoT). Hotels that sally every bit frontrunners in these areas tend to have a better bottom line.

Yet, merely focusing on these digitalization aspects doesn't guarantee that, especially given the person-centric nature of the hospitality market. Yous need to ensure that the digital tools are servitized, such that they help address customers' needs and better their feel.

Let us wait at some of the means the recent digital transformations are facilitating servitization in the hospitality industry:

How AI facilitates servitization

AI solutions with ML (machine learning) algorithms clarify large data to provide authentic estimates for diverse risk management. In doing so, they enhance the determination-making capabilities of various businesses.

AI also comes in handy in the servitization of the hospitality industry. Ane way information technology does this is through the increased use of chatbots. AI-driven chatbots are designed to improve guest experiences in several ways. For instance, they analyze information from diverse sources (invitee interactions with the hotel, food preferences, purchase history, spa, and amenity usage, etc.) to assistance hotel operators provide a more personalized feel to their guests.

When more information is bachelor for the chatbots to larn from, the easier it becomes for a restaurant to provide customized services to its customers. Besides that, chatbots take a quick response time. Every bit such, guests tin can receive answers to various questions quickly the aforementioned way they would when speaking with a knowledgeable person contiguous.

How IoT (smart rooms, tablets & beacons) drives servitization

Just like with any other industry, hotel and restaurant guests expect a seamless experience - this experience should be available correct from when they are making their bookings to when they are being provided with various hospitality civilities. The level of technology at each of these stages should be advanced or at least be at par with what the customers take at home. For case, they should be provided with remote control for devices similar air conditioners and so that they can easily operate them without moving about.

One style IoT facilitates servitization is through the introduction of smart rooms. Today, almost hotels have smart rooms. These rooms enable guests to control amenities and order any service through the hotel's voice assistant application or mobile apps. In these smart rooms, media sets, window shades, lights, air conditioners, and other hospitality amenities are supplied with embedded software and ultra-compact IoT hardware capable of communicating with speech recognition-powered voice assistants and the hotel app. This application allows guests to control various amenities easily - it operates every bit a universal remote where, with just a few clicks, you lot get whatever yous need. The smart rooms also have iPads that guests can use to make digital orders from on-site bars and shops, buy tickets to city events, among other uses.

The adoption of movement sensors in the hospitality manufacture is some other way digital transformation is improving customer experience. This engineering helps point which rooms are occupied and those that are empty. As such, it non merely helps reduce friction betwixt guests simply too ensures the timely upkeep of rooms.

Today, many hotels offer multi-bedrooms and villas. Previously, controlling diverse amenities in such an adaptation setting was somewhat challenging. At present, past using smart room apps, guests tin can easily and intuitively command different amenities in unlike rooms. They, therefore, won't have to move around a lot given the command that the smart app gives them. To top it off, the data gathered by the smart room apps can be used past hotel operators to address the specific demands of each guest and fine-tune the guest experience.

How AR (Augmented Reality) and VR (Virtual Reality) drive servitization

Let's face up information technology, not all the pictures of hotel rooms and exteriors tell the total story to guests when they brand online bookings. As such, it is not unheard of for guests to make online bookings and finish up disliking the hotel when they check-in. The purchase of the right to use belongings should exist treated like whatsoever other online purchase. Ultimately, guests want to encounter what they are purchasing, especially if the hotel is far from their home and is expensive. This is where AR and VR come in.

Today, many hotels capitalize on virtual tours to give their guests a sneak peek of what they should look. Videos providing a 360-degree view of the hotel and restaurant ambiance, hotel beachfront locations, among other sceneries are provided for customers to help them make an informed decision. In essence, through augmented reality and virtual reality, guests can at present await upwards an establishment to decide whether it's platonic for them. This helps reduce guest dissatisfaction rates.

Digitalization equally part of a customer-centric transformation

The desire to explore a plethora of technologies out there and adopt a couple of them into existing services as a servitization method is an ongoing trend in the hospitality industry. That said, if servitization is to exist truly successful, it must exist built with the client in mind. A customer-centric transformation requires that businesses engage with users to find out their needs. They should also consider the whole value concatenation. Among the questions they should ask themselves before adopting a engineering science include:

  • What are our customers' expectations and how can nosotros meet them?
  • What touchpoints can nosotros place and how tin can we improve the customer feel?
  • What practise our customers like about us and how can we improve on this to raise their experience?
  • What problems are our customers facing and how can we help solve them?
  • Tin can nosotros achieve any of these through better digitalization?

Adopt technologies that increment the lesser line

While the prevailing market conditions demand that players in the hospitality industry prefer various technologies to better their services, the players should not digitize just for the sake of it, simply rather prefer those technologies that increment their marketplace pull and ameliorate their bottom line.

This means addressing merchandise-offs and adopting a nix-waste product approach to corporate digital transformation. It means adamantly refusing to create services that no 1 wants. It too means establishing a house value creation policy and acknowledging that not all the services yous offer will be appreciated by everyone. Decide what you desire your hospitality business concern to be all about and stick past it then long as y'all are satisfying your customers' needs. This will ensure that you stand out from the oversupply while still maintaining your edge.

Information technology is incontestable that digital transformation helps improve customer experience to a big extent. Nonetheless, offering customers personalized solutions thanks to servitization helps save some of the stress that the digital world brings forth. When the digital transformation is washed in a fashion that facilitates servitization, customer experience improves massively.

EHL Insights

How Can Digitalization Increase Customer Service In Hotels,

Source: https://hospitalityinsights.ehl.edu/digital-transformation-facilitating-servitization

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