HotelsMag March 2019 | Page 52

TECHNOLOGY
in 2013 equipped with RFID technology and a long-range radio . The bands communicate with thousands of sensors and stream real-time data to hundreds of systems , acting as hotel keys , credit cards , tickets , FastPasses and more . As the bands are swiped across sensors located throughout the park , Disney knows who you are , where you are , what you ’ re doing and what you need .
Similarly , Carnival Corp . last year began deploying a poker chip-size token , worn as necklace or bracelet , on its ships . The “ Medallion ” connects to 7,000 sensors wired into the 19 decks of its Caribbean Princess . It interfaces with a customizable , virtual avatar called a “ Tagalong ” that follows passengers on the ship ’ s screens or their own smartphones as they walk through the ship . Recently , the cruise line said it was retrofitting all 17 ships in its Princess fleet with the tech , which the company hopes will inform the “ very design of future cruise ships ” based on the sensor data and how guests interact with their Tagalongs .
In a hotel , IoT devices and wireless beacons could collect , for example , location data about lobby traffic , which might be very useful for the design of future lobby spaces . If customers are willing to have their movements tracked this way — perhaps as part of a loyalty program via a smartphone app — the data could prompt real-time actions and promotions .
NOT IN THE BEDROOM Jennings expects hotels will focus on public spaces first because these areas trigger fewer privacy concerns than the intimacy of a guest room . He says it ’ s telling that Alexa for Hospitality , a version of Amazon ’ s voice assistant introduced in June 2018 , hasn ’ t seen much take-up .
Travel , tourism and hospitality market researcher Phocuswright likewise notes the tricky privacy issues . “ The most challenging aspect of AI may not be the technology itself , but effectively identifying each guest ’ s situational point of equilibrium on their personal convenience-privacy spectrum ,” it said in its October 2018 report “ It ’ s All About the Experience :

THIS IS NOT REALLY A QUESTION OF , ‘ CAN IT BE DONE ?’ IT ’ S MUCH MORE A QUESTION OF , ‘ DO YOU WANT TO DO IT , AND IS IT GOING TO DRIVE GUEST EXPERIENCE AND ROI ?’

STEPHEN JENNINGS , U . S . HOSPITALITY SECTOR LEADER AND PRINCIPAL , DELOITTE CONSULTING
How Will Technology Improve the Hotel Stay ?” “ When attempting to exceed unexpressed guest needs , hoteliers must be cautious not to cross any uniquely individualized creepy-lines by accidentally violating a guest ’ s desire for privacy .”
“ I think there ’ s a fundamental issue of putting these things in someone ’ s bedroom ,” Jennings says .
Beyond privacy , there are operational concerns . “ It ’ s not just like freshening up the website ,” Jennings says . “ When you ’ re talking about physical properties , you really want to be sure that the thing you ’ re rolling out creates a positive guest experience and a positive return for owners .” For these reasons , he argues , there ’ s not a lot of upside , beyond the novelty factor , for hotels taking the lead in adopting experiential technology .
Are hotel brands even ready to derive useful insights from , for example , beacon systems that capture how people move through public spaces ? Or are they too busy making sure existing analytics for things like email marketing or building HVAC are optimized ?
“ All the hotel companies today are trying to upgrade their customer analytics ,” Jennings says . The reason is simple . “ Everyone understands that having a great travel experience , from end to end , can be enhanced by better understanding of who the customers are , what they want and what motivates them .” Thus , every brand is making tremendous investments in customer data and customer analytics , not to mention upgrading or integrating legacy IT systems .
It ’ s undeniable that consumers increasingly expect brands to remember , and even anticipate , their wants and needs . Indeed , this partly explains the massive uptick in spending on artificial intelligence , which research firm Markets and Markets forecasts will grow from US $ 21.46 billion in 2018 to US $ 190.61 billion by 2025 ( a compound annual growth rate of 37 %).
Where should a hotel put nextgeneration guest tracking or biometrics in the queue ? “ How far out do you need to go , and in what order ?” Jennings asks . If creating superior experiences across thousands of properties is the goal , “ it ’ s not clear to me that [ biometrics ] is where you ’ d start .”
50 hotelsmag . com March 2019