Hospitality technology: how efficient is too efficient?

3 min read

Putting power into the hands of customers through automation is a growing trend across several industries. Self-service kiosks have been steadily popping up in restaurants for years now, while artificial intelligence has been integrated in hotels to handle the high volume of customer service inquiries.

While it’s no surprise to see automation across other industries – bank services were automated with ATMs, gas pumps have been primarily self-serve for years, and self-checkout kiosks are available at most grocery stores – hospitality has traditionally relied on the “human” element of an experience. Whether it’s a server taking a customer’s food order or a front desk clerk helping a guest to check in, businesses in the hospitality space connect and build relationships with customers through interpersonal interactions.

However, with the increasing adoption of hospitality-focused technologies that deliver the simple, self-sufficient and streamlined experiences customers desire, businesses must walk the fine line of providing efficiency without losing too much of the human touch.

In an industry where the strength of customer relationships and service can make or break a brand, there’s a tug-of-war between pushing automation, but also letting customers know humans are still there to help. It begs the question – how efficient is too efficient?

The automation transformation
From digital booking platforms and artificial intelligence to mobile apps and online ordering, it’s easy to see the increased usage of automation across the hospitality space.

Today, Chili’s already has 45,000 Ziosk tabletop tablets installed across 823 restaurants. Within the next few years, customers will be able to find touch-screen kiosks in every Panera Bread location.
With tech-savvy customers looking for more digital and streamlined processes everywhere they go, it only makes sense that restaurants would begin moving toward automation.

These kiosks can reduce the pain points that come with ordering and payments for both restaurants and consumers. Additionally, many restaurants are opting for integrated POS systems, such as tablets or mobile apps, that allow customers to pay at their leisure and reduce the friction associated with the final check.

The hotel sector is no different. Hilton recently introduced a digital check-in and room selection feature that allows Hilton Honors members to pick a preferred room the day before their stay.

Guests are able to use their smartphone as a digital room key, allowing them to bypass the front desk completely. In many cases, hotel guests can interact with artificial intelligence-generated platforms throughout the booking process and avoid talking to human beings altogether. And though automated messaging services are often associated with social platforms like Facebook and WeChat, they are increasingly being picked up by hotel chains like Hyatt and Starwood.

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Yves Mulkers

Yves Mulkers is the founder of 7wData and a widely followed voice in the data and AI community. He curates the 7wData and AI Beat newsletters, reaching hundreds of thousands of data and AI professionals, and writes on data strategy, analytics, AI, and the evolving data ecosystem.