To automate or not to automate, that is the question

By Ahmed Youssef (Joe), EVP Corporate Development and Marketing, Hospitality, Amadeus

Amadeus - automation

Technology is a divisive topic. On one hand, it’s seen as a silver bullet solving any number of challenges.
On the other, it’s the necessary evil taking people’s jobs and creating a cold, impersonal guest
experience.

It’s almost impossible to predict the ramifications of replacing humans with technology until it actually happens. However, in an industry where personal touches matter a great deal, we are treading a fine line between innovation and over-kill. We can’t call ourselves the hospitality industry without people.

Technology hasn’t (and never will) change the needs of our guests – a clean room, discreet service, a
quick and seamless check-in/check-out. However, guest expectations have increased over time and will
continue to do so as personalisation becomes the next new norm. To stand out, a hotel needs to deliver
personalised services with speed and accuracy.

Technology is the enabler in this new ‘race of service’, but it’s important to remember that guests do
not specifically seek automated or self-service over human service. In fact, our research shows that
almost two in every three guests (63%) prefer interacting with hotel staff than self-service technology.
However, guests do desire experiences that are memorable, shareable and surprising.

Technology is the key to empowering hotel staff so they can have more meaningful and personal interactions with guests. For example, Carnival Cruises’ give their guests a wearable called an Ocean Medallion to wear during their trip. The medallion identifies guests to the onboard crew and provides them with the passenger’s information so they can understand their preferences without needing to ask.

Amadeus - interaction - automation

The future of the industry will be driven by a complex set of interactions between guests, technology
and staff. The important decision is choosing where and how to integrate technology into the business.

Where do you automate, where do you keep services human, and how can you blend the two together
to deliver an enhanced experience?

“Installing technology for innovation’s sake”

In evaluating these options, hotels should first ask if the technology adds value to the customer’s
experience, or if it empowers staff to deliver service levels above and beyond previous norms. If the
answer is no, then you are likely installing technology for innovation’s sake, which may end up being
expensive and counter-productive. However, when implemented correctly, technology can empower staff to make insight-driven decisions that benefit the business and enrich guest experiences.

To realise this, the industry first needs to focus on upgrading its legacy technology to move away from
fragmented systems, so that different technologies can connect seamlessly. Bringing data from multiple
systems under one umbrella is key. From there, Artificial Intelligence (AI) can analyse the myriad of data
collected and can provide staff with insights to help them work more productively.

For example, daily decision-making, such as room assignments and turnover schedule scan be
automated by a system that draws on data such as guest preferences and personalised check-in and check-out times. Possibilities for human error are reduced and occupancy is maximised. Staff are highly
responsive and can access real-time insight at any time to solve tasks, whether they are checking room
occupancy, event operations or stock.

Amadeus - automation - tech

Technology also allows guests to do more self-service. Personal devices like smartphones and wearables
interact with beacons and hotel applications to put relevant information and smart controls into their
hands without ever feeling invasive or uncomfortable.

In-depth guest profiles are created from aggregating multiple data streams. Staff are highly trained in
using these profiles to identify “micro-moments” in which to engage guests, both before and during
their stay, delivering a positive, memorable experience.

Many of these examples show that technology delivers the most benefit when it is used by attentive, well-
trained staff. That is why one of the biggest challenges facing our industry is the crusade for talent. For the industry to grow, we need to attract and grow the best talent, especially younger generations.

“True hospitality”

Leanne Harwood, the managing director of Australasia and Japan at IHG says to do this, we need to
change the image of the industry. “To start, we need to stop using the term ‘service industry’ and refer to ourselves as hospitality,” she said. “To avoid alienating the next generation with the idea of servitude, let’s show Millennials, who focus increasingly on experiences over things, how they can bring life’s best experiences alive through true hospitality.”

Technology plays a big role in attracting millennial talent, who are digital natives. When they enter a
workplace, they expect to be able to have the same digital tools they have grown up with to do their
job. Therefore, it is important to provide hotel technology that looks and feels like the technology they
use in their daily lives.

Tech-augmented hospitality – where humans and technology collaborate together – will be the service
model of the future. The right technology, deployed in the right context, can deliver real competitive
advantage. However, knowing when not to automate a solution is just as important.

Hospitality providers need to avoid the temptation to use technology for its own sake and instead
prioritise solutions that offer frictionless experiences for staff and guests. Search for opportunities that
will blend technology and human elements to provide truly game-changing levels of service provision.
And above all, be sure to provide good training to staff so they can work with the technology effectively,
focusing not just on operations, but helping them become trusted partners to guests.

For more information on the tech-augmented hospitality service model, read the whitepaper
entitled ‘Drivers of Change in Hospitality’.

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