How Amazon Go No Checkout Stores Will Influence the Future of the Hospitality & Travel Industry
An insider’s perspective on the inevitable demands for more self-service, mobile innovation and convenience
By Alan Young, President of Puzzle Partner Ltd.
At the heart of most revolutionary technology exists the progressive desire for increased convenience and efficiency as it applies to our day-to-day lives, businesses and more. Staying true to this trend, Amazon Go recently opened a grocery store like we've never experienced (but probably always dreamed of) in Seattle. No carts, no lines, no cash and no waiting — a completely cashless grocery experience in which shoppers enter through turnstile gates, grab the items they need and exit the way they came, just like that. While shopping, the store takes inventory of what you pick from the shelves and automatically charges your Amazon account. Could this be the future of shopping? It sure seems like it. According to most experts, there is little doubt that many, if not all of the concepts from the Amazon Go store will be adopted by A-level customer-centric industries over the next five years."
If we think about it, the pursuit of automation and mobile optimization has long since begun its takeover. Self-checkout, server-less restaurants, Apple Easy Pay, Uber, mobile orders at places like Starbucks, mobile keys for your hotel room and the rise of voice-powered personal assistants, the need for technology-driven efficiency is paramount. So, the question becomes, how will a revolutionary (and potentially disruptive) advancements like the Amazon Go no checkout store, influence the future of other industries? Specifically, how will the hospitality and travel industry be affected or better yet — how can it keep up?
An Emphasis on Frictionless Experience
Sometimes, cutting-edge tech solutions are rejected by consumers, and this occurs when the technology places increased cognitive stress on the consumer based on a complicated user interface. Increased efficiency can't be achieved without simplicity — if the technology in question doesn't readily make the user's life easier, it simply can't be viewed as efficient. The key to wide-spread adoption lies in frictionless user simplicity and in the case of the hospitality industry, this requires solutions that are easy for both guests and staff to interact with and master.
For hoteliers, this emphasis on the frictionless experience will be expected at every touch-point, for every guest. No front desk lines, mobile keys, mobile payments for ordering items and special requests and immediate response to service requests. This type of interactions will quickly become the expected standard for hotels embracing the future of hospitality and advanced customer-driven solutions and sales.
The Era of Self-Service Has Arrived
The future is mobile. Hoteliers are feeling pressure, now more than ever before, to embrace their guest's desire for mobile optimization and self-service functionality. This applies to mobile booking, room keys, check-in, concierge, stores, notifications, payments and more. Guests want to hold all the power, right in the palm of their hand.
We should also consider the consumer psychology at work within uninterrupted self-service and how it can empower individuals to spend more. Traditionally, the further we are removed from the "pain of paying" that's often associated with cash transactions, the less we understand how much we're really spending. Additionally, if stuck in a line at check-out, consumers are granted the opportunity to mull over their more impulsive purchase items and potentially change their mind. When you remove these two psychological processes with the help of automated payments and self-service technology, you are tapping into increased revenue potential. This same logic applies to the hospitality industry, as hoteliers can use the frictionless, self-service model to empower their guests to spend more while on property and, most importantly, continue re-booking.
Automation Should Enhance Guest Service, Not Replace It
Despite the increased demand for efficiency and self-service, many guests still seek a high-touch, hands-on and personalized approach throughout their hotel stay. The increase in automation within a hotel's core processes should create a subsequent shift in staff roles, allowing them to focus more on helping and guest engagement, rather than transactions. The carefully curated provision of exceptional (and personalized) face-to-face guest service will, without a doubt, become a key competitive advantage and differentiator for hotels. As a hotelier, ask yourself, how can increased automation revolutionize the way your staff engages with your guest?