I believe by automation in hospitality, we have to understand and include all of the technology applications and devices that are augmenting and replacing human-provided services: mobility, contactless experience, AI, robotics, etc. Using AI, mobility, cloud, robots and cobots, IoT and other next gen technologies the hotel, especially 4- and 5- star properties, can still keep a "human guest-facing facade" but automate all of the back-end operations, enable smart guest communications, and automate and personalize every touch point with the customer. Yes, and add humans with a warm smile into the mix.
Whether we like it or not, labor shortages in hospitality will be a permanent fixture in the future. At the current level of 1.5 million open positions in U.S. hospitality and leisure and a very low 3.6% unemployment rate, much needed help is not coming anytime soon, if at all. Sign-up bonuses, $20-$30/hour wages will bring only so many employees back to the industry since many other industries are experiencing exactly the same labor issues and are paying even more.
According to the Bureau of Labor Statistics, the number of unfilled positions in the U.S. reached 11 million last month. As we see, labor shortages are not a hospitality-native problem. Professional services, retail, transportation, manufacturing, construction and other industries are equally affected.
So what is the solution? Operate with fewer well-paid, well-trained, well-motivated employees and invest adequately in DYI processes and solutions, automation, mobile and contactless applications, AI and IoT applications and devices, and robotics. I believe within the next t 3 years, on average, hoteliers will operate at 50% the staffing levels they had back in 2019 and will be investing 3x-4x more in technology, compared to the pre pandemic era.
I see the following technology solutions which, as a priority, will augment or rep,ace tge need for human-provided services in hospitality:
- Mobile check-in and contactless experience
- Housekeeping management applications and housekeeping-on-demand programs
- Guest messaging and issue resolution technologies
- CRM and CDP technologies and programs
- Robotics
- In-room automation and IoT devices
Example: You can reduce your front desk staff by 50% or more by introducing mobile check-in and mobile keys, self-check in kiosks, chatbot on the website to handle service and information requests, email reservation assistant app to handle email booking requests, an issue resolution technology applications and voice assistants in the rooms to handle customer service requests by stay-in guests. All of this at fraction of the payroll expenses.
Or you can cut your housekeeping needs by half if you introduce housekeeping-on-demand as one of the steps during the mobile check-in or when checking in via the self-service kiosk in the lobby. The arriving guest should be able to choose in advance the type of housekeeping they are comfortable with during their stay: daily, once every 3 days, weekly, etc. or no housekeeping, just leave fresh towels by the door. This allows better planning, scheduling and utilization of your housekeeping staff and results in significant reduction in labor costs.
Or rooms equipped with Internet of Things (IoT) devices can sense when the guest is or isn't in the room and automatically adjust lighting and temperature thus saving utility costs; alert housekeeping when room is empty or vacated, signal engineering when something needs fixing, etc. This automation saves serous labor costs from reduced maintenance, housekeeping, human monitoring, etc.
Or you can increase significantly repeat business by adopting a CRM technology and program. Only a meaningful CRM technology application - as part of your hotel tech stack - can ensure deep engagement with your past, current and future guests. CRM tech not only provides automated pre-, during- and post-stay communications, guest satisfaction surveys, guest retention marketing automation and drip marketing campaigns, but takes it a step further via guest recognition program management and loyalty marketing. All of these fully automated CRM initiatives keep "the conversation going" with your upcoming, current and past guests, keeps them engaged and steers them in the right direction: to book your hotel when it's time for them to visit your destination again. In addition, you can use your CRM first party data about your best guests to launch similar audiences marketing on Google, Facebook, Instagram, etc. to target potential customers with similar characteristics as your best guests. CRM initiatives in combination with ORM (Online Reputation Management) tech can turn your happy guests into brand ambassadors and avid social media influencers.
Or, you can reduce by half your kitchen staff if your hotel has F&B or create a new revenue stream at your budget or economy hotel:
- Robots like Flippy by Miso Robotics are flipping burgers at CaliBurger and White Castle Restaurants to the delight of their customers, while the salad-making robot Sally by Chowbotics prepares signature salads at quadruple the human pace.
- Creator, San Francisco's automated burger restaurant, features a 14-foot burger machine with more than 350 sensors that is capable of making 130 premium quality custom burgers an hour, plus a window for takeout orders.
- Piestro, an innovative robotic pizza shop, can deliver high-quality artisanal pizzas within 3 minutes. Their fully-automated machines are being designed with the aim of allowing for zero contact food preparation, zero food waste, consistent quality, and a much lower cost of operation.
The list goes on and on. Technologies that exist today can and will significantly reduce staffing needs and labor costs in all stages of service delivery, from pre-arrival customer engagements to on-property guest services and post-stay customer retention.