Tourism And Hospitality Management

Subject Code: 251488MG

By
Dr. Abhishek Chakraborty
Department of Management - BIT Durg.
 UNIT - V
New trends in hospitality industry
New trends in hospitality industry - Tech explosion Voice Search, AI
Chatbots, Augmented Reality and Virtual Reality, Internet of Things
(IoT), Mobile app for easy access, Sustainability rules.

Travel and Tourism industry contributes significantly to the growth and development of a country's
economy. The tourism industry has always been at the forefront of using technology to accelerate the
experience for modern-day travellers, and technological upgradation is one of the key components of the
proactive efforts being taken to rebuild and revive the sector. Many facilities such as automation, contactless
services, virtual experience, and the provision of real-time information will accelerate the scope of tourism.
These initiatives will also focus on improving the overall customer experience.

Contactless services

Contactless payments have emerged as the most convenient mode of transactions. Contactless payments not
only enhance the customer experience but will also ensure a safe mode of transaction. Many travel and
hospitality brands have switched to the contactless mode of transactions to ensure safety for their employees
as well as customers. Many hotels are employing QR codes that can be scanned easily with mobile devices
without engaging directly with hotel employees. Everything is now online, from check-ins to check-outs,
menus to in-stay services, and upsells to cross-sells. This digital concierge is fostering a smooth, contactless
experience.

Virtual reality

Augmented reality and virtual reality have taken the aviation industry by storm. Many companies are testing
virtual reality as a part of their in-flight entertainment offerings. In a fiercely competitive market, these
immersive experiences will help attract more customers. It is also being used for cabin crew training as it
offers an interactive 3D e-learning experience with realistic visual and auditory scenarios, further leading to
efficient customer service.

Biometric technology

Biometric technology has the potential to make the purchasing process and interactions more seamless. It
can be quite useful at hotels as it can allow guests to enter their rooms through thumb or facial scanning.
Guests who want to charge items to their rooms would simply require a thumb scan rather than a signature
and room number. This experience could be made even more seamless for customers if they could enter a
hotel restaurant and leave, with the bill charged to the room through facial recognition.

Artificial intelligence

Artificial intelligence (AI) is strongly connected to improving customer experience, wherein machine
learning resolves customer queries quickly. AI technologies are now being used at airports to boost security
and reduce wait times. One of the advanced AI technologies can help identify suspicious objects in footwear
and save passengers the inconvenience during security checks. Customized content for in-flight
entertainment and AI-powered airports where passengers can seamlessly walk-through security without
putting down their bags for the check will soon become the norm in the future.
Robots, chatbots and automation

Robotics and voice technology are already creating disruptions in the travel industry. Voice-activated
devices in the hotel rooms assist guests in checking traffic, restaurant recommendations, or getting weather
updates. Some hotels already have AI robots helping guests check-in without the need for human
interaction. Airports too have been experimenting with different types of robots, with self-driving baggage
carts, cleaning robots, and robots equipped to answer questions from passengers regarding flight timings and
boarding gates. Chatbots are always available to answer customers' queries on a 24x7 basis, regardless of
staff availability. This is becoming more and more crucial to meet modern customer service standards.

Tech explosion Voice Search

Voice Search & Voice Control
Voice search is a growing technology trend within
hospitality because many guests or customers are
turning to voice search to find hotels, restaurants, and
cafes. It is worth taking the time to properly capitalize
on this. To do so, you must ensure your website and
booking engine are structured so the voice search can be
used properly.

In some settings, the demand for voice control is also

growing. This could include everything from using
smart speakers in hotel rooms, allowing for control of
the various in-room devices, to automated order-taking
in restaurants and cafes, meaning customers will no
longer need to wait for waiting staff to take their orders.

Aside from the way it is activated, there are some fundamental differences between voice search and classic
text search. In general, voice search tends to be significantly faster, because most people are able to provide
voice commands more quickly than they are able to type in a search string and press ‘Enter‘ on a keyboard.

People also tend to use voice search and text search slightly differently and those in both the hotel industry
and the restaurant industry need to keep this in mind. To provide one example, a voice search will often be
phrased as a question, whereas a text search may consist of a few keywords that indicate the topic the user is
interested in.

There are a number of different factors that have combined to make voice search one of the most important
hospitality trends to be aware of. The first of these is the amount of investment that has been put into the
technology, with companies like Google, Apple, Amazon and Microsoft all developing their own voice-
controlled virtual assistants.

However, beyond this, voice search is in-keeping with other customer trends, which are largely intended to
remove friction and speed up processes. For the average person, asking a question via voice command is
going to be both quicker and easier than launching a web browser, going to Google or Bing and entering
their search query. Voice searches are also something that can be carried out even if the user is busy doing
other things.

As much as voice search has emerged as an important technology today, it is also fair to say that voice
search is an investment for the future. Research suggests that voice search has already taken off in a big
way, but this is only going to expand further, especially as more people start to realise the benefits of the
technology.

Artificial intelligence chatbots

A chatbot is a computer program that uses artificial
intelligence (AI) and natural language processing (NLP) to
understand customer questions and automate responses to
them, simulating human conversation. Until now, chatbots
were limited in their usefulness; they could provide basic
information in response to specific prompts before
transferring customers to live representatives. With the
introduction of NLP, however, chatbots are becoming more
nuanced and advanced.

Chatbots can simplify and improve the systems involved in

travel. They can allow customers to directly communicate
with companies and government offices, reducing wait times and providing a fast, intuitive and seamless
customer experience. They can instantly complete tasks, gather data and solve issues—all without requiring
human input. According to a Userlike survey, 68% of users enjoy the convenience that comes with using
chatbots and how quickly they receive a response.

On the providers' end, chatbots can effectively slash costs by cutting down the need for more employees.
According to a study by Juniper Research, chatbot-based interactions were estimated to double retail sales
each year, from $7.3 billion in 2019 to $112 billion by 2023.Having recognized the incredible efficacy,
versatility and potential of chatbots, many major enterprises have found ways to integrate the technology
into their own customer experience systems. Mastercard has reduced the need for human resources by
incorporating chatbot technology. Uber and Lyft have incorporated chatbots to take the hassle out of
ordering taxis.

Augmented Reality and Virtual Reality

The tourism industry is one of the most important sectors of the world economy. During the pandemic, it
was one of the sectors that suffered the most impact,
but today it is once again recovering its growth and
development. Like any industry, tourism has evolved
in recent years thanks to technology. From the way
we search for and prepare a trip, to the organisation of
accommodation, activities and transport.

Every day, new technologies offer tourists a much

more satisfactory and advantageous experience. It is
exactly in this sense that augmented reality is
beginning to acquire importance in the tourism sector,
taking the experience to another level. Augmented reality experience in the tourism industry has been
favoured, above all, by the digital transformation of the sector and, in general, of society. Smartphones,
massive and easy access to the internet and geolocation are the main factors that have boosted AR in travel.
We cannot forget, moreover, the changes in mentality and behaviour, as well as the new trends in users’
consumption habits.
Augmented reality experiences: travel with AR

This concept of digital or smart tourism was born, as we have been saying, as a result of changes in the
mentality and needs of tourists associated with technological advances.

The tourist profile we used to know, with its guidebook and paper map, has migrated to an interconnected
and totally digital tourist. A traveler profile that has all the knowledge and devices necessary to enjoy a 360º
experience during their trip and make the most of it.

This is precisely the ideal profile for augmented reality. A technological and digital tourist who not only
wants to visit the destination, but also wants to make the most of their trip and get a fully immersive and
interactive experience. In this context, AR offers endless possibilities and activities; from information about
the place, its monuments and buildings, to gastronomic and cultural itineraries, museums, schedules or
transport information, among other options.

With just a Smartphone and, thanks to the web AR, travelers can visualize all kinds of virtual elements on
top of the real images, moving to a mixed reality. Moreover, they can interact with them and with the
surrounding environment, going from being a mere visitor to becoming part of the place itself.

Virtual Reality

Virtual reality refers to interactive images or videos

which enable the viewer to explore the entire 360
degrees of a scene. Unlike a regular image of video,
which is shot from a fixed view point, VR production
captures every part of a location. In the travel
industry, virtual reality can be used to capture tourism
destinations in a unique and immersive way.

This is achieved using specialist cameras, rigs, and

software. The finished content can then be viewed on
either a VR headset or a regular computer or mobile
device. Many people assume that VR content can only be viewed on a specialist VR headset but this is not
the case. Although VR is more immersive when viewed in this way, it can also be viewed on any device,
including mobiles.

Take a look at the tourism VR content below, produced by us at Immersion VR. You can click or swipe
across the video in order to view an entire 360 degrees.

360 VR Tourism

When many people think of VR they think of it as CGI (computer generated imagery), which is how it is
used in the gaming industry. However, there is a different form of virtual reality known as 360 VR, or
360VR video.

360 VR focuses on the real world rather than computer generated imagery. This makes it perfect for the
tourism industry where it is important to show users a real location rather than a mockup or a simulation.

Applications of virtual reality in tourism

Applications of VR in tourism include:

 Virtual reality travel experiences

 VR tourism content for social media/websites
  Virtual hotel tours

Virtual reality travel experiences

Virtual reality travel experiences typically refer to VR tourism videos made for VR headsets. These virtual
travel experiences aim to create a feeling that is as much like being in the real destination as is possible.

At the cutting edge of 360 VR, virtual reality travel experiences provide something truly unique and
memorable to the user. The number of travel agencies and travel companies embracing this technology is
continually growing and they promise a bright future within the industry.

VR headsets in the travel industry

VR headsets typically provide the most realistic virtual reality travel experience for the user. A VR headset
uses specialist software which tracks the movement of the users head. This allows the user to explore the
travel destination as they would in real life.

Currently, the number of people that own a VR headset is rising at a fast rate. This growth in headsets can
largely be attributed to the gaming market, where the technology is being pushed hard.

Also, all the major online platforms including Google, Facebook, and Amazon are all investing heavily in
VR headsets and VR content, promising a bright future for this space.

Benefits of virtual reality in tourism

The benefits of virtual reality in tourism include:

 Allowing the user to imagine themselves at a travel destination

 Being able to showcase 360 degrees of a destination in high resolution
 Enabling the user to explore a scene at their own will
 Creating memorable and unique experiences for the user
 Creating unique brand engagement
 Allowing travel companies to stand out from the crowd
 Providing travel experiences to those that cannot travel
 Reducing impact of tourism on vulnerable destinations

Internet of Things (IoT)

First, it is important to define what the Internet of Things is. While it technically includes absolutely
everything that is connected to the internet, the term is more typically used to refer to everyday physical
devices, appliances and other ‘things’ that have been fitted with internet connectivity, making them capable
of sending and receiving data.

This effectively turns them into ‘smart’ objects, capable of ‘talking to’ or interacting with one another. The
technology allows devices to be controlled or monitored remotely, and to perform actions automatically.
Examples might range from smart energy meters, through to internet-connected vehicles and driverless cars.

How Can the Travel Industry Benefit From the IoT?

While many industries can benefit from IoT technology, the travel and tourism sector is particularly well-
placed to reap the rewards, because the Internet of Things can enable further automation, more
personalization, and a greater customer experience. It can also streamline day-to-day tasks that go into
running a hotel or travel company.

The use of smart devices can help to optimise the physical state of a hotel and its rooms, and can reduce energy costs. On planes,
sensors could even be used to alert staff when someone’s anxiety levels elevate above a certain level. Meanwhile, the IoT can
provide tourists with greater control and access to information via their phone.

5 IoT Examples Within the Travel Industry

1. Personal Control
One of the most widespread uses of IoT technology within the travel industry so far has been to enable a
greater degree of personalization within hotels, and on flights, and this is primarily provided by enabling
customers to control more appliances or services through a centralised device, such as a tablet or even their
own phone.

By implementing internet-enabled heating, lighting and television, customers can turn them on and off from
one place. They may even be able to choose a specific temperature and light level, and have the devices
maintain those levels automatically. Similar technology can also be used on flights, regulating seat
temperature or air conditioning.

2. Seamless Travel

Another great use for the Internet of Things involves streamlining as much of the customer experience as
possible, across all areas of the travel industry. In airports, this may mean using sensors and sending
information to passengers’ Smartphone's, alerting them when their baggage is nearby and allowing them to
locate it faster.
In hotels, the check-in process can be made seamless, with hotels sending electronic key cards to guests’
phones which, when used, automatically check them in without them ever having to stop at the front desk.
Sensors might also be used to alert restaurant staff when a guest arrives, and automatically send them the
right table number.
3. Smart Energy Saving

While the IoT can enable personalization, it can also offer businesses financial benefits through automated
or smart energy saving. In a hotel, for instance, internet-enabled devices and sensors can allow for the room
temperature to be adjusted continually, meaning heating is only used when it is really needed.
A similar principle can also apply to lighting and, already, some hotels are using IoT technology to control
its power. Sensors automatically detect the levels of natural light in the room, reducing the power of light
bulbs in the process, meaning less energy is wasted and high powered lighting is only used when light levels
are low enough.
4. Location Information

Companies operating in the travel industry can also use the Internet of Things to send location-specific
information to customers, and to gather valuable data too. By combining Smartphone capabilities with
beacon technology or other sensors, messages can be sent to tourists at the point they are most relevant,
based on where they are.
For instance, this might mean sending messages about local attractions and times when they are least busy,
or to point out nearby public transport services. The IoT can also be used to gather accurate data about the
number of people using specific hotel facilities at different times, so that staffing levels can be optimised.
5. Maintenance & Repairs

Finally, the Internet of Things can also be used to directly benefit IoT devices, by providing valuable, real-
time information about their current status and working order. This can be vital for many of those operating
in the travel and tourism industry, allowing essential devices to be repaired or replaced before they stop
functioning.
For example, hotel staff can be alerted if a radiator or light bulb starts to deteriorate. Away from hotels, the
Internet of Things can also be deployed to allow airlines to fuel aeroplanes more efficiently, or replace parts
at the right time, striking the ideal balance between gaining maximum value and maintaining safety.

Mobile app for easy access

Tourism is a billion-dollar industry, with many thriving economies depending upon it. People spend around
130% more each year, which depicts the widespread craze for travel and the growing need for catering for
tourists. Travel mobile apps have made bookings and all travel-related matters easier.

The travel mobile app industry is thus slowly transforming the tourism industry. The digital revolution is
here, and gone are the days when people made manual bookings or had any language barrier in another
country. Instead, tourists have started to rely on mobile apps for any problem they might face when
traveling, be it a cultural difference, complete isolation from their homeplace, or any other. There were
slightly over one billion travel mobile app users in 2019, with approximately 1.5 billion people taking trips
worldwide and more than 65% using a smartphone to book.

According to statistics, more than 60% of users use travel mobile apps to plan their trips. This is because
there are so many logistical requirements and required planning, and these apps assist in making the journey
easier. People can make hotel bookings, book flight or train tickets, and document their travel journey. The
comfort and ease of these mobile apps for travel and tourism have entirely redefined the travel experience.
There are apps for translation to help people communicate in a foreign place without needing a physical
translator. In addition, there are apps for finding out about nearby places for exploration and their reviews.

A travel mobile app lacks a generic concept definition, so this question holds several layers. People may
make traveling more convenient by using one of the many various adventure travel applications. Apps that
cater to tourists:

 Allow to check and reserve hotel and airfare tickets

 Provides better personalization

 Enabling people to plan their travel and book accommodation

 Enabling to schedule various tasks (sightseeing tours etc.)

 It allows one to book vacation packages at multiple locations

 Assist in finding nearby eateries, medical facilities, banking, and more

 Although each application for travel companion apps has a unique way of addressing travel and
tourism needs, they all essentially offer the same advantage & comfort.

How Are Travel Mobile Apps Benefiting Tourists?

1. Reduces Paperwork & Resource Cost

The manual work has dramatically been reduced in the past years, and loads of paperwork needed for
applications and bookings have become negligible. In addition, soft copies of documents can be stored on
the device. Thus, manual labor and unnecessary costs have been cut down in the travel process.

2. Convenient & Easy-To-Use

Travel apps are incredibly convenient and easy to use, with complicated processes translated with a few
clicks. People can use them anytime, anywhere they want, thus providing tourists with a hassle-free
experience.
3. Great User Experience
Travel apps are highly functional, and multiple feature integrations help tourists do almost anything they
want. Whether searching for local tourist spots, adventure activities, good hotels, or formulating a map for a
road trip, there are travel apps for almost everything.

4. A Single Place For All Bookings

Long trips to different locations might become very cumbersome in terms of bookings and a lengthy process
if a tourist does it manually. Most travel apps have features to make all their bookings under one roof, be it
flights, hotels, cabs, or buses, which makes these very handy for making all the travel arrangements.

5. IoT-Based Decisions
IoT-based solutions for tourism apps, including geolocation, are frequently used by travel app developers.
Users can easily navigate a new location with the aid of this function.

Categories Of A Travel Mobile App

Since there are various areas in which tourists might need help, the travel apps have been categorized
according to their functionality:

1. Accommodation Booking
These travel mobile apps include those which help people to book accommodation for staying at a particular
place. People can book fancy hotels and hostels which suit their budget and requirements. There are
thousands of options to choose from, along with features such as reviews, facilities, cost, and distance from
local tourist sites. So instead of following the exhausting process of calling up and enquiring about each
place of stay, people can directly browse and book their room.

2. Transport Booking
This category covers the essential apps that help people book flights, trains, or travel cabs. One can compare
prices, see the available dates and pay directly to secure their seat without needing currency conversion.
Transport booking apps are beneficial, as they reduce users’ dependency on travel agencies or localities for
movement. In addition, people can make their bookings conveniently and at their own pace.

Travel mobile app: Categories

3. Navigation
Navigation apps help people travel throughout the city they are visiting. It would help if they had guidance
from a trustworthy source to travel around an unfamiliar place. Navigation apps tell people about the local
tourist sites, unique experiences found nearby, or just good places to eat or shop so that they know where to
go and which place helps them fulfill their trip’s purpose. GPS services and maps are included in this.

4. Social
Social apps help people to document the whole journey with their family and friends. They can make videos
and collages and share their memories with their close ones. These apps help people communicate freely, as
well as help them to keep in touch with their people back home.

5. Banking
This area used to be entirely manual until a few years ago. Now, apps have been developed which help
people in currency conversion to transfer money directly for bookings or overseas banking. As a result, one
does not need to worry about carrying massive amounts of hard cash, which is challenging to do while
traveling.
Sustainability rules

"Tourism that takes full account of its current and future economic, social and environmental impacts,
addressing the needs of visitors, the industry, the environment and host communities"

Sustainable tourism development guidelines and management practices are applica ble to all forms of
tourism in all types of destinations, including mass tourism and the various niche tourism segments.
Sustainability principles refer to the environmental, economic, and socio-cultural aspects of tourism
development, and a suitable balance must be established between these three dimensions to guarantee its
long-term sustainability.

Thus, sustainable tourism should:

1. Make optimal use of environmental resources that constitute a key element in tourism
development, maintaining essential ecological
processes and helping to conserve natural heritage and
biodiversity.
2. Respect the socio-cultural authenticity of host
communities, conserve their built and living cultural
heritage and traditional values, and contribute to inter-
cultural understanding and tolerance.
3. Ensure viable, long-term economic operations,
providing socio-economic benefits to all stakeholders
that are fairly distributed, including stable employment
and income-earning opportunities and social services
to host communities, and contributing to poverty
alleviation.

Sustainable tourism development requires the

informed participation of all relevant stakeholders, as
well as strong political leadership to ensure wide
participation and consensus building. Achieving
sustainable tourism is a continuous process and it
requires constant monitoring of impacts, introducing the necessary preventive and/or corrective
measures whenever necessary.

Sustainable tourism should also maintain a high level of tourist satisfaction and ensure a meaningful
experience to the tourists, raising their awareness about sustainability issues and promoting sustainable
tourism practices amongst them.