Hospitality going Digital - AHIC...Digital in Hospitality April 2019 Hilton is in the process of a...

Hospitality going DigitalChinmay ShuklaApril 2019

PwCDigital in Hospitality April 2019

Agenda

1. Digital in Hospitality – Why is it relevant ? 2. Digital Trends2.1 Internet of Things (IoT)2.2 Artificial Intelligence (AI)2.3 Augmented Reality (AR) / Virtual Reality (VR)3. How can PwC help ?

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Digital in Hospitality –Why is it relevant ?


The digital age has arrived and is having a profound impact on every aspect of our life

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2000 2010 2016 2020

iPhone launch

Facebook has 5m users (2005)

Massification of cloud

500m WhatsApp users (2014)

1b WhatsApp users (2016)

Facebook has ~2b users (2016)

30b+ connected devices (2020)

8b connected devices (2015)

82 app downloads / person / year (2015)

App economy

IoT

AR / VR

Robotics

400m connected devices (2010)

AI


By 2020, millennial travelers will reportedly make up more than 50% of all hotel guests worldwide

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Stay

Share experience

Personalisation & Loyalty

Book and Check in

Plan trip2/3 of millennials plan their trips on mobile devices; 1 in 4 millennials use social media sites to find their holiday accommodation

64% book a hotel room on a smartphone; 23% have checked in using a mobile device

70% more likely to book a hotel with tech amenities (keyless entry, mobile payments, Smart TVs);> 90% of millennials connect to the hotel Wi-Fi

97% post their trip photos on a social network; 60 million tweets on hotels; 500 million reviews on TripAdvisor

80% want a service that sends holiday recommendations based on their preferences/ budget

Source: Press Clippings, PwC Analysis

Digital Trends


The global economy is entering a new stage of accelerated growth…

Productivity

Industry 1.0

Industry 2.0

Industry 3.0

Industry 4.0

First mechanized manufacturing with help

of steam

IoT AI

Autonomous robots Blockchain

“Cyber physical systems” – real

objects and virtual are interlinked

Use of electronics

and computers to

automate

manufacturing

worldwide

End of 18th century Start of 20th century Start of 1970 Today

Introduction of

mass production

with help of

electrical power

AR/VR

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And we believe AI, IOT & VR are going to have a significant impact on the hospitality industry

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Pre-stay

Search Purchase/Booking

Arrival and Check-inPre-Arrival Stay

experience

Departure and check-

out

Customer journey at a hotel

AI

VR

Hotel stay

Digital Technologies

Applications

Web chatbot on hotel website; automatic follow ups

AI AI

AI

IoT

Robotics

Self check-in at kiosks / video analytics

Digital keys on mobile / beacons for location

IoT enabled rooms - Control lighting/ temperature; TV content etc.

In-room VA -FAQs, itinerary

AI

IoT

Automatic check-out with facial recognition

Bill payments via mobile appRobot makes

deliveries to the room

Customer can virtually experience the hotel using VR goggles

Personalized recommendation (upselling) based on insights gathered form the networking site (during sign-up / sign-in)

Real-time communication via virtual agents - give reminders of upcoming stay, more information etc.


VR AI

IoT

Robotics

IoT2.1


IOT represents the convergence of the digital and physical worlds, enabling any physical object to be connected to the cloud

442

210

2020 e2017

Real time control Instant notification of failures

Surveillance & access control

Smart refrigeration

Motion & humidity detection

Lighting & HVAC

0.440.510.60

0.700.82

2010 2012 2014 2016 2018

IoT revenue evolution ($ Bn)

Source: Berg Insights, Harbour Research, PwC Analysis

Key uses of IoT

Cost of IoT Sensors ($/ Sensor)

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IoT can be used in hospitality industry to deliver a better customer experience and provide a differentiated service

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IoT use cases in hospitality

Personal InteractiveMirrors

Connected Thermostats

Preventive Maintenance

Guests can connect with hotel services and access information (local news, weather and traffic) with a simple touch Link thermostats with other sensors - A/C turns off automatically when a guest opens a window; automated curtains close during afternoon sunshine

Sensors can monitor HVAC systems and automatically notify maintenance when units are beginning to fail

HyperPersonalisation

An IoT platform could over time memorize a guest’s preferences and automatically setup the room (temperature, lighting, TV preferences etc.,)

Beacons Location based sensors to make check in, room service and in-room entertainment more interactive


Presenter

Presentation Notes

- Hotels in the US spend nearly 6% of all operating costs to pay for utility bills. Modern approaches to energy consumption have gone far beyond the installation of energy saving lighting systems


Beacons are an IoT solution that can improve the customer experience at hotels across multiple touchpoints

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Customers can directly check-in their bookings

without standing in a queue

Check-in Room and Indoor Navigation

Provide guests with virtual maps to their favorite destinations inside the premise of

your hotel

Room entry

Digital key is sent to guest’s smartphone viaapp, allowing them to

proceed directly to their room

In-room control

Enables a new set of services on guest mobile device to control lighting, temperature, TV and even

direct access to room service to place orders

Room service

The beacon knows about

the guest and the app facilitates

guest choosing his preferences

of order

Check-out

No need for the guest to stand in a queue or wait for a front desk assistant

to complete checkout formalities making the

whole process seamless and hassle-free

Placing beacons in hotel helps to engage

with customer real time using their mobile phone and an app

A BC

DE

F

Presenter

Presentation Notes

Beacon is a tiny, location based sensor that can be placed anywhere in a hotel or the external environment. Beacons use new Bluetooth low-energy protocol to transmit a unique identifier Unless you are a very regular customer the hotel knows very little about you other than your name and address and if they’re lucky your email address. They don’t know your preferences, your allergies or even what you look like. What chance does that hotel ever have of making you feel truly welcome and valued when the odds are stacked against them ? All the hotel brands have launched an app but with limited uptake. Why ? All you can offer the customer is some nice promotions, quick bookings of your hotels (only yours!). You need to give the customer a genuine reason to download an app else all you get is apathy and poor uptake - With an app and beacons deployed, you will know your guest has arrived as soon as they enter the car park. You will know what they look like, what their preferences are, where they’re from, what language they speak and so much more. - Beacons allow you to observe your guests movements in real time. You learn the facilities they consume, when they come and go from your property and the time and money they spend in your bars & restaurants - Sitting at Table T12 and running low on wine ? Hit reorder on your app and top up will be along shortly - Hoteliers can actually subtract front of house staff and deliver better services with less overheads


IoT can now allow guests to directly control their rooms using their own smart devices

IoT enabled rooms – Grand Ambassador Seoul

Control the lights, curtains, TV and room temperature from one menu

Clicking on "Deep Sleep" or "Release Stress,“ to create a pre-arranged mood in the room

Request amenities such as pillows, towels and shampoo via your smart device

The entire lobby ambience can be changed by weather, season, time & occasion

Source: Business Traveller.com, Company Website

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Presenter

Presentation Notes

Service starts by scanning the QR code on the wall There was study conducted which found out that 64% of consumers who can choose between texting and voice as a customer service channel would choose texting Humans are there to answer more complex problems and helps them to really focus on improving the guest experience Grand Ambassador is part of the Accor Group of Hotels.


Hilton is in the process of a limited rollout with its “Connected Room Platform”

Connected Room – Delivering personalized experiences to guests

Allows guests to choose their rooms via their phones

Digital Key allows room access via your own Smartphone

Using app (Connected Room) members can control lighting, HVAC and entertainment options

Partnered with Netflix -allows guests to access personal Netflix account on TV via Hilton Honors App

With Connected Room's introduction, Hilton is delivering the industry's first truly mobile-centric hotel room, building on the success of the award-wining Hilton Honors app

Room selection Digital Key

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Source: Company website, Press Clippings, PwC Analysis

Presenter

Presentation Notes

Imagine being able to set your favorite TV channels, optimal room temperature and turn the lights off from the comfort of your hotel room bed, all on your mobile device (Welcome to Hilton’s Connected Room) Set the preferred room temperature, so when they return to their room they’re not too hot or cold Connected room is currently on 4 hotels across the US Hilton Honors App is the only way to access Connected Room controls


Marriott has created the IoT Guestroom Lab to elevate the guest experience

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Dubbed “Room of the Future” and developed in partnership with Samsung & Legrand

A Virtual Assistant (VA) can arrange wake-up calls, request hotel services in the room through an app or voice command

Personal preferences, where guests can register preferences. e.g., temperature settings for showers, instruct the VA to turn on the water

In-room tablets (room remote controls) offer quick access to hotel services, room service menus or spa reservations

Digital mirrors display a yoga or stretching routine, news, headlines, local weather and other useful information

Digital wall art can change to meet traveler preferences


Presenter

Presentation Notes

Guestroom Lab explores concepts that have the potential to elevate the guest experience You can see yoga routines on the digital mirror


AI in the hospitality sector has the potential to transform the business model …

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AI applications.. ... that has tangible benefits

…with use cases across the industry…

Virtual Assistant

Robotics

Facial Recognition

Pattern Recognition & Prediction

Revenue Management

Customer Experience

Recommendation Engine

Improved customer acquisition & retention

Personalized guest experience

Improved customer experience

Reduced cost of service

Resource optimization

Targeted marketing

Increased revenue

Presenter

Presentation Notes

You can leverage self learning algorithms for revenue management – incorporate data on millions of searches to predict future price movements based on multiple factors (seasonal trends, demand growth, special offers, consumer preferences & purchase patterns)


… With huge applications in Revenue Management by allowing real time pricing

Skip manual spreadsheet entries and price recommendations for every single room

ROS integrates internal and external data and analyzes it in real time to forecast demand and suggest optimal rates

Revenue Optimizing System (ROS)

• Historical and current reservations• Cancellation and occupancy• Room type, and daily rates• Reservation behavior and customer

type (transient traveler or one of a large group attending a specific event)

Internal Information External Information

• Climate and weather data• Competitor pricing• Booking patterns on other

sources• Presence of music or sports

events in the property area

Rates that adjust to ever-changing conditions allow the hotel chain to eventually get the maximum profit out of its inventory and ensure proper staffing

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Presenter

Presentation Notes

AI based revenue management defines the optimal room rate in real time using machine learning Starwoods invested more than $50 Mn in its revenue optimizing system


Voice-activated smart rooms are allowing guests to control their experience with the sound of their voice

Voice-activated hotel rooms: “Project Jetson”

Aloft Santa Clara hotel, San Jose Voice-activated rooms• Each voice activated room is equipped with

an IPad running a custom Aloft App• At check-in each room IPad is synced with

the guest voice• At checkout the user details are cleared for

privacy purposes• Currently implemented in two hotels across

the US

Features in room that can be controlled with Siri:• Room temperature • Room lighting• Ambience• Music played in the room• Recommendations and Virtual Concierge

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Presenter

Presentation Notes

New way to interact using “Hey Siri” Some people like to wake up to the sound of the ocean, while another enjoys keeping the curtains closed till noon Voice Activated rooms are available across 2 hotels in the US currently


Robot Concierge is reducing routine tasks for employees and costs for hotel owners and operators

AI powered bots can lighten the load on hotel staff whilst at the same time provide a more private and personalized service for guests

Henn-na Hotel, NagasakiConnie – Robotic Concierge Botlr – Robotic Butler

• Concierge service that provides recommendations to guests

• Front office robots that use arm gestures and vocalization to help guests

• Guests can request food, toiletries, towels etc., on demand

• Robot can self navigate through the hotel and connects itself to charge stations when required

• Multi-lingual robots at check-in

• Robots at the cloakroom to store luggage

• Concierge robots who provide directions and order taxis

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Source: Company website, press clippings, PwC analysis

Presenter

Presentation Notes

The robot independently moves around the property and can even call the elevators using wi-fi connection The robot also tracks its power usage and connects itself to a charging station when needed Guests can send requests about snacks, towels or whatever they need using the SPG app and Botlr will deliver them quickly

AR/ VR2.3


Many hotels are adopting VR technologies and are witnessing tangible benefits

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At least 8 of the largest hotel chains have launched VR experiences as part of their marketing efforts over

the past 12 months

81%of travel consumers are found to expect greater digital customer

service from travel brands in 2018

Hotels offering a virtual tour are seeing online revenue increases

of 135% over hotels without one


Teleporters developed by Marriott allow you to experience a 4D experience of your destination before making the booking

Teleporters incorporate not only Oculus Rift, but other sensory experiences life artificial sun and wind to create a 4D experience

The Teleporter has garnered over 1 billion media and social media impressions

Target market is the millennials who are not necessarily ingrained in a brand yet

Teleporter pods are currently placed in New York City

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Marriott showcases AR views of properties on iPhone App to provide a unique way to experience their properties

• Downloaded >2500 times since launch in 2018• Expects to add 50 more properties to the “Portal to Paradise” system in next 12-18 months

Each resort offers six different scenes to exploreincluding the pools, restaurants, beaches, rooms and spas

360-degree AR view of properties to help customers and agents make travel purchase decisions

After downloading the app, users aim their phones at a flat surface; are provided a list of the available resorts to choose from, which they can change at any time.

An entry point will appear that allows consumers to open a door to a new destination, to be instantly “transported” onto the sands of Mexico or the Caribbean.

Previews 8 properties

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Presenter

Presentation Notes

Having this view allows travelers and travel planners to break any preconceived perceptions they might have of a given destination “Portal to Paradise” app is available for download at the Apple App Store


Best Western Hotel rolled out VR staff training program in 2016; transforming communications between hotel staff and travelers and improving guest experience

“I Care Every Guest Every Time initiative” - First hotel to leverage VR technology for staff training

• VR technology and avatars to design and deliver simulations• Mimics real-life customer interactions• Hotel staff practice communication skills in realistic scenarios

Problem-Solving and Leadership Skills to empower hotel staff to be proactive and address commonly reported problems3

Manager Training to build trust with staff and hotel guests

On-the-Job Training on innovative cleaning methods. Housekeeping staff learned to use UV sterilization to clean common areas and guest rooms

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2

71% reduction in guest complaints

19% increase in customer service ratings

Reduced time spent onboarding / training new hires

Certified service champions at every Best Western hotel

NPS at a record high of 61.7

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Presenter

Presentation Notes

Hotel staff (front desk, housekeeping, maintenance) practice and develop their interpersonal and guest communication skills in realistic scenarios


Jumeirah Group introduced the industry’s fullyimmersive discovery and booking platform

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Industry’s first fully immersive VR platform launched in 2015

Clickable “hotspots” to play with interactive features like fountains & waterfalls; showcase imagery of the flourishes

Video, 360-degree images, 3D sound

Guests 2.5 times more likely to book a stay

10 million views on Jumeirah YouTube 95% Ad recall

7-star Burj Al Arab (Royal Suite, Talise Spa..) and 20 other Jumeirah properties

Available on desktop, tablet and mobile (50% of visitor eyeballs)

Download Jumeirah Inside app and place it inside Google Carboard device to experience Jumeirah Inside in VR

Impact (4 months from launch)


How can PwC help ?


We have capabilities in the key digital technologies relevant to real estate & hospitality ..

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Technology capabilities

New user interfaces Artificial intelligence

Augmented Reality Internet of Things

CloudDrones

3D printing Virtual Reality

Robotics Blockchain


… And regularly work with the top Proptech Startups globally across the entire value chain

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Thank you

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