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How Internet of Things can help hotels generate more revenue?

How IoT can help hotels to generate more revenue?

When you hear the term “IoT,” you relate it with 2 things: self-driving cars or smart homes. But IoT is more than that, and it’s making a big wave in the hospitality business.

IoT technology has evolved a lot over the past few years and continues to improve customer lives. Many hoteliers such as Mariott and Hilton are making optimal use of technologies equipped with sensors to provide the same sense of feel to customers as if they are at their homes.

From comfy sheets to providing a full-on smart house experience, the hospitality industry is setting the best example to trying their hands on this technology and shocking their customers with a next-level experience.

In this blog, we will start with what IoT is, what changes IoT can make in the hospitality industry, and give you 5 magical ways to implement IoT in your hotel business.

What is IoT(Internet of Things)?

IoT, aka the Internet of Things, refers to the set of technologies connected to the Internet and uses sensors to indicate the status of everyday items such as tools, vehicles, and even living beings.

With IoT technology, hoteliers are changing the way they do business and interact with the world around them.

A study by Forbes states that – Almost 2/3 of companies believe they must leverage IoT technology in their business operations, and 90% of companies do feel that IoT is the future of business.

IoT means reduced cost and hyper-personalized guest experiences for hotels and the hospitality industry.

It is changing the hospitality business equation by transforming the ways hotels, bars, and restaurants gather data, interact with users, and automate their processes.

With IoT technology, hotels are becoming smarter and more successful by serving their customers better and bringing more efficiency to their operations.

Imagine a scenario where a guest relies on a virtual assistant to give a wake-up call at 6:30 am or start a shower at a particular time through a voice command. Thanks to IoT technology.

So, treat IoT as a blessing which brings a new revenue stream for your hotel business and provides a comforting experience to your guests.

What changes can IoT make in the hospitality industry?

1. Hyper personalization

One of the most attributable benefits of IoT in the hospitality industry is hyper-personalization. IoT devices such as Smart Mirror allow customers to control various room features ranging from dining to entertainment, lighting, and other amenities using smartphones or tablets.

Hoteliers can access data collected through these devices to predict guests’ needs and provide a personalized experience.

How does IoT personalize the guest experience?

When the guests arrive at the hotel, they receive a personalized greeting. At the same time, the room automatically shifted to the last saved preference, playing streaming services opening curtains, and much more.

Even Karim Khalifa (Senior vice president of Mariott International) says “We are getting closer to revolutionizing the guest experience, and we are on our way to creating the hotel room of the future.”

Top-notch brands such as Hilton and Marriott are working on introducing smart/connected rooms.

Hilton truly understands the guest’s needs and provides them with a Hilton honors app to control their room’s lighting, temperature, window coverings, etc.

2. Predictive maintenance

In the hospitality industry, customer satisfaction matters the most. Wireless IoT sensors take care of guest needs by monitoring the status of appliances and equipment even before a guest arrives.

Think of a situation wherein the IoT sensors are there to detect problems in your hotel or notify your staff about them even before your guest arrives.

If the guest sees broken devices, they will likely hate your hotel for this resulting in a poor guest experience. Instead, if sensors detect faulty lights or leaky taps, it will provide a superlative guest experience.

3. Energy efficiency

Hotels can leverage the benefits of energy saving with the help of IoT technology. Generally, hoteliers do not look at nitty-gritty details regarding air-conditioning or turning the lights off and on.

So, IoT solves this problem by monitoring everything to ensure no energy is wasted.

Research studies suggest that America’s 47,000 hotels spend around $2196 on each hotel room.

It means that hotels spend 6% of their operating costs on energy, accounting for 60% of their carbon footprint.

But if you are a hotelier concerned about environmental sustainability, IoT is the perfect choice for you.

IoT sensors use ML algorithms to analyze usage patterns for energy, monitoring the occupancy of a place to optimize cooling/heating/lighting in the environment leading to a reduction in energy costs.


 Energy efficiency


For Instance – Hoteliers can use room sensors and smart thermostats to adjust the temperature of A.C. when guests are not there and then return to the same temperature when they arrive.

Thus, IoT in hotels is helping hotels achieve energy savings by adjusting room temperature.

4. Better inventory management

One of the major challenges that hoteliers used to face was manually inputting entries into PMS. Now, IoT is here to revolutionize the way hotels manage their inventory. If the hotel manager cannot manage inventory, it would lead to damage to revenue.

IoT helps hotel professionals manage their real-time inventory ranging from machines to food trays. It’s changing the way hotels used to manage their inventories earlier.

For example – Sensors on the room service tray tell the staff to pick it up if the food tray is left outside the room or when an inventory reaches a certain level.

Thus, smart equipment frees up the staff to focus on more demanding tasks and work productively by not wasting time on handling things regarding inventory management.

Top 5 ways to implement IoT in the hospitality industry

1. Smart room customization

Smart room customization is related to giving guests more control and allowing them to customize everything according to their preferences.

Smart solutions provide a more comforting experience for guests.

The concept of a Smart room connects the guests with the hotel staff, and guests can do everything using their smartphone, such as –

  • Adjust the room temperature, such as heating, cooling, and lighting.
  • Setting the alarm and you want such an experience when the alarm buzzes, your windows are open for a bright morning view.
  • Guests can even adjust the windows of the room with a simple click.
  • IoT-enabled devices can set suitable water temperatures using mobile devices.
  • Smart T.V.s take care of their guests’ preferences by switching to their favorite shows.

Moreover, as these rooms are connected through sensors, hoteliers can personalize guest experiences by collecting data about guest behavior and preferences.

2. Location-based information sharing

Another lucrative way to implement IoT technology in hotel operations is to use location-based data.

Hotels rely on location-based technologies such as Bluetooth and GPS to capture location-based data and deliver personalized messages to guests when they are most likely to decide.

For Instance – Hotels can utilize location-based sharing data and share gym-related offers with guests, especially when guests pass by the gym, or advertise restaurant menu items when guests are near to restaurant. So, doing all such things helps hotel managers to maximize their revenue.

3. Robots

Hoteliers can start experimenting with Robots to automate their processes and reduce dependency on the human touch. IoT enables hoteliers by providing automated room delivery services.

Employing fully autonomous robots is less about automating human tasks and more about solving complex workflows. Integrating robots in your hotels is more about helping your staff when there is a staff shortage.

Moreover, these robots can speed up the process of room delivery because they use various technologies such as A.I., and machine learning and have in-built sensors.

For Instance – The robo-server “Savione” is helping hotels in California by supplying snacks and other essentials and letting the hotel staff focus on the less mundane needs of their guests.

4. Smart locks and security solutions

Safety and security always remain a top concern for guests. IoT technology facilitates contactless check-in and allows guests to check in to their rooms without waiting at the front desk.

IoT-connected devices increase protection for guests as their built-in sensors can detect any movement or unauthorized door opening. With this technological advancement, guests can access rooms on the go without carrying the traditional keys to open them.

A critical card integration facility provides a pleasant stay experience to guests as they can unlock doors, control temperature or window shades, etc., through this app.

5. Integration of smartphones and tablets

IoT Connected hotel environment makes guests more comfortable by allowing them to manage their devices and systems through mobile phones and tablets. With this emerging technology, guests can access all features with just a tap on a mobile phone.

Moreover, guests can send room-related requests and request housekeeping staff through an online portal or app.

End notes…

Now, you get a clear understanding that IoT is helping you (hoteliers) to expand your revenue stream.

If you want to automate your hotel operations and provide a hyper-personalized experience to guests, leveraging this technology is a goldmine for your hotel business.

So, if you are starting or running an established hospitality business, then IoT is something you can’t ignore. More importantly, leveraging this technology can elevate your hotel business.

About Author

Shubham Ahuja is the Digital Marketing Manager at BOTSHOT, leveraging his extensive experience in the Hospitality Industry. With a passion for digital marketing and a deep understanding of the unique challenges and opportunities in the hospitality sector, He performs extensive research on Hotel Management Solutions, streamlining processes to enhance guest experiences and optimize operations. His expertise transforms hotels into efficient, guest-centric establishments.

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Harshvardhan Mishra

Hi, I'm Harshvardhan Mishra. Tech enthusiast and IT professional with a B.Tech in IT, PG Diploma in IoT from CDAC, and 6 years of industry experience. Founder of HVM Smart Solutions, blending technology for real-world solutions. As a passionate technical author, I simplify complex concepts for diverse audiences. Let's connect and explore the tech world together! If you want to help support me on my journey, consider sharing my articles, or Buy me a Coffee! Thank you for reading my blog! Happy learning! Linkedin

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