The next digital revolution is at our doorstep. What impact will it have on the opportunities for Tourism and Hospitality?
The Internet of Things (IoT) has been labelled as "the next Industrial Revolution" because of the way it will change the way people live, work, entertain, and travel, as well as how governments and businesses interact with the world.
But in actual fact, the revolution has already started. New cars run on sophisticated computers with connectivity options and apps; smart home devices are accessible from anywhere using any device or voice control; fitness trackers track your fitness levels and also update your friends and family on your progress. These connected devices, connected 'things' are what IoT is all about.
Over the last couple of years, hotels and entire cities have already been exploring smart, connected devices that enhance the client experience or provide operational efficiencies. According to a study by Tata Consultancy Services, the Travel, Transportation and Hospitality industry was expected to spend an average of $128.9 million on their IoT initiatives in 2015 alone.
Whether it's monitoring the performance of airline engines or a hotel via an integrated energy efficient building management solution; enabling keyless entry to hotel rooms or beacons helping tourists find their way around cities, the internet of things is creating exciting opportunities for the travel and hospitality industry.
Besides new opportunities and improving the traveller experience, IoT presents numerous opportunities for operational efficiency gains. By connecting smart devices, systems, processes and people in new ways, it is streamlining the back-end operations and the connectivity presents the industry with a new connected tourism and hospitality eco-system. At the same time, data from these connections is helping marketers deliver highly targeted and more personalised campaigns and enhanced traveller experiences. Simply put, the IoT is helping this highly competitive industry turn information into action.
The Internet of Things is here to stay, and this landscape will become even more interesting...and complex. How the travel and hospitality industry embraces this "technology" will ultimately centre on revenue generation and client and skill retention.
According to Gartner, by 2020 there will be over 26 billion connected devices. According to a Business Insiders Research Report $6 Trillion will be spent on IoT solutions over the next 5 years; with an ROI of $13 trillion by 2025!
With Tourism being a key contributor to our economic success, can we afford to lag behind?
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
