UNIT 16 NEW CONCEPTS AND DEVELOPMENTS IN ACCOMMODATION

Structure
16.0 Objectives
16.1 Introduction
16.2 The accommodation sector
16.3 Technological Impact
16.4 New Concepts
16.5 Let Us Sum Up
16.6 Key Words
16.7 Answers to Check Your Progress ‘Exercises’

16.0 OBJECTIVES
After reading this Unit, you will be able to:
 Describe the accommodation sector.
 Understand the changes in the sector over a period.
 Discuss the impacts oftechnology.
 Familiarize with the new changes and developments in accommodation.

16.1 INTRODUCTION

The hospitality industry is a vast umbrella term that includes various sub-sectors, such as
accommodation, entertainment, event,food & beverage services. Food & beverage is an
important functional area of the hospitality industry and their outlets such as restaurants, bars,
taverns, bistro, etc are an indispensable part of this sector. The accommodation sector
provides a place to stay or a temporary stay. This sector too is diverse and includes hotels,
resorts, motels, serviced apartments, and other alternative accommodations.
With such a diversity in the hospitality industry, it becomes imperative to be competitive and
be updated with the latest industry trends to be a dominant business player. With an increase
in tourism activity, the hospitality industry is benefited from being an essential part of it.
Hence, more emphasis is given to guest experiences during their stay. Hence, we must ensure
that changing customer expectations are met and guest satisfaction is created. In doing so,
technology in general and IT (information technology) in specific are playing a major role.
Moreover, the prevailing Covid-19 pandemic condition has further added to the ever-
changing customer expectations and behaviours. Thus, adopting the latest hospitality trends is
essential. Also, the tourism professionals must know what these changing trends are? and
how the industry is coping up with them? This Unit presents various changing trends and new
developments in the area of accommodation.
16.2 ACCOMMODATION SECOR

Accommodation is a basic requisite involved in any kind of travel. It refers to a place to

sleep, rest, and dine safely for a specific period based on payment. It includes various lodging
units such as fancy hotels, youth hostels, motels, elder hostels, Dharamshala, and other
supplementary accommodations. As such, they cater to different segments of clientele like
business travellers, holidaymakers, budget travellers, airline crew members, families, solo
travellers, etc. and this varied clientele has different travel and hospitality needs. They choose
a particular accommodation unit that satisfies their needs.Therefore, it is of paramount
importance that the accommodation businessesare largelydependent on how well they are
satisfying the guest's needs.
With the evolution of technology, alternative accommodation concepts (like Airbnb which
has fueled the competition), higher disposable incomes, and customer needs have undergone
dramatic changes during the Covid-19 crisis that has devastated humanity, human life, and
livelihoods at large. Thus, the accommodation industry has also been pushed towards
reviewing itsfundamentals of value position and has gone beyond the traditional definition of
the hotel as a “place to rest and sleep”. Hence, to unlock a new area of growth, hoteliers
across the world are adding new protocols attune to counter Covid-18 into their properties.

16.3 TECHNOLOGICAL IMPACTS

Technology is changing everything from the homes that we live in and cities that determine
the quality of life at home. Thus, the hospitality industry is also no exception. As such,
technology has made a huge impact on hotel operations and guest experiences. Each area of
the hotel is controlled by some digital alternative to replacing the old systems of managing
manually. Be it remote check-ins and check-outs, predictive maintenance, smart guest
experiences, smart energy management, room service, room access control, online reputation
management, marketing, etc.

The advent of internet facilities on mobile phones has made the processes more quick,
accessible, and inexpensive for all travellers. The social media platforms further have
provided the people to vent out all that they experience – good, bad, or ugly. This has led the
hotels to stimulate in such a way that they must keep themselves abreast with the latest
industry trends to stay in business. Along with that, accommodation providers must keep on
offering something extra to quench the changing needs of the customers. Also, they must
follow the latest guidelines by the local governments to comply with the new normal norms
due to Covid-19.
Technology offers a variety of cost-effective and revenue-generating opportunities and it is
enabling the accommodation operators to new levels of profitability with responsibility.Here
are a few such technological interventions that are happening in the hospitality industry at
large and are rendering a world-class experience.
Smart Reserved Parking
Parking is an important aspect for hotel guests arriving by personal vehicle especially if the
hotel is at the city centre. Hotels have started to provide a service of reserving parking space
in advance. A guest can simply use the hotel’s app and reserve the parking spots in advance
of their visit and hotels use smart sensors to provide them with the assigned space upon
arrival. This saves a lot of hassle for the guest and gives a smoother experience while the
hotel saves on the labour cost of valet parking.
Remote Check-in/ Check out
The guest's first interaction to check into the hotel happens through the reception in the
traditional hotel systems for over a century. But, with the technological development and
Covid restrictions, there is no/minimum touch check-in (web check-in). This is a facility
provided in hotels and other forms of accommodation where a guest can check-in through
his mobile phone reducing the need for human interaction. This is particularly being
followed in the context of the Covid-19 pandemic that contains and spreads the virus.
As started &followed by the airline industry, mobile check-ins allow the guests to access
their hotel rooms right at the arrival in the city through a hotel application and the check-in
time is saved. The information of the facilities is well listed on the hotel’s website as well.
Smart Food & Beverage Operations
Food & beverage is another area of utmost importance to the guest for his/her stay at the
hotel. With the new arrangements, guests get the latest updates on the day’s menu, pricing,
and at some properties, even food preparation at the tab/console in their rooms. This also
includes smart occupancy sensors which push notifications to the guest’s smartphones about
a specific menu preparation while the guest has already checked in his/her room. Thisleads
to impulsive buying and hence this increases revenue for the hotel.
Another technological advancement within the F&B is the usage of robots. Robots are used
to carry out room service, front officeoperations,and even do cleaning along with other
housekeeping chores. They are now being employed in restaurants too particularly when
guests are trying to reduce close contact with people as much as possible. Hence, technology
is deepening its roots in F&B too.

Online Loyalty Programmes

To acknowledge the guest's choice and reward them for their stay at the hotel, generally,
hotels offer a loyalty programme for their guests. This is another marketing strategy that
facilitates to establish contact with the guests, inform them of the latest updates, retain the
old guests, and acquire new ones. For every stay, guests are offered reward points to be
redeemed after a certain number of visits. It is used by many hotel chains such as Marriott,
Hyatt, Hilton, Radisson, etc. This makes them loyal customers feel extra special and they
spread the goodwill of the hotel by the means of word-of-mouth. The guests are sent
automatic messages and mails once their accumulated rewards reach a benchmark point
mentioning the extra facility or discount that they can get for a revisit.
Online Reputation Management
As the world is moving ata great pace towards technology development, feedback is another
area ormajor factor inthe decision-making process. Be it to decide on a hotel experience,
movie, or restaurant, online reviews play an important role in selecting the hotel property or
any other services. Since technology has given a grip in almost all fields of human life,
hotels are also capitalizing on exploiting this option.
These days it conjugates with the loyalty program in many ways. To seek points, the guests
must post a review or picture about their stay or experience of the hotel on Twitter,
Instagram, Trip Advisor, Facebook, etc.Using a predefined hashtag, upon posting the
content, they earn reward points on their loyalty card. This enables the customer to know
about the hotel experience from the other guests who stayed at the hotel. This also lets
hotelsconnect with the growing demographics of potential guests with major social influence
and maintain their reputation in the market.
Another important factor in responding to negative feedback is to manage the reputation of
the hotel. The thumb rule is a prompt and legitimate reply to the disgruntled customer.
Hence, the hotel must be vigilant to respond to such posts and make sure to improve from
their mistakes.
Smart Guest Experience& Personalisation
Personalization is the trend and practice in almost all industries. However,the hospitality
industry is no exception. Each hotel guest now wants to be treated as an individual and guest
history data in the Property Management System (PMS) likes, dislikes, type of room opted
for, birthdays, anniversary and other special occasion information, check-in & check-out
dates, designation, mode of payment, etc. When the same guest revisits, the hotel provides
the same set of services. They also personally greet each guest with their names upon arrival.
All these efforts by hotels lead to guest delight and hence, repeat business. Guests can also
use their own devices like smartphones and create personal accounts for using entertainment
services within the hotel.
With the invention and penetration of AI (Artificial intelligence) and VR (Virtual Reality),
hotels are working towards enhancing guest experience during their stay using smart
technology. Smart technology is fast emerging to be used to shape smooth guest experiences
and anticipate guest expectations. It is done by using previous guest history details, choices,
and preferences. By knowing about guest choices, hotels can provide them rooms as per their
choices and facilities that they liked/requested in the past. Now, not only the data from guest
history is used for providing a better visit next time but also with the help of occupancy
sensors, it can be used to initiate guest interactions for more personalized service.
Safety and Hygiene
Technological innovations for maintaining safety and hygiene inside the hotels have been
intensified. With the recent pandemic ofthe Covid-19 era,the world is getting ready to
counter the virus and contain its spread. Automatic sensor-based sanitization machines are
being installed at all the public areas of the hotels along with the entry and exit areas.
Thermal imaging machines are being used along with scanners and cameras for ensuring the
safety of guests and staff.
Also, there is the restructuring of standard operating procedures for contactless check-ins,
check-outs, dining experiences, and payments. Sanitization of guest rooms, prior arrivals,
and after departures have also become usual procedures now. Provision of hand sanitizers,
use of protective equipment like hand gloves, and masks at all pointsare mandatory.
Remodeling of fixtures for ensuring physical distancing for guests and staff and deep
disinfection of all hotel areas are the new normal mandates being adopted by the hotels.
Voice Search and Voice Control
With the speedy penetration of voice-controlled devices, lots of functions are being seen as
prevalent in normal day-to-day life. Functions like Siri in Apple ‘I’ phone, and Bixby Voice
from Samsung are fancy in the mobile phone context. “Hey Google” is another such voice-
assisted software available openly in the market.
The prevailing times and availability of technology at fingertips have enabled the frequent
use of voice searches for booking hotels and restaurants. Therefore, the hotels are now trying
to adapt to this change by revamping their websites with voice search results. Voice controls
are being popularly used inside the guest rooms in a hotel too. For example, smart speakers
provide an answer to guest questions and requests for turning off lights, televisions, etc. This
reduces the number of surface touches too.
Chatbots
This is a software that simulates human-like interactions via text or text-to-speech
conversations. They are also called as “conversational agents” and are programmed to mimic
written or spoken human speech to create a conversation or interaction with a real person. It
uses the same technology as is used by virtual assistants like Google Now, Apple’s Siri,
MiTV, etc. with a difference that they depend on algorithms for understanding the subtle
nuances of both written and spoken dialogue. Hence, they are becoming another major
hospitality trend linked with guests’ questions related to anything within the hotel like
providing the first contact solution for guests enabling them to know restrictions within
restaurants or accommodation due to coronavirus, a distance of the nearest place of interest,
etc. Chatbots help in delivering swift responses even when human staff is unavailable.
Virtual Reality Tours
Virtual Reality (VR) uses technology to showcase the destination while sitting at any place.
It is the next level of experience and immersion to a destination while sitting at home.
Virtual reality tours rank as one of the most preferred hospitality technology trends as it
provides the potential guests or diners to experience how their surroundings, ambience, and
services would be even before visiting the place. They help in forming a crucial decision for
making a reservation for a visit. The customers are better able to understand the facilities
available at the hotel and that too while sitting in the comfort of their homes. Thus, these
tours aid instrengthening their decisions to experience the hotel.
Augmented Reality
Hotels and other accommodation types are now resorting to using the concept of augmented
reality which aims at enhancing the overall real-world experience. This technology is similar
to virtual reality. However, it uses digital visual, auditory, and other sensor stimuli to provide
substantial information about a particular real place, restaurant, etc. to a guest. For example,
a user can point his/her phone at a restaurant and see the reviews, opening times, menus, etc.
A smartphone and apps are required for the same. The hotels are using augmented reality to
provide interactive tourist information maps within their properties.
Sustainability
With the latest movement prevalent internationally of every business being sustainable, the
hospitality industryhas been promoting best environmental practices for resource
conservation and contribution to the earth. Nowadays, guests want to know ifthe businesses
aresustainable and how are they contributing back to the environment? Hence,
accommodation, as well as food & beverage sectors, are adopting many eco-friendly
practices such as using smart lights, smart heating appliances, using sustainable towels, and
bedsheets, promoting vegan and vegetarian menus, etc.
Thus, the majority of the players of the hospitality industry are being interlinked with
technology and it is indeed becoming the need of the hour for remaining in the competitive
business. These technological interventions help in creating integrated &seamless
experiences for the guests. These interventions provide opportunities, tools, and solutions
that the industry needs for creating long-lasting memories that can lead to positive change
and growth in the industry.

Check Your Progress A

1) What do you mean by Accommodation Sector?

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2) How havetechnological innovations impacted the hospitality industry?
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3) What specific changes have been executed in the hospitality industry in the Covid-19
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16.4 NEW CONCEPTS AND DEVELOPMENTS IN ACCOMMODATION

The new changes and developments that have occurred in the accommodation industry
recently have been listed for better comprehension.
Smart Rooms
This concept is based on recent technological developments in the accommodation sector. As
the name states, such a room helps in enhancing the actual guest experience through the
convenience that it creates. By using the device, the guest can control many features of the
rooms. Such devices are also quite common with home security cameras, garage/home doors,
etc. The controls which are done through either tablet or console provided are connected to
the internet. With the help of a tablet or a smart speaker, guestscan choose a preferred
temperature,lighting level, etc.

Smart rooms also help the hotel to reduce the costs involved in usual operations. It also aids
in improving the sustainability and energy efficiency within the hotel rooms. The power of
the light bulbs is automatically reduced during daylight hours or automatically turns off when
a room is unoccupied due to the mechanism set in smart rooms. Moreover, the smart rooms
can also assist with requesting room service or information using the internet to source
answers. It even can anticipate technical issues with devices installed in the room and make
repairs swiftly.

Card Keys& Keyless Entry

Modern times have replaced the traditional metallic keys with computerized card keys. These
keys resemble closely to credit cards with magnetic strips. This can be programmed with
codes so that locking and unlocking rooms can be done safely. The major advantage of such
card keys is that this is programmed differently for each guestby the front desk till the
departure date. Even if the card key is lost, the locks don’t have to be replaced unlike the loss
of traditional keys. A new card key is issued with a new code.

These are simple to use and more secured with low operational costs though the cost of
installation may be on a higher side. They are a preferred access control system in large
hotels. With the Covid 19 pandemic, the new normal trend of touchless entry is handled with
the message sent to the key card code on phone, and a guest can use the code to open the
room. Though it is the very latest trend and shall take some time for smaller hotels to
implement.

Coliving

The latest concept of community living is where there is a small community of people
(usually 10-25). These people are renting in a building and are offered all the services of
accommodation (The residents get a private bedroom with shared common areas) to daily
chores by the provider. The living spaces are well designed and fully furnished. Usually,the
younger generation, working nomads, travellers, entrepreneurs, etc. are commonly the clients.

It is a modern way of communal living that the individuality of the person can be maintained
and open option to live with like-minded people. Some of the facilities include fast and
reliable WiFi, laundry services, a fully stocked kitchen,a gym, a swimming pool, and a spa on
site. These sites also contain community-hosted events like yoga, functions, and community
participation. In the present times, young people especially millennials have embraced the
concept of the shared economy where this concept is getting its roots from.

Air BnB

Air BnB is an old wine packed in a new bottle. Indeed, we have an old concept of Bed n
Breakfast from time immemorial which is modernized by the use of technology. It uses the
online platform to connect people (homeowners) who are willing to rent out their homes to
(guests) people who are looking for accommodation at a destination for a small period. The
host usually stays on the same premises. This platform brings a win-win situation for both
host and guest as the host earns extra income for the spare room and the guest gets
accommodation for a cheaper price in the centre of the city.

There are both positive and negative outcomes of this platform as security may be an issue,
government taxes are still not fully implemented, a host may change his/her mind, or even
may not respond in time. Hence, there are still many issues that need to be resolved but this
concept is quite familiar tothe younger generation. There is always a risk that the property
may not live up to its listing on the website. For the hosts too, there is a risk that the guests
might damage their property and for the protection of the hosts, Airbnb provides an
“Airbnb’s Host Guarantee Program” which covers various aspects. As such this website
charges convenience fees from the guests and service fees from the hosts.

OYO Rooms
This is an Indian hospitality chain founded in 2013 by Mr. Ritesh Agarwal mainly to assist
guests to find budget hotels in a particular location. It is now an application-based start-up
that has expanded globally with thousands of hotels of all kinds. This concept of
accommodation of OYO rooms promises to provide a room with a clean bed, clean toilet, wi-
fi, breakfast, and tea coffee maker. The guest books a room through the app and is assured to
get these facilities in the room when he/she checksin while the budget hotels that were
initially not very popular get an assured business and hence their sales improve. For this, the
OYO rooms charge a commission from the hotels that are listed in their application.

Online booking platforms Booking.Com& Trivago

With mobile technology on the boom, there is an increasing trend in booking your travel,
accommodation, and other facilities through various online platforms. These OTA (Online-
Travel Agencies) use the data from worldwide hosts and provides it on its website/app.
Guests then make choices based on their needs and looking at the description, ranking,
pricing, and pictures provided by these online travel agents.
Booking.com is a Dutch online travel agency through which a guest can book
accommodation, flights, car rentals, airport taxis, etc. Trivago on the other end is a website
that enablestravellers to compare rates offered by different websites for the same hotel, on the
same dates in the same location of travel. It helps the users to compare deals for hotels and
other types of accommodation across many countries. One can also get information for
weekend getaways as well.

Vacation Rentals
Aconcept in the United States of America and European nations is very popular that a fully
furnished apartment or house is rented to a tourist temporarily. The traveller arranges to rent
the vacation rental property for a designated period where some are rented on a nightly basis
like hotel rooms while a few are on weekly basis.These are otherwise known as villa rentals,
cottage holidays, holiday homes, holiday lets or self-catering rentals, etc. They can be
arranged either directly with the owner or through listing agencies via internet.
Many owners have their websites with the information about the property along with photos,
own payment requirements, cancellation policies, key-pick-up procedures, etc., so a guest
contacts the property owner directly to book.Vacation rentals can range from budget studio
apartments to lavish, expensive private villas at various locations across the world.
Sometimes it includes all the amenities like fully staffed, private beaches, boats, chefs,
cooking lessons, etc. to cater to the guests. Some vacation rentals, particularly condominiums
or apartments, offer many of the same services hotels offer to their guests, e.g., front desk
check-in, 24-hour maintenance, in-house housekeeping, and concierge service.

Mobile Hotel rooms

This is not so new concept, but mobile hotel rooms combine travel and hotel stay with the
comfort and familiarities of home. It is a mobile room on wheels with a lot of use of
technology.Many people like to enjoy all their home routines while on travel. For them, this
concept provides a compact hotel room environment suite that is equipped with basic
sleeping, working, and washroom functions, allowing guests to be most efficient and
productive while optimizing travel time. The concept is addressed with different names like
motorhomes, recreational vehicles, campervans, caravans, etc.

Hometels
Hometel is a concept to include amixture of apartments/ hotel amenities and home comfort. It
provides aliving environment with all the comforts of home but with the luxury and security
of a hotel. Since every individual is different when they travel, hometels provide an enjoyable
alternative for most. This concept offers a living room and kitchen along with safety and
sterility as per hotels. In some hometels, rooms have split-level mezzanine floors so that the
kids have a separate place for recreation and slumber. The living room allowsan ample
amount of space for the guests to work and relax with amenitiessuch as a minibar, coffee
machine, Wifi, USB Chargers, etc. while the bathroom has toiletries, hairdryers, etc. and
room service takes care of all,much like traditional hotels.

Underwater Hotels
As the name suggests, these are accommodations situated underwater. These are quite
expensive hotels where a guest can experience all the marine life view sitting in his bedroom
and sometimes even from his bathroom. These hotels sometimes have two levels, upstairs
access leading to a patio above the surface, while the lower level featuring underwater
views.The guests are transferred to their accommodations via an elevator at the end of a pier.

The pressure inside the resort is the same as the atmospheric pressure on land, so those who
have yet to experience deep-sea habitats will be fine. These hotels are pre-built structures
onshore and are then submerged using special equipment deep into the sea. There are some
restaurants underwater and provide a similar experience.

For example, acrylic tunnels with curved edges provide the guest a marvel at marine wildlife.
The material and technology used in these structures are such so that they can overcome
natural sea disasters like tsunamis and floods. Usually, the lower deck of the hotels
automatically rises to the surface in the event of danger. They are extremely luxurious and
provide an extreme vacationing experience. There are few underwater hotels in the world
located in Singapore, Maldives, Dubai, Sweden, United States of America, etc.

Capsule/Pod Hotels
Pod hotels are also known as Capsule Hotels. These hotels provide accommodation in the
form of a small room that barely fits single beds, called as capsules. Originated in Japan due
to space limitations at the Central Business District (CBD), it has subsequently moved to
various parts of the world. This is originally meant for business professionals to rest close to
CBD without the large price tag.

These hotels are cheap and small accommodation for travellers who prefer to stay at the
centre of the city with limited finances. This trend has extended to many countries and even
at the airports of the world.

Check Your Progress B

1) Explain in details the concept of Airbnb.

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2) How does smart room technology benefit a guest in a hotel?
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3) What are Underwater Hotels?
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4) What is a mobile hotel?
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5) How does Oyo Room differ from booking.com?

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16.5 LET US SUM UP

In this Unit, all the technological innovations in the hospitality industry specifically in the
accommodation sector have been discussed. In contemporary times, where a traveller is better
equipped in terms of high disposable incomes and technology, all the businesses must strive
not only for excellence but also for uniqueness with hospitality being no exception. Every
segment of the hospitality industry is continuously trying to keep itself abreast with the latest
updates as far as changing guest’s expectations and hence the new concepts in the area are
concerned.
The accommodation industry is too experiencing a great deal of evolution from hotels as a
basic ‘place to stay and eat’ to a more personalized and luxurious concept of home away from
home. People are now having less time and are willing to have the best of experiences even if
it costs them a little extra. Technology has made the world a small place as sitting in one
place you can be globally connected. A potential guest can not only search for a place of
visit and stay but also compare the rates, see its pictures and take its virtual tours and talk to
other previously experienced guests all in one go that too sitting in the comfort of his home!
Technology has contributed to an unparalleled evolution in providing better, authentic, and
exclusive travel experiences.
16.6 KEYWORDS

Building a Personality to Your Brand: It is like a set of human characteristics that are
attributed to a brand name. It is something a customer can relate to and trusts the brand. It is
tough, but the payoff for your brand identity is more than just monetary.
Mobile-Friendly Sites: When a regular website shrinks to be small enough to display on
a mobile device. It looks like a tiny version of your website. There is a lot of zooming,
pinching, and scrolling, but the site displays and functions. It leads to wider and quicker
access to the customers.
Smart Rooms:A room that makes use of ‘smart’ electronic devices, powered by the Internet
of Things (IoT). This IoT technology means that what were once ordinary devices are now
fitted with internetconnectivity, allowing them to send and receive data and, effectively,
communicate with one another.
Customization: It means fitting to suit the needs of the customers. It is extremely important
to survive in the competitive market.

16.6 ANSWERS TO CHECK YOUR PROGRESS ‘EXERCISES’

Check Your Progress B

1) See Sec. 16.2. You may expand on the concept of the accommodation industry by
explaining with help of brand names.
2) See Sec. 16.3.
3) See Sec. 16.3 specifically sub points16.2, 16.7.

Check Your Progress B

1) See Sec. 16.4, Sub Sec. 16.4.4. You may expand on the concept of Airbnb by
exploring it in your city of residence or any specific place of your interest.
2) See Sec. 16.3. And 16.4. Sub Sec. 16.4.4
3) See Sec. 16.4 specifically sub-point 16.4.11
4) See Sub Sec. 16.4.9
5) See Sub Sec. 16.4.5 and 16.4.6. You can expand it with the help of an example.