The global smart hospitality market size is estimated to be USD 13.6 billion in 2022 and projected to reach USD 49.9 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 29.8% during the forecast period. The growth in tourism and increased investments in hotel projects to boost the demand of smart hospitality market. Furthermore, the growing demand for guest-oriented, hyperconnected personalization and real-time optimized experience will drive the smart hospitality market.

Through digital in-room entertainment systems, hotels can improve their guest experience and increase income with smart hospitality. Several hospitality brands are able to tweak and customise both their back-end and front-end solutions, allowing for a more distinctive traveller experience. Smart Hospitality Market 

The smart hospitality market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to smart hospitality market.

The Top Players

These players have adopted various growth strategies, such as partnerships, business expansions, mergers and acquisitions, agreements, and collaborations, new product launches to expand their presence in the smart hospitality market, Marketsandmarkets reports. Partnerships and new product launches have been the most adopted strategies by major players from 2019 to 2022, which helped them innovate their offerings and broaden their customer base.

Driver: Growing demand for guest-oriented, hyperconnected personalization and real-time optimized experience will drive the market

By offering a more personalized travel experience, hoteliers can establish a value-driven, long-term connection with every guest who is far more likely to generate a positive review for the brand. Curating a personalized guest experience not only drives revenue, but it enhances guest loyalty and brand reputation. Emerging smart hospitality solutions open the door to data-backed insights and behaviour, which help hoteliers generate a 360-degree view of each guest, thus enhancing their experience with better customer service.

With the help of integrated, digital platforms such as Property Management System (PMS) and Customer Relation Management (CRM), hoteliers can access a dashboard with organized data from all channels, that not only curates a personalized view of each guest but also help to offset operational load. This also lowers the operational costs of the hotels and increase guest return ratio creating a better brand positioning. Hotels now also benefit by providing mobile centric guest experience which enhances the convenience and self-service for the guest. Creating a mobile-centric booking experience, offering keyless entry through a mobile device, text-based communications, mobile concierge etc., hoteliers can curate a more connected and convenient stay for their guests.

Restraint: High implementation, maintenance and training cost

Smart hospitality solutions consisting of Property Management Systems (PMS), Guest Experience Management System etc. have high initial costs involved in the installation whether on-premises or on-cloud. Since the hospitality industry is recovering from huge financial losses due to the pandemic, implementing a smart hospitality solution can be a challenge for any hotel due to budget constraints. The majority of hotels that had existing smart hospitality solutions employed in the hotel were expensive to maintain. However, the cost of deployment is usually associated with the complexity of the integration, about a specific application.

Property management systems have a simple pricing structure mostly except for a few additional costs like add-on modules, training costs, and access to APIs. A commission percentage on direct additional bookings, maintenance and setup fees, and interface fee for third-party connections can also be charged sometimes apart from the monthly pricing structure.

The most popular model for hotem management software is pay-per-room. A higher price per tier is result by a large number of rooms. Also a one-time setup fee can be charged by some solution providers. Tiered models can overlap pay-per-room, though most tier-based models include a room range rather than a specified number that affects pricing. Subscription-based tier-based models include a room range and are subscription-based. The number of features available in the solution depends upon the price of the solution. More features are available in inexpensive solutions. Thus, large smart hospitality solutions are not economical for small hospitality organisations.

Opportunity: Evolving 5G to transform the smart hospitality industry

Hotel operators constantly seeking ways to streamline the guest experience with new digital tools and platforms. 5G can enable operators to revolutionize their offerings with cutting-edge in-room and cross-facility services.5G has the potential to drive digital transformation in the hotel industry by providing the foundational platform for connecting wireless devices, applications, and people. With 5G technology, hotel operators should be able to deliver more personalized messages to their guests and get a deeper understanding of the guest journey.5G and complementary technologies such as edge computing will enable guests to proactively receive customized travel tips and recommendations based on individual preferences. Augmented reality powered by 5G can enable hotels to go above and beyond the standard experience, especially around guest entertainment. With sensors and video analytics, guests should be able to use augmented wayfinding to navigate large hotel properties prior to booking the stay and while they’re checked in. 5G technology has made it possible for cross-cultural inclusivity by supporting real-time language translations. The benefits of 5G networks for security can’t be ignored as they enable superior connectivity between security personnel. Various other uses of 5G in hotel operations include temperature monitoring and lighting control thus promoting sustainable energy consumption. Locating equipment, luggage racks etc. is also supported by 5G due to efficient asset tracking capabilities. The application of robots in completing daily routine tasks is also an important application of 5G.

Challenge: Data security and information sharing threats Smart Hospitality Market 

Threats of digital data theft and confidential data leaks are a matter of concern for hoteliers globally. Smart hospitality solutions contain personal information and personal preferences of guests. Any data leakage can create a question on the credibility of the hotel brand and have legal consequences. Information sharing across organization always faced several barriers, including intra-organization, inter-organization, technical issues etc. Inter-organization issues such as lack of trust to the new system, exposure of business data to competitors can impede the implementation of smart hospitality big data for the industry. Any concerns from ecosystem members can lower their participating intention on data contribution to the hospitality big data. To eliminate doubts and concerns from individual executives, publicly available data on the cloud should be consolidated, processed, and maintained anonymously so that no organization identity or customers’ details can be accessed or recognized by competitors.

By Solution, the Guest Experience Management System segment to have the highest growth rate during the forecast period

The smart hospitality market, by solutions, has been segmented into the Property Management System (PMS), Guest Experience Management System, Point Of Sale (POS) Software, Facility Management System, Network Management System and Integrated Security Management System. By solution, the Guest Experience Management System segment is expected to have the highest growth rate during the forecast period. The need to streamline guest service operations and create a strong brand name will drive the adoption of smart hospitality solutions in the market.

Asia Pacific is expected to have the highest growth rate during the forecast period Smart Hospitality Market 

Factors such as favorable government efforts and regulations to drive the expansion of the hospitality sector will boost smart hospitality market growth in this area over the next five years. Furthermore, the increased technology innovations, internet infrastructure, expanding IoT applications, and efficient energy use further drive growth in the region’s smart hospitality industry. The flourishing tourism industry with a younger hotel infrastructure and the high number of new hotel openings in many Asia-Pacific countries such as Thailand, Malaysia, and Indonesia will drive the market in the region. Smart Hospitality Market 

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