The new mobile: Wearables and their impact on the hotel industry

Google GlassTECHNOLOGY FOCUS: It seems that 2014 has been the year of mobile in hotel technology. Analysts forecasted that spending driven by third platform technologies (think smartphones and tablets) would grow to 60 percent of the total IT market. Nearly every magazine article in hospitality technology has advised hoteliers to take mobile seriously, and it was a predominant topic of conversation at the most recent HITEC show in June.

It is true that mobile devices are becoming the primary interface for guests. But smartphones have been ubiquitous since 2009 and tablets launched in 2010. Why are we just now starting to see technologies like mobile room keys? With the exception of a rare few, hotels tend to be several years behind on the innovation curve, but the industry just might have to speed up.

According to MIT’s Technology Review, the pace of innovation is accelerating rapidly. For example, it took landline telephones about 45 years to get from 5 percent to 50 percent penetration among U.S. households, while mobile phones took around seven years to reach a similar proportion of consumers. Smartphones have gone from 5 percent to 40 percent in about four years, despite a recession.

With wearables like Google Glass, Apple Watch and Samsung Galaxy Gear, our Jetsons-age futuristic dreams are becoming a reality. Additionally, I believe that Microsoft’s “Cloud-first” focus will makes these devices even more ubiquitous. I predict that we’ll see rapid, widespread adoption of wearables and that change will begin to impact the hospitality industry as early as 2015. Smartphones and tablets will soon become old news. In fact, at Apple’s big unveiling in September, CEO Tim Cook called it “the next chapter in Apple’s history.” Hotels that want competitive advantage will need to move faster to capture the loyalty of their customers.

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Here is a breakdown of the top technologies and how they will impact the hotel industry, for better or for worse:

Samsung Galaxy Gear and Apple Watch

While Samsung’s product was first to market, it’s likely that Apple will do what it does best: perfect technologies that other companies launch first, then steamroll the competition. These watches will basically be used as mini smartphones. With a flick of the wrist, travelers can check weather, reservation information, boarding pass reminders and more. Smartwatches will also support third-party applications from airlines and hotels. Customers will be able to tweet about their experience at a hotel or restaurant right from their watch. They should expect to simply wave their wrist in front of their hotel door and voila! it instantly opens.

With September’s announcement of Apple Pay, hoteliers should expect bookings from smartphones and smartwatches to increase. Customers can store American Express, MasterCard and Visa cards right in the app.

One of my favorite features of these watches, however, is the ability to speak into them. Besides feeling like Dick Tracy, this feature means that your customers can get real-time information even faster, without having to remove a phone from their pocket.

Google Glass

Google Glass is perhaps the coolest and most useful wearable for travel. Reservation numbers and confirmation numbers can appear at the blink of an eye. When hunger pangs strike, Glass users can call up Yelp and TripAdvisor reviews for the closest restaurants. Travelers can use Google Now to view directions to their hotel when they leave the airport or voice commands to change reservations and solve problems in a flash. 

Glass will also be a boon to customer service. The Montcalm London Marble Arch is using Google Glass as part of their concierge service. With Glass, staff can engage with guests by maintaining eye contact while accessing information. It also removes the physical barrier of a desk between the staff member and guest. Hotel staff can also use facial recognition on Glass to pull up a reservation on a VIP before he or she even reaches the counter.

Google Glass might also have the same impact that websites such as Yelp and TripAdvisor have had on the industry. Glass is equipped with a camera that can shoot pictures and images, which means that guests can record video of a bad experience and upload it to the Internet, by literally blinking an eye.

We’re already seeing the industry adapt to Glass. Itesso announced a facial recognition hotel reception app for Google Glass at HITEC 2014. Starwood also created the first guest-facing app for Google Glass, where they can explore Starwood properties and book hotel stays.

With the rapid pace of innovation, it’s likely that wearables will continue to evolve as we progress through the next several years. Especially with the proliferation of OTAs like AirBnB, it’s critical for hoteliers to stay on top of these changes and innovate.

Speed up or lose the race.

About the author

Peg McGregor headshotPeg McGregor is CEO of Technovation Solutions, a professional solutions-lab/proof of concept setting where visitors can experience a simulated high-tech environment, and technology vendors can display their products as part of a larger vertical market solution without the pitfalls of complex, time-consuming and costly independent systems integration. Prior to leading Technovation Solutions, Peg served as a marketing and business strategy executive and worked for 18 years for the U.S. Government Accountability Office in Washington.
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