  {"id":22987,"date":"2017-11-15T00:26:57","date_gmt":"2017-11-15T05:26:57","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/reliance-on-robots-and-data-in-the-hospitality-industry-an-oxymoron\/"},"modified":"2017-11-15T00:26:57","modified_gmt":"2017-11-15T05:26:57","slug":"reliance-on-robots-and-automation-in-the-hospitality-industry-an-oxymoron","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/reliance-on-robots-and-automation-in-the-hospitality-industry-an-oxymoron\/","title":{"rendered":"Reliance on Robots and Automation in the Hospitality Industry: An Oxymoron?"},"content":{"rendered":"<p>You enter your hotel after a long flight, skip check-in, and swipe into your room using your iPhone. Upon entering, you notice your favorite scented candle is awaiting you even though you have never expressed this preference. A moment later, a robot arrives at your front door to deliver the toothpaste you forgot.\u00a0Although this seamless customer experience may seem like a distant dream far removed from the current headache of travel, Marriott International is rolling out this experience across the globe thanks to the use of advanced analytics.<\/p>\n<p><strong>Digital Disruption\u00a0in the Hospitality Industry<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-23202 alignright\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Innovation-Lab-300x225.jpg\" alt=\"\" width=\"323\" height=\"242\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Innovation-Lab-300x225.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Innovation-Lab-768x576.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Innovation-Lab-1024x768.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Innovation-Lab-600x450.jpg 600w\" sizes=\"auto, (max-width: 323px) 100vw, 323px\" \/><\/p>\n<p>Throughout the hospitality industry, there is an increasing reliance on digitization and advanced analytics to improve the customer experience. Hotels, airlines, and others are using data to delight customers and differentiate their experience by reducing the pain points associated with travel. Traditional hotel companies like Marriott have already been disrupted by AirBnB and other digital natives who use advanced analytics to radically rethink and reshape the customer experience,\u00a0delivering a higher level of service at a lower price [1]. Now these industry incumbents must refocus their attention on the next wave of innovation to capture growth and ensure survival [2]. However, critics suggest this focus on data could depersonalize the experience, losing that thoughtful touch travelers crave [3]. Does digitization inherently degrade the human connection that hospitality is based on? Or is it merely a medium to prioritize and provide higher-touch, personalized service?<\/p>\n<p><b>Marriott International: An Agenda of Innovation<\/b><\/p>\n<p>Marriott International is the world&#8217;s largest hotel chain and, as a result, is acutely feeling the industry\u2019s push towards digitization. Marriott International cites innovation as a top priority and has introduced a variety of digital solutions to improve stays [4]. At the Marriott Charlotte City Center, guests can swipe into their rooms using their iPhone [5]. At some Marriott hotels, VRoom Service lets guests explore the world from their room using virtual reality [6]. At The Residence Inn by Marriott in Los Angeles, Wally the Robot uses analytics to masterfully navigate the hotel, riding elevators and buzzing guests rooms to deliver everything from towels to toothpaste. Wally provides prompt service and delights travelers who frequently post about him on social media (albeit only when in service as guests have been known to put wet towels in Wally, causing him to short-circuit) [4].<\/p>\n<p><iframe loading=\"lazy\" title=\"VR Postcards | Behind the Scenes\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/fT2p4EBXYSg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>For the longer term, Marriott has made innovation a core part of their corporate strategy and emphasize that \u2018[Marriott\u2019s] digital strategy continues to focus on \u2026creat[ing] a superior and memorable stay experience for our guests powered by digital guest services&#8217; [4]. Marriott is rolling out these innovations and more through the use of a digitally-focused beta hotel and the launch of the Marriott Innovation Lab [5] . This long-term strategy will be key for Marriott as competitors leverage advanced analytics to do everything from personalizing rewards to allowing travelers to select their preferred hotel room from available inventory [7]. Digitization and advanced analytics have huge potential create differentiation for hotels brands such as Marriott who have not been traditionally associated with cutting-edge technology and highly personalized service.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-22940 alignright\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/St-Regis-Butler-300x169.jpg\" alt=\"\" width=\"400\" height=\"226\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/St-Regis-Butler-300x169.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/St-Regis-Butler-768x432.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/St-Regis-Butler-1024x576.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/St-Regis-Butler-600x338.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/St-Regis-Butler.jpg 1600w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/p>\n<p><strong>Depersonalization: The Downfall of Digital?\u00a0\u00a0<\/strong><\/p>\n<p>However, these innovative advances are not without naysayers. Wally\u2019s dissenters argue that analytical advances steal jobs and depersonalize the customer experience. High-end hoteliers argue that data-driven solutions like eliminating check-in or reliance on robots will never take hold because luxury guests expect high-touch human service [3]. Marriott managers respond that automation of simple tasks frees hotel staff to provide guests more attention and that advanced analytics has now made the\u00a0 hyper-personalized service of luxury hotels accessible to a broader audience [3]. Moving forward, Marriott International should focus on capitalizing on the potential of advanced analytics to improve and personalize their customer experience, while retaining the human element travelers desire.<\/p>\n<p><strong>Further Questions to Consider<\/strong><\/p>\n<p>The rise of advanced analytics in hospitality begs the question whether personalization and better service have the potential to cheapen the experience or impede on guest privacy? Let\u2019s say, for example, you and your partner stayed at a Marriott hotel on your honeymoon and each evening you bought the same bottle of wine from the mini-fridge. A year later, you return to that hotel and receive a complimentary bottle of that wine. Will you appreciate this gesture more as it is more personalized than a fruit basket? Or appreciate it less because you recognize it was purely data driven? Even further, will you view this as an invasion of privacy &#8211; or worse &#8211; an unsavory, analytical exploitation of a personal moment and cherished memory?<\/p>\n<p>As the Chairman of the Board recently said in response to the increased use of technology at Marriott,\u00a0 \u201cI think we have to be careful we don\u2019t lose the human touch,\u201d Bill Marriott\u00a0said. \u201cEvery time I get on the elevator, there\u2019s a bunch of people looking at their iPhones. They never say good morning to anyone. They never say hello to anyone\u201d [8].<\/p>\n<p>&nbsp;<\/p>\n<p>[Word Count: 797]<\/p>\n<p><strong>References<\/strong><\/p>\n<p>[1] World Economic Forum in collaboration with Accenture. \u201cDigital Transformation Initiative: Aviation, Travel and Tourism Industry.\u201d June 2017.\u00a0<a href=\"https:\/\/www.accenture.com\/t20170116T084449__w__\/us-en\/_acnmedia\/Accenture\/Conversion-Assets\/WEF\/PDF\/Accenture-DTI-Aviation-Travel-and-Tourism-Industry-White-Paper.pdf\">https:\/\/www.accenture.com\/t20170116T084449__w__\/us-en\/_acnmedia\/Accenture\/Conversion-Assets\/WEF\/PDF\/Accenture-DTI-Aviation-Travel-and-Tourism-Industry-White-Paper.pdf<\/a><\/p>\n<p>[2] Bhattacharjee, Dilip, Jules Seeley, and Nathan Seitzman. \u201cAdvanced analytics in hospitality\u201d. McKinsey &amp; Company. October 2017.\u00a0<a href=\"https:\/\/www.mckinsey.com\/business-functions\/digital-mckinsey\/our-insights\/advanced-analytics-in-hospitality?utm_content=buffer86fe8&amp;utm_medium=social&amp;utm_source=twitter.com&amp;utm_campaign=buffer\">https:\/\/www.mckinsey.com\/business-functions\/digital-mckinsey\/our-insights\/advanced-analytics-in-hospitality?utm_content=buffer86fe8&amp;utm_medium=social&amp;utm_source=twitter.com&amp;utm_campaign=buffer<\/a><\/p>\n<p>[3] Martin, Hugo, \u201cRobots deliver fun with hotel room service orders, and they don\u2019t expect a tip\u201d. Los Angeles Times. February 7<sup>th<\/sup>, 2016.\u00a0<a href=\"http:\/\/www.latimes.com\/business\/la-fi-hotel-robots-20160207-story.html\">http:\/\/www.latimes.com\/business\/la-fi-hotel-robots-20160207-story.html<\/a><\/p>\n<p>[4] Marriott International. \u201cMarriott International Inc 2016 Annual Report\u201d.\u00a0<a href=\"http:\/\/files.shareholder.com\/downloads\/MAR\/0x0x936409\/834E45D9-8979-4190-AE47-702FBFF54755\/Marriott_2016_Annual_Report.pdf\">http:\/\/files.shareholder.com\/downloads\/MAR\/0x0x936409\/834E45D9-8979-4190-AE47-702FBFF54755\/Marriott_2016_Annual_Report.pdf<\/a><\/p>\n<p>[5] Tkaczyk, Christopher. \u201cA Peek Inside Marriot\u2019s New Hotel Experiment\u201d. Travel &amp; Leisure Magazine. October 12<sup>th<\/sup>, 2016.http:\/\/www.travelandleisure.com\/hotels-resorts\/marriott-experimental-hotel<\/p>\n<p>[6] \u201cMarriott Hotels Introduces The First Ever In-Room Virtual Reality Travel Experience\u201d. Marriott Hotels. September 9<sup>th<\/sup>, 2015.\u00a0<a href=\"http:\/\/news.marriott.com\/2015\/09\/marriott-hotels-introduces-the-first-ever-in-room-virtual-reality-travel-experience\/\">http:\/\/news.marriott.com\/2015\/09\/marriott-hotels-introduces-the-first-ever-in-room-virtual-reality-travel-experience\/<\/a><\/p>\n<p>[7] \u201cHilton revolutionizes hotel experience with digital check-in, room selection and customization, and check-out across 650,000-Plus rooms at more than 4,000 properties worldwide\u201d. Hilton Hotels. July 28<sup>th<\/sup>, 2014.\u00a0<a href=\"http:\/\/newsroom.hilton.com\/index.cfm\/news\/hilton-revolutionizes-hotel-experience-with-digital-checkin-room-selection-and-customization-and-checkout-across-650000plus-rooms-at-more-than-4000-properties-worldwide\">http:\/\/newsroom.hilton.com\/index.cfm\/news\/hilton-revolutionizes-hotel-experience-with-digital-checkin-room-selection-and-customization-and-checkout-across-650000plus-rooms-at-more-than-4000-properties-worldwide<\/a><\/p>\n<p>[8] Trejos, Nancy. \u201cBill Marriott on towels, robots and more\u201d. USA Today. March 11<sup>th<\/sup>, 2016.\u00a0<a href=\"https:\/\/www.usatoday.com\/story\/travel\/roadwarriorvoices\/2016\/03\/11\/bill-marriott-towels-robots-and-more\/81646978\/\">https:\/\/www.usatoday.com\/story\/travel\/roadwarriorvoices\/2016\/03\/11\/bill-marriott-towels-robots-and-more\/81646978\/<\/a><\/p>\n<p><strong>Photo Credit<\/strong><\/p>\n<p>Biggs, John. &#8220;The Savioke Robot is Headed to a Hotel Near You&#8221;. TechCrunch. May 15th, 2016. https:\/\/techcrunch.com\/2016\/02\/15\/the-savioke-robot-is-headed-to-a-hotel-near-you\/<\/p>\n<p>&#8220;Marriott Launches its First Futuristic Pop-Up Innovation Lab in Downtown LA&#8221;. L&#8217;Empereur Magazine&#8221;. https:\/\/lempereurmagazine.com\/2017\/01\/25\/marriott-launches-its-first-futuristic-pop-up-innovative-lab-in-downtown-la\/M<\/p>\n<p>&#8220;St Regis Butler Service&#8221;. St Regis Bangkok Website.\u00a0http:\/\/www.stregisbangkok.com\/features_butler<\/p>\n<p><strong>Additional References<\/strong><\/p>\n<p>Frick, Walter. \u201cWhat Can a Robot Bellhop Do That a Human Can\u2019t?\u201d. 性视界 Business Review. August 25<sup>th<\/sup>, 2014.\u00a0<a href=\"https:\/\/hbr.org\/2014\/08\/what-can-a-robot-bellhop-do-that-a-human-cant\">https:\/\/hbr.org\/2014\/08\/what-can-a-robot-bellhop-do-that-a-human-cant<\/a><\/p>\n<p>\u201cHow can hotels achieve the right king of growth in a digital age? A toolkit for fighting commoditization\u201d PriceWaterhouseCooper. October 2013.\u00a0<a href=\"https:\/\/www.pwc.co.uk\/industries\/hospitality-leisure\/insights\/how-can-hotels-achieve-the-right-kind-of-growth.html\">https:\/\/www.pwc.co.uk\/industries\/hospitality-leisure\/insights\/how-can-hotels-achieve-the-right-kind-of-growth.html<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From robot concierges to in-room VR to hyper-personalization of rewards, digitization and advanced analytics have huge potential to improve the experience for customers of hospitality companies such as Marriott International. However, is the increased use of advanced analytics at odds with an industry built on warm receptions and friendly faces in foreign lands?<\/p>\n","protected":false},"author":9855,"featured_media":23306,"comment_status":"open","ping_status":"closed","template":"","categories":[2117,471,3583,2029,307,270],"class_list":["post-22987","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-advanced-analytics","category-automation","category-digitial-distruption","category-digitization","category-hospitality","category-hotels","hck-taxonomy-organization-marriott-international","hck-taxonomy-industry-travel","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Reliance on Robots and Automation in the Hospitality Industry: An Oxymoron? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/reliance-on-robots-and-automation-in-the-hospitality-industry-an-oxymoron\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Reliance on Robots and Automation in the Hospitality Industry: An Oxymoron? - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"From robot concierges to in-room VR to hyper-personalization of rewards, digitization and advanced analytics have huge potential to improve the experience for customers of hospitality companies such as Marriott International. 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