Smart Hospitality Market

Smart Hospitality Market Outlook (2023 to 2033)

Surging ahead at a CAGR of 22%, the global smart hospitality market is expected to increase from a valuation of US$ 37.41 billion in 2023 to US$ 273.27 billion by the end of 2033.

Smart hospitality uses digital technologies such as smart devices and apps to improve client experiences by providing the hotel industry with intelligent solutions and automated software. These technologies provide excellent hospitality and give guests the freedom to choose their rooms, type of stay, and more using smart devices such as mobile phones.

Smart hospitality technologies are segmented into software and services. Smart hospitality services are further classified into professional services and managed services.

• Global sales of smart hospitality services are expected to increase at a CAGR of 24.5% from 2023 to 2033.

Guest experience management plays a crucial role in hospitality services. To create a strong brand name and enhance the guest experience, several hotels are highly adopting advanced smart hospitality services.

• Worldwide smart hospitality software demand is predicted to progress at a 21% CAGR during the next 10 years.

Smart hospitality software technologies are further segmented into hotel operation management systems, hotel automation management systems, guest service management systems, security management systems, and integrated communication technology solutions.

Demand for integrated security systems is anticipated to grow rapidly over the projected period. The integrated security systems are further divided into access control systems, video surveillance systems, and emergency incident management systems. Integrated security technologies aid in improving the hotels' entire security system.

These security solutions are being chosen by hotel owners to provide a great caliber of services to their patrons because they are essential to increasing guests' stays by strengthening the general security of the hospitality industry. Furthermore, this has a favorable impact on consumer satisfaction levels.

Report Attributes	Details
Smart Hospitality Market Size (2023E)	US$ 37.41 Billion
Forecasted Market Value (2033F)	US$ 273.27 Billion
Global Market Growth Rate (2023 to 2033)	22% CAGR
China Market Growth Rate (2023 to 2033)	22% CAGR
Japan Market Growth Rate (2023 to 2033)	20% CAGR
Germany Market Growth Rate (2023 to 2033)	16% CAGR
Canada Market Growth Rate (2023 to 2033)	19% CAGR
Key Companies Profiled	Blazon Hotels BuildingIQ Cisco Cloudbeds Control4Corporation Frontdesk Guestline Honeywell International Inc. Huawei Technologies Co. Ltd. IBM Corporation Infor Johnson Controls NEC Corporation Oracle Qualsoft Systems Pvt. Ltd. Samsung Schneider Electric Siemens Winhotel Solution SL WiSuite

Why is Demand for Smart Hospitality Technologies Rising at a Fast Pace?

“Growing Consumer Demand for Guest-focused, Hyper-connected Personalization & Real-time Optimised Experiences”

By providing a more individualized travel experience, hotels can build a lasting relationship with each guest that is value-driven and far more likely to result in positive reviews for the business. Curating a unique visitor experience boosts brand reputation and customer loyalty in addition to generating income.

Insights and behavior backed by data are made available by emerging smart hospitality technologies, allowing hoteliers to create a 360-degree perspective of each visitor and improve their experience with superior customer service. Hotel owners can acquire a platform with organized data from all sources, which not only customizes a personalized view of each visitor but also helps to counterbalance the operating load, with the aid of integrated, digital platforms such as customer relationship management (CRM) and property management system (PMS).

This improves brand positioning while reducing the hotels' operational costs and increasing their guest retention rate. The ease and self-service for guests are now improved by hotels offering a mobile-centric guest experience. By designing a mobile-centric booking process, providing mobile keyless entry, text-based messaging, mobile concierge, and other services, hoteliers can give their customers a more connected and practical stay.

“Emergence of 5G Technology to Drive Market Growth”

With advanced digital hospitality solutions and platforms, hoteliers are continuously searching for smart hospitality products and solutions to improve the guest experience. With cutting-edge in-room and cross-facility services, 5G technology can allow operators to transform their offerings.

By offering the essential framework for tying together wireless objects, programs, and people, 5G technology has the potential to spur a digital revolution in the hospitality industry. With the help of 5G technology, hoteliers should be able to communicate with their customers more effectively and learn more about their journeys. Using edge computing and other supplemental technologies, such as 5G, guests will be able to proactively receive suggestions and travel tips that are specifically tailored to their tastes.

5G-powered augmented reality can help hotels go above and beyond the norm, particularly in terms of visitor entertainment. Using sensors and video analytics, visitors should be able to employ augmented navigation to get around major hotel properties both before and after checking in. Real-time language translations supported by 5G technology have made it feasible for inclusivity across cultures.

Since 5G networks allow for better connectivity between security employees, the advantages of security are indisputable. Temperature monitoring and lighting management are just a couple of the additional ways that 5G technology is being used in hotel operations to encourage sustainable energy use. Due to its effective asset tracking capabilities, 5G also supports finding equipment, baggage racks, and other items. Another significant use of 5G is the use of robots to carry out everyday jobs.

What May Impede the Sales of Smart Hospitality Solutions?

“High Training, Implementation, & Maintenance Costs”

The installation of smart hospitality solutions such as guest experience management systems, property management systems (PMS), etc. is expensive, whether they are installed locally or online. Budget restrictions can make installing smart hospitality technologies difficult for any hotel, as the hospitality sector is still recuperating from a pandemic-related financial loss of enormous proportions.

Most hotels that already used smart hospitality technologies are experiencing high maintenance costs. However, the cost of deployment is usually correlated with the degree of integration complexity, as it relates to a particular application.

Except for a few extra expenditures such as add-on modules, training fees, and application programming interface (API) access, property management solutions have a straightforward pricing structure. In addition to the monthly pricing structure, there may also be one or more additional fees, such as a commission percentage on direct additional reservations, setup and maintenance costs, or an interface fee for third-party connections.

Pay-per-room is the most popular business model of hotel management software. A high number of rooms lead to a significant price per tier. Some providers of smart hospitality solutions could also impose a one-time setup cost. Pay-per-room models and tier-based models can overlap, however, most tier-based models provide a room range instead of a specific number that influences the cost.

Tier-based models with a subscription-based structure also have a room range. The pricing of the solution determines how many features are included in it. With more expensive options, users get more functionality. Large smart hospitality systems are therefore expensive for smaller hospitality firms.

Which Challenges are Present before Suppliers of Smart Hospitality Technologies?

“Data & Information Sharing Threats”

Global hotels are concerned about the threats of digital data theft and personal data leaks. Smart hospitality solutions include the personal preferences and information of visitors. Any data leak might cast doubt on the hotel brand's reputation and have legal repercussions. Additionally, there have been several obstacles to information exchange between organizations, including technical challenges, intra- and inter-organizational conflicts, etc.

The adoption of smart hospitality big data for the industry might be hindered by inter-organizational issues such as a lack of trust in the new system and disclosure of corporate data to competitors. Publicly available data in the cloud should be combined, processed, and preserved anonymously so that no organization identification or consumer details can be viewed or recognized by rivals, eliminating any questions and worries from individual executives.

Country-wise Analysis

Why are Smart Hospitality Solution Providers Targeting the United States?

“Rapidly Rising Demand for Tech-innovative Yachts”

• The United States is the dominating market for smart hospitality solutions in the North American region.

Individuals in the United States prefer in travelling in a group to charter destinations, such as cruises or yachts. This is done to take benefit of group discounts offered by different yacht charter companies as well as to reduce individual costs by sharing costs.

People in the United States are more attracted to comfortable yachts than yachts with excellent power systems. Furthermore, because the majority of people in the nation are tech-savvy, yacht charter companies prioritize providing customers with yachts that are fitted with the most recent technologies, which attracts more clients.

What is Driving the Sales of Smart Hospitality Technologies in Germany?

“Presence of Top Tourist Destinations & Luxury Hotels”

• Sales of smart hospitality solutions in Germany are expected to increase at a CAGR of 16% during the next 10 years.

Growth of the smart hospitality market in Germany is mainly influenced by the rising recreational activities, the presence of luxury hotels, and the increasing travel tourism sector. Both leisure and commercial travelling is rising in Germany.

• With more than 20,000 hotels that operate independently and service all market sectors, Germany is home to a sizable independent hotel industry.

While domestic brands are present in tier-II cities with good market penetration, foreign brands are widely represented in the top tourist destinations and have a large number of rooms. Thus, the above-mentioned aspects generate several growth opportunities in the smart hospitality market in Germany.

How is Demand for Smart Hospitality Solutions Progressing in Japan?

“Rising International Tourist Visits”

• Currently, several international travellers are visiting Japan. 206,500 foreign tourists are thought to have arrived in Japan in September 2022, according to the Japan National Tourism Organization.
• Since the start of the COVID-19 pandemic, the number has never gone over 200,000. South Korea had the most tourists with 32,700, followed by Vietnam with 30,900, the United States with 18,000, and China with 17,600.

Since March 2022, the government has gradually loosened border control regulations, which has led to a considerable rise in foreign tourists compared to 2021, when Japan's boundaries were nearly shut.

• Comparing September to the same month last year, there has been a more than 11-fold rise in tourism.
• Demand for smart hospitality solutions in Japan is expected to evolve at a CAGR of 20% from 2023 to 2033.

Rising foreign tourist visits are supporting product sales growth.

Category-wise Analysis

Which Type of Deployment is Highly Preferred?

“On-premise Services Currently Dominate Sales of Smart Hospitality Systems”

On-premise services, which offer sophisticated environmental and entertainment controls, currently dominates the smart hospitality market, and it is anticipated that this trend will continue over the forecast period.

Furthermore, by providing quick wireless access for visitors to centralized smart systems through the use of the Internet of Things (IoT), cloud system sales are anticipated to experience a healthy growth rate over the forecast period. Also, they are increasingly replacing older and out-of-date systems at every level.

Competitive Landscape

• Some of the key players in the smart hospitality market are Honeywell International Inc., Huawei Technologies Co. Ltd., IBM Corporation, Infor, Johnson Controls, NEC Corporation, and Oracle.

According to Fact.MR, a market research and competitive intelligence provider, several companies in the smart hospitality market are developing advanced hospitality solutions to avoid any data & information threats. They are also concentrating on enhancing supply chain management systems, collaborating with other regional players to enhance local supply marketing tactics, and more.

• Orient Jakarta and Oracle collaborated in May 2022 to develop the property management system. Due to travel restrictions, the solution helped them increase their online visibility in the COVID-19 scenario and trained workers online using Oracle Digital Learning technologies.

Key Segments of Smart Hospitality Industry Research

• By Type :

  • Software
  • Services

• By Hotel Type :

  • Business Hotels
  • Heritage & Boutique Hotels
  • Resorts & Spas

• By Deployment Mode :

  • On-premise
  • Cloud

• By Application :

  • Hotels
  • Cruises
  • Luxury Yachts

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA