2023 Travel Trends: AI Integration, Staff Shortages, and Cybersecurity Challenges

2023 Travel Trends: AI Integration, Staff Shortages, and Cybersecurity Challenges

By Author

Published on December 31, 2023

In a data-driven overview, the travel and tourism industry is poised for a robust return to pre-COVID-19 levels, marking a remarkable comeback despite persistent challenges in staffing, cybersecurity concerns, and the integration of artificial intelligence (AI).

International tourism, a significant indicator of recovery, is expected to reach 90% of pre-pandemic levels by the end of 2023, according to data from the United Nations World Tourism Organization (UNWTO). The period between January and September witnessed a 38% increase in international tourist arrivals, totaling an estimated 975 million.

UNWTO Secretary-General Zurab Pololikashvili commented, "International tourism has almost completely recovered from the unprecedented crisis of Covid-19, with many destinations reaching or even exceeding pre-pandemic arrivals and receipts. This is critical for destinations, businesses, and communities where the sector is a major lifeline."

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The global market share of the travel and tourism industry has bounced back impressively, accounting for 7.6% of global GDP in 2022, with projections indicating a rise to 9.2% by the end of 2023. In 2019, this figure stood at 10.4% of global GDP.

As the industry experiences this resurgence, three main challenges have emerged in 2023 and are expected to persist into 2024, as highlighted by analysts from GlobalData.

1. AI Takes Center Stage

Artificial intelligence (AI) has become a transformative force across industries, and the travel sector is no exception. AI applications in tourism include monitoring hotel room maintenance, optimizing energy usage, demand forecasting, and adjusting room availability accordingly.

Nicholas Wyatt, Head of Analysis at GlobalData Travel and Tourism, notes, "Hotel operators are still trying to get to grips with this emerging yet possibly transformative technology, but many within the industry see great potential in it." Generative AI, particularly for labor-intensive and repetitive tasks, is gaining traction, allowing staff to focus on enhancing guest experiences.

AI chatbots, capable of making recommendations and addressing FAQs effectively, are becoming commonplace, inspired by successful models like Expedia's generative AI chatbot.

2. Chronic Staff Shortages

The travel industry grapples with a persistent issue of staff shortages, further exacerbated by the challenges of luring back workers who left during the pandemic. AI is positioned as a potential solution by freeing up staff time, allowing personnel to focus on customer service.

From 2022 to 2032, the travel and tourism sector is projected to add 126 million new jobs, according to the World Travel and Tourism’s Staff Shortages report. However, the industry faces obstacles, including political decisions affecting immigration policies, potentially shrinking the talent pool.

3. Cybersecurity Concerns

In 2023, cybersecurity breaches have become a growing concern for the travel and tourism sector. High-profile incidents, such as the cyberattack on MGM Resorts in September, and the data breach at Hilton in January, highlight the vulnerability of the industry.

Megan Cross, Associate Analyst at GlobalData Travel and Tourism, emphasizes the need for robust cybersecurity measures, especially given the industry's possession of highly valuable and sensitive guest data. The rise of digital platforms necessitates advanced cybersecurity practices to maintain customer trust in 2024.

Despite these challenges, the average stock prices of leading travel and tourism companies have remained steady throughout 2023, signaling resilience in the face of adversity. As the industry continues to recover, staying ahead in cybersecurity practices and embracing AI will be pivotal for sustained growth and customer trust.


Robotics in Hospitality: Automation Solutions for Improved Efficiency

Robotics in Hospitality: Automation Solutions for Improved Efficiency

By Author

Published on July 25, 2024

This Exclusive Article is Contributed by Mr Vinesh Gupta, General Manager of The Den

Hoteliers worldwide are witnessing a paradigm shift propelled by the seamless fusion of automation and innovation. While there may be concerns about job displacement, the reality is that robotics offer unparalleled efficiency, optimizing operations while curbing costs. This competitive edge not only streamlines tasks but also empowers human capital to achieve more with less labor, creating new job opportunities in the process. The burgeoning landscape of artificial intelligence, coupled with the advent of robotic devices and smart room technology, underscores the undeniable advantages of automation within the hospitality sphere.

The adoption of robotics in the hospitality sector is driven by several factors, including the need for enhanced operational efficiency, the desire to provide unique guest experiences, and the increasing demand for contactless services, especially in the wake of the COVID-19 pandemic. 

Enhancing Guest Experiences

A significant area where robotics is evident in hospitality is guest services. Robots are being used as virtual concierges, front desk clerks, and even porters, which gives a new outlook on managing guests. Furthermore, robots can provide services that are unique to the guest’s requirements. These robots use artificial intelligence (AI) and machine learning to remember guests’ preferences, suggest activities, and even recommend the best options to guests, which makes guests’ stays more enjoyable. This adaptability to guests’ evolving needs is a testament to the industry's commitment to providing exceptional experiences.

Streamlining Housekeeping Operations

Another area where robotics is making a huge difference is housekeeping. Housekeeping is one of the most tedious and time-consuming services that can be improved and made more efficient using technology. For instance, robotic vacuum cleaners are now in use to ensure floors are clean at all times. Such robots can move around the furniture, avoid any barriers, and clean the entire space without any human interference. Besides vacuuming, robots are also being employed for other specific cleaning activities. For instance, UV-C light robots are used for the disinfection of rooms and other areas that the public is likely to access in an effort to increase the level of hygiene and safety for the guests. This not only enhances the effectiveness of housekeeping activities but also ensures that guests’ new sensitivity to cleanliness and hygiene is met.

Revolutionising Food and Beverage Services

Robotics is also revolutionizing the food and beverage sub-sector of the hospitality industry. From using robotic utensils in the kitchen to using robotic servers in restaurants, the application of robots is increasing order and accuracy in food preparation and delivery. Fast food joints are now employing robotic chefs who are capable of preparing most meals with efficiency and accuracy. These robots guarantee the standardization of meals, minimize wastage, and let the humans work on more creative and intricate assignments. Also, robot servers are no longer a rarity in many restaurants and cafes as they are now a trend. Such robots can accept orders, bring food and even interact with the clients, which makes the restaurant experience rather special. This trend is attributed to the desire to improve efficiency, cut the costs of employees and increase the demand for services that do not require physical touch.

Improving Back-End Operations

Apart from services that are directly offered to the guests, robotics has also found its way into the back end of the hospitality industry. For example, inventory management is in the process of being transformed by automated systems that are capable of managing and tracking inventory levels accurately. RFID technology in robots can help in performing inventory check ups frequently, and this will help in avoiding situations whereby there is either excess or inadequate stock in the stores. Furthermore, supply chain management is also benefiting from the use of robots to enhance the efficiency and accuracy of the system. Self-driving cars or AGVs and drones are being used in warehouses for conveying goods, stock taking, and order picking. This not only helps to increase the speed of operations but also helps to decrease the need for a workforce, thus reducing costs and increasing efficiency.

Therefore, it can be stated that the application of robotics in hospitality is gradually developing and may expand further in the future due to the constant progress in technology. While there may be concerns about job displacement, it's important to note that these technologies are not meant to replace human workers but to enhance their capabilities and create new job opportunities. AI and machine learning will also be incorporated into robots to improve their performance and make them smarter and more responsive. Also, the use of collaborative robots or cobots that will share working space with human employees will enhance productivity and work harmony.

The above article is a guest contribution and has neither been written nor edited by the team at hospitalitynews.in. The opinions expressed are solely those of the author and do not represent the views of hospitalitynews.in. We are not liable for the accuracy or reliability of any information or opinions presented.


ITC Royal Bengal Wins ‘Best Energy Efficient Commercial Building/Hotel’ Award at CII National Energy Efficiency Circle Competition 2024

ITC Royal Bengal Wins ‘Best Energy Efficient Commercial Building/Hotel’ Award at CII National Energy Efficiency Circle Competition 2024

By Nishang Narayan

Published on July 23, 2024

ITC Royal Bengal has been awarded the prestigious ‘Best Energy Efficient Commercial Building/Hotel’ during the CII National Energy Efficiency Circle Competition 2024. This accolade acknowledges ITC Royal Bengal’s dedication to sustainability, state-of-the-art energy efficiency practices, and unwavering commitment to ITC Hotels' ethos of Responsible Luxury.

ITC Hotels have always prioritized environmental stewardship without compromising on luxury and guest comfort. ITC Royal Bengal’s recognition in this national competition accentuates its status as a paragon of sustainability. As a LEED Platinum-certified building, ITC Royal Bengal underscores its steadfast adherence to global standards in eco-friendly design and operations.

Significant Strides in Energy Efficiency

ITC Royal Bengal has made significant strides in energy efficiency and decarbonization, aiming for Net Zero Carbon. By integrating advanced HVAC and electrical technologies, the hotel ensures exceptional energy performance. Recent initiatives include:

  • Replacing diesel boilers with electric ones

  • Installing heat pumps for hot water

  • Using electronically commutated fans and patented Continewm Nets for air handling units

  • Implementing automated tube cleaning for chillers

  • Converting multiple laundry and kitchen equipment to electrical heating

  • Utilizing IE5 motors for water management

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“These innovations have enhanced energy performance and reduced fossil fuel usage, ensuring our hotel’s lead in energy efficiency and decarbonization,” said Parveen Kumar, Head of Technical Services at ITC Royal Bengal and ITC Sonar.

Commitment to Sustainability

“This recognition is a testament to ITC Hotels’ commitment to embedding sustainability into the core of our operations. At ITC Royal Bengal, we believe that luxury and sustainability can coexist harmoniously. This award reflects our continuous efforts towards creating an eco-friendly environment while delivering unmatched luxury experiences to our guests,” said Gaurav Soneja, Cluster General Manager, ITC Royal Bengal & ITC Sonar.

ITC Royal Bengal’s architectural grandeur and sustainable innovations make it a landmark in Kolkata. The hotel seamlessly integrates local culture and modernity, offering guests a memorable stay and a planet-positive experience.


IHG Launches Industry-First 'Low Carbon Pioneers' Programme

IHG Launches Industry-First 'Low Carbon Pioneers' Programme

By Nishang Narayan

Published on July 23, 2024

IHG Hotels & Resorts, a global leader in hospitality, has announced the launch of its groundbreaking Low Carbon Pioneers programme. This initiative brings together a group of energy-efficient hotels that operate without combusting fossil fuels on-site and are supported by renewable energy sources. This marks the first community of its kind in the hospitality industry, aimed at testing, learning, and sharing sustainability practices to inspire broader adoption of carbon reduction measures.

Initial Low Carbon Pioneer Hotels

The initial Low Carbon Pioneer hotels include:

  • Holiday Inn Express Madrid Airport, Spain

  • Iberostar Waves Cristina, Spain

  • Kimpton BEM Budapest, Hungary

These hotels feature sustainable solutions such as high-efficiency heat pumps for heating and hot water generation, as well as fully electric kitchens. Each property holds an operational sustainability certification recognized by the Global Sustainable Tourism Council, such as Green Key, or a sustainable building certification like LEED, BREEAM, or EDGE. Energy data for these hotels will be tracked and measured using IHG’s Green Engage environmental platform.

Expansion and Future Plans

IHG plans to expand the Low Carbon Pioneers programme across all regions, developing a "low-carbon ready" group of hotels in preparation for broader renewable energy availability. The full criteria for a Low Carbon Pioneer hotel can be found here. 

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CEO's Call to Action

Elie Maalouf, CEO of IHG Hotels & Resorts, expressed excitement about the launch, emphasizing its role in meeting evolving guest expectations, helping hotel owners future-proof their businesses, and reducing carbon emissions across IHG’s estate. He stressed the need for broader government support to accelerate industry-wide change, including increased access to renewable energy, incentives for owners, and reduced costs for green technology.

“This is an important next step in IHG’s sustainability journey, but it remains one of many we must continue to take. Accelerating change at scale for both IHG and the wider industry also requires broader support from governments ranging from greater access to renewable energy and incentives for owners, to a reduction in the cost of technology that speeds up the industry’s transition to a greener, more resilient future. IHG is committed to working with industry bodies and governments to help achieve this, alongside encouraging more owners to adopt carbon reduction practices and become Low Carbon Pioneers,” said Maalouf.

Future-Proofing Properties

The Low Carbon Pioneers programme aims to future-proof IHG’s properties, providing potential benefits such as better alignment with environmental regulations and access to green finance for new projects. These hotels will be marketed as low carbon or low carbon ready across IHG’s booking channels, appealing to guests seeking sustainable stays and corporate clients with net-zero or carbon-neutral targets.

Leading the Way in Sustainability

IHG is committed to reducing carbon emissions through its Journey to Tomorrow responsible business plan. The company continues to develop solutions to measure, manage, and minimize the environmental impact of its hotels, from energy conservation measures to sourcing renewable energy and installing EV chargers. The Low Carbon Pioneers programme builds on IHG’s history of creating ambitious and innovative sustainability solutions, such as replacing bathroom miniatures with bulk amenities and providing properties with renewable energy through a community solar programme in the US. IHG is now setting a new benchmark for reducing operational carbon in the hospitality industry.

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