Share

Servers

In an industry known for its human connection, robots are paradoxically becoming a key point of contact.

Hotel slogans often contain words like “warmth”, “people”, “friendliest”, “family” and “life”. So it’s interesting that several of those companies, including major chains like Hilton ($HLT) and Mandarin Oriental, now use robots to welcome and assist guests.

The service industry has widely adopted the use of AI, primarily through virtual chat systems such as chatbots. These chatbots are equipped to handle simple queries to streamline the customer service process, leaving more complex requests for human associates. But some companies are taking this a step further, introducing physical robotic technology in operations that include customer-facing and back-end areas. 

Aside from using robots at check-in for example, hotels have employed robots to help guests with their luggage, assist in housekeeping, do simple room service delivery and even refresh clothes using steam-cleaning technology installed in wardrobes. One extreme example is Japan’s Henn na Hotel, which opened with a workforce of 243 robots employed in different departments. 

Unsurprisingly, the most cited reason for companies to adopt robots is to cut costs – they can work around the clock without breaks. And by taking menial and repetitive tasks off the hands of human workers, they increase the efficiency of the company’s overall workforce. 

While there are worries about the impact on employment, current robotic technology isn’t ready to replicate the flexibility and service offered by people. Continuing on from the above example, Japan’s Henn na Hotel actually replaced over half of its robotic workforce within four years, quoting an inability to assist with more complex requests, constant breakdowns and expensive maintenance. And ultimately, guests were asking for human hospitality. 

Regardless, the service robotics industry is expected to have a compound annual growth rate (CAGR) of 21.5%, to potentially be worth US$220b by 2030. While most manufacturers are based in Asia, Rockwell Automation ($ROK) and IBM ($IBM) are considered to be some of the major U.S. players.  The ultimate goal for hospitality robots is to be able to deliver “socially and emotionally interactive experiences”. If that’s achieved, would you be happy to be served purely by robots?


Related


Want more?

You know what to do

Insights, trends and company deep dives delivered straight to your inbox.


Stake logo
Over 7,000 5-star reviews
App Store logoGoogle Play logo

Subscribe to our free newsletters

By subscribing, you agree to our Privacy Policy.

Stakeshop Pty Ltd is registered as an overseas company in New Zealand (NZBN: 9429047452152), and is registered as a Financial Service Provider under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (No. FSP774414). We hold a full licence issued by the Financial Markets Authority to provide a financial advice service under the Financial Markets Conduct Act 2013. However, the content on this website has not been prepared to take into account any of your individual objectives, financial situation or needs. To the extent you require further information about the relevant New Zealand legislation that may apply, or require specific advice, please contact your legal and/or financial adviser (as appropriate). The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Terms & Conditions, Privacy Policy, Financial Advice Disclosure and Disclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake is a registered trademark under class 36 (New Zealand).

Copyright © 2024 Stake. All rights reserved.