November 3-6, 2024
Robot Success Stories
Scandinavian hotel chain: "Robots free our staff to focus on guests"
In a sleek Scandinavian hotel lobby, a guest approaches not a reception desk, but a holographic figure. With a smile and a nod, the hologram assists with check-in – providing a glimpse into a not-so-distant future of the hospitality industry.
This scene, once the stuff of science fiction, is now a reality in many of CIC Hospitality's properties. CIC Hospitality, a Scandinavian hotel operator founded in 2018, manages 30 hotels across the region. Their automation initiatives are part of a broader trend sweeping the hospitality industry, where service robot sales surged by 30% worldwide last year, with hospitality robots alone seeing a 31% increase, according to the International Federation of Robotics (IFR).
"The whole point of automating is to take away these low-hanging, low customer value areas," explains Øyvind Frisak, Chief Commercial Officer of CIC Hospitality. "This allows us to use the people we have at work to be 100% there to take care of guests."
Automation and robotics are entering many parts of the hotel
CIC Hospitality’s automation journey spans many different applications – from cleaning to reception handling and administrative work.
The company has implemented automated check-in systems, AI-powered email response tools, and various physical robots. One of their most successful implementations has been the self-check-in system.
"Today, we have around 90% of our guests checking in on the machines at our hotel in Herning (Denmark)," Frisak states. This high adoption rate suggests that guests appreciate the convenience and efficiency of the system, he says.
Among the physical automation solutions, cleaning robots have become a key focus. "We have a number of smaller and larger robots today that take care of cleaning common areas," Frisak explains. After testing several types of robots for different cleaning applications, the company found the most benefit of using them in relatively large common areas:
"We simply avoid having to use personnel working in the common area for that type of task," Frisak adds. "Instead, they can sit there and be available for guests."
Robotics are transforming the role of hotel employees
The integration of robotics and automation is transforming employee roles at CIC Hospitality, reflecting a broader industry trend. Traditional tasks like reception check-in and cleaning of large areas are increasingly handled by automated systems, allowing staff to focus more on direct guest interactions and personalized service.
"We've taken the receptionist away from a desk where they sit and wait for customers, and placed them out in the premises so they can be with the guests," Frisak describes. This shift has not only improved guest satisfaction but also helped the company deal with the bigger industry challenges of labor shortages and high employee turnover, he explains.
By automating repetitive tasks, the company can manage more guests with the existing staff, while also making the roles more engaging and focused on customer service. This, he says, has contributed to a remarkably low employee turnover rate of 4% annually in the company, significantly below industry averages.
The dual purpose of robotics: Efficiency and coolness factor
Contrary to concerns that automation might depersonalize the hotel experience, CIC Hospitality has found that guests often find the new technologies exciting. This shows that robots – in addition to making work more efficient – can also be an attraction in themselves.
The company's "first mover" approach to implementing novel solutions has now become a part of their brand identity.
"It’s important for us to know ‘what’s next’, so by the time when it's common to have a hologram at check-in or reception, then we've moved on to the next fun thing," Frisak says.
One such "next thing" that CIC is exploring is the use of social robots, originally developed for elderly care. "We're testing a small social robot," Frisak shares. "The idea is to bring that care perspective into our customer service, enhancing the guest journey with a physical presence that can move around, answer questions, and show guests where things are in the hotel."
New technology can be challenging to navigate
CIC Hospitality's automation journey hasn't been without its hurdles. Taking on the role of first-mover inevitably brings some failures. Frisak candidly shares some less successful experiments, including Bluetooth solutions for opening hotel rooms that didn’t work as well as hoped and ineffective guest communication platforms.
"You have to dare to fail," Frisak advises. "We've implemented tools that weren't good enough, and then we've had to pull them off the market."
One of the key challenges has been finding suitable suppliers and solutions. "It hasn't been so easy to find suppliers for our industry," Frisak admits. CIC's approach involves seeking out existing technologies, often from other industries, that can be adapted to the hospitality sector.
"We buy off-the-shelf products, but often from a different industry than we're in ourselves," Frisak explains. This strategy allows them to leverage proven technologies while potentially being the first to apply them in a hospitality context. However, it often requires close collaboration with suppliers to adapt their products to meet the specific needs of the hospitality industry.
Finding the right balance between needs and technology
As CIC Hospitality continues to explore automation possibilities, Frisak emphasizes the importance of maintaining a balanced approach. "It's crucial to find the right mix between technological innovation and personalized service," he says. "We're not aiming to replace our staff with robots, but to enhance their ability to provide exceptional guest experiences."
This balance is also about choosing technologies and solutions that are reliable enough so they don’t end up detracting from operational efficiency and brand image.
Frisak points to the potential of autonomous room service robots as an example. "The idea of a robot that can bring food directly to guest rooms is promising," he says. "It could streamline our operations, but it would also be an exciting feature for guests. However, there are still technical challenges to solve, like how the robots interface with elevators and determining supplier responsibility if something doesn't work."
Looking ahead, Frisak sees artificial intelligence as one of the next frontier in hotel automation, potentially offering both practical benefits and brand-enhancing features. "I think we've only seen the beginning of AI technology," he says, envisioning systems that can anticipate guest needs even before they arise.
CIC Hospitality's journey into automation and robotics illustrates the complex decisions facing today's hoteliers. As the industry evolves, finding the right balance between cutting-edge technology and the human touch of hospitality will be crucial. For CIC, this means not only improving operational efficiency but also reinforcing their brand as first-movers. While challenges remain, their experience suggests that with careful implementation, robots and AI can indeed free staff to focus on what matters most: the guests.