IoT can bring tourists back safely, says GlobalData

  • September 13, 2021
  • Steve Rogerson

Cities that deploy IoT technology are more likely to attract tourists who are concerned about the effects of the pandemic, according to market watcher GlobalData.

According to GlobalData’s Q1 2021 Consumer Survey, 85% of consumers were still either extremely, quite or slightly concerned about their health due to the pandemic. IoT technology can help ease traveller concerns regarding wellbeing.

For example, wearable tech devices at airports and other transport terminals can allow travellers to practice correct social distancing and keep to other health and safety compliance parameters, which stems the spread of the virus and keeps travellers safe.

Companies that are leading adopters of IoT may benefit from a quicker recovery as the world adapts to the new normal, such as hotel chain Hilton. Hilton’s connected-room technology allows guests to use the Hilton Honors app to manage most things they would traditionally have to do manually in a guest room. From controlling the temperature and lighting to the TV and window coverings, the IoT technology allows guests to reduce the number of times they have to touch surfaces that may be contaminated.

“IoT technology will continue to grow in importance for the lodging industry, and especially for hotels and resorts, which are currently responsible for 20% IoT-related patent publications,” said Ralph Hollister, travel and tourism analyst at GlobalData.

IoT is the key technological point for the development of smart cities. By using this technology to gather urban data and improve performance and management, city destinations can rapidly improve performance in relation to sustainability. Examples related to tourism include smart systems for parking and highway speed controls, which reduces pollution.

In terms of social impact, IoT can reduce overcrowding within cities through the redirection of tourist flows; this can be done through reactive digital signage. This can reduce annoyance among the host community within a destination and create a more harmonious relationship between locals and tourists.

IoT in travel and tourism can create personalised experiences in two main ways: by enabling travellers to control more appliances or services through a centralised device, such as a tablet or mobile application; or by companies storing data gathered from IoT enabled devices to create targeted personalised marketing campaigns or by remembering their preferences for return visits.

For example, a traveller may return to the same hotel every winter. Because the hotel company uses a smart thermostat, it could set the heating to the customer’s preferred temperature when they return, which it remembered from the previous year. This kind of small, personalised service could go a long way for many customers, especially in the luxury market where attention to small details is greater than in the midscale or budget segments.

IoT can also elevate passenger experiences. For example, services can be priced differently for different travellers as per the frequency of their traveling, helping create loyalty schemes. Rail operators can benefit from passenger loyalty using IoT systems to understand customer experience history and make improvements for a more comfortable and convenient journey in the future.

The report takes an in-depth look at the use of IoT in travel and tourism. It outlines some of the big tech players within the IoT theme, classified by value chain segment. After a technology briefing, a trends section is provided, describing technology, macroeconomic, regulatory and enterprise trends relating to the IoT.

An industry and tourism specific analysis is provided with a mergers and acquisitions section, which also includes travel and tourism IoT partnerships. After a timeline which tells the story of the development of IoT, an analysis of the IoT value chain is provided. Finally, the leading companies in the IoT theme are outlined along with their competitive position and sector scorecards are delivered, showing how the different companies in each industry compare in the theme of IoT.