In the lead up to the 2020 Arabian Hotel Investment Conference (AHIC), we asked a number of industry partners how they are transforming their business for tomorrow.

As we enter a new decade in an era now dubbed the '4thIndustrial Revolution' or the '4IR', the pace of change, from advances in technology to evolving consumer demographics and preferences, continues to accelerate.

In the Middle East, one of the world's most dynamic hospitality markets, this rapid evolution is even more pronounced as governments fast-track investment in new infrastructure to transform and future-proof their economies, with Saudi Arabia a leading example. In fact the kingdom has been recognised as a 4IR front runner as the fifth country globally to establish a Centre for the Fourth Industrial Revolution, a World Economic Forum (WEF) initiative. 

Saudi Arabia acknowledges how technologies that combine hardware, software and biology, such as artificial intelligence (AI), analytics and blockchain, as well as advances in communication and connectivity, play an essential role in driving economic development and social progress. This is crucial as the kingdom forges ahead with Vision 2030 and calls for all industries earmarked for transformation under this strategy to embrace 4IR and adapt rapidly. With the tourism and hospitality sector a focal point, the onus is on all stakeholders to align with Vision 2030 and instigate changes that will set new benchmarks, not only in the Gulf region, but globally.

The kingdom has the distinct advantage of working with a blank sheet of paper, giving the public and private sector the freedom to pioneer new ways of working as the world ushers in the next step change in industrial development - managing the combined impact of several concurrent technological changes encompassing everything from AI, machine learning, the internet of things (IoT) and augmented and virtual reality, to nanotechnology, robotics, 3D printing, quantum computing and energy storage. The 4IR delivers opportunities aplenty for the hospitality industry, particularly in terms of streamlining processes that previously required manual or human intervention. It can deliver immediate advantages and generate extensive reinvention down the line.

For example, IoT devices in guestrooms and other hotel areas can enhance the guest experience, from occupancy sensors that alert housekeeping when a room is ready to be cleaned to smart luggage carts that share their precise location and connected room-service trays that notify staff when they are ready to be picked up. IoT can also be used to improve security, with biometric-based technologies that support facial recognition, queue management algorithms and predictive analytics used to improve security by identifying people who might cause problems. To protect staff, non-intrusive IoT buttons give them a way to request assistance when activated.And with sustainability a priority for all hotel operators, IoT can help to manage energy more efficiently, cutting costs and improving efficiencies at the same time.

Blockchain is in its relative infancy, but presents exciting opportunities for the hospitality industry and could shape its future, particularly in payment settlement and fraud prevention. Moving information from one point to another in a highly secure manner, it effectively cuts out the financial middleman, providing a direct payment to sellers and for the hospitality sector could encourage direct provider to consumer interaction and eliminate third-party costs. It is a technology disruptor that has the potential to transform hotel distribution, eliminate cyber-attack threats and simplify anything from baggage tracking to loyalty reward schemes.

AI is another game-changer, with robots already being trialled at some hotels. However, given the service-driven nature of the industry, there is understandable scepticism around this type of technology - and this highlights an important consideration when future-proofing our industry. To be successful in the long term, hospitality companies must embrace technologies that streamline processes, eliminate time-consuming manual procedures and improve the guest experience, without impacting the all-important human element.

Taking Saudi Arabia as an example, following recent reforms and modernisation, the country has a unique opportunity to showcase its culture and the genuine hospitality of its people to the world. As the kingdom rolls out new and unique hotels and hospitality concepts, advanced technology should be adopted, but it should be discreet, creating efficiencies that improve the guest journey rather than impede it. Guests should leave Saudi Arabia remembering the warm hospitality they received, rather than the robot that malfunctioned.

The industry must adapt, differentiate and innovate, providing hospitality solutions that meet the diverse needs of future travellers. From leading-edge Central Reservations Systems and Revenue Management Solutions that optimise sales and profits, to online business intelligence platforms that drive guest engagement and loyalty and employee satisfaction management tools that combined with training, create a happier workforce, the benefits of technology adoption are endless.

However, in the hospitality industry, 'transforming for tomorrow' is ultimately about how we positively impact the lives of our people - our guests, staff, business partners and communities where we operate properties. Any innovations associated with 4IR must prioritise their long-term satisfaction and wellbeing, leaving a positive legacy for future generations and preserving Saudi Arabia's unique and authentic hospitality offering.