Augmented Reality Transforming the Travel and Hospitality Industry

Sneha Hull | May 20, 2022 | 211 views

Augmented Reality Transforming

“I believe that augmented reality will be the biggest technological revolution that happens in our lifetimes.”

– Tim Sweeney, Founder and CEO of Epic Games

Augmented reality (AR) has proved to be a significant concept in tourism and hospitality management in the past few years. It allows us to enhance the physical environment and enhance the experience of exploring the surrounding area.

According to Grand View Research, the global market for augmented reality was worth USD 25.33 billion in 2021. From 2022 to 2030, the market is expected to grow at a compound annual growth rate (CAGR) of 40.9%.

As things keep pace with digitalization and this generation seeks quick and efficient yet reliable methods, every sector widely uses the application of augmented reality.

According to Hospitality Tech, the market size of augmented reality will reach $198 billion by 2025, and the hotel business will be one of the key contributors to this income target. Effectively, Starwood, Marriott and Holiday Inn are already making a difference in the travel and hospitality industry by leveraging this technology. An investment in AR brings a lot of change in business revenue for both small hoteliers and prominent hotel tycoons.


AR Improve Customer Experience for Travel and Hospitality

Redefine the customer experience with augmented reality in the tourism industry. AR-based travel apps help businesses enhance their services and offer personalized experiences to their customers. By adding interactive hotel features that make the space more fun, you can get people to visit nearby attractions.

Utilizing CX to maintain and expand a client base produces a terrific asset that positively affects ROI. CX effectively boosts customer lifetime value (LTV), which can become self-perpetuating.

Companies that excel at CX and customer-centricity are 60% more profitable and generate 5.7% more revenue than those that don't.


Ideas for Implementing AR in the Tourism and Hotel Industry

AR is utilized chiefly via smartphones and offers many options concerning interactive experiences.


AR in Excursions & Travel Attractions

AR technology may be a terrific marketing tool for guiding first-time guests through the hotel and a great way to retain customers and provide more engaging experiences.

With the application of augmented reality software, a standard tourist map comes to life. Moreover, AR technology enables clients to examine points of interest, restaurants, and other businesses. Your hotel restaurant may even use augmented reality to let customers explore the menu and ingredients in a new way by showing them 3D versions of the meals on their phones.

Transportation

If you have a travel mobile app with AR, you can point out the transportation objects to get the best possible directions, travel route, next destination, and places to travel to. Pokemon Go shows one such example of how you can use modern digital technologies to make the travel experience even better. It became the first popular augmented reality game. This AR app brought players out into the street and made them move and travel a lot.

Scadi is one such AR app in travel for visitors of Alpine ski resorts. It uses advanced algorithms to create the most comfortable, safe and exciting routes for skiers and snowboarders.


Integrates with other technology

Using augmented reality in conjunction with other technologies such as beacon technology allows your hotel to more efficiently promote to visitors and upsell through push notifications. For example, through push notifications, hotels may give partner companies special offers or discounts, and vice versa, partner businesses can advertise the hotel.


Hospitality Industry Must Make Room for AR for Better ROI

In a post-pandemic context, the travel and hotel industries embrace technological advancements that enhance visitor experiences, eventually boosting corporate income and reducing operating expenses. Utilizing interactive technologies like AR, VR, and other interactive technologies increases operational efficiency, productivity, and ROI.

By using augmented reality with CMMS (Computerized Maintenance Management System) or EAM, you gain more understanding (Enterprise Asset Management). Augmented reality can assist facility managers in boosting the efficiency of their engineers and reducing the expense of ensuring their safety.

AR will assist them in increasing their revenue by reducing their maintenance expenses. Using AR-based product models, the hospitality industry is gaining a significant competitive edge, resulting in faster sales cycles.


Case Studies


Holiday Inn

During the Olympic and Paralympic Games in London in 2012, Holiday Inn introduced one of the first uses of Augmented Reality in a hotel setting.

The experiences used picture recognition and chroma video. The program identified hotel locations and activated athlete video footage, merging real and virtual components. This Holiday Inn use case shows how hotels may leverage AR to develop unique guest experiences around local events. In addition, the campaign helped promote the hotel and bolster its status as the official hotel for the London 2012 Olympic and Paralympic Games.


Premier Inn

The Hub Hotel from Premier Inn, the largest hotel chain in the United Kingdom, is one of the few places to have adopted the AR technology back in 2016. The hotel provided a wall map of the local region in each room. Tourists could use their smartphones to read information about local areas of interest by pointing them at a wall.


Conclusion

The benefits of augmented reality in the travel and hospitality industries are immense. AR is a potent tool for increasing company potential and returns on investment. Utilizing innovative technology boosts your hotel's exposure and brand awareness while propelling it into the digital age. Augmented reality in the tourism industry truly sets you apart from the competition.


FAQ


How is augmented reality changing the travel & tourism industry?

Augmented reality helps hotels enhance the physical locations they are attempting to attract visitors to, such as hotel rooms and local attractions.


What is digital transformation in the hospitality industry?

Digital transformation refers to how companies restructure themselves to adapt and modify their corporate culture to empower innovations that utilize technology and propel their enterprises to new levels of growth.


What are the benefits of augmented reality?

  • Creates unique customer experiences
  • Reduces cognitive overload
  • Increases engagement

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Kicking back on a tropical beach. Zipping down a snowy slope. Exploring a capital’s hot new neighborhood. There’s nothing we’d rather do with our spare time than travel, and we’re guessing you feel the same. But it’s a wide, wide world and working out where to go and where to stay can really eat into that precious time. That’s why we founded Jetsetter. We’re a community of travelers that provides members with insider access, expert knowledge and exclusive deals on the world’s greatest vacations. We curate travel experiences, which means we only recommend places we’ve been, loved and would go to again. Everything else we leave out.

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Shoopit | December 09, 2022

Innovative flight search engine and browser extension, shoopit, has released its 2022 Consumer Travel Survey. The project was undertaken to uncover the habits of UK travellers in the face of difficult economic challenges, showing that while those most affected by the ongoing cost-of-living crisis may delay their flight bookings, they still say that they’re likely to travel at least once in the next 12 months. The survey was conducted among 2003 UK consumers who have bought a plane ticket in the last five years to determine how their travel habits have changed and where their priorities lie. The interviews were conducted by Sapio Research on behalf of shoopit in November 2022. The key results of the survey are detailed below: Pre-COVID-19 pandemic (pre-2019) travelling habits: In the past five years, respondents who had travelled by plane for either ‘holiday’ or ‘business’ took two trips per year. Respondents spent an average of nine nights abroad on a ‘holiday trip’, and two nights abroad on a ‘business trip’. Post-COVID-19 pandemic travelling habits: Since the pandemic, respondents are 57% less likely to take as frequent trips abroad as they were prior to Covid-19. The survey also shows that respondents are more likely to travel shorter distances and have 51% less budget for travel expenses. Future travelling: Over the next 12 months respondents intend to make two ‘holiday trips’ and one ‘business trip’, with individuals expecting to spend on average nine nights abroad for a ‘holiday trip’ and four nights abroad for a ‘business trip’. However, on average those who are ‘extremely affected’ by the cost of living crisis only intend to travel once in 2023. Impact of the cost-of-living crisis on travelling: On average, respondents would consider themselves less likely to book a flight when the price increases by 17%, while for those ‘very affected’ by the cost-of-living crisis, this threshold decreases to 15%. Furthermore, 55% are less likely to travel abroad in the next 12 months and 32% have delayed booking a trip due to the cost-of-living crisis. This increases to 42% for those ‘extremely affected’ by the cost-of-living crisis. Impact on the environment: Travellers are evermore becoming conscious of their carbon footprint with 40% of respondents most likely to book direct flights. In addition, 78% of people will not be taking business trips as opposed to only 32% prior to covid, highlighting the shift businesses have taken towards non-essential travel. To check out the survey in more detail and to see how people’s flight booking habits have been affected by the COVID-19 pandemic and the cost of living crisis, download the full report here. About Shoopit Shoopit is a search engine and browser extension that acts as an online shopping optimiser for flight bookings. What makes it unique is that it doesn’t just collect prices like an aggregator. Instead, it scours local versions of global websites to get the best possible prices for its users (the price you’re shown for the same seat on the same flight can vary wildly, depending on where you happen to live!) Born out of a commitment to make the internet transparent, democratic and borderless, Shoopit searches local versions of world’s most popular flight-booking websites, to find the best prices offered, allowing shoopit users to make better, informed purchases online, while at the same time making savings - regardless of where they live or what their IP address is. It launches in the UK, with backing from global online access provider, Hola.

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