In episode 13 of our "Tour Tech: Your 5 Weekly Takeaways to Tourism Success" podcast series, part of the EU-funded Tourbit project, we learn how digitally enabled self-service models improve efficiency and guest satisfaction. This article explores the collaborative effort between Hotel Breiddalsvik, a 36-room boutique hotel in Iceland, and Proactive Iceland to transform the guest experience.

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Understanding Hotel Breiddalsvik's Digital Needs

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Hotel Breiddalsvik recognises the need to modernise its operations to remain competitive in the hospitality industry. Friðrik Árnason, Owner of Hotel Breiddalsvik, explains several factors that influence the hotel's decision to pursue digitalisation:

• Labour Cost Management: With limited staff and seasonal fluctuations in guest numbers, the hotel is seeking technologies to automate tasks and optimise staffing levels. Specifically, it aims to reduce the burden of after-hours check-ins for late arrivals.
• Enhanced Guest Experience: The hotel wants to provide guests with more control over their stay and streamline the check-in/check-out process. Self-service options and automated information delivery are seen as ways to improve convenience and guest satisfaction.
• Increased Revenue Opportunities: Digitalisation presents an opportunity to upsell hotel services and local activities more effectively. By providing targeted information via email, the hotel hopes to encourage guests to spend more during their stay and support the local economy.

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Friðrik emphasises that digitalisation is not a threat to staff jobs, but rather an opportunity to optimise their roles. Hotel Breiddalsvik's staff are actively involved in the process, suggesting ideas and collaborating on implementation. For example, staff find repetitive tasks such as mopping floors to be tiring and monotonous, leading to Hotel Breiddalsvik implementing floor-cleaning robots as a digital solution.

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The Rise of Self-Service Models

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The demand for self-service models in hospitality has been growing for several reasons, and the COVID-19 pandemic further accelerated this trend. There are multiple reasons behind the rise of self-service options:

• Guest Empowerment and Efficiency: Tech-savvy guests appreciate the convenience and control offered by self-service options. They can check-in at their own pace, access information and manage their preferences on demand.
• Improved Wait Times and Reduced Frustration: Self-service can help alleviate long check-in lines and reception bottlenecks, especially during peak periods. This leads to a more streamlined guest experience and reduces frustration for those who value efficiency.
• Contactless Preferences: The COVID-19 pandemic heightened the importance of minimising physical contact in public spaces. Self-service options reduce the number of interactions between guests and staff, thus contributing to perceptions of a safer environment.

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Adalheidur Osk Gudmundsdottir, CEO and Co-Founder of Proactive Iceland, highlights that while the implementation of self-service options might seem counter-intuitive at first glance, data suggests that guests using self-service are often the most satisfied. Self-service approaches also free up staff time for more meaningful guest interactions. Staff can now engage in conversation, offer recommendations and take a genuine interest in guests' experiences, leading to more personalised interactions. Digitalisation therefore allows Hotel Breiddalsvik to strike a balance between guest autonomy and quality human interaction.

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Tailored Solutions for Specific Needs

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Hotel Breiddalsvik addresses its digital needs with a series of targeted interventions:

• Digital Locks and Self-Service Check-In: Recognising the strain on staff resources caused by late check-ins, the hotel now implements a self-service check-in system with digital locks. This system frees staff from late-night check-in duties and empowers guests to access their rooms upon arrival using unique access codes.
• Automated Email Communication: Keeping guests informed is crucial for a smooth guest experience. Hotel Breiddalsvik sends a series of automated emails to provide guests with essential information, supported by the GoDo Property Management System. These emails include confirmation details, check-in instructions and information about hotel amenities and the local area. Timely email delivery is particularly important considering that many international guests turn off mobile data while travelling.
• Upselling through Email Marketing: Building on its functional digital foundation, the hotel is strategically introducing upselling opportunities within its automated emails, which are connected to the TourDesk platform. These emails include links for guests to book tours and activities in the area as well as promoting hotel services such as restaurant reservations and spa treatments.

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Overcoming challenges is essential throughout the digitalisation process. Testing different solutions during pilot phases helps identify and address potential issues before widespread implementation. For example, initial confusion among some guests regarding the digital lock system led to a few instances of guests being temporarily locked out of their rooms. In response, the hotel is developing clearer instructional materials emphasising the number of allowed attempts and the procedure to regain access in case of a lockout. The hotel is exploring more technical alternative authentication methods, such as fingerprint recognition.

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Another unforeseen challenge Hotel Breiddalsvik encountered with its digital check-in system was that it made housekeeping less efficient. Previously, staff knew when a room was ready for cleaning based on the key being returned to reception. Now, with digital check-out, housekeeping needs a separate system to track which rooms are ready for cleaning. This highlights the importance of considering all aspects of a digitalisation project and planning for potential downstream challenges.

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Hotel Breiddalsvik also envisions a website form where guests can upload passport photos. However, it discovered technical limitations as not all online forms can accept file attachments. This obstacle highlights the importance of considering technical compatibility during the digitalisation process. Choosing solutions that integrate seamlessly with existing systems can prevent unforeseen challenges and ensure a smoother digital transformation journey.

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The experience of Hotel Breiddalsvik highlights the importance of thorough communication during the selection of a digital service provider. Asking detailed questions about the provider's experience with similar projects, including any complications they encountered, can help identify potential challenges in advance. This proactive approach can ensure a smoother digital transformation journey.

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The Impact of Digitalisation

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By focusing on solutions that addresses its specific needs, Hotel Breiddalsvik is continuously leveraging digitalisation to improve staff efficiency, enhance guest experiences and increase revenue opportunities. Importantly, the digital transformation also yields other significant benefits:

• Improved Data about Guest Behaviour: Self-service interactions and automated email marketing generate valuable data about guest behaviour. By analysing this data, the hotel gains deeper insights into guest preferences, booking habits and email engagement. This data can be used to personalise the guest experience, refine marketing strategies and optimise hotel operations. For instance, analysing click-through rates in email marketing campaigns can inform decisions about what types of upselling offers resonate most with guests.
• High Customer Satisfaction Levels: The streamlined self-service check-in process and improved communication help the hotel maintain high guest satisfaction scores. Positive feedback on review sites mentions the ease and convenience of the self-check-in system as well as appreciating the timely and informative emails.

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Friðrik and Adalheidur emphasise that businesses shouldn't be afraid to start with their digitalisation journey and the importance of a phased approach to innovation. Having a phased approach allows businesses to prioritise and implement digital solutions in a measured way, minimising disruption and ensuring each step builds upon the previous one. Having a clear plan, even if it needs adjustments along the way, provides a guiding vision and direction. This clarity helps businesses prioritise tasks, allocate resources effectively and identify potential obstacles early on. By outlining the desired outcomes at the beginning of each phase, businesses can measure progress, identify areas for improvement and ensure the digitalisation journey aligns with overall strategic goals. As Adalheidur articulates, digitalisation is a process and requires patience. She explains that when "implementing things, you need sometimes to go two steps back" to ensure any new challenges encountered are effectively resolved.

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Key Takeaways

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By demonstrably improving the guest experience, digitalisation has contributed to Hotel Breiddalsvik's positive reputation. Self-service options such as digital check-in empower guests and streamline operations. They cater to guest preferences for control and efficiency while reducing reliance on staff for routine tasks. However, clear communication is essential to ensure a smooth transition, as unforeseen challenges may arise due to integration between new and existing systems.

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While a roadmap is valuable, a rigid approach may hinder progress. A phased implementation allows for experimentation and adaptation. Companies should start their digitalisation journey with foundational solutions that address core needs and gradually introduce more complex functionality.

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Key Performance Indicators (KPIs) should be established at the outset of any digital transformation project to measure the impact of digitalisation efforts. These can include guest satisfaction through surveys and reviews, employee sentiment and engagement metrics such as email click-through rates. Monitoring KPIs allows businesses to demonstrate the return on investment and make data-driven decisions throughout the digitalisation process.

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Here are the five key takeaways:

1. Contactless solutions such as digital locks and self-check-in offer a streamlined, autonomous guest experience while freeing up staff time for personalisation and help to obtain valuable data about guest behaviour.
2. Hotels can enhance guest experiences by implementing an end-to-end communication strategy that keeps guests informed and engaged throughout their stay, from booking to departure. This includes owning guest data and using automated communication to personalise the experience.
3. Upselling through automated systems at key points during a guest's stay can increase hotel revenue and guest convenience. This offers a valuable opportunity to generate ancillary revenue.
4. Successful businesses implement technology iteratively, focusing on ongoing adjustments to optimise guest and staff experiences.
5. Hospitality businesses must remain agile and adaptable when implementing new technologies. While troubleshooting can be frustrating, the long-term benefits of efficiency and guest satisfaction make the process worthwhile.

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_{The podcast is part of the Tourbit project, co-funded by the EU's COSME programme, with the support of the Catalan Tourist Board, Barcelona Chamber of Commerce, Paris&Co, Arctur Doo, Hub Brussels, Iceland Tourism Cluster, Lapland University of Applied Sciences and NEST - Tourism Innovation Center.}