CHAPTER I

INTRODUCTION

1.1 Background
The leisure and hospitality industry is one of the driving forces of the
global economy. The widespread adoption of new technologies in this
industry over recent years has fundamentally reshaped the way in which
services are provided and received.
Domestic and international tourism has seen several years of steady
growth. The revenue generated from accommodation, food and beverage, and
other services provided to this large flux of travelers, has propelled the leisure
and hospitality industry to become a key driver of the global economy. For
sustained growth of this industry, experts in the field argue for major
improvements in the type and quality of hospitality services to adapt to the
changing consumption and travel behaviors of the evolving customer base.
Specifically, these improvements are targeted towards attracting the new
generation of technophile individuals traveling on a tight budget.
Implementation of these improvements compounds to a complete makeover
of the service packages and the underlying technological framework currently
used by hospitality service providers (HSP). The goal of these improvements
should be: personalization of experiences and digitalization of services.
Personalization of experiences is necessary to market services to
individuals traveling on a limited budget. Personalization creates
individualized guest experiences by incorporating flexibility and
customizability to the offered service packages.
Crafting personalized value propositions for each guest requires a massive
effort on both the guests’ and the service providers’ parts. This process can be

1
 simplifiedsignificantly by using an effective technological platform to manage
the interaction between guests and service providers.
Digitalization of services is imperative to appeal to technophile guests. The
goal of digitalization of services is to transition to a digital business model by
pushing hospitality services to guests’ touch-point. A digital service platform
affords guests the ability to browse, plan and pick activities at their own
convenience thus facilitating seamless integration of technology into their
travel experience. Booking and reservation services, location-based services
and personalized communication, and social media integration are a few
examples of digital services that entice technophile guests.
The new technological upgrade of the hospitality industry should create a
mutually beneficial platform by facilitating partnership between guests and
hotel. The platform should ensure that guests are treated to an outstanding
travel experience while also improving the operational and managerial
efficiency for HSP. Furthermore, the new technological framework must be
future proof; providing an easy upgrade schedule for addition of
new/improved services.

1.2 Problem Formulation

1. What is the definition of industry digital 4.0?
2. What are industry digital 4.0 technologies?
3. What are the implementation of industry digital 4.0 in hospitality
industry?
4. What are the technologies that create by digital 4.0 in hospitality
industry?

1.3 Purpose
1. To know the definition of industy digital 4.0.

2
2. To know the technologies by industry digital 4.0.
3. To know the implementation of industry digital 4.0 in hospitality
industry.
4. To know the technologies that create by digital 4.0 in hospitality
industry.

3
 CHAPTER II
BASIC THEORY

2.1 Industry 4.0

The rise of new digital industrial technology, known as Industry 4.0, is a
transformation that makes it possible to gather and analyze data across
machines, enabling faster, more flexible, and more efficient processes to
produce higher-quality goods at reduced costs. The concept of factories in
which machines are augmented with wireless connectivity and sensors,
connected to a system that can visualise the entire production line and make
decisions on its own.
This manufacturing revolution will increase productivity, shift economics,
foster industrial growth, and modify the profile of the workforce—ultimately
changing the competitiveness of companies and regions.
The concept includes:
 Smart manufacturing
 Smart factory
 Lights out (manufacturing) also known as dark factories
 Industrial internet of things also called internet of things for
manufacturing

Industry 4.0 fosters what has been called a "smart factory". Within
modular structured smart factories, cyber-physical systems monitor physical
processes, create a virtual copy of the physical world and make decentralized
decisions. Over the Internet of Things, cyber-physical systems communicate
and cooperate with each other and with humans in real-time both internally
and across organizational services offered and used by participants of
the value chain.

4
 Industry 4.0 got its name from the initiative of 2011, led by businessmen,
politicians and scientists who identified it as a means of improving
competitiveness of the German manufacturing industry through enhanced
integration of "cyber-physical systems", or CPS, into factory processes.

Compared to Industry 3.0, which meant automation of individual machines

and processes, Industry 4.0 includes through digitization and integration of the
value creation chain data: offer of digital products and services, operation of
co-specialized physical and virtual assets, transformation and integration of all
business operations, partnership, as well as customer service optimization.
In view of this, Industry 4.0, in a broad sense, can be defined as a new
understanding of the organization of production and management of the entire
value creation chain throughout the entire product life cycle on an automation
development and data exchange platform,

2.2 Technology of Industry Digital 4.0

There are technology of of Industry Digital 4.0, such as:
 3D Printing
 Artificial Intelligence
 Big Data
 Biotechnology / Genetics and Agricultural Innovation
 Block chain / Bitcoin
 Desalination and Improved Waste Management
 E-Commerce
 Fintech
 Internet of Things (IoT)
 Nanotechnology
 Renewable Energy
 Robotics

5
  Shared Economies
 Smart Cities
 Virtual / Augmented Reality
Industrial production requirements change day by day. It's getting harder to
meet customer expectations. There is an increasing demand for products that
meet these expectations. This also means more competition for companies and
necessity for more economical manufacturing.
There are hundreds of concepts and terms that relate to IoT and Industry
4.0, but here are 12 foundational words and phrases to know before you
decide whether you want to invest in Industry 4.0 solutions for your business:
 Enterprise Resource Planning (ERP): Business process management
tools that can be used to manage information across an organization.
 IoT: IoT stands for Internet of Things, a concept that refers to
connections between physical objects like sensors or machines and the
Internet.
 IIoT: IIoT stands for the Industrial Internet of Things, a concept that
refers to the connections between people, data, and machines as they
relate to manufacturing.
 Big data: Big data refers to large sets of structured or unstructured data
that can be compiled, stored, organized, and analyzed to reveal patterns,
trends, associations, and opportunities.
 Artificial intelligence (AI): Artificial intelligence is a concept that
refers to a computer’s ability to perform tasks and make decisions that
would historically require some level of human intelligence.
 M2M: This stands for machine-to-machine, and refers to the
communication that happens between two separate machines through
wireless or wired networks.

6
  Digitization: Digitization refers to the process of collecting and
converting different types of information into a digital format.
 Smart factory: A smart factory is one that invests in and leverages
Industry 4.0 technology, solutions, and approaches.
 Machine learning: Machine learning refers to the ability that
computers have to learn and improve on their own through artificial
intelligence—without being explicitly told or programmed to do so.
 Cloud computing: Cloud computing refers to the practice of using
interconnected remote servers hosted on the Internet to store, manage,
and process information.
 Real-time data processing: Real-time data processing refers to the
abilities of computer systems and machines to continuously and
automatically process data and provide real-time or near-time outputs
and insights.
 Ecosystem: An ecosystem, in terms of manufacturing, refers to the
potential connectedness of your entire operation—inventory and
planning, financials, customer relationships, supply chain management,
and manufacturing execution.
 Cyber-physical systems (CPS): Cyber-physical systems, also
sometimes known as cyber manufacturing, refers to an Industry 4.0-
enabled manufacturing environment that offers real-time data collection,
analysis, and transparency across every aspect of a manufacturing
operation.

2.3 Implementation Industry 4.0 in Hospotality Industry

In order to adapt to the new conditions, investments in systems
engineering, manufacturing IT and business systems are needed more than

7
 ever. In this process companies have no choice but to create new means of
production that will make their lives easier. With Industry 4.0, some of the
innovations that can make a difference in life are (Lom, et al. 2016:1; Dang, et
al. 2018: 855; Sanin, et al. 2018:3):
 Hazard control: Ensure safety and security when transporting
hazardous materials
 Smart container: To improve the quality of the packaging used in food
transportation
 Predictive maintenance: Recognizing the machine through the sensor
to prevent possible damage and improve productivity
 Lift maintenance: Provide economical and easy repair with remote
vehicles.
 Updating devices: Update devices with priced devices, especially
when those devices are strategically away.
 Smart cities: Using communication technologies and networks to
manage traffic flows, water flows, air quality and security in cities
The literature studies integrated with the place of industry 4.0 have
started to attract attention to the service sector.
Smart work and digitalization are also in the service businesses. Every
customer is different and it is the duty of businesses to offer customized
service (Shamim, et al. 2017:2). Industry 4.0 and technological
achievements will help in this regard.

2.4 Technology Industry Digital 4.0 in Hospotality Industry

In addition to self-service kiosks and mobile applications, there are many
examples of them in the hotel kitchen, restaurant, meetings, congress, car
rental offices, airports, travel agencies, museums etc. (Ivanov, Webster,

8
Berezina, 2017:1-19). This is the clearest example of leaving human function
in technology in hospitality enterprises. With the development of robot
technology, guests' suitcases can be carried by robot pageboys, and again,
orders given by mobile devices can be prepared and presented by robot
waiters. And guests do not have to tip for all that. Cheung, et. Al in their
study of 2017) stated that the use of robot and avatar robot for disabled people
will facilitate daily life and facilitate travel in tourism (Cheung, et. al, 2017:
229). Nieto et al. stated that social robots would facilitate communication
between tourism enterprises, tourists and intermediaries, and expressed that
they would solve foreign language problem (Nieto, et. al., 2014: 21-22).
The artificial intelligence main system has been developed for the
establishment of a system infrastructure that accommodates the features
desired by the operator. Other intelligent systems that are required to carry out
hotel activities match this main system. Hotel Information Management
Systems; from the reception to the camera systems, from wireless access
points to room TV systems, from energy management systems to
workstations, as much work as every guest can associate with mobile phones
has an artificial intelligence main system. Equipment that the hotel has and
that is shared with guests; “In-Wall Touch Screens”, “Desktop Touch
Screens”, “Management Units” and “Wireless Switches” and access to mobile
device applications is provided.
Artificial Intelligence Main System and SubSystems;
 Searching and analyzing customer's social accounts, sharing of
appropriate campaigns and events with customers
 Gathering the location and information on the landmarks and Wireless
Access Points to share location-appropriate activities and campaigns
 Access to social activity areas according to the services received
through the face recognition system

9
  Retention of order and payment system information Conditioning
digital TV broadcasts - Creation of demand orders according to
customer needs
 Improvement of energy efficiency in unused areas according to
customer density
 Preparation of pre-orders according to the requirements of the
procurement process by keeping the stocks of the hotels
 Campaign for instant old customers by analyzing according to hotel
density and future density.
1 Customer Relationship Management (CRM) Technology:
Over 95% of independents have no meaningful CRM application as part of
their hotel tech stack. A CRM technology platform typically provides guest
profile data management with ongoing cleansing and de-duping, guest pre-
stay communications, in-stay communications, post-stay communications,
guest satisfaction surveys, marketing automation, ongoing marketing, loyalty,
and guest recognition programs. If your property’s repeat guests are 10% and
above, you need a CRM solution to help you double or triple that number. A
cloud-based CRM is the best way to go today.
2 Website Technology:
The property or hotel brand website has become the gravitational center of
all hotelier’s efforts to engage, acquire and retain the customer. Any
marketing efforts of the hotel today lead the potential customers to the hotel
website. Today’s website technology includes cloud-based Content
Management System (CMS), comprehensive merchandising suites,
reservation abandonment tools, personalization pricing and content, technical
SEO, cloud hosting, and robust analytics suite.

10
3 Guest Services Digital Technology
Until recently, hotels offered better technology and amenities compared to
many guests’ own homes. This is no longer the case. Quite often, today’s
travel consumer enjoys better technology and amenities at home: high-speed
internet, voice assistants like Alexa, streaming media like Hulu or Netflix,
smart TVs, and IoT-enabled refrigerators and A/Cs.
From a technology perspective, the challenge to hoteliers is to create a
hotel and room environment that at least matches but preferably exceeds their
guests’ home environment. In other words, hotel and room technology,
amenities, and features should be the same or better than what guests already
enjoy at home. These include:
 Smart Room Technology:
o High Speed Internet (HSIA): true HSIA of 200 – 500 Mbps
o Entertainment: including big screen 4K, Ultra HD or OLED smart
TVs, seamless multimedia hubs to enable the “synching” of the
guest-own streaming media accounts (Hulu, Amazon Fire TV,
AppleTV, Google Play) with the room TV.
o Voice personal assistants: these natural language processing
devices, typically based on Alexa or Google Home, allow the guest
to access room service, facilitate guest requests, and manage
utilities and amenities such as adjusting room temperature or lights.
o Smart Barista and Beverage Center: hubs that “know and
remember” the guest’s preferences and taste.
o RFID keyless mobile device-enabled locks and security.
o Smart Utilities Management: through voice assistants, IoT controls,
thermal occupancy sensors or hotel app (ex. Cirq+).

11
 o Frictionless Messaging Communications: with front desk,
housekeeping, engineering, concierge and room service (ex.
ReviewPro, Zingle, Whistle).
o Issue Resolution Technology: guest incident tracking, logging,
dispatching, and follow up. Virtually connect guests to
housekeeping and engineering or work order automation (ex.
Runtriz, Guestware)
The future of this technology is the Smart Guestroom which will be
completely personalized to guest preferences and loyalty member
profile. Hilton Hotels via their Connected Room and Marriott via their
IoT Guestroom prototypes are already working on synching loyalty
member profiles and preferences with the room experience: room
temperature, lighting, bathroom accessories, streaming media
preferences, beverages, bedding, and more. Recently
Hilton CEO Christopher Nassetta stated: “Imagine a world where the
room knows you, and you know your room.”

 Self-Service Guest Technology:

For DIY-obsessed consumers, self-service kiosks, devices, and
mobile applications have already entered the marketplace and are
enjoying wide adoption, both by hoteliers and guests. The most
common devices and applications are:
 Hotel Check-in/Check-out Kiosks: these lobby-based devices
typically provide guest Identification, room upgrades and
special offers, early check-ins, room selection/assignment,
online registration card and signature, acceptance of the hotel
policies, credit card payments and keycards issuance.

12
 Mobile Apps: all major hotel chains, and many midsize/smaller
hotel brands, provide their loyalty members with mobile
check-in from anywhere, room selection/assignment, ability to
customize stay, ability to receive alerts (traffic, weather, when
the room is ready), get key from Mobile Check-in Desk or
mobile key, credit card payments.
 Interactive Information Kiosks: these guest information kiosks
serve as a 24/7 virtual concierge and information source for
both property and destination information, which increases
lobby functionality, shortens concierge wait times and
enhances the guest experience.
 Virtual Concierge: these mobile or website apps allow 24/7
guest interaction via messaging with the Virtual Concierge,
which can make suggestions, order services, and track the
status of requests. This technology enhances the guest
experience and generates additional revenue from auxiliary
services and upsells.
 Chat Bots: these AI-powered applications have already
received wide acceptance and adoption in the marketplace,
especially for customer service and call center reservations. All
OTAs and major hotel brands have deployed some form of
chatbot or AI-powered customer service application. Some
OTAs already handle as much as 85% of their online customer
service via an AI-powered chatbot, which has led to huge cost-
savings and improved customer satisfaction.
 Self-Ordering Kiosks: these F&B kiosks typically provide full
menu ordering with real-time order information sent to the

13
kitchen, inventory management, credit card payments, and
printed or emailed receipts.

14
 CHAPTER III
CONCLUDING

3.1 Conclusion
 Industry 4.0, is a transformation that makes it possible to gather and
analyze data across machines, enabling faster, more flexible, and more
efficient processes to produce higher-quality goods at reduced costs.
 The concept of factories in which machines are augmented with
wireless connectivity and sensors, connected to a system that can
visualise the entire production line and make decisions on its own.
 Industry 4.0 can be defined as a new understanding of the organization
of production and management of the entire value creation chain
throughout the entire product life cycle on an automation development
and data exchange platform,
 In order to adapt to the new conditions, investments in systems
engineering, manufacturing IT and business systems are needed more
than ever. In this process companies have no choice but to create new
means of production that will make their lives easier.
 Nieto et al. stated that social robots would facilitate communication
between tourism enterprises, tourists and intermediaries, and
expressed that they would solve foreign language problem
 Hotel Check-in/Check-out Kiosks, Mobile Apps, Interactive
Information Kiosks, Virtual Concierge, Chat Bots and Self-Ordering
Kiosks is the example of implementation of digital industry 4.0 in
hospitality industry.

15
3.2 Suggestion
In this era where the technology develop rapidly and digitalization in
almost all sector in hospitality.The technology it self ease the customers to
reach the service in every outlet of the hotel .
In adapt to a new condition that influence by the technology, it is important
for the staff or employee to know how to operate the technology or the
system, since in hospitality industry is known by helping and take care the
guest also assist them if the guest ask for some help.
So, developed technology also increase the awareness of the employee
about the use of it.

16
 BIBLIOGRAPHY

K. Prasanna, M. Arslan and N. Shabani (2018). “Technology in Hospitality Industry:

Prospects and Challenges”. Kansas State University, Manhattan.
S. Saqib, C. Shuang, Y. Hongnian and L. Yun (2017). “Examining the Feasibilities of
Industry 4.0 for the Hospitality Sector with the Lens of Management Practice”.
Article. September 30 – October 12.
Sari, Emre Bilgin (2018). “Reflection of Industry 4.0 to Management of Service
Enterprises: Smart Hotel”. International Journal of Contemporary Tourism
Research Vol. 2.
Verevka, Tatiana V (2019). “Development of Industry 4.0 in the Hotel and Restaurant
Business”. Peter the Great St. Petersburg Polytechnic University, Saint-
Petersbur.

17