A REPORT ON

AUTOMATION IN HOSPITALITY INDUSTRY IN INDIA- BOON OR

BANE

BY
ARYA MOHAN
CHANCHREEK SHARMA
MUKUL SAHU

M.Sc. HOSPITALITY ADMINISTRATION

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NATIONAL COUNCIL FOR HOTEL MANAGEMENT- INSTITUTE OF HOSPITALITY

A REPORT ON

AUTOMATION IN HOSPITALITY INDUSTRY IN INDIA -BOON OR

BANE

BY
ARYA MOHAN
CHANCHREEK SHARMA
MUKUL SAHU

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

M.SC. HOSPITALITY ADMINISTRATION PROGRAM -2022-2024
NATIONAL COUNCIL FOR HOTEL MANAGEMENT- INSTITUTE OF HOSPITALITY
A-34, SECTOR 62, NOIDA- 201309

2
 ACKNOWLEDGEMENT

I am profoundly grateful to Dr. Asif Ali Sayed for providing me this opportunity to conduct a
research study on the topic “AUTOMATION IN HOSPITALITY INDUSTRY IN INDIA –
BOON OR BANE.” This project would not have been possible without the mentoring and
guidance that I received from the Dr. Asif in this 3-day learning session.
Also, this project would not have been possible without the contribution of fellow students
and hospitality professionals who participated in the survey for primary data collection and
my sincere gratitude goes to each one of them.

GROUP 2
ARYA MOHAN
CHANCHREEK SHARMA
MUKUL SAHU

3
 TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO. REMARKS

1 ABSTRACT 5

2 INTRODUCTION 6-7

3 HYPOTHESIS & OBJECTIVE 8

4 BACKGROUND 9-14

5 METHODOLOGY FOR RESEARCH 15

6 QUESTIONNAIRE 16-17

7 DATA ANALYSIS 18-22

8 CONCLUSION 23

9 CHALLENGES & RECOMMENDATIONS 23

10 BILBLIOGRAPHY 24

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 CHAPTER -1
ABSTRACT

The quick adoption of automated technology is driving a significant change in the Indian
hotel sector. A summary of a study looking at the complex effects of automation in Indian
hotels can be found in this abstract. Hotels are increasingly resorting to automation to
improve visitor experiences and streamline operations because of the nation's unheard-of
increases in tourism and urbanisation.
This study looks at how much automation is being used in several hotel administration areas,
including as energy management, reservation systems, guest services, and cutting-edge
technology. The goal of the study is to determine how automation affects overall visitor
pleasure, cost-effectiveness, and operational performance using empirical data.
Considering the diverse terrain of the Indian hospitality industry, which is characterised by a
variable number of local and foreign visitors as well as a complex cultural mosaic, this study
aims to offer a comprehensive understanding of the relationship between tradition and
innovation. It looks at how hotels are using automation to control its negatives and maximise
its positives in order to satisfy the changing needs of contemporary travellers.
The poll also considers the viewpoint of hotel visitors, examining their opinions on
automated services in general as well as their ideas on them specifically. The research
attempts to provide insights that help inform stakeholders, policymakers, and industry
practitioners in the continuing conversation about how automation will impact the future of
the Indian hospitality business through a thorough investigation.
This study adds to the increasing corpus of information about automation in Indian hotels as
technology powers the travel and lodging sector. This information will be helpful in the
dynamic and fiercely competitive hotel business for strategic planning and decision-making.

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IMG 1.1 Different automation solutions for a hotel Source: - LiaGeorson

CHAPTER - 2
INTRODUCTION

Emotions have always been the foundation of our relationships with other people and the
natural environment. The service sector is not an exception when it comes to needing to
successfully convey emotions to clients. It has long been believed that smiling when setting
the table or serving meals is a sign of letting go of emotions. Human labour is essential to the
efficient operation of all hotel business divisions, including the food and beverage, front desk,
housekeeping, and culinary departments. However, in the wake of the epidemic, artificial
intelligence has gained popularity in the hotel sector. Electronic devices, automation, and
robots are a few examples of this.
Human interaction is vital to everything that occurs in the hotel sector. Although the
experience and services that machines provide to the hotel industry may get better, it is
unclear how well they will work in terms of reducing mistake. Moreover, staff members
working in hospitality organisations, like hotels, worry that their jobs may be eliminated
because of machine involvement.
The important topic of discussion is whether it is better to continually sanitise or to use robots
and other technology to replace human personnel. Hospitality industry constantly adjusts to
the changing demands of today’s sophisticated travellers, the hospitality sector is at the
forefront of technological innovation. Automation stands out among the many innovations as
a key factor that is changing the hotel industry and how guest services are provided. In the
context of India, this study explores the complex world of automation and how hotels are
using technology to improve visitor experiences and optimise operations. India is a varied
and dynamic country.
With India witnessing a sharp rise in urbanisation and a spike in domestic and international
travel, the hotel sector is going through a difficult time. Automation is a broad category of
technology that covers anything from online reservation platforms to robotics. It has the
potential to transform traditional hotel administration methods and meet the evolving
demands of modern travellers. To effectively traverse this transformative stage, it is critical to
understand the extent of automation use, the challenges faced, and the implications for
industry development and guest satisfaction.
The purpose of this research is to provide an in-depth analysis of the automation that Indian
hotel chains are now undergoing, with a focus on critical issues such guest services, energy
efficiency, reservation systems, and the use of new technologies. Whether or not the
automation in the hospitality industry is a fruitful concept or a disaster. In addition, we hope
to clarify the unique challenges and opportunities that characterise the Indian hospitality
industry, offering insightful viewpoints that might be helpful to both company executives and
legislators.

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This research contributes to the ongoing conversation about how automation may spur more
innovation and long-term success in the hospitality sector as technology continues to have an
impact on travel and lodging. By concentrating on the distinctive setting of India, a country
with a wide variety of cultures and a quickly expanding tourism sector, we hope to offer a
nuanced perspective that demonstrates the intricate connections between tradition and
technology in the hospitality business.

IMG 2.1 Automatised temperature control Source: -Hdlautomation

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 CHAPTER - 3
HYPOTHESIS & OBJECTIVES

3.1 HYPOTHESIS: -
The proposed hypothesis for our research is: -
H0: - Automation is boon for hospitality industry in India.
H1: - Automation is bane for hospitality industry in India.
In this research, we favour the null hypothesis trying to prove the worth of automation fruitful
for the hospitality industry in India.

3.2 OBJECTIVES: -
The objectives of this research are: -
 Understanding the future of automation in hospitality industry in India.
 The economic impact of automation in the hospitality industry.
 Analysing the impact of automation in hospitality industry on guest satisfaction and
employment dynamics.

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 CHAPTER – 4
BACKGROUND

4.1 HOSPITALITY INDUSTRY IN INDIA: -

The travel, restaurant, hotel, and tourist industries are only a few of the many services
offered by the dynamic and diverse Indian hospitality sector. The sector plays a
crucial role in the country’s economy because of its significant GDP contribution and
capacity to create jobs. Among the noteworthy aspects of the Indian hospitality
industry are the following: -
 Travel & Tourism: Due to its historical sites, diverse landscapes, and rich
cultural heritage, India is a popular destination for travellers. The tourism
industry therefore has a significant influence on the hotel industry. Major
cities, historical sites, and scenic locales attract tourists from both domestic
and international travel.
 Hotel Industry: There are many different types of hotels in India, from high-
end resorts and hotels to low-cost lodging. Both individual hotels and large
hotel chains serve a variety of customer sectors, including holidaymakers and
business travellers. Major cities are home to many international hotel brands.
 Restaurants and Food Services: India boasts a thriving culinary scene, which is
reflected in the diversity of the restaurant business. Restaurants serve a variety
of foods to suit a wide range of tastes and preferences, from foreign cuisine to
traditional Indian cuisine. The total gastronomic experience is enhanced with
themed restaurants, upscale dining, and street food.
 Government Initiatives: The Indian government has realised how crucial
hospitality and tourism are to the country’s economic development. Plans like
“Incredible India” are meant to encourage travel, and laws have been put in
place to make it easier for those in the hotel industry to conduct business.
 Cultural & Heritage Tourism: Travellers are drawn to India by its rich
historical and cultural legacy. Heritage tourism makes a significant
contribution to the hotel industry by encompassing visits to monuments,
museums, and cultural events.
 India contributes to the Meetings, Incentives, Conferences, and Exhibitions
(MICE) sector by hosting many conferences, meetings, and events.
Conferences and business gatherings are catered to by large cities with
contemporary amenities.
The hospitality industry in India is a very volatile and continuously growing
industry. It has diverse dynamics in its portfolio and thus has a great need to be

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 looked after and catered to as per the new and ongoing trends to flourish and
target a good future.

IMG 4.1 Historical TAJ Mehal Palace Hotel Source: - Pinterest

4.2 AUTOMATION IN HOSPITALITY INDUSTRY: -

In the hotel industry, automation refers to the use of technology to streamline
operations, improve guest experiences, and increase overall production. Several
hospitality-related businesses, including hotels, restaurants, and travel agencies, have
adopted automation to adapt to changing guest demands and stay competitive.
Significant domains where automation has had an influence include the following
ones: -
 Online Booking & Reservations
 Check-in and Check-out via Mobile
 Systems of Keyless Entry
 Automated Invoicing and Billing
 Communications and Services for Guests
 Systems for Energy Management
 Maintenance and Housekeeping
 Interior Technology
 Analytics of Data and Customisation
 Systems of Contactless Payment
 Workers’ Management

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 The advent of automation in the hotel industry is fuelled by economy, efficiency,
and the goal of providing better customer experiences. Automation has numerous
benefits, but it also has certain downsides, including the need to balance it with
personalised human interactions and the costs of staff training and early adoption.

All things considered; it seems likely that the trend towards automation in the
hotel industry will continue as technology advances.
IMG 4.2 Multiple functions on single device Source: - Hospitality world
ET

4.3 AUTOMATION IN HOSPITALITY INDUSTRY IN INDIA: -

The utilisation of technology by hotels and other businesses to enhance guest experiences
and boost operational productivity has led to a steady development in automation in the
Indian hotel sector. In a survey Indian hotel have more than 300 installations of robots
used hotels, Oberois, ITC, Taj and Marriott being a few of them. “Demand for such
products in the hospitality segment is coming back. The Indian hotel sector has been
impacted by automation in the following primary ways: -
 Online reservations and booking systems: Many Indian hotels have
implemented automated online reservation systems that enable guests to select
their preferred dates and times, make reservations and immediately check the
progress of their bookings.
 Mobile Check-In and Check-Out: Guests may check in and out using mobile
applications on their cell phones, which reduces the amount of time they must
spend in person at the front desk.
 Keyless Entry Systems: The acceptance of keyless entry systems, which
enable visitors to enter their rooms securely and seamlessly using smart cards
or cell phones, is a result of automation.
 Streamlining financial transactions and eliminating human mistakes are
achieved via the use of automation in the management of billing and invoicing
procedures.

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 Communication and Guest Services: Chatbots and automated message systems
are utilised to communicate with guests, offering prompt answers to questions,
room service requests, and other requirements.
 Housekeeping and Maintenance: Automation is utilised in the planning and
monitoring of housekeeping tasks to guarantee efficient room turnover and
maintenance operations.
 In-room Technology: A few hotels have included smart room technology,
which enables guests use voice commands or in-room tablets to change the
lighting and temperature in their rooms.
 Robotics: Indian hotels have occasionally employed robotics to handle
housekeeping, room service delivery, and concierge services.
 Data analytics and personalisation: Automation facilitates the collection and
analysis of visitor data, enabling hotels to customise promotions, experiences,
and services to the individual preferences of each guest.
 Contactless Payment Systems: By using automation to increase convenience
and safety, contactless payment systems do away with the need for cash or
credit card transactions.
 Employee Management and Training: Automation is also utilised to speed up
employee training processes and increase the effectiveness of human resource
management.
Several factors influence the adoption of automation in the Indian hospitality
industry, including the target market, the institution’s size and kind, and financial
considerations. While larger hotel chains may invest in comprehensive automation
systems, smaller hotels may focus on certain areas that align with their objectives.

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IMG 4.3 Self ordering Kiosk at McDonalds Source: -
Blogspot

4.4 ECONOMIC IMPACT OF AUTOMATION IN HOSPITALITY INDUSTRY

IN INDIA: -
There are several conclusions drawn regarding the economic impact of automating the
hotel industry in India based on an analysis of the challenges and possible benefits. It
is important to keep in mind that the level of automation employed, the specific hotel
industry segments, and the macroeconomic climate all may have an impact on the
economic effects. Remember the following to understand the economic impact: -
Possible Economic Gains: -
 Operational Efficiency: By eliminating manual mistakes and simplifying a
variety of procedures, including cleaning and reservation systems, automation
may boost operational efficiency.
 Cost Savings: By maximising resource utilisation, reducing waste, and raising
overall operational efficiency, automated systems can help save costs.
 Increased Productivity: Routine chores may be automated to free up staff time
for higher-value work. This increases productivity and may allow for the
redistribution of human resources to positions that are more focused on the
needs of the guests.
 Better visitor Experiences: Automation may improve visitor experiences by
implementing features like keyless entry, smartphone check-ins, and analytics-
based personalised services. Positive ratings and recurring business are likely
to come from happy customers.
 Competitive Advantage: By embracing automation, hotels and other facilities
may attract tech-savvy visitors and meet changing trends of the hospitality
sector.
 New Revenue Streams: Offering premium services via smart room technology
or developing distinctive experiences that make use of automation
technologies are just two examples of how automation may create new
revenue streams.

Possible Difficulties with the Economy:

 Expenses of the First Investment: Automation system implementation might
necessitate a substantial upfront investment in software, hardware, and
employee training. This can provide a challenge for smaller companies.
 Job displacement: Routine task automation may result in the loss of jobs,
especially for positions requiring a lot of repetition. This may have social and
economic repercussions, particularly in the labour-intensive hotel sector.
 Dependency on Technology: Relying too much on automation systems might
cause problems when there are malfunctions. System malfunctions can cause
operational disruptions that affect revenue and customer service.

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 Skill Requirements: A workforce with diverse skill sets may be necessary for
the deployment of automation. For this to be implemented successfully, it is
imperative that staff members receive the necessary training for these new
positions.
 Digital Divide: Some organisations might not have the infrastructure or
resources to implement cutting-edge automation technology, which might
lead to a greater divide between companies that are technologically
sophisticated and those that are not.
 Privacy Concerns for Guests: The gathering and examination of visitor data is
frequently a part of automation. Automation projects must be successful in
protecting visitor privacy and resolving data security issues.
Overall Economic Impact:
How well companies can weigh the pros and cons will determine the overall
economic impact of automation in India’s hospitality sector. Automation may
boost productivity and competitiveness, but its repercussions on society and the
economy—including job displacement and skill development—need to be
carefully considered. To guarantee that the benefits of automation are widespread
and long-lasting, stakeholders, leaders in the industry, and lawmakers will have a
significant impact on the future direction of automation in the hotel sector.

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 CHAPTER – 5
METHODOLOGY FOR RESEARCH

Data collection: - The primary source of data collection was questionnaire, and the secondary
source of data collection were previous published research, google search, online articles.
Instrument Used: - The instrument used to collect data for research was a
questionnaire/survey prepared by google forms.
Sample Population: - The sample population was fellow students and hospitality
professionals.
Sample Size: - The sample size for the research was
Results: - The analysed data collected was distributed and displayed in form of pie charts and
bar graphs.

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 CHAPTER – 6
QUESTIONNAIRE

1. Email of the respondent.

2. Name of the Establishment/ Company.

3. Position/role within hospitality industry.

4. To what extent has your hotel embraced automation in your

operations?

Very low
Low
Moderate
High
Very High
Other:

5. Which areas of your hospitality business currently use

automation?
Front Office
Housekeeping
Food & Beverage Service
Food Production
All of the above
Other:

6. How satisfied are you with your current level of automation in

your organisation?
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

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 Other:

7. How has automation impacted guest satisfaction levels?

Very Low
Low
Moderate
High
Very high
Other:

8. Have you received any guest feedback regarding automation?

Positive Response
Negative Response
No Response
Other:

9. How likely are you to adopting automation technologies in your

organisation?
Likely
Maybe
Not likely
Other:

10. What criteria do you consider when investing in new

automation tools or systems?
Project Requirements
Budget
Ease of maintenance and Test Case creation
Collaboration Support
Data Driven Testing Capabilities
Reusability
Other:

11. How has automation affected your employees’ roles and

responsibilities?
Job loss or Displacement
New Skill Set Development
Better Work Culture
Job Transformation
All of the Above
Other:

12. Any additional comments, observations, or insights about

automation in hospitality industry.

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 CHAPTER – 7
DATA ANALYSIS

The data analysis was done, and certain findings were administered. The findings of the data
analysis are shown in form of pie charts and bar graphs. The findings are: -

IMG 7.1 The Respondents Source: - Questionnaire Response

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IMG 7.2 Various Establishments Source: - Questionnaire Response

IMG 7.3 Automation in Hotels Source: - Questionnaire Response

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IMG 7.4 Aeras with automation Source: - Questionnaire Response

IMG 7.5 Satisfaction with automation Source: - Questionnaire Response

IMG 7.6 Guest Satisfaction through automation Source: - Questionnaire Response

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IMG 7.7 Guest Feedback on automation Source: - Questionnaire Response

IMG 7.8 Adaptation of automation in organisation Source: - Questionnaire Response

IMG 7.9 Criteria for automation Source: - Questionnaire Response

21
IMG 7.10 Employment dynamics due to automation Source: - Questionnaire Response

22
IMG 7.11 Additional Comments related to Automation Source: - Questionnaire Response

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 CHAPTER – 8
CONCLUSIONS

After studying the data analysis & findings, we can conclude that: -
 Automation is a necessary advancement needed in the hospitality sector in India.
 Automation in the hospitality industry has given a boost in guest satisfaction.
 Hospitality personnel are inclined to adopting automation in their respective
organisations.
 There are a few issues in economic feasibility of implementing automation in the
hospitality sector in India.

CHAPTER – 9
CHALLENGES & SUGGESTIONS

9.1 CHALLENGES: -
 Deficiency in the secondary data available on the topic.
 Limited time available for disposal.
 Mixed mindset of teaching personnel and postgraduate scholars.
 Economic challenges in automation of hospitality industry in India.

9.2 RECOMMENDATIONS
 Adapt new technologies in the hotel industry.
 Face the challenge of implementing and adapting to automation in hospitality industry
in India.

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 CHAPTER - 10
BIBLIOGRAPHY

To aid our research we took help from the under mentioned previous research: -
 A STUDY ON AUTOMATION IN HOSPITALITY INDUSTRY, by Chinnaraj.T
Assistant Professor, VLB Janaki Ammal College of Arts and Science (Autonomous)
(Affiliated to Bharathiar University), Coimbatore, Tamil Nadu, India – December,
2023
 ANALYSING IOT AUTOMATION FACILITIES IN HOTEL ROOMS:
ENHANCING GUEST EXPERIENCE AND OPERATIONAL EFFICIENCY, by
Mainak Ghosh Guru Nanak Institute of Hotel Management (JIS Group), Kolkata,
West Bengal, India – August,2023
 ROBOTS, ARTIFICIAL INTELLIGENCE AND SERVICE AUTOMATION IN
HOTELS, by Georgina Lukanova University of Economics – Varna, “Knyaz Boris
I” 77 Department of Tourism Economics and Organization – November,2019
 TRENDS IN HOSPITALITY AUTOMATION from Hospitality World by Economic
Times – January,2021
 ROLE OF AUTOMATION IN THE HOSPITALITY INDUSTRY by Hospitality
Lexis.media – September,2023

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