An Account of the Service Industry’s Ongoing Transformation

Hospitality is a line of profession that has existed forever. But ever since the digital era engulfed the world, it has been going through some radical changes. That is exactly what we will be talking about in this article. Read on to learn more about how mobile apps are affecting every aspect of the service industry.

Technological Factors Impacting the Industry

Stay In at Cheaper Rates

Apartments at residential complexes can now be booked by travelers every time they need a place to crash at for a couple of days. Airbnb is a digital platform where anyone can rent out rooms to whoever they want for any duration. It is one of the most influential business start-ups today as it offers accommodation at the lowest rates by ensuring a high supply of living spaces. In spite of maintaining superior quality of service, hotels are losing out because they cannot compete with the pricing. Apps may not get you the kind of luxury that a brand can but, ultimately, it is a game of demand and supply.

Games on Your Phone

Gaming on the phone has grown exponentially since its inception. For example, 71% of adults are playing mobile games in South Africa, from strategy, racing to even casino games like roulette and blackjack. In the Rainbow nation, there are sites that compare all the best mobile casinos. They let you play everything you can find in the gaming parlor of a luxurious hotel and you can download them on your phone for free. They also give the information you need before deciding to sign up for a mobile casino. In fact, highly defined graphics and lucrative bonus offers make the experience even better. Not to mention the amazing customer care which is often available 24 hours a day, 7 days a week, so you won’t have to worry about not being able to reach someone like you would in a real casino.

Food at Your Doorstep

Mouth-watering delicacies are being ordered online so that people can enjoy lavish meals within the comfort of their homes. As a result, restaurants are catering to the demand. Kitchens are full of cooks working round the clock to fulfill the orders that they received online but the dining halls remain devoid of customers. To balance the workload, waiters are being told to help around the kitchen instead of waiting on tables because there is no one at the table to wait on.

Drinks to the House

No need to visit the bar anymore because you can now get the store to deliver the liquor at your doorstep. That is why bars are going out of business and everybody is starting to focus more on the ambiance rather than the booze. People can substitute the experience of visiting a bar by ordering booze at home but discos are a place where you go dancing and meet new people. So, discos are trying their best to retain their share in the market. Live performances, karaoke, open mic – they are pulling every trick in the book to guarantee an experience that is unachievable at home.

How the Industry Is Responding?

Cloud Kitchens

As we said, diners are mostly empty but the kitchens are always full because everyone now orders food online instead of dining out. To cope with this phenomenon, many restaurants are converting themselves into cloud kitchens, i.e., they are closing down the diner and only keeping the kitchen open for delivering orders. Hence, they are not only able to capitalize on the popularity of food delivery apps but also reduce their maintenance cost. It is definitely a revolutionary way of turning adversities into opportunities.

Loyalty Programs

Of course, the main reason why apps like Airbnb can challenge big hotel chains is lower pricing. So, they are coming up with some of the most rewarding hotel loyalty programs to reward customers with discounts for being frequent visitors. Customers are provided with VIP cards where they can add points based on the number of days they stay for. There are caps set on the points for deciding the discount rates. Moreover, malls also use loyalty programs to compete against e-commerce websites by giving discounts based on how much people buy.

Final Thoughts

The digitization of every aspect of our lives is making things faster as well as simpler. Indeed, the technological advancement of mankind comes with a cost. Nevertheless, adaptation has been the key to human evolution since the dawn of time. Every disruption pushes humans forward in the path of progress. The hospitality sector is going through a disruptive phase which will ultimately lead to extraordinary results.