Robots have arrived › wp-content › uploads › ... · 2018-05-19 · stanislavivanov.com 5 Source: stanislavivanov.com 6 Source:

Ultimate transformation: How will automation technologies disrupt the tourism industry?

Stanislav IvanovEmail: [email protected]: http://stanislavivanov.com

International Conference on Tourism and Transition17-18 May 2018, Munich

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Dr. Stanislav Ivanov

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• Professor and Vice Rector (Research), Varna University of Management, Bulgaria (http://www.vum.bg)

• Editor-in-chief of the European Journal of Tourism Research (http://ejtr.vumk.eu)

• CEO of Zangador Ltd. (http://www.zangador.eu)

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Robots have arrived …

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Source: http://vignette4.wikia.nocookie.net/starwars/images/c/c8/Counterparts.jpg https://en.wikipedia.org/wiki/BB-8

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Source: http://vignette2.wikia.nocookie.net/avp/images/4/49/Terminator.jpg

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Source: http://www.kurzweilai.net/images/robot-thinking-one.png

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Application of robots, AI and automation technologies:• Manufacturing

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http://www.businesskorea.co.kr/sites/default/files/field/image/Industrial-Robots-Hyundai-Heavy.jpg stanislavivanov.com

Application of robots, AI and automation technologies:• Manufacturing

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Application of robots, AI and automation technologies:• Warehousing, supply and logistics

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http://spectrum.ieee.org/automaton/robotics/industrial-robots/german-warehouse-robots-tackle-picking-tasks stanislavivanov.com

Application of robots, AI and automation technologies:• Agriculture

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http://sparc-robotics.eu/wp-content/uploads/2014/05/polni-robot-amazone-bonirob-44e031.jpg

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Application of robots, AI and automation technologies:• Transportation / Self-driving cars

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http://www.google.com/selfdrivingcar/images/home-where.jpg stanislavivanov.com

Application of robots, AI and automation technologies:• Medicine

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http://vignette3.wikia.nocookie.net/robotics/images/2/21/Medical_robot.jpg/revision/latest?cb=20140602041221

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Application of robots, AI and automation technologies:• Warfare

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http://spectrum.ieee.org/automaton/robotics/military-robots/why-should-we-ban-autonomous-weapons-to-survive stanislavivanov.com

Application of robots, AI and automation technologies:• Legal services

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http://www.kurzweilai.net/will-ai-replace-judges-and-lawyers

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Application of robots, AI and automation technologies:• Households

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https://www.irobotweb.com/-/media/Images/Product-Pages/Roomba-Learn/Feature-Callouts/Advanced-Navigation.jpg stanislavivanov.com

Application of robots, AI and automation technologies:• Swimming pools

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https://allpools.net/wp-content/uploads/2017/08/2-Various-Types-of-Pool-Cleaners.jpg

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Application of robots, AI and automation technologies:• Guards

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http://cdn.hiconsumption.com/wp-content/uploads/2014/11/K5-Security-Guard-Robot-3.jpg stanislavivanov.com

Application of robots, AI and automation technologies:• Information provision in service industries

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https://www.ald.softbankrobotics.com/en/download/media/?id=1063&v=ld

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Application of robots, AI and automation technologies:• Search engines

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Application of robots, AI and automation technologies:• Social media chatbots

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Application of robots, AI and automation technologies:• Finance

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http://static3.businessinsider.com/image/581cd80d46e27a2e008b4cf3-1920/fintech-ecosystem-diagram.png

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Application of robots, AI and automation technologies:• E-commerce

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Application of robots, AI and automation technologies:• Sex services

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Credit: Willyam Bradberry | Shutterstock

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What about tourism and hospitality?

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Application of robots, AI and automation technologies:• Hotels

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https://www.regalhotel.com/uploads/ricwc/promotion/room/720x475/Mobile_key.jpg stanislavivanov.com


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http://www.mirror.co.uk/news/uk-news/futuristic-hotel-thats-like-robotic-6449905

https://www.hartrobotics.com/wp-content/uploads/2016/01/relay-specifications-1.jpg

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http://www.h-n-h.jp/assets/images/facility_img_01.jpgstanislavivanov.com

Application of robots, AI and automation technologies:• Restaurant

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Photo credit: Stanislav Ivanov

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Application of robots, AI and automation technologies:• Restaurants

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Photo credit: Katerina Berezina stanislavivanov.com

Application of robots, AI and automation technologies:• Restaurants

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Application of robots, AI and automation technologies:• Meetings and events

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https://www.bizbash.com/mobile-telepresence-new-systems-allow-users-participate-meetings-events-afar/gallery/123291 stanislavivanov.com

Application of robots, AI and automation technologies:• Meetings and events

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https://www.bizbash.com/bartender-makr-shakr-bartender-social-sharing-alcohol-consumption-monitor/gallery/123237

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Application of robots, AI and automation technologies:• Theme and amusement parks

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Photo credit: Stanislav Ivanov stanislavivanov.com

Application of robots, AI and automation technologies:• Airports and other transport stations

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Photo credit: Nicolaus Korab Photo credit: Stanislav Ivanov

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Application of robots, AI and automation technologies:• Travel agencies and Tourist information centres

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Photo credit: Stanislav Ivanov stanislavivanov.com

Application of robots, AI and automation technologies:• Museums and art galleries

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https://www.nytimes.com/2017/03/14/arts/design/museums-experiment-with-robots-as-guides.html?_r=0

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Application of robots, AI and automation technologies:• Digital assistants

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Application of robots, AI and automation technologies:• Chatbots

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https://media.licdn.com/media/AAEAAQAAAAAAAAi_AAAAJDgwY2M1ZTMzLTM2ZTUtNDNhOC1hMDZkLWI5YWZmZDQ4MWE5Ng.png

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Adoption of robots and service automation in tourism• Car rental

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http://www.zipcar.com/how stanislavivanov.com

In robots we trust!

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Why robots?

• Robots could work 24/7• Robots could implement various tasks and expand

their scope with software and hardware upgrades• Robots could provide constant or improving quality

of their work• Robots could fulfil their work correctly and in a

timely manner• Robots could do routine work repeatedly• Robots do not complain, get ill, go on strikes,

spread rumors, discriminate, quit their job without notice, show negative emotions, shirk from work

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Why not robots?

• Robots lack creativity• Robots will not be any time soon completely

independent of human supervision• Robots lack personal approach• Robots can orientate in structured situations (at

least for the moment)• Robots may (will) be perceived as threat by human

employees (e.g. Neo-Luddism movement)

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How will RAISA technologies disrupt the tourism industry?

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Impacts of RAISA technologies

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Customers

Tourist company’s value chain• Marketing• Operations• Facilities design and management• Human resource management• Financial management• Supply chain management

Other tourist companiesService quality

Image

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OPERATIONS

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Impacts of RAISA technologiesOperations• Service is delivered by a robot, computer

programme, a kiosk, a vending machine or another non-human agent

• Increased service capacity of tourism companies –more customers can be served simultaneously and for a particular period of time > increased productivity

• Easier scheduling and planning of operations –robots work 24/7, they do not get ill, complain, shirk from work, etc.

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Impacts of RAISA technologiesOperations• Reengineering of service delivery processes – new

processes, activities, procedures, controls, new service operations manuals

• Increased role of the customer in the service delivery > prosumer (=“producer” + “consumer”)> co-creation of value

• Improved environmental sustainability of operations – reduced use of resources, reduced waste, elimination of unnecessary activities, etc.

• Decreased flexibility of the service delivery system

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HOSPITALITY FACILITIES DESIGN

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Types of robots to use the facilities of service companies

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Type of robotStationary Mobile

(wheeled, legged, flying, underwater)

Ownership Company Front desk robotsRobot chef/Cooking robotsRobot baristasRobot bartendersShoe shine machinesATMsConcierge service robotsSecurity robotsMassage robots

Security robotsRobot guidesRobot waitersCompanion/sex robotsPet robotsRobotic luggage cartsRoom service deliver robotsRobotic vacuum cleanersRobotic lawnmowersRobotic pool cleanersDelivery dronesEntertainment robotsGeneral service robots

Customer (Customers are unlikely to bring stationary robots to hospitality industries, in most situations, apart from extended stay facilities)

Companion/sex robotsPet robotsConcierge service robotsGeneral service robots stanislavivanov.com

Robot-friendly/robot-inclusive environment (1)• Tan, Mohan & Watanabe (2016) develop a

theoretical framework for robot-inclusive environments which includes two spectra: level of autonomy of a mobile robot and robot-inclusiveness of the environment in which the robot operates.

• The authors define the robot-inclusiveness as how much the design of the environment takes into account the robot therein, i.e. whether it helps the robot fulfil its tasks.

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Robot-friendly/robot-inclusive environment (2)• The design of the premises where the robot needs to

operate in, their cleanliness, tidiness, signage, lightning, noise, physical barriers (e.g. doors, doorsteps, stairs), presence of people and dynamic of the environment, presence/lack of predetermined routes for robot movement, presence/lack of (artificial) landmarks and sensors to help robot navigation, etc., all determine the degree to which the environment assists the robot fulfil its tasks – e.g. to deliver the food to the hotel room, to cut the grass in the garden, or to accompany the passengers to the airport gate.

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When the environment is more robot-inclusive, then the same task can be

performed by a less intelligent robot and vice versa: an environment that is not robot-friendly would require a more

intelligent robot to navigate through it.

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Key considerations in robot-friendly facilities design for service companies• External physical accessibility of the premises• Internal physical accessibility of the premises• Digital map of facilities for robot navigation• Landing pads for drones• Shape and surface materials used for the pool• Safety and security issues• Recognition of staff, guests, delivery service, and others• Power-related issues• Rental facilities for robots• Repair facilities for robots• Liability insurance for robots

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Robot-friendliness of hospitality facilities will be a new competitive advantage for travel, tourism and

hospitality companies!

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HUMAN RESOURCE MANAGEMENT

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Impacts of RAISA technologiesHuman resource management• RAISA would save employees’ time from

performing tedious and repetitive tasks, which they could use for other more creative and revenue generating activities.

• Enhancing, rather than replacing the employees• RAISA would solve some the problems with hiring

and firing of employees, especially the seasonal ones.

• Sometimes RAISA would require reorganisation of companies – new departments, job positions, communication links between them

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Impacts of RAISA technologiesHuman resource management• Changes in the number of employees in the various

departments > zero-employee properties (Central hostel in Varna, Bulgaria)

• Resistance of employees – perceive RAISA as threat for their job positions

• Changes in the required skills of employees –communication, social, technical skills > required changes in the curricula of the tourism and hospitality programmes in HEIs

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MARKETING

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Impacts of RAISA technologiesProduct and service quality• Changed customer expectations about the tourism

/ hospitality product > redefinition of the scope of the product of a tourist company – e.g. should a hotel company be able to provide robot repair service? Or a sex robot?

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Impacts of RAISA technologiesProduct and service quality• RAISA could enhance the perceived service quality

through new attractive and interactive ways of service delivery, communicating and engaging with customers:▫ Robots, chatbots, service kiosks could communicate

in different languages and do this 24/7▫ RAISA can create value for the customers by making

the service deliver process funny and entertaining

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Impacts of RAISA technologiesProduct and service quality• Division of tourism / hospitality companies into

two main large groups – ‘high-tech’ vs ‘high-touch’ companies with various shades of gray in between them

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Impacts of RAISA technologiesPricing• Automated pricing• Personalised pricing – perfect price discrimination• Lower prices for mass ‘high-tech’ products• Higher prices for exclusive ‘high-touch’ products

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Impacts of RAISA technologiesDistribution• Predictive analytics • Automated allocation of available capacity by

distribution channel > intelligent channel managers

• Distribution via digital voice assistants (Amazon Echo)

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Impacts of RAISA technologiesCommunications, image, positioning• The company that adopts RAISA would boast

positive word-of-mouth due to its image of an innovative high-tech company.

• The company may also suffer negative publicity - it may be perceived as a company that puts profits before humans

• Automated communications with customers –chatbots, voice assistants, robots

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FINANCIAL MANAGEMENT

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Impacts of RAISA technologiesFinancial management• Labour costs savings – RAISA work 24/7 and may

serve numerous customers simultaneously.• Increased sales – customers’ curiosity in seeing the

robots, 24/7 availability

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Impacts of RAISA technologiesFinancial managementFinancial costs, associated with RAISA (1)• Acquisition costs – e.g. for purchasing a robot or

kiosk, for purchasing a chatbot/payment for its development.

• Installation costs – might be virtually zero for a chatbot.

• Maintenance costs – electricity consumption of the robot/kiosk, spare parts, periodic maintenance, repair works, etc. They will be zero for a chatbot.

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Impacts of RAISA technologiesFinancial managementFinancial costs, associated with RAISA (2)• Software update costs.• Costs for adapting the premises to facilitate robot’s

mobility – e.g. removing any barriers for robot’s movement within a hotel.

• Costs for hiring specialists to operate and maintain the robots/kiosks/chatbots.

• Costs for staff training.

• Robot-as-a-service (RaaS) as a way to control costs.

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SUPPLY CHAIN MANAGEMENT

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Impacts of RAISA technologiesSupply chain management• Integration of the information systems of suppliers

and travel, tourism and hospitality companies• Automated orders

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What factors determine the impact of RAISA technologies on travel, tourism

and hospitality companies?

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Factors determining the impacts of RAISA• Company characteristics / culture• Market positioning of the company• Relative labour and technology costs, relative labour and

RAISA productivity• Degree of technological complexity / Technological

characteristics of RAISA solutions• Safety characteristics of RAISA • Customers’ readiness and willingness to be served by a

robot, willingness to pay for robot-delivered services• Employee’s readiness and willingness to work with a robot• Cultural characteristics of both customers and service

providers

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Cultural characteristics of society

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Robots have arrived and are here to stay.

Prepare …

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References and further reading• Agah, A., Cabibihan, J. J., Howard, A., Salichs, M. A., & He, H. (Eds.). (2016). Social Robotics. Proceedings of the 8th International Conference,

ICSR 2016, Kansas City, MO, USA, November 1-3, 2016. (Vol. 9979). Springer.• Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. WW Norton

& Company.• Collier, D. A. (1983). The Service Sector Revolution: The Automation of Services. Long Range Planning, 16(6), 10-20.• Collins, G. R., Cobanoglu, C., Bilgihan, A., & Berezina, K. (2017). Hospitality information technology: Learning how to use it. (8th ed.).

Dubuque, IA: Kendall/Hunt Publishing Co. Chapter 12: Automation and Robotics in the Hospitality Industry (pp. 413-449).• Cook, G. (2011). Mobile robots: navigation, control and remote sensing. Hoboken: John Wiley & Sons.• Crews, J. (2016). Robonomics: Prepare today for the jobless economy of tomorrow. CreateSpace Independent Publishing Platform.• Ivanov, S. (2017). Robonomics – principles, benefits, challenges, solutions. Yearbook of Varna University of Management, 10, 283-293.• Ivanov, S., & Webster, C. (2018). Adoption of robots, artificial intelligence and service automation by travel, tourism and hospitality companies

– a cost-benefit analysis. In Marinov, V., Vodenska, M., Assenova, M. & Dogramadjieva E. (Eds) Traditions and Innovations in Contemporary Tourism, Cambridge: Cambridge Scholars Publishing, pp. 190-203. SSRN URL: http://ssrn.com/abstract=3007577

• Ivanov, S., & Webster, C. (2017a). The robot as a consumer: a research agenda. Proceedings of the “Marketing: experience and perspectives” Conference, 29-30 June 2017, University of Economics-Varna, Bulgaria, pp. 71-79. SSRN URL: http://ssrn.com/abstract=2960824

• Ivanov, S., & Webster, C. (2017b). Designing robot-friendly hospitality facilities. Proceedings of the Scientific Conference “Tourism. Innovations. Strategies”, 13-14 October 2017, Bourgas, Bulgaria, pp. 74-81. SSRN URL: http://ssrn.com/abstract=3053206

• Ivanov, S., Webster, C. & Berezina, K. (2017). Adoption of robots and service automation by tourism and hospitality companies. Revista Turismo & Desenvolvimento, 27/28, 1501-1517.. SSRN URL: http://ssrn.com/abstract=2964308.

• Kuo, C.-M., Chen, L.-C., & Tseng, C.-Y. (2017). Investigating an innovative service with hospitality robots. International Journal of Contemporary Hospitality Management, 29(5), 1305-1321.

• LaGrandeur, K. and Hughes, J. J. (Eds.) (2017). Surviving the Machine Age. Intelligent Technology and the Transformation of Human Work. London: Palgrave Macmillan.

• Lee, J. (2017). Sex robots: The future of desire. London: Palgrave Macmillan.• Mizuta, K. (2014). Human and Robots Interaction: When Will Robots Come of Age?. World Future Review, 6(3), 251-260.• Mohan, R. E., Tan, N., Tjoelsen, K., & Sosa, R. (2015). Designing the robot inclusive space challenge. Digital Communications and

Networks, 1(4), 267-274.

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References and further reading• Murphy, J., Hofacker, C., & Gretzel, U. (2017). Dawning of the Age of Robots in Hospitality and Tourism: Challenges for Teaching and Research.

European Journal of Tourism Research, 15, 104-111.• Murphy, J., Gretzel, U., & Hofacker, C. (2017). Service Robots in Hospitality and Tourism: Investigating Anthropomorphism. Paper presented

at the 15th APacCHRIE Conference, 31 May-2 June 2017, Bali, Indonesia. URL: http://heli.edu.au/wp-content/uploads/2017/06/APacCHRIE2017_Service-Robots_paper-200.pdf

• Pagliarini, L., & Lund, H. H. (2017). The future of robotics technology. Journal of Robotics Networking and Artificial Life, 3(4), 270-273.• Pan, Y., Okada, H., Uchiyama, T., & Suzuki, K. (2015). On the Reaction to Robot’s Speech in a Hotel Public Space. International Journal of Social

Robotics, 7(5), 911-920.• Royakkers, L., & van Est, R. (2016). Just ordinary robots: automation from love to war. Boca Raton: CRC Press.• Tan, N., Mohan, R. E., & Watanabe, A. (2016). Toward a framework for robot-inclusive environments. Automation in Construction, 69, 68-78.• Talwar, R. (Ed.) (2015). The future of business. Fast Future Publishing.• Tung, V. W. S., & Law, R. (2017). The potential for tourism and hospitality experience research in human–robot interactions. International

Journal of Contemporary Hospitality Management, 29(10), 2498-2513.• Tussyadiah, I. P., Zach, F. K. & Wang, J. (2017). Attitudes Toward Autonomous on Demand Mobility System: The Case of Self-Driving Taxi. In

Schegg, R. & Strangl, B. (Eds.) Information and Communication Technologies in Tourism 2017. Proceedings of the International Conference in Rome, Italy, January 24–26, 2017, pp. 755-766.

• Tussyadiah I.P., & Park S. (2018). Consumer Evaluation of Hotel Service Robots. In: Stangl B., Pesonen J. (eds) Information and Communication Technologies in Tourism 2018. Springer, Cham, pp. 308-320.

• van Doorn, J., Mende, M., Noble, S. M., Hulland, J., Ostrom, A. L., Grewal, D., & Petersen, J. A. (2017). Domo Arigato Mr. Roboto Emergence of Automated Social Presence in Organizational Frontlines and Customers’ Service Experiences. Journal of Service Research, 20(1), 43-58.

• Yeoman, I., & Mars, M. (2012). Robots, men and sex tourism. Futures, 44(4), 365-371.

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This presentation is developed within the frame of Project BG05M2OP001-1.002-0008-C01 “Centre for Competence and Intelligent Solutions for the Creative and Recreational Industries (INCREA)”. The project has been funded within Operational Programme “Science and Education for Smart Growth (2014-2020)” and with support from the European Commission. The presentation reflects the views only of the authors and the Commission cannot be held responsible for any use which may be made of the information contained therein.

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Robots have arrived › wp-content › uploads › ... · 2018-05-19 · stanislavivanov.com 5 Source: stanislavivanov.com 6 Source: