AMAZON GO AND ITS IMPACT

Amazon Go retail experience

Thanks to digital innovations, Amazon just launched a new type of purchasing
Indeed, thanks to a geo-localisation system, a powerful software linked to each product inside a store is able to know your position and your product selection that you will probably buy.

This new technology is much more easier, faster and very personalized. The main idea is to propose a new way to shop for customers where they don't have to wait at the cashier. Actually, customers are just entering into the store as they are check-in into a Hotel, then they are taking what they want as products and finally they are just walking out the store. At the end, the customer is directly charged on its Amazon account.
Everything is connected from the purchase to the payment methods and don't need any human interactions. In fact, the customer just needs to scan his mobile phone on an electronic tablet at the beginning and when he walk out the store he has to do the same to obtain the list of its purchases including the bill linked to the credit card charged on its account

How might it affect the hospitality industry? Give 3 examples

Generally speaking, the hospitality industry has already to face the appearance of digital. Currently, a lot of innovations have direct impacts on customer's way of life.
As a majority of people is using smartphones nowadays in order to purchase a product or a services, each industry need to adapt and answer to their expectations.

First of all, customers are now able to use the online check-in and it is seen as a very positive impact on the hospitality industry. Indeed, it is a gain of time to not follow the initial check-in process.
When a guest is arriving into an hotel, he just has to check on his account if the room is ready and its number and he can directly go inside.
Moreover, sometimes there is also a keyless entry system which enable the guest to open the door with his mobile phone such as Sherlock for the company Onefinestay.

Then, at the end of his stay, there is also the fast check-out system where the guest can leave the hotel without passing by the front office. Finally, he will receive his bill by email very quickly after.
This is pretty much the same process as Amazon Go when a customers is entering a store, choose products and leave without any contact.

The second impact can be regarding the communication. It is true that more and more people are looking at their phones to solve problems or to ask for advices and help.

Due to all these new technologies, there is no more human contact or interaction with others.
For some hotels, it could be possible to remove their employees and replace them by digital screens as it is the same for Amazon Go where customers don't need to pass by cashier.

However, I am not sure that this strategy could be apply for each type of hotels.
It could be relevant for small hotels where guests are going because of the price but for luxury places it is not conceivable to remove the human contact which is one of the most important sign of quality.

Finally, the last impact is linked to the geo-localisation system. In fact, this option is already existing in some hotels. For instance, when a guest is taking something out the minibar, there is a sort of detector which is linked to the Front Office which warned that the guest is taking alcohol or water. Thanks to this system, the reception is directly inform about the purchase and don't have to check at the end of the guest's stay.
For AmazonGo, it is the same system because the customer is geo-localised inside the store and when he is selecting a product, it is direcly register on his account.

To conclude, the different strategies applied by AmazonGo have already affect the Hospitality Industry. Nevertheless, hotels have to take in consideration human interactions which is also a positive thing for a part of people. Human contact, high service delivery have nowadays proved their success and are contributing to some hospitality values.
Digital seems to be very present and continues to grow which can be quite scary.