Service robotics in hospitality

Abstract

Many market research agencies and consulting firms claim the robotics service and consumer market is about to boom. Market reports show there’s a massive, untapped market for robots to be used in commercial spaces such as hotels, restaurants, fast-foods and cruise ships. These spaces could serve as a great stepping stone on the path toward general-purpose home robots by driving scale, volume, and capabilities. However, there is a significant research gap in this field: only few studies are available on the introduction, adoption and diffusion of service robotics technologies in the hospitality industry.
Tactile Robots (TR) is a high-tech startup based in Lecce, Italy, whose go to market strategy is to introduce its autonomous robots for indoor delivery in hotels for performing hotel room service. On one hand, nothing or only few is known regarding what is driving adoption of robotics technologies in hospitality and about which are the factors that are influencing adoption. On the other hand, Tactile Robots lacks adequate knowledge about its potential customers and the condition under which they are willing to be delivered value by TR’s innovative robotic solution.
The aim of this research is to give recommendations about the design of a viable business model for Tactile Robots by investigating the drivers of adoption of service robotics technology in hospitality industry, together with factors that are influencing adoption. Traditional Business Model (BM) design practices and BM ontologies fail in taking into account contextual factors and actors outside the firm specific value chain. In this work, we propose a novel approach to business modeling which, through a first step of empirical research involving different external stakeholders, identifies technology adoption drivers and factors under the architecture of the theoretical Technology Organization and Environment(TOE) framework. Findings are then organized to structure four case studies that represent the approach with potential customers. Multiple case study analysis provides in depth insights needed to give informed recommendations for business model design for Tactile Robots. The set of recommendations touches primarily three out of nine building blocks of the chosen business model ontology, Business Model Canvas, namely: Target customers, Value proposition and revenue model.
Research showed how, in order for service robotics solutions to be successfully introduced to the hospitality market, value propositions should address predominantly the customer facing side of hospitality business. Unlike for industrial settings, robots are not likely to be adopted by players in hospitality for the only purpose of cost reduction and enhanced productivity. They, instead, need to bring significant value to the guest by augmenting the service or providing a superior experience. Furthermore, well renowned international innovative hotel chains seem to be the most suitable target segment for service robotics applications. Finally, due to stringent financial factors, it is advisable to sell robots on a leasing model which allow hoteliers to minimize initial investment and future switching costs.
This study is the first that research business model design for service robotics startup entering the hospitality industry. Further research is required to validate the factors that are influencing adoption of robots in hotels and to find the relative contribution of these factors to adoption decisions.