2015 saw the rise of a number of smart home companies and start-ups before falling spectacularly into the chasm - one example is Quirky which filed for bankruptcy in September, and sold its smart home business for $15 million.Another example is Australian smart home business Ninja Blocks, which had two successful Kickstarter campaigns including a $700,000 campaign that closed in January this year, before announcing their bankruptcy in May.
So as the smart home market tries to claw itself out of the chasm in 2016, the smart hotel market is already on the other side of the chasm and will see mass market adoption in 2016.
Some examples of Hotel Groups that have already converted or are converting to "smart hotels" are listed below with links to examples of their "smart conversions". The smart conversions can include adding smartlocks, smartphone check-in, smart TV's, smart room temperature controls, smart lighting, smart/digital concierge services, or any combinations of these and more. And when a hotel chain makes a decision to convert to being "smart", often for the sake of their brand they aim to make all their hotel rooms smart. Some examples of hotels that began turning "smart" in 2015 include (this list could go on for another two pages, but we've just selected a handful here);
Hilton Hotels (550,000 rooms are being converted to smartlocks and smartphone check-in)
Starwood Hotels (350,000 rooms are being coverted to smartlocks and smartphone check-in)
Silver Needle/Next Hotels
The problem with the smart home market at the moment, which the smart hotel market does not have, is that there are;
- too many players trying to get into the market causing confusion to consumers about who to trust to buy products from (think of a giant tech company, and they're most likely already have products for the smarthome or developing something). For example residents have grown tired of the poor service from cable companies, so they don't want to trust the cable company to buy smart home devices off them.
- little to no regulations/standards exist controlling smart home devices and securities
- there is not much proof/evidence that conversion to a smarthome brings significant $ value to the homeowner
- there are too many devices and too many technologies that are not talking well enough to each other.
- the home owner has low to no 'consumer buying power' - he/she is an individual customer making a purchase of one, and therefore they are dictated to about what products they should buy for the smarthome. They can't exactly go back to a manufacturer and demand their products be built and designed differently. Put simply if one home owner wants/desires are different to whats offered by companies selling smart home products, then they will not be met.
|With just Hilton Hotels and Starwoods rolling out smart locks and smart phone check-in it equates to 900,000 rooms out of a total market size of 15 million rooms, putting just those two hotels combined at 6% of the total market.|