Self-service hotels: a niche concept or the future of hospitality?

In an industry where personal service and human connection have always been at the heart of the guest experience, the rise of self-service hotels seems, at first glance, counterintuitive. Yet, as technology continues to disrupt traditional models across all sectors, the hospitality world is not immune. Self-service hotels — properties where guests can bypass the traditional check-in desk, access their rooms via keyless entry, and communicate with staff through mobile apps — are no longer a novelty. The question we face now is whether this growing trend represents a niche concept catering to a select audience or if it heralds the future of hospitality for all.

Table of contents
The catalyst: how self-service became a hospitality trend
Real-world examples: hotels pioneering the shift
Consumer preferences: the push toward automation
Challenges and criticisms: does automation go too far?
The business case: efficiency and profit margins
Sustainability: a greener future through self-service
The future: self-service as the norm or an option?

The transformation of guest expectations over the past few years has pushed hotels to rethink the way they operate. Once considered an option for the tech-savvy traveller, self-service technologies have swiftly become a necessity, particularly in the aftermath of the COVID-19 pandemic. Health concerns, social distancing measures, and a general shift towards contactless interactions have driven hotels to adopt automated processes at an unprecedented rate.

Recent surveys support this shift. In 2023, 80% of guests indicated a preference for hotels offering fully automated front desk options, allowing them to manage their check-in process without interacting with staff. This is not just a feature for convenience but one that directly taps into a larger societal change — a desire for efficiency, speed, and control over one’s environment.

Take the example of Zoku Amsterdam, a mid-sized hotel that transitioned to fully automated check-ins and guest services shortly after the pandemic. This hotel reported a 40% reduction in staff costs within a year while maintaining, and in some cases, improving guest satisfaction scores. This is a trend echoed across various properties globally, highlighting that automation isn’t just about cutting costs — it’s about providing a modern guest experience that reflects contemporary expectations. Here, companies like Hoop have played a pivotal role by offering solutions that enable real-time management of guest requests and streamlining housekeeping processes, allowing hotels to adapt to this evolving demand.

Some properties are leading the charge in demonstrating that self-service and hospitality need not be mutually exclusive. In Tokyo, MUJI Hotel Ginza has eliminated the front desk entirely. Guests receive a digital key upon booking and are guided by their smartphones through every step of the process, from check-in to room service. Through a mobile app, they can order extra towels, request a late checkout, or even adjust room temperatures — all without any human interaction. This ultra-modern approach might sound cold and impersonal, but guest reviews tell a different story. Visitors rave about the seamless experience, the sense of control over their stay, and the efficiency with which their needs are met.

On the other hand, The Ned in London has taken a hybrid approach, incorporating self-service elements into their traditionally high-touch service model. Guests can choose to check in through an app or engage with concierge staff at their discretion. This approach acknowledges that while many guests crave autonomy, others still value personal interactions, especially in a luxury setting. Such hotels often use task managers and service reporting tools — solutions offered by providers like Hoop — to ensure that guest preferences are met in real-time, whether through automation or staff support.

To understand the momentum behind self-service hotels, it’s essential to examine how consumer preferences have evolved. The modern traveller is tech-savvy, time-conscious, and often expects the convenience of digital services in their everyday lives, from ordering groceries online to checking in for flights. The hospitality industry is merely catching up to these shifting norms. According to data from 2023, over 67% of guests expressed a desire for greater control over their hotel environment through technology, including the ability to control room temperature, lighting, and entertainment systems via their smartphones.

While this trend is particularly pronounced among younger travellers, it is not limited to them. Even older generations, who were initially hesitant, are increasingly appreciating the convenience of self-service technologies. This growing comfort with automation across all age groups suggests that self-service hotels may indeed represent the future of the industry rather than a niche experiment.

However, as with any shift towards automation, there are challenges and criticisms. Hospitality, at its core, has always been about human connection — about making guests feel welcome and valued. Can an entirely self-service hotel provide that same sense of warmth and care? Not everyone is convinced.

Some hoteliers argue that while technology can streamline processes, it cannot replace the personal touch. For instance, when a family visiting YOTEL New York encountered an issue with their room key, they found themselves stranded in the lobby, unable to get immediate assistance. This situation underscores a critical challenge: the lack of on-the-spot problem-solving that only human staff can provide.

Additionally, there is the question of inclusivity. While younger, more tech-savvy guests may embrace the ease of automation, older travellers or those less comfortable with technology could find the experience frustrating. In this sense, the complete automation of hotels risks alienating certain demographics. A recent survey found that 25% of guests over the age of 65 preferred traditional check-in services, highlighting the need for a balance between innovation and accessibility.

From a business perspective, the case for self-service hotels is compelling. By automating routine tasks such as check-ins, room service requests, and even housekeeping updates, hotels can significantly reduce staffing costs and improve operational efficiency. In a world where labour shortages are becoming a critical issue, particularly in housekeeping departments, self-service technology can help hotels bridge the gap without sacrificing service quality.

For example, Casa Gracia Barcelona, a boutique hotel that implemented a self-service model, reported a 30% increase in profit margins within two years, driven largely by reduced labour costs and increased guest throughput. Here, Hoop’s housekeeping modules and mobile checklists can be instrumental in helping hotels optimize their cleaning processes, track guest requests, and ensure high service standards without the need for additional staff. These tools not only reduce errors but also allow hotels to maintain a level of quality control that would be impossible with human staff alone.

Another often-overlooked benefit of self-service hotels is their potential contribution to sustainability efforts. Automated systems, such as keyless entry and IoT-powered room controls, allow hotels to manage energy usage more efficiently, reducing their environmental impact. For instance, smart thermostats can adjust the room temperature based on occupancy, ensuring that energy is not wasted when guests are not in their rooms.

Many self-service hotels are also moving towards digital check-ins and paperless systems, further minimizing their carbon footprint. In a world where eco-conscious travellers are increasingly choosing hotels based on their sustainability practices, the ability to offer a low-impact, high-tech experience is a clear competitive advantage. This aligns with a growing trend in the hospitality industry to incorporate sustainability into every aspect of operations, from housekeeping to guest services, using technology to drive these initiatives forward.

So, where does this leave us? Will the hotel of the future be fully automated, with guests interacting only with their devices rather than human staff? Or will self-service remain an option for those who prefer efficiency, while traditional, high-touch service models continue to cater to those who seek personal interaction?

The likely answer lies somewhere in between. While self-service hotels are certainly on the rise, especially in urban centres and tech-forward markets, there will always be a demand for the personal touch that only human staff can provide — particularly in luxury or boutique settings. What we are likely to see is a hybrid model, where guests can choose their level of interaction, with hotels offering a seamless blend of automation and human service.

Ultimately, the question of whether self-service hotels represent a niche concept or the future of hospitality is a false dichotomy. The future of the industry will likely incorporate both approaches, with self-service technology becoming an essential part of the guest experience without completely replacing traditional models of hospitality. In this evolving landscape, tools like Hoop will continue to play a vital role, helping hotels strike the right balance between innovation and service, ensuring that guests — whether tech enthusiasts or traditionalists — feel both empowered and cared for.

In the end, it’s not about choosing between technology and human service, but about finding the sweet spot where the two can coexist, delivering a guest experience that is efficient, personalized, and, most importantly, unforgettable.