APPLICATION OF

AUGMENTED REALITY AND

VIRTUAL REALITY IN THE
HOSPITALITY INDUSTRY

Submitted by-
Ayushi Jain
Roll No.-2019008
PGP I, Section A
 What is Augmented Reality?

• Augmented has been derived from the word augment which means
enhancing or adding something.
• In AR ,graphics ,sounds and touch feedback are added into our physical
world to create an upgraded user experience.
• For example, the famous Pokemon Go where users catch virtual Pokemon
that are hiding anywhere in the real world, through their phone screens , the
snap chat filters which overlap the real image and enhance it.
 What is Virtual Reality?

• When computer technology is used to create a simulated environment, it is

called Virtual Reality.
• VR places the user inside an experience ,where user are inside a 3-D worlds
and interact with them.By stimulating senses such as sight , hearing , or
even smell the computer is transformed into a gateway to this digitally
created world.
• Example – Qantasv airlines take its fliers to virtual 3-D TOUR OF THE Great
Barrier Reef by using Samsung virtual reality goggles.
 Difference between AR & VR
Augmented Reality
AR is a field wherein, the actual environment is
enhanced by incorporating digital elements with
the help of an app on a smart phone or a
computer
AR provides a supplement to the real world
AR = 25% virtual + 75 % real
Examples of AR: Pokémon Go, Social apps such as
snapchat, Instagram etc.
Virtual Reality
VR is a field wherein, user can experience and
interact with new virtual worlds.
VR replaces the user’s environment with an
altogether a new environment
VR = 75% virtual + 25 % real
Examples of VR: VR technology is being used by
Tourism industry, construction etc
 Current use of AR & VR

• In education sector, AR can be used by capturing an image in a museum or a book and play a
related video for effective learning.
• Hotels are using AR technology mainly for advertising and information purpose. AR has helped
hotels to provide information on a new 3D level of all-round room tours over the less preferred
pamphlet method
• A company can use VR for stimulated interviews to choose the appropriate candidate
• In auto mobile industry VR can be used for stimulating car safety test before actual production.
• In the the field of pain management in healthcare. For example, patients can wear VR headsets
during tooth extraction or root canal to distract their brain and confuse the pain pathway.
Impact of application of AR & VR in the Tourism
Industry

• Efficient planning and appropriate management.

• Virtual attractions at minimal cost.
• Real time and reliable navigation.
• Appropriate translations capabilities.
 Expansion Into New Markets

• According to a recent estimate by Goldman Sachs, AR and VR are expected

to grow into a $95 billion market by 2025
• AR and VR will significantly reduce the cost involved and time taken to
create new things especially in heavy manufacturing industries such as
automobiles, aeronautical etc.
• Even smaller firms can use AR and VR at lower cost.
 Viability Of Expansion

• The Augmented Reality and Virtual Reality is such a hot expanding subject with
multiple effects on numerous industries, that its possibility of reaching new
markets seems virtually inevitable.
• Since, it is difficult to consider all the contributing factors that are directly or
indirectly affecting the feasibility of this expansion, following cases has been
considered in this report to evaluate the feasibility:
a) Financial
b) Infrastructural
 Financial Viability

• Expansion of business is always a matter of finance and accounting. Convincing a low-

level market to adopt a new tool, either a policy or a piece of technology, is a challenge in
itself. For a small-scale business it is quite a substantial turmoil in the budget.
• But several studies show that it is a risk worth taking to leap in the way of business.
• Marriot and other famous pioneers of hospitality industry have already made the switch
and are enjoying the perks that come with it.
• It is understandable that low level players do not have such financial liberty to play a
game of higher cost.
• But mid-level players have sufficient or borderline resources to make the jump. Also,
investors are fond and ready to fund such a refreshing technology given there is a certain
plan towards the development of business displayed by the lender
 Infrastructural Viability

• By infrastructure here it means all equipment, hardware, human workforce

necessary to operate such a system.
• Since, AR/VR is a subject where finding a proficient developer or operator is
a big task, the cost of payment may be quite high for the ones available. But
science and technology communities of the world have already
acknowledged this vacancy and are encouraging studies and research in this
field.
• So, to sum up, it can be said that the infrastructure need not be drastically
reinvented for the AR/VR to be brought to a new low or mid-level capital
market. Further a slow and steady start now and gradually building towards
a more sustained system is what is required.
 Instances Of Actual Use
• DIGITAL JALEBI:
• Digital Jalebi is a company started by Syed Fawaz Ahmed and Nikhil Joshi,
student of NID designing. The company is basically engaged in interactive
installations and software for spaces like museums, exhibitions and
planetariums
• . AUGMENTED REALITY MUSEUM:
The augmented reality technology is being very effectively utilized in
museums to simulate a real world of ancient era to help visitors get clear
understanding of the origins, history, and details of
various exhibits and artifacts.
 Recommendations

Following recommendations are being offered to produce a more effective and expansive use
of Augmented and Virtual Reality in Hospitality Industry:
• Open businesses to new low capital markets.
• Minor players in the market can club together or use aggregators to counter the steep
costs.
• Adopting further research to ascertain privacy of the guests or consumer in general, since
the app will be running on internet and security breach could be possible
• The use of the application accessing AR/VR programs must come with appropriate and
sufficient instructions to reduce misuse as far as possible as the devices and technology is
expensive at this point
 Conclusion

Augmented reality and virtual reality have emerged as pivotal tools that allow
industry setup to change the way customers comprehend the environment,
they are in. Augmented reality and Virtual reality have unfolded as important
concepts within the hospitality industry in recent years.
To sum up it can be said that AR and VR can be considered important in all
sectors as it helps in minimizing life risk, provides a forecast of future events,
makes travelling easier, helps in arriving at right decisions, reduces ambiguity
and innovation is so much more to discover.