This audio is automatically generated, if you have any feedback please let us know.
Hotel Tech-in is our regular feature taking an in-depth look at emerging technologies in the hospitality industry.
Travelers literally come with a lot of baggage.
Denmark-based LuggageHero has been helping travelers store their luggage in established businesses, such as retail stores and cafes, since 2016. The storage solution is available globally in many European cities and in select US markets, including New York, Dallas and Atlanta.
Due to strong demand from both hotel guests and owners, LuggageHero launched HotelsHero in May to provide an AI-powered luggage storage management system for hotels, the final destination for many travelers.
The new system aims to increase guest satisfaction while simplifying hoteliers’ lives, according to LuggageHero CEO and founder Yannick Lawaec, who spoke with Hotel Dive about how HotelsHero works, what prompted the company to adopt the system, and the company’s prospects for expansion in the U.S.
How to use
HotelsHero’s luggage storage management system can be used in two ways: through staff assistance or through guest self-service. Either way, hotels can safely store luggage without using lockers, reducing the amount of space they need on-site, Lawaetz says.
At hotels using HotelsHero’s self-storage model, guests scan a QR code, typically displayed in the lobby, to tag their luggage with a “security seal.” When the seal is then scanned, AI-powered image recognition software instantly identifies the security tag and allows the guest to sign up for storage.
Guests take their bags to a designated on-site storage room. Hotels usually have unused space where the system works, Lawaetsu said, and HotelsHero installs a special door lock there. Registered guests can unlock the storage room door and manually store their bags there.
When it’s time to collect their luggage, guests can rebook and the locked storage room door will open so they can collect their luggage.
For hotels that use staffed storage, the process is similar: when guests arrive at the hotel, they scan the HotelsHero QR code, tag their luggage, and hand it over to a bell staff member who then takes it to a storage room, where the luggage is collected via a digital claim ticket.
HotelsHero’s “security seals,” or bag tags, are designed to show clear signs of tampering, providing guests and hotel staff with visual confirmation of unauthorized access, and hotel guests can choose to purchase insurance through HotelsHero in both staff-assisted and self-service ways.
Guests can also give digital tips to staff through HotelsHero, which opens in a web browser and doesn’t require downloading an app, Lawaez noted.
Hotels don’t pay anything for Hotel Hero’s software, according to a company statement obtained by Hotel Dive. Hotel Hero’s revenue comes from service fees that guests pay for extra services like tips and insurance. Either way, hotels can choose to offer luggage storage for free or charge a fee.
Why is it necessary?
HotelsHero is primarily used by guests who arrive early or leave late and need a place to store their luggage while they explore their destination outside check-in hours, Lawaetsu said.
Lawaetsu noted that demand for luggage storage solutions like Hotel Hero from both hotels and guests has grown in recent years, driving the system’s adoption. “None of the hotels we spoke to had such a system and many were very interested to learn more,” he said.
Lawaetsu said the ease of storing luggage could enhance guests’ experience, while the system’s digital chip feature would benefit hotel staff.
HotelsHero believes hotels will “see a significant increase in tips” based on existing tipping practices at LuggageHero storage locations in 41 countries.
The HotelsHero system was tested at an undisclosed hotel in North America from January to November 2023, and during that time the hotel generated $10,077 in tips, according to a survey conducted by LuggageHero in 2023. The average tip per hotel customer totaled $9.06.
The same survey also found that over 70% of hotel guests are willing to tip more using digital tipping solutions.
Hotel companies including Marriott International and IHG Hotels & Resorts have recently turned to digital tip providers to boost guest and employee satisfaction.
Luggage Hero’s research shows that tipping rates in the U.S. (47%) are higher than in Europe (27%), and U.S. hotels tend to prefer hiring staff to store luggage, the company detailed in its release.
Taking these factors into account, U.S. hotels that use HotelsHero could potentially earn more tips than European hotels that are accustomed to and prefer fully self-service luggage storage, LuggageHero data suggests.
Lawaez said U.S. hotels prefer to leave bags with staff because of “cultural expectations,” but he added that it’s “not impossible” that HotelsHero “will see more and more adoption of self-service solutions in the U.S.” as more budget hotels eliminate tasks that require staff, he said.
Global expansion
Since its launch in May, eight hotels have implemented the HotelsHero system, and several of these properties are “some of the bigger brands,” Lawaetsu said.
Hotels Hero is set to open its first U.S. hotel in New York City in July and it will be “one of the big four brands in the world,” Lawaez said, though he declined to say which brand due to a non-disclosure agreement.
With this deal, HotelsHero “absolutely” plans to expand further across the U.S. and globally, Lawaez said.
HotelsHero’s parent brand, LuggageHero, now has more than 1,270 locations in 236 cities in 41 countries across Europe, North America and other regions. LuggageHero has stored more than 1 million pieces of luggage in its system, Lawaez said.
