Hotel Tech-in is our regular feature that takes a closer look at emerging technology in the hospitality industry.
Travelers come with a lot of baggage — literally.
Since 2016, Denmark-based LuggageHero has been helping travelers store their bags at existing businesses like retail outlets and cafes. The storage solution is available across the globe, in many European cities and select U.S. markets like New York City, Dallas and Atlanta.
After seeing significant demand from hotel guests and owners alike, LuggageHero launched HotelsHero in May, providing an AI-powered luggage storage management system at many travelers' final destination: their hotel.
The new system aims to boost guest satisfaction, while also simplifying operations for hoteliers, according to LuggageHero CEO and Founder Jannik Lawaetz. He shared with Hotel Dive how HotelsHero works, what bolstered the system’s launch and what’s in store for the company’s U.S. expansion.
How it works
There are two ways the HotelsHero luggage storage management system can be utilized: with staff assistance or self-service by guests. Both methods enable hotels to securely store luggage without lockers, cutting down on the amount of space needed on property, Lawaetz said.
At hotels using the HotelsHero self-storage method, guests can scan a QR code displayed, usually, in the lobby and tag their luggage with a “security seal.” They then scan the seal, and AI-powered image recognition software instantly identifies the security tag and helps guests sign up for storage.
The guest will take their luggage to a designated on-site storage room — hotels typically have an unused space where the system can work, Lawaetz said — where HotelsHero has installed a specialty door lock. Guests who have signed up can unlock the door to the storage room and manually store their luggage there.
When it’s time to retrieve their bags, guests’ booking again enables the locked storage room door to open, and guests can take their bags.
For hotels utilizing the staff-assisted storage method, the process is similar. When guests arrive at the hotel, they scan the HotelsHero QR code, tag their luggage and give it to the bell staff. Staff then take it to the storage room. Retrieving luggage is done via a digital claims ticket.
The HotelsHero “security seal,” or bag tag, is designed to show clear signs of tampering, so guests and hotel staff will have a visual confirmation of unauthorized access. And for both the staff-assisted and self-service methods, hotel guests can purchase insurance coverage through HotelsHero, if desired.
Guests can also digitally tip staff through HotelsHero, which can be opened in a web browser and does not require an app download, Lawaetz noted.
Hotels pay nothing for the HotelsHero software, according to a company release obtained by Hotel Dive. HotelsHero revenue comes from service fees paid by guests for any add-ons such as tipping or insurance. Under both methods, hotels can choose whether to offer luggage storage for free or add a handling fee.
Why it's needed
HotelsHero is primarily used by guests who arrive early to or leave late from their hotel and need a place to store luggage while they explore their destination outside of their check-in hours, Lawaetz said.
Demand by both hotels and guests for a luggage storage solution like HotelsHero has grown in recent years, Lawaetz noted, bolstering the system's launch. “None of the hotels that we spoke to had a system like this, and a lot of them were very interested in knowing more,” he said.
The ease of luggage storage can improve the guest experience, Lawaetz said, while the system’s digital tipping feature benefits hotel staff.
Based on existing tipping practices at LuggageHero’s storage locations in 41 countries, HotelsHero believes hotels will see a “significant boost in tips.”
The HotelsHero system was tested out at an undisclosed North American hotel from January through November 2023 and, during that time, the hotel generated $10,077 in tips, according to a 2023 study conducted by LuggageHero. The average tip per customer at the hotel totaled $9.06.
The same study found that more than 70% of hotel guests are willing to tip more with digital tipping solutions.
Hotel companies like Marriott International and IHG Hotels & Resorts have recently tapped digital tipping providers in a bid to boost both guest and employee satisfaction.
The tipping rate in the U.S. (47%) is also higher than that in Europe (27%), the LuggageHero study found. And U.S. hotels usually prefer to use staff to store luggage, a company release detailed.
With these factors in mind, it's possible U.S. hotels that implement HotelsHero could generate more tips than their European counterparts, which are more accustomed to and prefer fully self-service luggage storage, LuggageHero data shows.
U.S. hotels prefer staff to store luggage because of “cultural expectations,” Lawaetz said. However, as more budget-friendly hotels eliminate tasks requiring staff, it's not “out of the question” that HotelsHero will “see more and more self-service solutions installed in the U.S.,” he added.
Global expansion
Since launching in May, eight hotels have implemented the HotelsHero system. Some of these properties are “part of bigger brands,” Lawaetz said.
HotelsHero plans to open its first U.S. hotel in New York City in July, with “one of the four biggest brands in the world,” Lawaetz said, though under a nondisclosure agreement, he could not share which one.
On the back of that agreement, HotelsHero “definitely” plans to further expand across the U.S., as well as globally, Lawaetz said.
Currently, HotelsHero parent brand LuggageHero has more than 1,270 locations in 236 cities across 41 countries in Europe, North America and beyond. LuggageHero has stored more than 1 million bags with its system, Lawaetz shared.
