Within reason, I think hotels expect a certain level of loss. They are probably not going to want to make a big scene in the lobby as a guest is departing and demand that they return the towel they are taking out.

On the other hand, theft by employees is something they are probably much more concerned about. Before this technology, you have to wonder how many hotel housekeepers had fully furnished their own homes with towels and bed linens at the expense of their employer.

How niche is this product?