Home Travel & Hospitality 6 Applications of AI Technology in the Hospitality Industry

6 Applications of AI Technology in the Hospitality Industry

Published By: Emma Clark

Published On: May 20, 2021

Published In: Travel & Hospitality

6 Applications of AI Technology in the Hospitality Industry

Sectors that remain hardshell to implement technological innovations are more likely to regress in their course of development. The XXI century has seen incredible advances and breakthroughs in the area of hospitality digital solutions. Artificial Intelligence (AI) is one such powerful technology that drives constant growth and revenue.

Often misconstrued as the replacement of human labor, the concept of AI is much larger and pervasive. With its ability to streamline processes and provide valuable insights, it’s driving the new wave of responsive, guest-centric hospitality. Robotic servers and AI-powered software systems are a reality for many leading brands today. 

Let’s have a look at the most effective AI implementations within hotels to provide you with ideas on how to make better use of tons of data your business yields.

AI robot concierge

AI robot concierge

An increasing number of hotel businesses have realized that customer service with appropriately harnessed client insight is a clue to improve brand value. In just a few years, some ideas have become a reality, and we started to see the intelligent robot concierges driven by AI to serve customers in hotels.

Take an example of Hilton’s concierge robot that is revolutionizing the guest experience. Powered by IBM’s Watson AI platform, Connie is as personable as a robot can get. Many others, such as front-desk robots at Japanese Henn na Hotel followed the trail. They can answer guest questions, check guests in or out, and interact with visitors due to speech recognition capabilities. These small mechanical creatures learn and adapt with each interaction, improving their responses and getting smarter. 

Furthermore, they can be easily connected to other systems such as voice-activated services and bots, delivering even more automation to businesses.

Chatbots & virtual assistants

The AI development in the form of chatbots has shown impressive results in hospitality. Bots or virtual assistants are referred to computer programs trained to perform a specific task at the user’s request. Think of them as the digital equivalent of front-facing customer service.  

Digital assistants have proved to be exceptionally compelling in the matter of online chats and direct messaging. They provide instant answers to customer requests around the clock without holidays. Guesthouses and hotels are increasingly adopting messaging platforms and integrated conversational platforms as a brilliant way to reach potential customers and build better relationships with them. 

Apart from fueling user interaction, AI-enabled bots can handle diverse tasks, including resolving customer complaints, ordering drinks and meals, giving suggestions on destinations, managing reservations, and more. 

You can embed digital assistants on your website and any other online channels, including messengers. Some industry players opted to develop an application and implemented a chatbot customized to their particular needs by partnering with technology experts. Consider chatbots if you want to build consistent guest experiences and clear front desk staff’s time to ensure the best possible service for your guests.

Frictionless booking processes

mobile booking platform

Site bookings are one of the friction points for the hospitality sector. Many people use aggregator sites to search and book. Even if they want to make a direct booking from the hotel website, isolating preferred dates and check-in details can be time-consuming and complex. The opportunities to communicate with hotel staff are limited, and no one wants to call & wait for a response in an era of text messaging. 

AI-based functionality introduced into your website can reduce this friction, maximize the sales potential, and provide a booking experience tailored to your customers’ choices. AI algorithms cross-check the preferences of travelers and then finely tune the results based on the user info. The introduction of virtual travel assistants for search and booking allows hotel owners to increase their reach without any effort.

Making reviews actionable

Most people share their photos and opinions about hotel services on social networks and review platforms like TripAdvisor, Booking.com, Expedia, etc. What people think and say about your service matters. But instead of looking through the customer feedback on dozens of sites manually, let a digital tool do it for you.  

Machine Learning (a subset of AI) helps you analyze the large pool of information across a broad range of online sources and provide you valuable insights on customer sentiments. The ML algorithms and techniques allow receiving analysis of all brand-related reviews in real-time, determining positive and negative phrases. This data will help you adjust hotel offers & services to meet your customers’ needs.

Prediction analysis & dynamic pricing

How to know the best time for running promotional offerings? The software solution fueled by AI and ML will let you monitor the increases in demand related to seasonal changes and various market circumstances. 

Predictive analytics tools took into account hundreds of factors to display rates that maximize earning potential. These may involve data on weather, market prices, user’s booking patterns, popular events that will take place nearby your hotel, and other aspects. The intelligent software would automatically adjust the prices to reflect the fluctuations in demand. With ML at the backend of your systems, you have got the magical recipe to track local events, predict and react accordingly.

Automation and efficiency through AI power

AI is a potential equalizer that allows small hospitality providers to stay competitive with the leading brands of this sector. Robust hotel software systems with AI at the core will automate all repetitive operations like check-ins & outs, housekeeping deliveries, room assignments, and the like. In combination with chatbots and powerful analytics tools, you will be able to minimize response times, improve customer satisfaction levels, reduce costs, and ultimately increase revenue.

The bottom line

AI is one of the technologies that energize the digital transformation of hospitality businesses and change the guest experience across the travel lifecycle. ML & AI are making everything more efficient from top to bottom, bringing a new level of responsiveness and personalization. And with the technology curve, businesses of all sizes can benefit from AI-fueled software.

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About the author
Emma Clark

Emma Clark

author

Emma Clark is passionate about exploring diverse technologies applied across the E-commerce, insurance & financial services industries. Expert in the development of transformation strategies, she eagers to help businesses reach new heights.