AI in the Hospitality Industry- Streamlining Operations

You’ve been busy for a few months because peak season is going on in hotels these days.

You have a lot on your plate, but you don’t know how to lessen the burden and prioritize things such as enhancing customer experience, providing personalization, and even automating routine tasks.

But you can’t hire more hotel staff because you have a limited budget. You are looking for technology that can make your staff more effective, save money, and 2x your hotel revenue.

That’s why you need to leverage AI technology for your hotel business to supercharge your operational efficiency. 

Artificial intelligence can take many forms be it integrating chatbots on your website to making your ordinary hotel a SMART PARADISE.

Let's discuss how AI is changing the hospitality industry and how your hotel can stand out from the crowd.

What is Artificial Intelligence?

When you think about AI, things such as self-driving cars, the ability of a computer program mimicking humans, to make decisions. These things come to your mind first.

AI makes computers and machines more intelligent.

Artificial intelligence has become an inseparable part of your life. When Alexa wakes you up, gives you personalized recommendations, or plans your road trip to reach faster. That's all AI.

It can perform tasks that it has been trained on and make your lives better. It has been there for decades, but it’s changing definition now and then because of technological advancements happening every day. 

As AI systems learn from data, they continue to improve and give you desired results such as identifying objects, making predictions, or interpreting speech.

Role of AI in the Hospitality Industry

Hoteliers spend countless hours enhancing the guest experience, but AI takes the hospitality business to the next level in just a few minutes. 

AI makes the guest experiences more personalized because it can gather and analyze leaps and bounds of data.

By tapping into guest preferences, AI is helping hoteliers to fine-tune their offerings and maximize hotel revenue. 

Moreover, it revolutionizes the way hotels interact with their guests. 

1. Personalizes the Guest Experience

Adopting AI technology is a profitable option for hoteliers as it enhances the guest experience at every touchpoint.

It works 24*7 to provide continuous support to guests, analyze guest preferences, and then help hotels tailor their offerings and amenities accordingly.

By employing AI-driven chatbots in hotels, you need not worry about handling guest queries, connecting with guests across multiple platforms, talking to customers in their preferred language, etc.

Mariott International, a luxurious hotel chain, enhances guest experience by employing AI-powered chatbots called Mariott Moments. 

These chatbots handle guest queries, provide ongoing support and even suggest personalized recommendations.

2. No longer waiting time

Traditionally, guests had to wait for hours to check in and check out. Also, the front desk staff did a lot of paperwork for onboarding the guests. 

As a result, it increases the waiting time for guests and affects the overall experience.

Now, everything is modernized. With the adoption of AI technology, hotels streamline their check-in/check-out processes. 

Guests can self-check in through their mobile apps. This reduces the intervention of physical staff.

How is it?

That’s possible by leveraging AI.

Thus, your front desk staff can spend more time building relationships with guests and less on doing manual formalities. 

3. Smart hotel rooms are the NEW ERA

Every hotelier aims to delight their guests. When everything in this world is AI-driven, then why not smart hotels? 

Guests love personalization and with the smart hotel room, they can quickly control everything using their smartphones and voice-controlled assistants.

Guests can get a home-like feel when they arrive in these connected rooms. Integration of AI-connected devices and sensors in these rooms sets everything as per guest preferences such as room temperature, lighting, and changing the music.

Moreover, it helps hotel businesses to optimize their resources because smart rooms turn off the AC when no one is there in the room or adjust the temperature based on weather conditions. 

So, it creates a positive image in the minds of guests that your hotel is heading towards eco-friendly hospitality.

Yotel Hotel which is based out of Singapore uses robots to provide a feel to guests as if they are watching a sci-fi movie.

It surprises its guests with futuristic things that they never imagined. It has self-check-in/check-out kiosks with hotel cabins and offers innovative features such as adjustable SMART beds. 

They would feel that they are in paradise as everything fits perfectly as per their preferences. 

On top of that, there are service robots that deliver amenities to guests at their doorsteps.

Benefits of using AI in the Hospitality Industry

1. Drives more revenue

Unlike other industries, hotels are also operating to make more revenue. Although AI-powered tools never replace the human touch, they can automate administrative processes, reduce human errors, and reduce the burden on front desk staff. 

AI will hardly take a few minutes and calculate revenue from multiple sources. This reduces the burden on hotel staff and saves the hours that would have been invested somewhere else.

Your demand does not remain the same all the time. There are months with highs and lows, so this intelligent machine provides you with an accurate insight into how to manage your inventory. 

Hoteliers can now use AI-powered revenue management systems to frame dynamic pricing strategies. Its AI algorithms analyze streams of data and consider various factors to set the optimal prices for a room so you can maximize profitability during the peak season. 

2. Better customer experience

AI takes the guest experience to a new level. Hotels and resorts gain insights into guest preferences using this technology. Then, they can tailor their marketing promotions and strategies accordingly.

AI algorithms analyze that these are the XYZ guests who used to go with spa treatment. So, it will automatically send coupons or vouchers to increase customer satisfaction. Thus, it provides this level of personalization that brings more visits and drives customer loyalty. 

3. Maximize your Operational Efficiency

Hotels can become more efficient when they make optimal utilization of resources to deliver high-quality services. 

They can’t increase their efficiency overnight, so they need an intelligent machine or smart system that can do mundane tasks.

An AI-driven hospitality management solution can do the heavy lifting for you such as automating your hotel operations, taking care of guest needs, managing resources, freeing up your hotel staff, and reducing cost.

This way, staff can focus on strategic tasks that increase customer satisfaction.

Additionally, AI makes the best use of data collected from various sources such as property management systems, interactions between guests and staff, or point of sale systems (POS).

An average human takes days, weeks, and even months to analyze the intricacies of data and turn it into meaningful information.

An AI possesses the capabilities to collect and analyze tons of data within minutes to make data-driven decisions in the future.

4. Cost Reduction

A research study states that 50% of hoteliers believe that AI usage reduces your costs in hotel operations.

AI is a game changer for hotel businesses because it not only streamlines operations but also saves costs.

Implementation of AI in hotels helps you achieve cost savings as it automates time-consuming tasks and saves your labor costs.

For Instance – Integration of an AI-powered chatbot like Freddie shapes your entire guest experience. 

It offers 24*7 assistance to guests, doesn’t experience burnout, and functions when your staff gets tired or sleeps.

Thus, it reduces the burden on your hotel staff, and you don’t need to hire extra resources to serve your guests. 

This way, you can save your funds and invest them in enhancing the guest experience.

Key Areas Where Hospitality Companies Can Implement AI

There are several use cases where AI is rocking the ground of hospitality- 

1. Redefines Customer Experience

• Modern guests want instant solutions to their queries. That’s where hotels need 24*7 live agents that provide human-like responses, answer frequently asked questions, and provide personalized services when needed. 

Thus, it frees up the front desk staff and they can focus more on enhancing guest satisfaction. 

• Thanks to its multilingual capabilities. Hospitality chatbots can talk to guests in their native language, accept reservation requests, or send booking-related confirmations. 
• Hotel chatbots help you earn ancillary revenue by doing cross-selling and upselling.

By analyzing guest preferences, they can send personalized offers at the time of guest stay or even before they arrive at your hotel such as sending spa appointments, food and beverage offers, etc. 

• These AI chatbots power NLP capabilities meaning they can understand guest messages and help hoteliers gain insights about their stay.

2. Setting Prices

A research study by PWC states that nearly 72% of hospitality experts are planning to combine AI with their revenue management solution.

• AI can help hoteliers in creating dynamic pricing strategies. Hoteliers can maximize their revenue by considering various factors such as market demand, customer preferences, historical information, and competitor rates.

That means they can set prices of rooms in real time and earn more revenue per available room.

3. Analysis of Demand

• AI is truly a game changer for hospitality professionals as they can make the best out of each hotel room through real-time booking data. 
• These smart algorithms consider real-time booking data for room allocation so that no room remains underutilized.
• Moreover, AI-powered technologies ensure seamless integration with OTAs which means more opportunity for hoteliers to earn revenue.
• These systems update room availability and prices in real time across various OTA channels. This way, hoteliers can never miss a chance to get potential.

For Instance - Our AI-powered hospitality solution (channel manager) helps you manage room rates and availability across multiple OTA platforms without manual intervention. A single dashboard allows you to update prices once and see it live on 100+ OTAs.

4. Provides Room Personalization

• Hoteliers can personalize guest preferences and turn the ordinary room into a smart hotel room.  AI collects and learns from data such as previous stays or online interactions, so it knows the tastes and preferences of guests such as adjusting the temperature of the room or lighting intensity, or which upbeat they prefer. 
• Even tech-savvy guests prefer to visit hotels that have smart room features. A study indicates the growing importance of smart room technology, and it comes as no surprise that 65% of guests expect hoteliers to have smart room technology.

• AI algorithms can help hotels become more environmentally sustainable.

 For Instance -When the guest arrives in the room, smart sensors can adjust the room temperature based on weather conditions and optimize the energy consumption in the room.

5. Predictive Analytics

Predictive analytics is about getting valuable insights into guest behavior and preferences. And AI helps in anticipating guest needs to create unforgettable guest memories.

• To free up the front desk staff, hoteliers these days have employed robots to streamline check-in and check-out processes, verify guest identity, and provide information about guest amenities.
• A survey of hoteliers was conducted which states that 37% of hoteliers believe that AI implementation benefits the front desk department most.

• Service robots take the guest experience to the next level. 

6. Attract the qualified staff and retain them

AI isn’t confined to satisfying guests, rather it helps the hoteliers in talent management as well. 

• It makes the hiring process smarter by automating rote tasks, screening resumes, and assessing whether candidates are worth hiring or not.
• These smart algorithms make the existing human staff more productive as they lessen the burden on them.
• Moreover, an AI-powered property management system (PMS) provides you with a dashboard with an intuitive interface that helps you manage your hotel with ease such as front office operations and streamline housekeeping processes.
• Through an AI-based effective training program, you can train your hotel employees and give them instant feedback.

Wrapping Up

Like it or not, AI helps hoteliers to stay competitive in this modern ERA.

A recent report by Deloitte states that AI in the hospitality industry saves the cost of automating mundane tasks, creating remarkable guest experiences, and providing data-driven insights to predict customer needs.

In the hospitality sector, understanding customer needs is super important because they are drivers of your hotel revenue. Technology isn’t helping hoteliers in providing continuous support, rather it has become a necessity.

From offering personalized recommendations to enhancing customer experience and deploying robots to streamline housekeeping and front desk tasks, AI is present everywhere.

Integrating AI in hotel operations offers a promising future. 

Even leading hotel chains such as Hilton Hotel Resort and Mariott International invested in AI/ML technology to increase their hotel revenue.

When they can do that, why not your business?

That’s why we came up with an all-in-one hospitality suite to take your hotel biz online. Hotel in the Box manages your hotel operations with ease from pre-booking to post-stay.

Whether you need help in doing contactless check-in/check-out or managing your multiple properties online, everything is available at your fingertips.

FAQs

1. What Is the Future of AI in Hospitality?

AI offers immense potential for hotels and resort businesses.

This emerging technology is growing by leaps and bounds and is helping hotel staff to ease their front-office interactions and back-office operations.

AI won’t replace human touch, but it will make staff’s work easier.  

This technology makes the work of hospitality professionals more easy- 

• AI-powered chatbots provide long-lasting support to guests.
• It streamlines the recruitment process.
• Integration of smart sensors in the room saves energy and reduces environmental impact. 

2. How Does AI Improve Operational Efficiency in Hospitality?

Hotels can achieve operational efficiency by automating routine tasks, freeing up your front desk, and reducing costs. That’s how your hotel business becomes more profitable.

3. Is AI Technology used for Small and Medium-Sized Hospitality Businesses?

No matter what your hotel size is, AI is truly a game-changer for small and medium hospitality businesses.