AI in Hotel: How Artificial Intelligence is Transforming the Hospitality Industry

The time is not too far when we’ll have AI hotels ruling the roost across the hospitality sector. Sounds a little too incredible to be true? The reality is that the hospitality industry has always been proactively inclined towards technology-driven innovation and solutions for the future. This is where artificial intelligence is completely transforming the travel and hospitality market in recent years. One example of such AI usage is Chatbots. Would you have ever thought that they would be used to automate guest communication, answer queries, and even take care of reservations? Probably not.

But that’s the defining power of Artificial Intelligence in the hospitality industry. It is enabling better guest experiences through personalization, streamlining operations, improving efficiency levels, enhancing sustainability, and also driving revenue growth in turn. What can be a better solution for hotels, serviced apartments, and rentals? Here’s finding out more about this phenomenon below.

Artificial Intelligence (AI) in the Hospitality Industry - What Does It Mean?

When you talk about AI in hotels, it’s basically about implementing or using advanced technology that leverages machine learning algorithms. These are used for automating various tasks, customizing experiences of guests (based on data analysis and insights), boosting customer service via virtual assistants, and also scaling up overall efficiencies at multiple levels. The end-objective remains the same- making every stay more convenient and appealing for guests, while aiming at maximizing the hotel’s profitability and potential simultaneously.

There can be several interesting core aspects related to the usage of artificial intelligence in this industry. Some of the common ones include personalized guest experiences through recommendations, offers, room settings, etc. and also automated check-ins and check-outs. Virtual assistants, predictive maintenance, revenue and booking management, dynamic pricing, feedback analysis, and smart room technologies are some other areas where there are compelling use cases for AI in the hospitality sector. In fact, facial recognition-based access, automated customer service, and virtual concierge solutions are becoming the norm at several global hotel brands these days.

Artificial Intelligence in the Hospitality Industry- How Big Is the Impact?

When you think of AI in hotels, how big do you really think the impact has been? Here’s mapping how it has completely revamped almost every sphere of the business.

• Personalized guest experiences

 AI has played a big role in hyper-personalizing guest experiences. For example, data is analyzed for tailoring recommendations, anticipate guest needs/preferences, and also offer customized stays. AI-based virtual concierges and Chatbots are already being used for boosting guest engagement. In fact, predictive loyalty or engagement is another key trend in this space along with personalized loyalty rewards/programs.

• Better operational efficiencies

 What AI’s also doing is automating route duties including housekeeping schedules, room service requests and tracking, check-ins and check-outs, etc. This is improving staff productivity, freeing them up to focus on offering more guest-centric services.

• Dynamic pricing and revenue management

 AI has completely revamped how hotel brands manage revenues and fund allocations. It is also dynamically adjusting room rates based on real-time inventory, demand, season, market conditions, and rival pricing. This is helping hotels and rentals maximize their revenue potential. At the same time, huge datasets are being analyzed for guiding promotional and pricing blueprints for higher profitability.

• Marketing boosters

 Another use case for AI in hospitality industry is its deployment in marketing campaigns. These tools are enabling more targeted advertising and personalized campaigns that drive higher direct bookings.

• Competitive advantages

Hospitality brands are leveraging AI to analyze past guest data and historical trends to offer tailored experiences and custom recommendations, while Chatbots and digital concierge solutions are handling bookings, guest inquiries, and information requests on a 24-7 basis. AI is enabling better staff scheduling based on anticipated guest volume and historical data analysis too. 

• Smart room tech

AI-enabled rooms are adjusting lighting, temperature, curtains, etc. based on the preferences of guests. Voice-enabled devices and assistants are also helping customers with their requests and learning their preferences over time. Smart appliances, voice commands, and intelligent thermostats are par for the course, along with IoT telemetry for monitoring energy consumption and optimizing the same for achieving sustainability objectives alongside. 

• Maintenance Advantages

 AI is enabling swift identification of potential issues before they spiral into serious problems. This is improving guest satisfaction and also helping hotels save costs. At the same time, it is managing supplies and amenities, triggering alerts for restocking or immediate fixing whenever required.

• Other Benefits

 AI is helping analyze guest feedback and reviews for identifying areas for improvement, while tracking energy consumption and optimizing usage in common areas. It is also identifying areas for minimizing waste alongside.

• Security Features

AI-backed facial recognition will be a key trend for boosting security during check-ins and check-outs, while the system can identify any anomalies or suspicious activity in staff/customer behavior and trigger alerts accordingly.

In fact, the day is not far when we’ll probably see a full AI hotel which is completely automated through AI and robotics. This will boost efficiency and convenience for guests, while keeping the personalization quotient on the higher side as well.

AI in Hotels- Some Examples

When it comes to the actual implementation of AI in hotels, it’s already happening in case you thought it was still some time away. Here are just a few worth considering:

Ø  Marriott Bonvoy is already using AI-based searches for customizing natural language searching throughout 140,000+ Home & Villas properties

Ø  Universal Orlando Resort is using facial recognition for identity verification at its park entrances

Ø  InnVest Hotels in Canada makes use of AI-based hotel delivery robots for several properties to deliver guest items from the front desk and kitchen

Ø  Radisson Hotel Group is using it for boosting sales to event planners via the infinity room which deploys light and sound to help the latter visualize various spaces on a real-time basis 

aperfectstay.ai is another example of cutting-edge AI-driven technology that is streamlining every aspect of the hotel management process. This pioneering PMS (property management system) enables real-time management with automated front desk operations, centralized booking management, smart locks, analytics/reports, accounting management, email automation and simplified management of inventory and distribution across OTAs.  

Price and availability updates in real-time, dynamic rate setting, customer data analysis and management, digital concierge and automated communication, and local recommendations are all part of the package. Then there’s streamlined housekeeping scheduling, inspections, reporting, checklists, and case tracking as well. Hotels get to streamline and manage bookings with a dedicated booking engine, while there’s also better integration with Google Hotel Ads for improved marketing and visibility. It’s a unique instance where a futuristic AI-driven hotel management system is already being used by top brands worldwide.

Advantages of AI in Hotels

So, if you look at the benefits of using AI in hotels, there are plenty worth considering. But here’s just summing up the key ones.

1.      You get to increase your revenues through dynamic pricing strategies and optimize per-room revenue by selling at the right price (at the right time). Personalized marketing campaigns and smooth revenue management also ensure more direct bookings and revenues in turn.

2.      Operational efficiencies also go up through automation of repetitive and lengthy tasks, helping you save on time and costs, while boosting staff productivity alongside. You can manage bookings, inventory, housekeeping, and guest experiences with ease.

3.      You can personalize guest experiences and tailor your offerings, which leads to higher satisfaction and loyalty. It also helps with guest loyalty and retention programs.

4.      Check-ins, check-outs, room service, and other aspects are automated and swift, thereby simplifying operational nuances and making guests happier simultaneously.

5.      Smart technologies and predictive maintenance not only help you go futuristic, but also save on costs and keep the guest satisfaction quotient high.

6.      You can forecast demand and analyze competitor pricing and other historical booking data for adjusting marketing, pricing, and allocation of resources periodically. This helps you maximize your occupancy levels (and subsequent profitability) minus hassles.

AI Trends to Make a Splash in the Travel & Hospitality Market

AI in hospitality could go a long way even from here! Here are some of the trends worth keeping an eye out for.

Ø  Machine Learning Improvements

 ML will keep helping hospitality players scale up predictive analytics abilities and gain more detailed insights on customers as a result. These algorithms will analyze vast datasets from more sources like bookings, feedback forms, interactions, etc. to identify trends and customize recommendations, offers, loyalty programs, pricing, etc. This trend will become more nuanced down the line.

Ø  Hyper-Personalization

There’s already this massive shift towards hyper-personalization in the hospitality industry and it will keep getting more refined in a bid to attract more customers to the brand. Future trends could involve real-time experiences that are tailored on the basis of past behavior and preferences, including room settings, dining recommendations, itineraries, and so on. 

Ø  IoT Integration

The canvas of IoT (Internet of Things) integration will be widened with more lighting fixtures, voice-powered assistants, and thermostats making their way into properties. 

Ø  Sustainable Practices

This could be the biggest trend where AI systems will keep tracking and optimizing energy and resource usage. The focus will be on lowering waste and consumption of water and other natural resources. Green technology will be integrated with AI systems in the future as well, including solar panels, recycling plants, biodegradable material processing units, etc. 

It’s quite clear that the AI hotel trend is here to stay. And no, it doesn’t mean that there’s no human touch required. It is only that AI will make the human beings at the forefront more efficient, stress-free, and productive above all else. This will help them focus better on guest needs instead of worrying about routine management and operational tasks. So, better efficiency, higher profitability, and top-notch guest experiences are going to be the three core planks for the swift integration of AI technologies throughout the hospitality industry. And when you come to think of it, it does look like a win-win proposition!