Trends come and go, but this one seems to have secured its position as a popular trend for more years to come: artificial intelligence (AI). While not exactly new, AI utilization in various areas continues to rise for quite some time now, including in the hospitality industry.
AI technology is programmed with the ability to respond to and complete a range of tasks. In hotels, its implementation in day-to-day operations streamlines processes and enables employees to focus thoroughly on hands-on guest service rather than repetitive tasks such as data entry or check-in and check-out.
Knowing the AI trend is one thing, but understanding the AI trend for hotels is another thing. Our article here will be a fun yet insightful way to get to know AI in hotels better; we have you covered from the brief introduction to AI, the impact on hotel operations, to the common AI applications in hotels!
Get to Know Artificial Intelligence in Hotels
Illustration of artificial intelligence (AI) in hotels.
Hotels have been embracing the artificial intelligence (AI) trend in their establishments for a while now. Seamless digital check-ins and outs, smart room technologies that let guests choose their room preferences, and the list go on. While we may already be familiar with this hospitality trend, what is AI, actually?
As we derive from Hotel Operations, there are several definitions of what AI is:
- “AI is the capability of a computer system that mimics human-like cognitive functions, such as learning and problem-solving.” -Microsoft
- “A machine’s capability to imitate intelligent human behavior.” -Webster
- “An implementation of advanced analysis and logic-based techniques into machines to interpret events, support and automate decisions, and take actions.” -Gartner
The high-tech abilities of AI in responding to tasks and performing actions like a human quickly make AI an essential tool for businesses across various industries, the hospitality industry included. There are five main types of AI, which are as follows:
- Text AI: has the ability to automate the process of understanding and responding to text-based customer requests.
- Visual AI: has the ability to automatically identify objects, people, and events in images or videos.
- Interactive AI: has the ability to naturally interact with customers or employees.
- Analytic AI: has the ability to make decisions based on data analysis.
- Functional AI: has the ability to automate tasks and processes.
Since more hotels are going digital in providing services to guests, those types of AI now can easily be found in hotel technologies, such as text and interactive AI in hotel chatbots or functional and analytic AI in hotel mobile apps.
It is more than likely that AI will continue to develop in the coming years, which means the hospitality industry will also continue to evolve along with AI’s growth. As AI has proven its ability to solve hotel deficiencies and is regarded as one of the crucial aspects of a hotel, how does AI actually influence hotel operations? Jump on the next line to discover the impact and advantage of AI in various hotel areas!
Artificial Intelligence Impact on Hotel Operations
It’s obvious that the advantage of artificial intelligence (AI) has brought hotel operations to a higher, more efficient stage! While we know just how capable the innovation is, some of us might still be wondering how exactly it benefits hotels. In this section, we specifically break down the impact of AI on hotel important areas that raise the bar of hotel seamless operations!
1. Revenue Management
AI for hotel revenue management.
In terms of hotel revenue management, AI is capable of many things! First, AI is able to optimize room pricing and availability to maximize the hotel’s revenue through predictive modeling that analyzes historical data and predicts future demand and revenue. The room pricing can also be personalized to individual guests based on their preferences, past behavior, and demographics.
Another thing that AI is capable of is assisting hotels in identifying opportunities for upselling and cross-selling to guests based on market conditions and analyzing patterns in revenue data that reveal insights on revenue opportunities and trends for hotels’ benefits!
Hotel marketing metrics with AI.
When it comes to the marketing area, hotel marketers can count on AI to automate repetitive tasks like data analysis, customer segmentation, and campaign management, as well as analyzing data and using predictive analytics to forecast customer behavior and market trends for hotels.
As a result, hotel marketers are able to focus more on strategizing effective marketing and making data-driven decisions! Moreover, AI also has the ability to identify the right marketing channels, audiences, and advertising time to optimize the hotel’s digital advertising campaigns, thus helping to ease the duty of hotel marketers.
AI for hotel sales.
After marketing, comes sales! The implementation of AI in the sales area helps the hotel sales team in completing repetitive tasks like data entry, follow-ups, and lead generation. The sales team can also use AI to proactively target potential guests and anticipate changes in demand by utilizing predictive analytics.
Furthermore, AI is able to perform real-time analytics to track group sales performance and identify areas for improvement based on market conditions, guest behavior, and more factors that lead to new revenue opportunities!
4. Guest Experience
Satisfied guests leaving the hotel with positive experience.
Guest experience is one of the key areas in hotel operations, and the use of AI has proven to revolutionize the area with more enhanced guest service through AI-integrated chatbots, smart room technologies, digital concierges, and more!
To further improve guest service, hotels can utilize AI to provide immersive experiences like virtual tours and virtual room selection, as well as enhance safety and security that undoubtedly will leave a positive impression on guests.
5. Human Resources
AI for hotel human resources.
AI also plays an important role in a hotel’s human resources area. This advancement has changed the area in several ways, starting from the automation of recruitment processes such as resume screening, interview scheduling, and background checking.
That way, the human resources team can save time and focus on developing more effective recruitment strategies and improving employee satisfaction! Last but not least, AI is also capable of adjusting staffing levels accordingly, thus optimizing workforce management that results in more efficient use of hotel human resources.
What AI Applications in Hotels Look Like
The AI trend has led to the development of AI applications in various hotels in recent years and is more likely to continue progressing in its course of implementation. Since this technological advancement proves to greatly improve overall hotel operations, we will cover some examples of common AI applications in hotels and what exactly they look like below!
1. Robot Concierges
An AI-integrated robot concierge. (via ApexTech)
AI makes robot concierges a reality for hotels. These robot concierges can do various tasks, such as managing check-in or check-out processes and interacting with guests with speech recognition capabilities. Hilton is one of the hotels that used robot concierges. Theirs is called Connie, a personable robot concierge that revolutionizes the guest experience to a new level!
Illustration of hotel chatbots.
Chatbots are impressive! This AI-integrated messaging program is trained to perform specific tasks based on the user’s request, such as providing instant answers to the user’s inquiries anytime, resolving complaints, ordering meals, managing reservations, and more—which is a brilliant way to reach potential guests and build better customer relationships!
3. Seamless Booking Processes
Seamless booking processes.
By implementing AI on the hotel’s booking website, potential guests can get booking experiences tailored to their preferences! It works with AI algorithms that cross-check the users’ preferences, then tune the results based on their information, making the booking process seamless!
Automation with AI.
Another common AI application in hotels nowadays is automation. It helps hotels complete repetitive operations like check-ins and check-outs, room assignments, and even housekeeping deliveries. As such, some of the hotel staff’s workload is lifted, so they can focus more on improving guests’ satisfaction levels!
5. Hyperdynamic Pricing
Hyperdynamic pricing. (via ApexTech)
Hyperdynamic pricing uses predictive analytics that allows hotels to search users’ booking patterns, past user data, market prices, and even weather to automatically adjust the room rates to the fluctuations in demand. This application of AI is usually implemented in the hotel’s booking engine, and is one of the efficient ways to maximize the hotel’s earning potential!
What an amazing technology AI is, right? It’s inspiring how humans managed to come up with the invention and implement it in hotel daily operations, which results in more seamless and efficient activities that not only benefit hotels but also guests.
As AI in the hospitality industry keeps on developing into more innovations throughout, it’s important for hotels, hoteliers, hotel customers, and those who wish to enter the hotel field to stay on track with this trend!
We at RMC Asia understand just how fast the hospitality industry trends are moving, and we do not want you to be left out. Our team aims to keep up with the industry’s dynamic environment through our hospitality internship and management training programs, which are efficient ways for you to be on course with the hospitality industry.
The wide range of our prestigious host organization partners and enticing program destinations across Asia will give you access to career advancement, the international job market, and unique cultural exchange options in each destination!
Don’t wait; join our successful participants and start your outstanding hospitality career here!