The Impact of Artificial Intelligence on the Hotel Industry

AI (artificial intelligence) is everywhere these days. It is integrated into your mobile phone, desktop computer, laptop, smartwatch and much more. It is also found in online marketing, management software and virtually everywhere else. However, what does Artificial Intelligence mean for the hotel industry? How has it affected the industry, and how will it continue to do so in the future?

What is AI?

Science fiction once predicted that we would eventually live in a world full of robots that would make our lives simpler and easier. That day has arrived, but the robots are largely invisible. They are snippets of code embedded in the technology we use every day. The term "AI" does not necessarily refer to an autonomous robot that takes care of cleaning your home. It can just as easily refer to the algorithm used to personalise the marketing emails you receive. Today, you will find AI at work in almost every aspect of the industry.

The impact of hospitality intelligence on operations

Hotel management has changed radically with the arrival of artificial intelligence. One need only look at the incredible number of tasks front desk staff are expected to perform to realise that, without artificial intelligence, the situation would be very different. At any given time, many things are happening simultaneously at the front desk: ● The phone is ringing. ● Guests are waiting to check in. ● Guests are sending enquiries via the website. ● Guests are asking questions at the front desk. ● Other hotel departments are also calling with enquiries. In addition to juggling all these tasks, employees are expected to be courteous and friendly, thoroughly verify guests' documents, give them their full attention and answer questions promptly. Since human beings cannot actually multitask, how do you ensure that all these things happen simultaneously and correctly? The answer is artificial intelligence. An AI-powered telephone system can route calls intelligently. Chatbots can answer basic questions online. AI-enabled remote check-in systems can allow guests to check into their rooms remotely via a smartphone app, meaning they never need to stop at the front desk in the first place. These are just some of the ways artificial intelligence is radically changing the hotel world. Without AI, it would be impossible for your team to deliver the level and quality of service you expect and your guests deserve. It would also be impossible to meet today’s guest expectations, such as less human interaction and greater automation (both of which are extremely important for health and safety protocols).

The Importance of Artificial Intelligence in the Hotel Industry for Revenue Management

Revenue management is absolutely fundamental for hotels, but it is one of the processes where mistakes are easiest to make. AI can help ensure that you get it right while also improving efficiency and accuracy. You do not need to look far to find evidence of this. You are very likely already using a property management system (PMS), as well as point-of-sale (POS) management software. Both use artificial intelligence, enabling them to help you manage bookings, sell add-ons, add them to guest bills and more. Hospitality intelligence is also responsible for many of the functions you use every day within your hotel, including: ● Optimising room rates ● Dynamic room pricing based on occupancy ● Updating your rates across multiple channels and OTAs in real time ● Comparing your performance and rating with other hotels in the surrounding area In short, AI is vital to maximising your revenue while automating mundane tasks and reducing the amount of human effort required—as well as the number of human errors.

AI enables personalisation

Personalisation is an essential consideration today. Consumers expect the businesses they interact with to personalise all communications. This applies to everything from voice communications and email marketing to social media interactions and more. However, AI is enabling personalisation on a much deeper level—one that affects the very core of the guest experience . It also does so more efficiently, saving you time, money and hassle. How does AI enable better personalisation? You can see it in many different ways. For example, an AI chatbot added to your Facebook Messenger can answer guest questions, collect basic information and add it to your database. This can then be used to personalise further interactions with the guest. You can create special offers that respond to their unique needs, such as child-friendly rooms, all-inclusive stays or packages that include a hotel room as well as tickets to nearby events or shows. However, personalisation does not stop there. It allows you to tailor every aspect of a guest’s stay. You can offer unique amenities and services that meet their wishes and needs, make informed concierge recommendations and much more. It is about creating a unique experience tailored to each guest or family.

AI-driven data delivers better business intelligence

We live in the era of Big Data. We are surrounded by it. In fact, data is considered more valuable than any other business asset, including cash. The problem is that so much information is available today that it leads to overload. And not all data is created equal. To put the information at your disposal to work for your hotel, you need to sort, organise, cleanse, analyse and then transform it into something usable by humans. In other words, you need to find a way to remove inaccurate or duplicate data, organise it so that everything makes sense, and then present it in a format that people can digest, such as tables and charts. Doing so is labour-intensive at best. In some cases, it is impossible. However, artificial intelligence can come to the rescue by automating all these processes and ensuring that you can uncover key insights directly related to your ability to reach and engage guests while keeping pace with current industry trends.

AI is here to stay

From business intelligence in the hospitality industry to the automation of front desk and administrative tasks, AI is here to stay. And that is a good thing. Artificial intelligence embedded in the software you use every day, such as your PMS and POS, enables greater efficiency, a deeper connection with your guests and, ultimately, greater success for your hotel.