We all saw this coming! The inevitable times of computers becoming inseparable parts of our business. Artificial intelligence isn’t exactly like the movies would have you believe.
Robots (AI) could very well be our friends. They’re our friends and a handy tool in our day-to-day life as society advances. Who wouldn’t want a little extra help in their industry?
For example – AI in hospitality. Integrating artificial intelligence (AI) in the hospitality industry is reshaping how hotels operate and interact with their guests.
As AI technologies continue to advance, they offer innovative solutions that can enhance guest experiences, streamline hotel operations, and optimize revenue management.
Let’s dive into the transformative role of AI in hospitality, its benefits, use cases, and future trends!
What is AI?
Artificial intelligence (AI) is a technology that learns and performs tasks. This tech is rapidly evolving by the minute!
AI learns from experience instead of having to be programmed. This means that every time you ask it to help you with a task, it is learning from it.
The design behind its processing is inspired by the human brain! It uses a layered structure of interconnected nodes. Pretty cool right?
💡Fun Fact
AI is predicted to surpass human intelligence by 2045! (Technological Singularity)
What is the Role of AI in Hospitality?
Artificial intelligence is here to automate routine tasks, optimize operations, and deliver insights on the best ways to cater to guests based on their preferences in the past.
Overall, deploying AI enhances guest experience through personalization and organizes vital components in the establishment to ensure positive revenue growth.
Enhanced Guest Experience Through Artificial Intelligence
Let’s jump into the potential of generative AI in the hospitality industry to enhance guests’ overall experience. What can a glorified computer do for our guests?
Take a look at the image below to find out!
What Do All Of These Features Mean?
It might seem obvious to some. Many people might be confused about the purpose or benefits of any of these features.
Let’s break down what each one of these stands for, so you don’t miss a thing.
1. Personalized Guest Experience
AI’s contribution to personalized guest experience is solely based on recognizing patterns in previous bookings a guest has made.
Generative AI recognizes room, dining, and other guest preferences to enable a more unique experience and tailoring to specific needs.
2. Smart Rooms
Smart rooms have AI-integrated IoT systems, allowing guests to control room lighting, temperature, and other room features.
This is an excellent way to create a highly technological experience for your guests. This is something you want to be a part of your brand.
3. Facial Recognition
AI-powered facial recognition grants guests the luxury of access control entering spas, gyms, rooms, and other facilities.
Except it doesn’t stop there, facial recognition even goes as far as improving market research by determining how many people are in a location and what their moods might be.
4. Automated booking and pricing
Automated booking and pricing: offering rooms based on guest history and handling pricing through market analysis. Making it the job of a computer reduces the chances of human mistakes!
💡Shining The Spotlight
You don’t have to wait for AI to be integrated into your hotel. You might even be skeptical of it. The good news is that OTA Sync automates daily tasks and gives you insights into the market right away.
With our Channel Manager, you can make sure all your booking channels are handled and you can adjust your prices to the current market.
5. Answering general questions
Answering general questions powered by AI chatbots: Instant 24/7 customer service by handling reservations, providing hotel information, and resolving common guest inquiries.
This will free up staff to help customers with more complex needs.
💡Fun Fact
Travel agencies have seen a 25% increase in bookings and a 40% decrease in booking times since introducing conversational ai.
Streamlining Operations in the Hospitality Business
AI is reshaping overall operational efficiency.
It is optimizing energy consumption, enabling predictive maintenance, and boosting sustainability all in real-time. By managing energy consumption, the opportunity to cut costs increases and so does profitability.
1. Revolutionary Revenue Management With AI
Cutting costs through energy management is one thing, but AI also helps with gathering vast amounts of data throughout the market to predict demand and adjust pricing accordingly.
Use AI to keep up with the market trends. It is one of the only ways to stay on top. Competing against other hotel establishments aggressively and quickly is key.
2. Further Leveraging AI Algorithms for Hotel Revenue Management
A vast majority of people hire accountants. Why? Handling finances, revenue, or any form of accounting for personal or business use can be stressful and time-consuming.
Accounting is a critical aspect of the hospitality industry, why not use AI as a management system? AI will most accurately manage financial operations without the risk of human error.
3. Understanding AI Analytics for Increased Hotel Revenue
AI analytics is becoming a cornerstone of effective revenue management in the hotel industry. What it comes down to is data collection.
The potential of AI in collecting data is enormous which is crucial for hospitality. The collection of data is not something brand new and it has been around since the birth of the internet.
However, according to a McKinsey report, it has dramatically been an accelerating trend in the hospitality market with the use of AI tools.
Overcoming Resistance to AI Implementation
As AI continues to evolve and become more popular by the day, it isn’t uncommon to see some resistance to implementation.
You might think, why? Well, there are various reasons as to why an employer might not want to adapt to an AI-powered system.
- Fear of change: This is a big one, where an employer may fear these new technologies can put them out of a job, or an employer may fear their employees will simply resist AI adoption.
- Lack of equipment: May play a role in why an employer would refuse implementing AI. Simply put, there aren’t enough computing resources or technical support to back an AI system.
- Lack of technical skills: The famous saying “I am not tech savvy”. Vast amounts of individuals simply do not have the technical experience to implement such a tool.
- Ethical concerns: AI bias and data privacy.
How can we overcome such an issue? The key to solving such a dilemma is to address job security concerns, implement further employee training and education, and gradually implement these changes while ensuring data privacy and bias mitigation are addressed as these changes make headway.
Training Staff for AI in Hotels
Getting your staff familiar with AI may be a challenge, but not one impossible to tackle. Introducing new ways of training can be a fun process for everyone involved.
Workshops, collaborative learning, and overall hands-on experiences are great ways to train employees with AI. Many of these workshops can be outsourced to other institutions, returning staff educated on the subject and ready to roll!
What are the Latest and Upcoming AI Technologies in the Hospitality Industry?
1. Innovative AI Health Tools for the Hospitality Sector
Trends show hospitality services benefit greatly from AI capabilities. As the adoption of artificial intelligence continues to rise, new technologies follow.
AI can help hospitality with the integration of wellness programs, offering dietary tips, closely monitoring potential health risks, and mental health services.
In a post-pandemic world, the hospitality industry is expected to be on top of wellness concerns.
2. IoT (Internet of Things)
IoT consists of vast amounts of advanced technologies that will improve guest service by further personalizing service. AI is being used to operate these luxuries, such as smart thermostats, smart lighting for daylight harvesting, voice and facial recognition technology, predictive maintenance, and resource consumption management.
AI solutions to sustainability, personalized guest experiences, contactless services, and updated marketing strategies with the new tech to advertising have led and forecasted a 5.5% CAGR increase in the hotel industry according to Research and Markets.
💡Compound annual growth rate expectations from 2024 to 2028.
3. Robot Waiters
Artificial intelligence technologies are still being tested in various areas, one of which happens to be robot waiters. Yes, you read that correctly, robot waiters.
In a time where staff shortages have become a common issue in the industry, implementing AI technologies in food delivery services enhances guest experience with increased time efficiency and delivery accuracy.
These robots would be activated through mobile phone applications where guests may order meals and have them delivered in a contactless fashion. Not only does this improve the guest experience in a post-pandemic world, but it would also solve the short-staff dilemma.
💡Shining The Spotlight
If you’re thinking about adding these robots as a part of an event organized in your hotel, we think that’s an excellent idea. OTA Sync has organized an event where we had a robot serving drinks to our visitors, and they were delighted!
Banquets are no easy feat, and you will need all the technological back-up you can get. That’s why you can read about our Banquet Feature and see how it can make everything run smoothly.
Future Trends: The Impact of AI on Hospitality Management
As artificial intelligence continues to evolve, its impact on hospitality management is expected to grow significantly. Future trends indicate an increased focus on hyper-personalization, where AI algorithms will analyze guest data to create highly tailored experiences.
Research shows that approximately 80% of hotels use, or plan to use, AI and data analytics to help them present guests with personalized offers. This level of personalization will not only enhance guest satisfaction but also foster loyalty, as guests will feel more connected to the hotel brand.
As AI continues to evolve at the rate it has been, it is expected to see new advanced AI technologies enter the market and continue to outperform the industry’s former ways of business.
Integrating AI Technologies into Hospitality Operations
Integrating AI into hospitality operations requires a strategic approach that considers both the needs of the hotel and the expectations of guests.
This process begins with identifying where the implementation of AI will deliver its benefits the hardest. Whether it’s through AI-powered booking systems, customer service chatbots, or revenue management algorithms, the focus should be on enhancing operational efficiency and guest experiences.
Conclusion
The use of artificial intelligence in hospitality is trending upwards at a very fast rate and businesses are using AI to better interact with guests at a faster and larger rate, improving revenue management, and streamlining operations.
The power of AI has proven itself day by day with impressive CAGR increases, helping the hospitality business better connect and serve guests efficiently. It can also help hotel operations become sustainable and cost-effective. AI in hotels may be a challenge to integrate.
Training staff to become proficient with AI tools, offering staff full transparency of AI applications, fear of change, and lack of technological equipment are possible challenges that may be faced in the future, but easily overcome.
AI innovations are reshaping the hospitality industry for the better, why not let our AI friends in and give them a chance?
How OTA Sync Can Help
The solution to save time and increase income is here! With our software comes a reduction in time spent on tedious tasks that would otherwise be done manually, and with that comes an increase in revenue.
Our 2,000 satisfied users in 17 different countries speak for us. If you manage medium and small hotels, boutique hotels, hostels, guesthouses, and apartments, OTA Sync is the ideal solution.
See what we can do with simple use but effective software:
✅The Property Management System
📲The mobile app is now available, significantly increasing the time-saving potential.
All of this is aimed at ensuring that guests leave happy and return with the best experience at your hotel.
🚨Special Offer
Want to stay on top of things and receive special offers and discounts? We’ve got you!
OTA Sync rewards smart hoteliers by giving out special discounts. To receive yours, click HERE!