AI in Hospitality: Benefits, Applications & Usecases
Artificial Intelligence (AI) in the Hospitality industry is being leveraged to enhance the customer service-related tasks which are especially important and on which the industry relies heavily.
The global smart hospitality industry is expected to reach USD 44.38 Billion by 2026. Automation and Artificial Intelligence (AI) are revolutionizing the hospitality industry and hotels by incorporating advanced AI technologies to improve their customer service and efficiency. AI empowers innovation and growth by refining the data and directing the patterns into data intelligence that will help generate hyper-personalized customer experiences and identify hidden revenue opportunities.
Benefits with Artificial Intelligence in Hospitality
To put it in simple words, the advantage of AI in Hospitality would be to achieve what is difficult for human beings. AI is changing the trend by ensuring that great hospitality is provided to the guests. This will result in bringing in guest loyalty which, in turn, will result in recommendations and revenues. AI is capable of streamlining the processes, providing valuable data intelligence, and optimizing experiences.
- Automated, data-driven, and granular segmentation and targeting of guests
- Improves brand loyalty
- Upselling and cross-selling
- Enhanced guests profiles based on the history of guests, value, preferences, satisfaction, behavior, and intent
- Incredible precision, accuracy, and speed result in low error rates than compared to humans
Artificial Intelligence in Hospitality – Applications & Usecases
Hotels require their internal services and customer care services to be cost-effective and operational costs to be optimized. Machine learning can provide precisely crafted, strategic process automation solutions by integrating AI and IoT in hospitality. With the help of IoT, sensors, and Machine Learning, hotels can observe the trends, design customized offers, and personalized suggestions/recommendations that complement the lifestyle choices of the guests and further enhance their experience to the next level.
Providing personalized services and experiences will boost brand loyalty and revenue. Offering services that are tailor-made to the guests such as their preferred newspaper, rooms, etc will enable the hotel to retain its customers. AI helps in, not just identifying the parameters that can be personalized according to the guests but also in personalizing what and whom to offer the reward programs.
3. Occupancy & rate optimization
Seasons and holidays play a crucial role in understanding the occupancy levels of hotels. AI inspects multiple sources of data to give nuanced data intelligence on the trends and patterns in hotel occupancy. Hotels can adjust their pricing dynamically depending on the market situations and demand-supply conditions.
4. Competitive intelligence
With its ability to parse through multiple touchpoints for data intelligence, AI provides valuable and competitive intelligence that can drive the future direction of the business.
5. Online reputation management
The hospitality industry is a reputation-thriven industry. Hotels can now analyze the online feedback given by various customers on multiple social media platforms and other review forums by adopting Deep Learning and NLP. They provide insights on what customers are talking about the brand. Positive reviews will enhance the brand image whereas negative responses will provide an opportunity to serve the customer better.
6. Chatbots and virtual assistants
With technology turning more sophisticated, the hospitality industry is finding it easier to engage and interact with their customers closely. With AI, hotels now have started to equip their rooms with smart devices that are enabled with voice recognition systems. NLP, along with Deep Learning, helps in analyzing the intent of the guests and provide relevant information and services via chatbots and virtual assistants.
7. Data analysis
Another area where AI is being utilized by the hospitality industry is data analysis. AI and related technologies can be utilized to swiftly glean through large volumes of data and provide intelligence on customers or potential customers.
8. Tailored recommendations
A considerable amount of dependency on digital technologies has resulted in generating mines of customer data that the hospitality industry can imbibe and analyze to meet the specific needs and interests of potential customers. With IoT, Machine Learning, analytics, sensors, and AI, the hospitality industry can bring in business growth and revenues by leveraging all available data.
We conducted an analysis to evaluate the performance of hotels and their restaurants that gave us deep insights on customer behavior, frequently visiting guests, the type of food they order, etc. To read the full usecase and download it, you can click here.
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