How hospitality businesses can embrace a new era of AI

In the dynamic landscape of hospitality, the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies is no longer a luxury but a necessity. Over the years, these technologies have evolved, with revenue management systems serving as a prime example of their application. The algorithms driving these systems have grown increasingly sophisticated, transforming forecasting capabilities within the industry.

The importance of the human touch

While AI and ML offer immense potential for efficiency and innovation, it’s crucial not to lose sight of the importance of human touch in hospitality. As highlighted by Andrew Evers during HOSPACE in November 2020, offering a guest the wine list on an app completely removes any sense of theatre or occasion — especially when compared to a leather-bound wine list.

There are instances where technology, while efficient, risks diluting the sense of occasion, particularly for front of house within luxury hospitality. Striking a balance between technological advancements and maintaining human interaction is absolutely crucial in delivering exceptional guest experiences, and this balance will differ depending on your target audience and their expectations. For example, a luxury five star retreat is more likely to favour the personable touch, whereas a city centre corporate hotel will look to adopt automation at every possible touch point.

The role of chatbots and Robotic Process Automation

Chatbots and Robotic Process Automation (RPA) present significant opportunities for streamlining operations and enhancing efficiency, particularly in back-office tasks. These technologies can automate repetitive tasks, allowing staff to focus on delivering a personalised service to guests. As with all technology solutions, their effectiveness hinges on training and calibration to ensure seamless integration, however, this is a rapidly growing subsection of AI which is excessively expanding.

Catering to diverse guest preferences

Technology excels in catering to diverse guest preferences, especially in multilingual settings. Simplifying processes such as room service ordering, and offering the ability to do so in multiple languages, not only improves efficiency but also enhances guest satisfaction. Offering guests choice remains paramount and going forwards it will become an increasingly complex challenge, yet a necessity to cater to these preferences that have a huge impact on guest loyalty and satisfaction.

Traditional vs. generative AI

There’s a notable distinction between traditional AI and generative AI. While traditional AI replaces human processes, generative AI goes a step further, creating new content. Both approaches have their place in the industry, offering unique opportunities for innovation.

Embarking on the AI journey requires a strategic approach. Starting small and gradually expanding allows for manageable integration while keeping long-term goals in mind. Despite potential budget constraints, especially for smaller hotels, the benefits of adopting AI technology are undeniable, and will be at the forefront of profitability in the coming years.

Using AI as a tool for enhancement and seizing opportunities

In light of concerns about the loss of the human touch, I want to highlight AI’s role in augmenting, rather than replacing, human interaction. Leveraging AI to gather and analyse data enables hospitality businesses to personalise guest experiences and provide tailored services that exceed expectations.

As AI continues to permeate every aspect of hospitality, staying ahead of the curve is really important. Tools for easy adoption exist, and businesses should seize the opportunity to embark on their AI journey now.

In an era where exceptional experiences drive customer loyalty, the integration of AI offers immense potential to delight guests and secure their repeat custom. Delivering unique experiences is key to building lasting relationships and fostering guest loyalty in an increasingly competitive market.

Of course, there’s no denying that AI is a complex and often daunting subject. What’s more there are an abundance of new emerging products on the market that seek to transform hospitality businesses. What is key to consider here is that one size does not fit all. A solution that might work for a 300 bed hotel, will not necessarily have the same impact on an intimate 20 bed boutique hotel.

Therefore I encourage hoteliers to embrace AI, learn as much as possible, and ultimately, design a tech stack that best suits you as an individual business.