AI in Hospitality
The hospitality industry is undergoing a major transformation, thanks to Artificial Intelligence (AI). From improving operational efficiency to enhancing guest experiences, AI is reshaping how businesses operate. A recent report by CGA powered by Niq with industry leaders found the following:
- 39% of hospitality leaders see AI as transformational for the sector.
- 59% of leaders are curious about AI but need more information, while only 17% feel well-informed.
- Top barriers to AI adoption: 78% cite lack of technical skills, 61% mention cost, and 47% are concerned about unproven ROI.
- Current AI uses: 48% in guest feedback, 42% in marketing, and 33% in recruitment.
- 76% of hospitality businesses admit they are behind other industries in adopting AI.
Currently AI is being used across a range of operators to help address some of the key business challenges faced in the hospitality industry:
1. Boosting Operational Efficiency
AI is helping to streamline back-end operations, saving time and cutting costs. For instance, Marriott International uses its chatbot āChatBotlrā for tasks like check-ins and room service orders. This not only improves efficiency but frees up staff for more personalised guest interactions. Similarly, Hilton Hotels uses AI to optimise pricing in real-time, analysing demand and market data to adjust room rates dynamically.
2. Enhancing the Guest Experience
AIās ability to personalise the guest experience offers operators a major advantage. InterContinental Hotels Group (IHG) introduced the AI-powered āIHG Concerto,ā which allows guests to make requests and order services via smartphone, enhancing convenience and satisfaction. Sona (an AI company working in the hospitality space) uses machine learning to analyse guest preferences and recommend tailored services, such as adjusting room temperature or suggesting local activities. While Dishoom uses AI integrated into their CCTV to gather data to improve customer experience and help with staff training without being too ābig brotherā.
3. Data-Driven Decision Making
AI can sift through vast amounts of data to uncover trends and guide decision-making. For example, Accor Hotels uses AI to analyse guest feedback across multiple platforms, helping them make data-driven decisions on everything from pricing to room upgrades, improving guest satisfaction and revenue. Dishoom have also found that AIās ability to crunch data can help identify menu trends that might otherwise go unnoticed.
4. Cost-Effective Innovation
Although the initial investment in AI might seem high, the long-term benefits are clear. The Zoku Hotel in Amsterdam, for example, uses AI for demand forecasting and staffing optimisation, which helps reduce operational costs and drive margin.
5. AI and the Human Touch
Often there is a worry in such a people-centric industry that AI will steal jobs, but AI is not about replacing people; it’s about enhancing the human element of hospitality. For example, Four Seasons uses AI to assist with guest preferences and bookings but ensures that staff can still offer a personalised service. Thereby allowing staff to focus more on creating meaningful connections with guests.
6. Future-Proofing Your Business
Embracing AI is no longer optional for staying competitive in the hospitality sector. Early adopters, like Hyatt Hotels, are already seeing the benefits of AI in improving guest interactions and operational efficiencies. AI helps brands stay ahead of the curve and this is just the start.
Conclusion: AI is Here to Stay
It is fair to say that the future of hospitality is inextricably linked to AI. From improving operations to delivering personalised experiences, AI is already changing the game. Hospitality leaders who invest in AI will not only streamline their operations but also foster stronger connections with their guests. So, it is clear that the time to embrace AI is now, as operators look to drive competitive advantage in a fast moving market.
Sources: Sona Webinar / CGA powered by Niq report / Chat GPT AI desk research