Impact of AI on Hotels: A New Skill Set for the Future By Are Morch

Maestro PMS Unveils Hotel Technology Roadmap Featuring AI Chatbots, Booking Engine and Embedded Payments

Listed companies offer either a chatbot, or chat thread which combines responses from chatbots and human agents. Ranked in order of raised funding, each company listed either offers an app, mobile-optimized site, or integration options with popular messaging applications. All chatbots featured can offer users travel suggestions, as well as flight or hotel booking assistance.

Then, the “virtual concierge” will respond with its recommendations, which are vetted by the brand’s human Navigators. AI systems equipped with Internet of Things (IoT) sensors can predict when hotel equipment and facilities need maintenance before they fail. This proactive approach not only reduces repair costs but also minimizes guest inconvenience and potential negative reviews. For instance, a midsize hotel in New York City reported a 15% increase in RevPAR within six months of implementing an AI-driven pricing system.

Businesses are already adapting to this new reality, and the travel industry is no exception. Virtual assistants are learning how to plan whole travel itineraries, and chatbots are handling more and more support queries. Approximately 77% of travelers have run into some type of problem while traveling, according to a Bankrate survey, including long waits, plan disruptions and poor customer service. As part of its recently-signed memorandum of understanding with the Saudi Tourism Authority, the hotel company said it would be running campaigns to promote various destinations within the country.

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In response, traditional hotels have stayed competitive by diversifying their branded product portfolios, embracing technology, enriching their amenities and intensifying their commitment to quality service. Likewise, the ascent of travel influencers on social media exposed uncharted destinations and created an additional avenue to engage with lifestyle-oriented consumers. Generative artificial intelligence tools like ChatGPT are all the rage right now, with new announcements every week, especially in the hospitality industry. What we may be underestimating, though, is just how vast this evolution is in terms of rethinking what’s capable for the website experience and how these tools can drive direct bookings. “The human element, the person-centered element of our business which is hospitality, will never go away with robots or AI,” Sanjeev explained.

Further, chatbots may encounter technical errors, such as misinterpretation of customer inquiries, leading to inaccurate or irrelevant responses. Additionally, customers may have unique or complex inquiries that require human interactions and human judgment, creativity, or critical thinking skills that a chatbot may not possess. Chatbots rely on pre-programmed responses and may struggle to understand nuanced inquiries or provide customized solutions beyond their programmed capabilities.

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The internal teams are already utilizing it, so it is crucial to ensure everyone is using it correctly to maximize profits and productivity. The introduction of AI agents presents both opportunities and challenges for hotels, ownership teams, and brands. The first step in embracing generative AI is to assess the next step is to invest in education and training for key team members. This includes understanding the capabilities and limitations of generative AI, learning how to create effective prompts, and staying updated on the latest developments in the field.

The capability of artificial intelligence to do traditionally mortal tasks at any time of the day means that it’s getting more and more significant in the operation of the hostel assiduity. This would indicate that possessors can save a lot of plutocrats, get relief from mortal miscalculations and provide better service. Moreover, the radical concept of employees as AI co-creators and shareholders represents a revolutionary approach to tackling the industry’s longstanding challenges.

While the initial investment in these technologies can be significant, hotels are seeing returns through increased guest satisfaction and operational efficiencies. AI-powered workforce management tools are helping hotels optimize their staffing levels based on predicted occupancy and service demands. These systems can create more efficient schedules, reducing overtime and overstaffing while ensuring adequate coverage during peak times.

A study of hotels using AI for operational automation showed an average reduction in administrative costs of 20%, with some properties reporting savings of up to 40%. A boutique hotel group found that implementing AI for staff scheduling resulted in a 12% reduction in labor costs without compromising service quality. The system’s ability to predict staffing needs with precision allowed for better resource allocation and improved employee satisfaction through more consistent work hours. It’s not just about surviving but thriving in an uncontested market space, where AI becomes the catalyst for innovation and growth.

AI in hospitality: Creating personalized customer experience

Last year, Emirates had signed an agreement with the Department of Culture and Tourism — Abu Dhabi to boost tourist numbers to the capital from key source markets across the airline’s global network. At its heart, the hospitality industry is all about serving people, and AI, when used carefully, can help you do that better. By using AI to personalize the guest’s journey, you can build customer loyalty, enhance satisfaction, and boost revenues.

Hybrid AI is an approach for businesses that combines human insight with machine learning and deep learning networks. Using hybrid chatbots, organizations can benefit from AI’s fast answers to common questions while maximizing the use of human agents. Conversely, the stakeholders building and training the chatbot must be open-minded enough to accept when the AI discovers patterns that weren’t previously recognized and fix those limitations. “You can never extract all the knowledge out of a person’s head and put it into an expert system, but you can extract a lot of really useful guidelines,” said Michael Berthold, CEO of data science and analytics platform provider KNIME. “Make that the basis and have the chatbot learn from that, so you have an 80% solution that’s based on expert knowledge.”

AS with every new technology, there are also potential drawbacks, such as the possibility of errors or unintended consequences. Incorporating Artificial Intelligence in hotels is stipulated to transform room services completely by 2025 through the process of creating personalized experiences that will incorporate individual preferences. Towards this, hotels will integrate chatbots and AI as a useful tool to acquire and retain various demographics. Artificial Intelligence is not just another technological trend; it represents a fundamental shift in how hotels can operate, serve guests, and empower employees. The integration of AI into hotel operations offers unprecedented opportunities for efficiency, personalization, and innovation.

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By forecasting demand with greater accuracy, hotels can optimize their inventory allocation, reducing the likelihood of overbooking or underbooking. This not only improves guest satisfaction but also ensures that hotels are maximizing their occupancy rates without risking costly booking errors. Guglielmo Marconi, who lay the foundations for wireless telegraphy, lived at the Savoy and in 1905 created a chatbots in hospitality industry system allowing the hotel to take reservations from cruise guests before they reached land. Where hotels have reservations of another kind is the fear that technology will take away from service and remove the human touch. These AI tools can also assist customers with billing inquiries, such as checking account balances, reviewing past invoices, updating payment methods, or resolving billing disputes.

• Whether it’s enhancing customer service through chatbots, refining pricing strategies with dynamic algorithms, or delivering unforgettable personalized experiences with AI-driven concierge services, the benefits are undeniable.
• When the user is ready to start planning a complex trip, they can request all of their travel needs, such as hotel dates or flight times, by recording one voice message.
• As competition and customer expectations rise, providing exceptional customer service has become an essential business strategy.
• This approach allows hotels and travel companies to optimize revenue while offering competitive prices to customers, enhancing the attractiveness of their services.
• The primary objective was to create a tool that was user-friendly and proficient in resolving customer issues.

In 2017, Mezi announced its full launch of the product, noting that companies including Bluefish, Adelman Travel, Casto Travel, W Travel and American Express were already subscribing customers. Hipmunk has also won two Webby awards, and is nominated for a third, in the travel category for its excellence and variety of tools. In 2016, the company was acquired for $58 million by Concur Technologies, a travel expensing platform. It is unclear how much Concur paid for the acquisition, but in a press release, the company said Hipmunk will still continue to run as its own service. However, Concur plans to integrate Hipmunk’s search technology on to its company oriented business-trip oriented platform.

The integration of AI into hotels will necessitate a shift in the skills required for hotel staff. As AI and LLMs transform how hotels operate, employees will need to adapt to new roles and responsibilities. According to the Snowflake report, AI will not replace human roles but rather augment them, allowing workers to focus on more strategic and creative tasks. Personalization, which is crucial in the hospitality industry, can be challenging for AI to achieve at the same level as human staff.

Multilingual support

The State of Travel 2024 Report also illustrates that AI is not just a tool for automating tasks—it is fundamentally reshaping how travelers plan, book, and experience their journeys. For hotels and other players in the travel industry, embracing AI-driven solutions will be crucial in capturing new market opportunities and delivering unforgettable guest experiences. Digital payments are trending and transforming the way guests are engaging with services and settling transactions. AI-driven data analytics tools will be used to process vast amounts of operational data in real time.

The company’s former product design head, Paul Ballas, has also focused on UX design at major companies including Deloitte and Oracle. According to LinkedIn, many current software engineers have completed advanced computer science and software development programs with organizations including Galvanize, University of Colorado Boulder, and Turing School of Software & Design. On its website, HelloGBye says it aims to solve pain-points of frequent professional travelers who need to book complex business trips or adjust travel plans quickly. The company’s CTO, Henry Shi, previously served as a software engineer at Google, where he assisted in the launch of Youtube’s Music Insights. The feature aggregates viewing information from all videos that the artist has uploaded, as well as videos from their profile that have been copied and reuploaded by fans.

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The chatbot engages with you in a conversation and asks about your style preferences, size, and desired fit. Based on your responses, the chatbot uses its recommendation algorithm to suggest a few options of jeans that match your preferences. Ensuring AI is used ethically to avoid biases in automated decision-making, which could negatively impact guest services. Inspired by how these brands leverage AI to optimize operations and drive revenue growth?

Imagine a hotel where every employee is not just a worker, but an AI innovator and stakeholder in the company’s technological future. In this bold new paradigm, hotels could implement an “AI Idea ChatGPT Market” where staff at all levels can propose, develop, and implement AI solutions. The hotel brand is the latest to adopt AI-assisted technology in a bid to personalize the guest experience.

In addition to this, AI-driven software can suggest personalized activities and services based on the preferences added by the guests, ensuring each recommendation is thoughtful and customized. The integration of Artificial Intelligence (AI) in the hospitality sector is reshaping how hotels operate, enhancing guest experiences, improving operational efficiencies, and even bolstering their sustainability efforts. From smart room technology to AI-powered concierge services, the industry is witnessing a transformative shift. Automation will be the No. 1 focus for owners and operators moving forward as they look to reduce labor costs and meet new guest expectations. In the back of the house, hoteliers will rely on automation as a way to reduce manual data entry and instead focus their efforts on more impactful strategies.

Babylon Health’s platform leverages an AI-powered chatbot to generate diagnoses based on user responses. Users can interact with the chatbot in the same way they would when talking to primary care providers or other health professionals. Marriott International’s chatbot, ChatBotlr – available through Facebook Messenger and Slack –  allows Marriott Rewards members to research and book travel to more than 4,700 hotels. Customers can also plan for upcoming trips with suggestions linked from Marriot’s digital magazine Marriott Traveler, all while chatting directly with the Customer Engagement Center.

A. The overall cost to develop an AI-powered software in the hospitality sector can vary from $50,000 to $300,000 or more. Partnering with a dedicated development team can help you get exact time and cost estimates based on your custom preferences. Hilton has introduced “Connie,” a Watson-enabled AI robot, across its concierge desks to provide an innovative guest service experience. You can foun additiona information about ai customer service and artificial intelligence and NLP. Using advanced natural language processing, Connie offers quick and accurate information about local attractions, hotel services, and amenities.

“The testing of ChatGPT reflects our commitment to constantly enhance our digital platforms and maintain our position at the forefront of technology,” said Muzzammil Ahussain, CEO of Almosafer. Through ChatGPT, Khalid, Almosafer’s virtual travel advisor, will be empowered to become a more holistic travel consultant with the necessary knowledge and expertise. We hope our blog has guided you well into diving through the world of AI for your hospitality businesses to reap as many benefits as possible while generating maximum RoI. As a dedicated AI software development company, we can help you enhance your hospitality services through artificial intelligence, thanks to our robust experience and portfolio of successful AI projects.

With a reach of 18 million users, KAI is trained to manage a wide range of financial tasks, from simple retail transactions to the complex demands of corporate banks. For good reasons, many hotels still want to have a front desk and people that interact with their guests to provide a personal touch. But even for these hotels, there is no reason not to provide a full self-service ChatGPT App journey in addition. Travellers hate to just stand in another line when they arrive or depart from hotels, and in almost all hotels this is still the case today. All of this change is driven today by the shortage of staff and the pressure to become more efficient in hotel operations. Any back office procedure which is manual today should be reviewed for automation potential.

AI never stops learning from analysis of guest and staff behavior, and because of that, it has the capacity to significantly transform hospitality. Operate with fewer well-paid, well-trained, well-motivated employees and invest adequately in DYI processes and solutions, automation, mobile and contactless applications, AI and IoT applications and devices, and robotics. I believe within the next t 3 years, on average, hoteliers will operate at 50% the staffing levels they had back in 2019 and will be investing 3x-4x more in technology, compared to the pre pandemic era. From business intelligence in the hospitality industry to automating front desk and back-office tasks, AI is here to stay.