Smart stays
redeem rewards became far simpler. Consequently, guest satisfaction often improved, and the increased efficiency and opportunities to upsell were a boon for operators. These advantages still hold true, but they quickly become the standard, so while the industry is not turning away from apps, it is looking to integrate AI to enhance their capability and take personalisation, efficiency and process automation to the next level.
The age of AI At the heart of AI’s ability to change the hospitality industry is its potential to further personalise the guest experience across all sectors of the hotel market. Indeed, at their latest European Hospitality Industry Conference, analysts at Deloitte noted that an impressive 52% of customers expressed the belief that generative AI will be used for customer interactions, while 44% noted that generative AI will be employed for guest engagement. Nevertheless, there is a broad spectrum of
engagement with AI. While Deloitte’s research revealed that not only are most organisations investing heavily in digital transformation to gain efficiencies and reduce costs – including investing in data analytics (75%), and digital services and products (70%) – two-thirds are only just starting to explore, or are not yet considering AI solutions. Indeed, only one in ten reported that they were implementing AI solutions, with one in five still at the piloting stage. The findings indicate the size of the opportunity, but also the need for a better understanding of how to implement AI at scale. So, while the industry may be standing on the
threshold of a bright new future infused with AI-driven innovation, there is still some uncertainty about the right path forward and, therefore, some significant opportunity for someone to take bold steps to carve out a competitive advantage. Indeed, hospitality is lagging behind other
industries in terms of its adoption of AI, despite its keen interest. Yet the industry has a vast amount of guest-specific data at its fingertips, not least through its loyalty programmes, and the ability of AI to incorporate vast external data sets – anything from weather conditions to seasonal events – to create personalised recommendations is unlike anything that operators have seen before. Perhaps their hesitation is down to a lack of understanding about how AI solutions can complement employees in their work, rather than replacing them and, therefore, dehumanising the guest experience too much. After all, guests still like the personal touch.
Front or back office? One answer could be to focus on back-office functions, such as demand forecasting, which promise quick efficiency gains for operators. When
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it comes to guest-facing implementations of AI, chatbots can be very useful for guiding guests through the often-cumbersome processes of booking and check-in by answering queries and streamline these administrative tasks. AI can, for example, enable facial recognition technology to handle check-in without the need for any physical ID or a key card. Indeed, a survey carried out in 2024 commissioned by hospitality cloud services provider Mews found that some 80% of travellers prefer hotels with completely automated front desks or self-service capability. It seems guests are keen on a seamless check-in experience and a big reduction in waiting times.
“The industry has a vast amount of guest- specifi c data at its fi ngertips, not least through its loyalty programmes, and the ability of AI to incorporate vast external data sets.”
There are inevitably risks, especially if operators
fail to marry up their understanding of guest expectations with the functionality of AI solutions. Getting AI deployment wrong could result in significant damage to a brand’s reputation.
Prime movers AI certainly brings risks, and it would be foolhardy to implement it simply for the sake of having some AI capability to show off, but many brands are taking the plunge and investing in cutting-edge solutions. One example is Accor, where the ‘Smart Room by
Accor’ CRM system is AI-enabled to analyse guest preferences and anticipate behaviours. The system can, for example, modify the lighting, temperature and entertainment systems in a guest’s room in the hope that on their next visit they are more comfortable. Furthermore, the platform can continuously refine in-room conditions in line with changing guest preferences over time. Over in Las Vegas, one brand is going all in with
AI. As the name suggests, the AI-enabled Otonomus Hotel makes advanced use of machine learning capability to create a personalised guest experience. AI is in action before guests reach the check-in desk, gathering information on guests’ personalities and preferences through pre-visit communication. Many digital solutions learn more about a guest with each stay, logging the length of their visit, their spend, and a host of other data points. The Otonomus AI solution gathers key information – in this case in the form of an upfront guest quiz – that prepares the restaurant for their food and drink preferences, and can inform the concierge
80%
Travellers prefer hotels with completely automated front desks or self- service capability. Mews
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