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AI in the hospitality industry: Guide to artificial intelligence for hotels

  Posted in Resources  Last updated 11/07/2024

What is AI in the hospitality industry?

AI in the hospitality industry means using advanced technology to improve various aspects of running a hotel and serving your guests. This includes automating routine tasks, personalising guest experiences, adjusting pricing strategies, and making your overall operations more efficient.

By using AI, you can simplify your processes and significantly boost both revenue and guest satisfaction.

This blog will provide a full guide to AI in the hospitality industry for your hotel.

Table of contents

The impact of AI in hospitality

Using AI in your hotel can make a big difference in how you run things and how you connect with guests. Here are some ways AI can help you:

  • Optimise pricing strategies: AI tools can help you adjust room rates in real-time based on demand, market conditions, and competitor prices, ensuring you get the best revenue from your rooms.
  • Improve marketing campaigns: AI analyses customer data to create targeted ads and personalised marketing strategies, which can lead to more direct bookings and better sales.
  • Supercharge revenue management: AI helps you make smart business decisions by analysing big data and market trends, allowing you to adjust pricing and marketing strategies quickly to maximise profits.
  • Enhance booking platforms: Direct booking platforms can be powered by AI and drive direct bookings and guest loyalty by orchestrating a better online experience through personalised interactions with guests.
  • Manage big data: AI tools can help analyse large volumes of data and simplify it enough to make strategic choices about guest characteristics and behaviour.

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Artificial intelligence in hotels examples

Being such a broadly useful tool, artificial intelligence is used in lots of different ways in the hospitality industry. This includes guest communication, revenue management, reservation management, personalisation, dynamic pricing adjustment, and many more.

Here are just a few of our favourite hospitality AI enablers:

Visito

Visito offers an AI-powered operating system designed to streamline guest communication in the hospitality industry. It integrates with platforms like WhatsApp, Instagram, and Messenger to automate over 97% of guest messages, reducing support costs by up to 90%. 

The system helps increase direct bookings by displaying room pricing and availability directly within these apps and sending smart follow-ups. Visito uses advanced AI technologies, including OpenAI ChatGPT and Google Gemini, to enhance guest experiences and boost positive reviews.

Aiosell

Aiosell offers a fully automated revenue management system designed to help hotels set and maintain optimal room rates. Using artificial intelligence, it dynamically adjusts prices based on supply, demand, and competition, operating 24/7 to maximise profits. 

Aiosell integrates with various hotel softwares – including SiteMinder! – to provide a comprehensive solution that includes property management, channel management, booking engines, reviews management, and more. 

EasyWay

EasyWay offers a comprehensive AI-driven platform for the hospitality industry. It focuses on enhancing guest communication through generative AI agents that manage reservations, provide personalised guest interactions, and streamline hotel operations

Key features include AI Concierge, AI Reservation Manager, and AI Receptionist, which handle tasks like check-ins, reservations, and guest inquiries in over 100 languages, ensuring 24/7 support and zero errors. EasyWay helps improve efficiency and guest satisfaction.

Myma.ai

Myma.ai is an AI-powered platform made to enhance guest experiences and streamline operations in the hospitality industry. It has features across the entire guest journey, from enquiry and booking to post-stay interactions.

The platform also integrates with various communication channels (like websites, social media, and messaging apps) and uses AI to provide personalized services, automate responses, and offer insights.

Connie the Concierge

Connie is employed by Hilton and can give guests a range of tips on what attractions, restaurants, or activities to investigate. She learns from every interaction so is constantly improving the knowledge and service she can impart.

Ivy the Direct Messenger

Ivy is a program used by many major hotel brands that basically automates all guest interaction. Designed specifically for the hospitality industry, Ivy handles around 90% of real-time requests, effectively becoming the main point of contact throughout the hotel stay. Any question she can’t answer, she can immediately refer to the relevant department.

AI in the hospitality industry

Advantages of hotel artificial intelligence

Many hotels are using AI to improve their overall performance, but is it the right technology for your hotel? Here are a few of the key ways that artificial intelligence could help you boost your hotel’s growth:

1. Increase hotel revenue

AI helps you implement dynamic pricing strategies that adjust room rates based on real-time demand and market conditions. This ensures you get the most revenue per available room by selling at the best prices. AI-powered marketing tools also help create personalised ads, leading to more direct bookings and increased overall revenue.

2. Drive operational efficiency

By automating repetitive and time-consuming tasks, AI allows your staff to focus on more strategic and guest-centric activities. AI-powered systems can manage inventory, handle bookings, and even predict maintenance needs, ensuring smooth and efficient operations. This not only reduces costs but also improves guest experience by providing quicker and more accurate services.

3. Enhance guest experience

AI enables you to offer highly personalised experiences to your guests. By analysing guest data, AI can predict preferences and tailor services accordingly. This might include personalised room settings, customised recommendations for dining and activities, and timely service delivery. Such personalised attention can significantly improve guest satisfaction, loyalty, and repeat business.

4. Improve check-in process

The potential for AI to improve the service aspect of hospitality is unlimited. If an AI can instantly sync with your mobile phone or use facial recognition there’s no need for formal identification or check-in. With a mobile room key as well, travellers will have no need to delay between entering the hotel and settling into their rooms.

5. Manage room service

No need to call or wait for someone to accept your order, AI will be allow a guest to communicate instantly. The food or beverages could even be delivered automatically by AI bots. AI systems will be extremely efficient in sticking to schedules and maintaining standards when it comes to cleaning and preparing for the arrival of guests.

6. Save on power

Smart technology will raise the bottom line of hotels by sensing what lights and appliances are being used and turning off those that aren’t to save power.

Key considerations when implementing AI in hotels

Adopting AI for your hotel can seem like a daunting step forward, but with a few important considerations, you can simplify the transition and implementation of AI into your operations:

AI adoption barriers

Medium-sized hotels often face challenges like the perceived high cost and complexity of implementing AI technologies. A lack of technical expertise can hinder successful integration and management of AI systems. Choosing cost-effective and user-friendly AI solutions that don’t require extensive technical knowledge can help overcome these barriers.

Bonus tip: if you do have complex needs and require complex software, make sure that your provider offers excellent support and training to keep you and your staff up to date.

Phased AI implementation

To minimise disruption and manage costs, consider a phased approach to AI implementation. Start with small, manageable AI projects that address specific pain points and gradually expand the use of AI across different areas of operations. By taking a step-by-step approach, you can build confidence and expertise in using AI technologies for yourself, your staff, and your guests.

AI software options

When selecting AI solutions, prioritise software that is scalable and tailored to the needs of medium-sized operations. Look for AI tools that offer integration with your existing hotel management systems and provide comprehensive support and training. This ensures a smooth transition and maximises the benefits of AI implementation.

This is why SiteMinder is designed to integrate with leading AI providers, as well as offering rules-based automation in our own platform.

By Dean Elphick

Dean is the Senior Content Marketing Specialist of SiteMinder, the leading technology provider delivering hoteliers unbeatable revenue results. Dean has made writing and creating content his passion for the entirety of his professional life, which includes more than six years at SiteMinder. Through content, Dean aims to provide education, inspiration, assistance and value for accommodation businesses looking to improve the way they run their operations achieve their goals.

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