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Artificial Intelligence In The Hospitality Industry: The Potential Impacts Of AI For Hotels

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Posted by HiRUM Software Solutions - 24/05/2023
artificial intelligence hotel concierge in a hotel lobby

In the last 6 months the debate around AI (Artificial Intelligence) has ignited fiercely, as we see technology companies race to develop their own products. Most of us had never heard of ChatGPT a year ago and yet now there are a multitude of products and services being developed that apparently harness the power of AI and machine learning. While the focus has initially been on writing tools that can auto-generate content based on simple questions (and no, before you ask…this blog has been written by a human, not a machine!), the application of the technology is expected to be widespread. So what about hotels, restaurants and tourism businesses? What can we expect the impacts of artificial intelligence in the hospitality industry to look like?

What is artificial intelligence?

Artificial intelligence refers to the simulation of activities or processes that are usually carried out by humans. Essentially it is the use of computers or machines to carry out tasks that were traditionally thought to require human intelligence to perform.

It’s actually not a new concept by any stretch of the imagination when you consider the number of things that have been automated over the last century. However, part of the reason for the scale of the debate we are currently seeing is that it is only relatively recently that the technology has reached the point where it can be trusted to carry out more important business tasks.

AI technologies work by using large amounts of data, analysing that data for patterns and using the patterns to make predictions about what is required. A simple example that we are all likely to be familiar with is a chatbot on a website that can answer the most common questions that a user may have.

How Is AI Being Used In The Hospitality Industry?

Contrary to the current hype in the media, artificial intelligence is already being used successfully and extensively in the accommodation and tourism industries. There are numerous examples of this such as restaurants that use robots to deliver food to tables, the use of virtual assistants that are able to respond to customer service queries 24 hours a day, rather than just during business hours. And software developers like HiRUM have offered, for a number of years already, tools such as intuitive pricing that adjusts your room rates and channel listings according to demand.

With customer service at the heart of everything we do the possibilities are almost endless when it comes to how artificial intelligence can be applied in the hospitality industry to improve the guest experience. Rather than something to be feared, the application of AI should be embraced by hotels and hospitality businesses. Used effectively it has the potential to significantly transform our businesses for the better and improve not just operational efficiency but revenue and ultimately profit.

What Are The Benefits Of Artificial Intelligence In The Hospitality Industry?

AI has the potential to significantly impact the hospitality industry in a number of ways:

  1. Personalisation: AI can analyse guest data to create personalised experiences that meet individual needs and preferences, such as room types, dining choices, amenities and activities that guests might enjoy based on their previous choices.
  2. Improved efficiency and customer service: Many repetitive and time-consuming functions can be automated, such as booking and check-in procedures, customer service inquiries and housekeeping. This can free up staff to focus on more complex and personalised tasks that can add even more value and build the guest relationship.
  3. Enhanced revenue management: Hotels and accommodation businesses can optimise their pricing strategies by employing software that uses AI to analyse data such as occupancy rates, seasonality and forecasting demand to set prices that maximize revenue and profit.
  4. Better resource management: AI can help hospitality businesses monitor and manage their resources, such as energy and water consumption, by monitoring and adjusting temperature and lighting settings in real-time, to reduce waste and improve sustainability.
  5. Enhanced security: Advancements in technology around facial recognition means that artificial intelligence can help hotels improve security and facilitate room entry and guest check in. It can also be used to monitor premises for suspicious activity, identifying potential security risks, and alerting staff in real-time.

The Future Of AI In The Hospitality Industry

Artificial intelligence has the potential to revolutionise the hospitality industry. In the coming years we can look forward to even more sophisticated technology that will further improve the guest experience, increase operational efficiency and enhance revenue and resource management. However, to fully capitalise on these benefits hospitality business owners will need to stay in touch with hospitality trends and the changes in software and technology and be prepared to invest in careful planning and training.

As we’ve highlighted, the benefits of AI in the hospitality industry are numerous. So long as we remain mindful of the importance of the ‘personal touch’ and face to face communication when it is most critical, artificial intelligence has the potential to transform our industry for the better.

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