Artificial intelligence has transformed the way every industry does business. Whether that is through automation, virtual experiences or predicting future trends, every single one of us has encountered AI at some point in the last few years, whether we are aware of it or not.
At a basic level, chatbots are helping field enquiries on websites and because, unlike humans, they do not need a lunch break, they are always on and ready to react. However, the more advanced adopters of AI are using technology to fundamentally change their business and disrupt their entire industry.
The real estate market is no different. Emerging technologies are being used to streamline operations and enhance the customer experience. They are also able to provide more accurate valuations and predict future trends, while virtual tours and augmented reality experiences are allowing potential buyers or tenants to explore a property without having to visit in person.
In every business, the more information you have about your customer, the better your relationship is with them and the more value you can generate from it. We have all come to expect a personalised experience nowadays – whether that’s when you switch on Netflix, log in to Amazon or open a real estate search engine.
We want technology to respond intuitively and learn from our past behaviours and transactions to give us tailored recommendations. In real estate, we can use machine learning algorithms to find out more about who are customers are and what they want.
Data-driven decision making also gives agents, investors and brokers the ability to access real-time market insights and make faster decisions. The way properties are searched for, marketed and managed, as well as bought or sold, is changing and it is up to individual companies to try and get ahead of the curve if they want to stay relevant.
AI in the short-term rental market
In the short-term market, we are seeing a huge impact from AI. Communications with guests have been made easier by automation, with chatbots and virtual assistants laying a lot of the groundwork to answer commonly asked questions. With multilingual capabilities, the bots can enhance the overall customer service experience.
Waiting in a queue to raise a query or not being able to contact hosts and property management teams out of business hours, is a thing of the past given the right technology. The short-term market is also using AI to personalise the guest experience ranging from providing local recommendations for restaurants and activities, to the finer details such as the temperature of the AC units and your preferred amenities on arrival.
Machines are learning about our guests at a rapid rate and using the data to provide exceptional customer service moments – which is ultimately what hospitality is all about. With AI, we are also able to easily highlight the unique features of each property on our website. The data is far more detailed than it ever has been, offering a much more bespoke experience which matches the prospective guest’s likes and dislikes.
When catering for short-term renters, communication is paramount and can become a time intensive process. Matching the behaviours of the guests with the unique details of a property ensures smarter and more efficient communication.
If you look at Airbnb as an example, it is a model which has shaken up the hospitality industry with cutting-edge technology and constant innovation. To enhance the matching process between guests and hosts, the app uses predictive search which incorporates AI to analyse user behaviour when booking a property.
Interestingly, it profiles its customers by scanning social media activity to evaluate guest personalities. Yes, that’s right –in an intervew last year the Airbnb CEO controversially revealed the company had looked at over a billion data points to analyse which guests had thrown a house party while staying in one of its properties – in other words, who was likely to break the rules and who was not.
Airbnb also uses predictive pricing to maximise revenue for a host giving them real time information on competitors, past booking trends and what is happening in the local area.
At Frank Porter, I am placing a huge emphasis on using AI to streamline everything – any part of the business we can improve or make more efficient will be transformed and we are not afraid to try new things.
The future of the real estate market and the short term rental market will depend on the successful adaptation of AI, and by this time next year the entire business may look entirely different.