It seems that 2023 is the year when Artificial Intelligence (AI) really entered the mass consciousness; barely a day goes by without an arresting headline about the science fiction-like capabilities of ChatGPT and other generative AI tech.

Everyone is talking about and everyone wants to be a part of it as well. There are sceptics out there as well but that’s always been the case when new technology and its capabilities become a household topic and dinner table convo.

As this new technology becomes increasingly prevalent, I often get asked what it will mean for the hospitality sector. How will it impact jobs? How will it improve the lives of guests and employees? How can it improve efficiencies and reduce cost?

Well, although the application of AI in the sector might not be very widely visible (yet) I think it has the potential to truly revolutionise the hospitality industry as well. Here I have listed just five ways in which AI can transform the hospitality industry. I am sure that there are going to be more opportunities to explore as we fully understand AI’s role in this sector.

Resilient digitalisation
  1. It could dramatically improve hotel operations
    AI has the potential to greatly improve hotel operations by automating repetitive tasks such as booking and contactless check-in processes, freeing up staff to focus on personalised service to guests. AI is not going to take away customer service jobs but give them more time to hone their guest relations skills and be able to provide top service without being pulled into different directions. AI can also enhance customer service using chatbots and virtual assistants to assist guests with booking reservations, answering questions and providing recommendations. Not to mention improving the overall efficiency of hotel operations by forecasting demand, inventory management, and logistics optimisation.
  2. It could boost marketing efforts
    Modern hospitality requires highly effective marketing, and this is where AI can step in. It is expected to change hotel marketing by enabling more targeted and personalised marketing campaigns based on an individual guest’s preferences, past behaviour and demographics. Meanwhile, AI virtual assistants will allow hotels to interact with guests in real-time and provide personalised itinerary and offers around the city and the hotel.
    AI can also help identify and target the most effective influencers for hotel campaigns and assist marketing managers in monitoring social media platforms and identifying customer feedback, sentiment, and brand mentions. Additionally, it can also safeguard online reputation and send alerts to customer service to resolve the issue immediately and take action.
  3. It could also boost revenue
    For an industry that is still bouncing back from the effects of the pandemic, AI could be extremely helpful when it comes to revenue management. This is because AI algorithms can help hotels adjust their prices in real-time based on demand and other factors, often known as dynamic pricing. By analysing data from a variety of sources – such as booking patterns, competitor prices and even weather forecasts – AI can help hotels optimise their pricing strategies and maximise revenue.
    From F&B perspective, it can cut back on a lot of wastage by analysing and assessing purchasing trends and demand and supply and is ultimately good for the environment too. Not only does it make operations more efficient it also reduces cost.
AI could help streamline HR processes and manage employment issues more effectively
  1. Reduce HR issues
    The hospitality industry is well known for its complexed recruitment challenges – and again AI could be the answer. Through its various applications, AI could help streamline HR processes and manage employment issues more effectively. CV screening is the perfect example – this is an immensely time-consuming process, especially for large hotel chains with multiple locations. AI-powered recruitment tools can help automate the process by using machine learning algorithms to scan the right candidates and identify the most suitable candidates based on specific job requirements.
  2. Solve communication barriers
    Hospitality businesses who want to have a global footprint must be able to answer queries in different parts of the world in different languages – 24/7. Thanks to AI, intelligent chatbots have been designed to communicate with local customers using natural language processing (for text) and generation (for voice) in the native language of the guests. This allows for precise and clear communication between the machine and the user – and opens up a world of new customers and improves on service offering when guests check-in as well.