Artificial intelligence (AI) is the technology advancement seemingly on the tip of everyone’s tongue across all industries. Yet, hospitality depends heavily on human interaction and personalized services. As customer expectations steadily rise, the demands of providing exemplary hotel services from every touchpoint are taking their toll on overworked staff members. Over two-thirds of hotels continue to experience staffing shortages, forcing owners to look for new solutions to improve efficiency. AI technology has the potential to reduce the burden by improving hotel operations in various ways.
How Can AI Improve Hotel Operations?
Artificial intelligence refers to the use of digital devices or software applications to perform intelligent tasks without human intervention. Depending on your goals, tools powered by AI technology can range from computer software to sensors and cameras throughout the hotel. Such a wide range of products provides hoteliers with an exciting array of options for improving hotel operations ranging from administrative tasks to communicating directly with guests, and even personalizing the guest experience.
AI Solutions Can Assist with Dynamic Pricing and Revenue Management
Data collection and analysis is a vital part of understanding the relationship between supply and demand in the hospitality industry. However, analyzing large amounts of data is time-consuming and tedious for humans. AI-powered programs can sort and analyze data in a fraction of the time required for a team of analysts to do it manually.
Programs that process large amounts of data regarding occupancy, demand, and local trends can help you set room rates at an optimal level. AI-powered revenue management tools further segment data to help you adjust your prices to appeal to specific customer groups. These abilities can help you avoid missed opportunities related to pricing and the inability to accurately target your audience.
Addressing Staff Burnout by Reducing the Workload
A survey of 500 U.S. hospitality front-line managers revealed that 47% are experiencing burnout and 68% said team members have expressed burnout. Understaffing, long work hours, and guest volatility top the list of factors contributing to increased burnout. AI technologies that improve the guest experience without human interaction offer solutions to lighten the load for employees and eliminate some of the daily stressors of the job.
AI tools aren’t just for customer service in hotels. Tools used for inventory management, scheduling workflows, and analyzing data reduce manual requirements for staff members. Eliminating repetitive tasks can minimize overtime requirements and reduce stress.
Using AI To Personalize and Improve the Hotel Guest Experience
For many, the concept of producing a more personalized guest experience with AI comes as a surprise. However, meeting customer expectations sometimes means creating an environment where they can easily access the information or supplies they need. For example, 70% of hotel guests find chatbots helpful for simple inquiries and 65% want the tech in their hotel to be cooler than the tech in their homes.
Beyond providing accurate information, AI tools can personalize the guest experience by supplying in-person concierge services. Hilton’s AI concierge robot “Connie” interacts with guests to provide information about hotel amenities, local attractions, and dining recommendations. The robot learns from human speech to adapt to guests, personalizing the experience even further.
Cutting Costs by Integrating AI in Hotel Operations
The impact of inflation is particularly harsh in the hospitality industry. Hotel owners are seeing increases in energy costs, wage expectations, and necessary amenities. While these expenses cut into profits, hoteliers are expected to absorb new costs without interfering with the guest experience. Integrating AI into various operations can help you cut costs in several areas.
- Using AI-powered tools can help hotel owners cut costs by reducing staff requirements, improving workflow efficiency, clarifying opportunities, and reducing waste.
- AI programs that automate repetitive tasks reduce staff requirements, allowing managers to do more with less. As a result, payroll costs can be reduced.
- Tools used to streamline workflows further reduce demands on staff members and enable employers to improve schedules for short-staffed teams. By improving efficiency and reducing burnout, you can improve retention and reduce recruitment costs.
- Data analysis tools ensure you can make the most of your data and optimize pricing to take advantage of potential opportunities. Avoiding empty rooms increases revenue.
- Tools that collect data to monitor perishable items and predict the use of utilities help you avoid waste while ensuring necessary ingredients and amenities are always available.
Overcoming Challenges Related to Adopting AI Technology for Hotel Operations
While AI brings many benefits to hotels, integration comes with varied challenges. Investing in AI tools can be intimidating when you can’t guarantee how quickly you’ll see the returns. Initial costs can include hardware, software, and training for staff members using new tools. Integrating new tools into legacy systems can increase costs or cause operational glitches. In other words, operational efficiency can suffer before it improves.
Beyond the technical aspects of integration, it’s essential to remember that AI is an unexpected element in the hospitality industry. Striking the right balance between automated services and human touch is crucial in developing an outstanding guest experience. Adopting tech without creating impersonal guest experiences can be challenging.
Overcoming such challenges requires a comprehensive plan and professional partnerships. Before investing in new tools, you’ll need to research AI solutions known for compatibility with hotel management systems. Analyze the potential ROI of different tools to learn which will be the most beneficial. By starting small and scaling slowly, you can mitigate upfront costs and reduce the likelihood of glitches. Designing AI systems to enhance and complement human interactions allows you to balance tech and human touch to improve guest experiences.
AI Technology is Changing the Face of Hotel Operations
AI technology offers many benefits to improve hotel operations for increased efficiency and improved customer satisfaction. While implementation doesn’t come without hardships, the right approach can limit issues and concerns. Proactive methods for strategic implementation can enable even smaller hotels to reap the benefits of efficient operations through the use of new technology.
Contact us to learn more about changing technology to improve your hospitality operations.