AI in hospitality has been a buzzword, not a real business changer. This is due in large part to fragmented software used to manage core business processes. Data silos and disconnected systems prevent a holistic understanding of guest behavior. This makes it difficult to use AI-driven insights.
Hoteliers can unlock AI’s potential by laying the foundations to successfully leverage data across their business. This includes everything from optimizing operations to creating personalized experiences for guests. AI has been met with skepticism in the past, causing fears that robots will take over human jobs. AI can be a powerful tool to improve operations, increase efficiency and create a better guest experience.
The magic is finally starting to happen; let´s look at how a unified, single-source hospitality management platform can unlock AI´s game-changing capabilities.
- Guest Personalization
AI thrives off data and hotels produce an enormous amount of it. These include guest preferences and booking patterns, as well as service requests and expenditure patterns. A unified platform allows all of this data to be collected, analysed, and leveraged real-time. This allows hotels the ability to personalize each aspect of their guest’s experience.
For example, AI-driven guest profiling enables hotels to:
- Suggestions for personalized room upgrades can be made based on your previous stay patterns.
- Recommend spa treatments or dining options that are aligned with the guest’s previous preferences.
- Messages hyper-personalized to resonate with certain guest segments.
These insights are scattered and it is nearly impossible to scale AI-driven personalization without a central platform.
- Revenue Optimization
Dynamic pricing strategies can maximize profitability. However, their effectiveness is dependent on accurate real-time data. AI can analyze market trends, booking patterns, and competitor pricing to determine the best pricing strategy. AI can be able to:
- Automatically adjust the room rate based on fluctuations in demand.
- Predict peak periods for bookings and recommend promotional offers that will drive occupancy.
- Identify the services that are not being used and suggest targeted marketing.
If pricing decisions are based on incomplete or outdated data, revenue opportunities may be missed.
- Automation & Operational Efficiency
The hospitality industry continues to face a labor shortage, which makes efficiency a priority. AI-powered automation can improve operational workflows. However, its effectiveness is amplified if it’s integrated into a unified platform that includes all core processes.
- Automating schedules for housekeeping based on occupancy data.
- Predicting peak service demand can help you optimize staffing levels.
- AI-driven digital assistants streamline booking, check-in and check-out.
AI’s capacity to improve efficiency is reduced by a fragmented tech stack.
- Guest Engagement
AI-powered bots offer instant, personal support to guests at every stage of their journey. Chatbots are able to:
- Manage bookings, and make changes instantly and seamlessly.
- Respond to all inquiries from the guest, including requests for room service and local recommendations.
- Improve future service and engagement by using past guest interactions.
Chatbots that operate in isolation are unable to provide meaningful and personalized assistance.
Connecting dots
The foundation of AI is created by unifying data from CRSs, PMSs, RMSs, distribution channels, loyalty programs, booking engines and other systems into one platform. Eliminating data silos and fragmented system, hotels are able to:
- Leverage AI for real-time, data-driven decision-making.
- Enhance the guest experience by personalizing everything.
- Intelligent automation can optimize revenue and operational efficiency.
IBS Software’s iStay is the industry’s first and only unified, single-source platform that´s transforming hospitality management as we know it. As AI transforms the guest experience, hotels can leverage AI to delight their guests, empower their staff, and grow.
