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The Evolution of Artificial Intelligence (AI) in Hotel Industry


From developing hyper-personalized guest experiences to identifying unrecognized revenue opportunities, AI empowers innovation and growth by distilling information and deducing patterns into actionable insights which in turn will generate better hotel bookings and ROI at the same time. With the inception of 21st century, myriads of industries that remain adamant to integrating new technological revolutions are most likely to revert in their general course of improvement. Numerous businesses across the world have perceived how important it is to include contemporary digital marketing and technology to attain constant revenue and growth. The last decade has actually seen incredible breakthroughs and innovations in the portrait of digital solutions which includes the hospitality sector as well. So, one of such compelling trend is overtaken by artificial intelligence which has become an inseparable part and parcel of a hotelier’s life and time .

In the mainstream culture AI is often misconceived as a replacement for human power, the concept of AI as a technological aid is much larger, pervasive, and wider. AI, singlehandedly, has created greater trust as well as comfort, however, for the hospitality industry, showing the potential of transforming all the crucial processes, services, and facilities through AI-powered robotics and NLP-bots which are so smart you won’t even know that you’re having a fantastic conversation that too not with a human being(unbelievable, right)! Today, the hotel industry, where comfort-defining advancements are most rapidly incorporated, has sophisticated its entire system with the adoption of many innovative methods used for providing satisfying customer service.

Artificial Intelligence in Hotels

All hotels of the current and future generation greatly need a connected platform and ecosystem that is constantly acquiring, contextualizing, processing and analyzing customer data, and turning it into predictive and actionable insights for generating a superior guest engagement and experience. Such a process (AI) will enable hotels to leverage all the data (inside hotels) coming from across the front to back offices. AI will enable several hotels to translate and harness all of this unstructured and disparate data into accessible smart insights in an ultra-cost effective way.


All the information which have been captured automatically (from multiple sources) from bookings, transactions, satisfaction surveys or third party providers, as well as observation data recorded by every member of the hotel staff, are very valuable. This data, with the assistance of AI can be leveraged by hotels for analytics to determine guest personas and create customized services, communications and promotional offers that provide targeted and amazing unique experiences.

Also, the hotels can map the total journey of a guest, both digital and in-person, to identify patterns around guest experience preferences and shortcomings. This can again be used to assess and prioritize service areas for proactive improvement, such as offering options and experiences very individual specific to delight the senses which may include custom-tailored offers and discounts for guests.

Advantages of using AI in hotels

Data-driven Marketing

We all know that data has shifted the entire foundation of the hotel industry. Hotel managers can now segment guest profiles to infinite degrees, creating a comprehensive picture of who’s staying at their properties and how to target them automatically. Also, managers can track guest habits, interests, preferences and any unrecognized revenue opportunities or paths to stronger brand loyalty –– it’s all in the data!

Upsell and Cross-sell

Understanding the basic guests’ preferences and buying patterns is not unlike predicting a stock price. In a hotel, Artificial intelligence engines not only unlock the future with past data, but create feedback loops so those improvements always build on themselves. No more courting attention is required with shotgun-approach emails, ads and commercials. Conventional and digital marketers are shifting from a pattern of interruption to weaving offers and touchpoints into the guest’s life that too on and off property.

Continually evolving segmentation

Hospitality pundits says that each step of the guest lifecycle contains finely-tuned data points which includes– reason for traveling, booking date, date of last stay, amenity & activity preferences, dining habits, total expenditure, and especially, personal data points like email, address, birthdate, education, income, job title, preferred language, and marital status –– even listing them all feels overwhelming! But these pieces fit into one constantly changing puzzle that intelligence algorithms analyze with ease and makes your chores easy so that you can focus on other priority stuff.


Super-enhanced guest profiles

In the realm of hotels guest data must go far beyond email, age and address! Central data intelligence warehouses can weave disparate databases and create a “Individual Version of Truth,” which may include guest history, value, preferences, behavior, satisfaction, and intent. Hotel systems for property management (PMS), point of sale (POS), central reservations (CRS), call center, food & beverage, and spa all contain the data to improve guest experiences and build better brand loyalty for all the millennial travelers.

Personalization across the guest experience

Take the confirmation email, a baseline practice for any hotel. Customization is the key to success in hotel industry. “Thanks for your reservation, John. We look forward to seeing you.” But with artificial intelligence engines understanding John’s history, the next time he makes a reservation — without human intervention — that email can read, “Thanks for staying with us again, John. We reserved you a room facing the pool. It can also prompt an enticing message saying– Click here if you’d like to book a discounted massage at the spa,” and contain images most relevant to John’s lifestyle.

Real life example of AI in hotels

More and more, hotel industries have come to realize that in-depth customer service with properly harnessed customer insight is the best key to increase brand value, hotel bookings, and ROI. This is why many hotel giants and experts have begun to see a fresh rise in mature-service hotels where customers are not only regaled with hotel’s interior charm but are also equally satisfied with real-looking AI robot concierge service. In the last few years, the hoteliers have managed to feel comfortable with voice assistants on the go as well as at home, bridging the gap between machine and humans. The hospitality industry is, therefore, viewing this technology in form of digital concierge services.

Take an example of Hilton Worldwide Hotel whose new AI-based concierge Connie is transforming the hotel guests experience. Connie is deemed as the first ever AI-enabled robot with two-feet of height. Performing just like a human concierge, Connie can assist arriving hotel guests at front desk standing on its bipedal support. Connie has the following attributes for offering excellent and unique customer service- It relies on IBM’s Watson AI for computing intelligence. It also uses travel database WayBlazer. Gives real-time recommendations for visit-worthy sites and attractions. It answers customer queries on the spot. Also, it learns from frequent customer interactions to refine its responses. Connie also renders excellent care and support as a robotic concierge.

So, now you know everything about Artificial Intelligence and its gamut in the hospitality sector. Schedule a demo with us and redefine your guest’s experience. In this demo, we will tell you more about AI-enabled bots and voice-based services so that you can stay head of the curve and keep yourself up-to-date on the latest and ongoing things in the hospitality niche.

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