1 June, 2023

Embracing tech: What hotels need to do to stay ahead

Chatting about chatbots: understanding the competitive edge of hotel chatbots

chatbots for hotels

Other back-of-house operations such as managing waste and energy usage can be optimised by AI, resulting in a less financially daunting step — if not a positively rewarding one — towards sustainability for many hotels. AI-driven personalisation is the solution to tapping into the full potential of the experience economy. Research conducted by McKinsey found that companies who perform in the top quartile for personalisation generate 40 percent more chatbots for hotels revenue than average players, hitting over $1 trillion in value across US industries. It’s much harder to define and deploy an extraordinary travel experience, as it so often depends on the unique desires of the individual traveller. Since the start of the pandemic, every consumer industry has had to evolve at breakneck speed to keep pace with an increasingly digi-native audience, remote or hybrid workforces and a host of financial challenges.

Hospitality business will need to evaluate if adopting AI-powered solutions would be a genuine benefit to their business strategy in terms of value to their business, corporate image and value to their guests. As the development of AI and how it handles customer data continues, we’re now seeing more innovative ways in which travel companies build relationships with their customers. Technology and travel have become even more intertwined and AI-based technology solutions are now vital to the travel industry’s future. Future improvements on the cards will allow the chatbot to manage room requests through integration with the hotel’s back-end systems. But more chains and boutique establishments are trying to reduce the workload on their human front desk staff by introducing a chatbot. Virtual travel has been gaining momentum in recent years, and it allows guests to experience a destination without physically being there.

What are the benefits of AI in the hospitality industry?

If using an AI-assisted chatbot, and especially with voice recognition and reproduction, then the sense of engaging with a real human can be very convincing. It is worth noting that bots don’t function as ‘universal translators’ however, although month-on-month multilingualism is improving. Arabic, for example, is currently poorly served by speech engines because of the speed of native speakers, and the very wide range of dialects in use.

chatbots for hotels

Thus, high costs are expected due to high demand, high cost of production and high usability. Hospitality recruiters are using machine learning to hire hotel employees in ways that go beyond chatbots for hotels the outdated resume model. Using personality profiles of existing team members and gamification-based tests, IHG and other top hotel brands have recruited thousands of employees.

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This is different to the Millennial and Genzennial generations, who actually feel happy as long as they get the answers they need. In fact, some companies have experienced users repeatedly chatting to their chatbot just for company. In the modern age, customer service teams https://www.metadialog.com/ in hotels can quickly become overloaded. The chatbot could use the information gathered to offer additional options such as breakfast or wellness offers during the booking process. When a specific room is selected, a chatbot could make a recommendation for a room upgrade.

chatbots for hotels

While the adoption of AI may seem daunting, it’s essential to remember that it’s not an all-or-nothing proposition. Hospitality businesses can start small by incorporating AI in a specific area and gradually expand its use as they become more comfortable with the technology. You need to be able to answer those multiple guest questions via the channel that suits them.

Why do most customers prefer chatbots?

Get started with chatbots

Though consumers say they prefer waiting to speak with an agent, chatbots can still help reduce service costs by 30%. Their fast response times and ability to resolve simple requests are still distinct benefits that work.