Artificial Intelligence in the Hospitality Industry: An Overview

Artificial Intelligence (AI) was first introduced at The Dartmouth Conference in 1956. Initially, its potential in business and operations was not fully recognized due to its developmental stage. Fast forward to today, AI has become a cornerstone in various industries, especially tourism and hospitality. This article explores how AI fits into hotel technology and whether it can completely replace human roles in the sector. Let’s dive into today’s blog and get this sort out with CiHMS.

What is Artificial Intelligence?

AI encompasses a broad range of computer science focused on creating smart machines capable of performing tasks that typically require human intelligence. This includes learning, memory, and decision-making. Core elements of AI include machine learning and big data. Common examples of AI in daily life include virtual assistants like Siri, Alexa, ChatGPT, Gemini, and Copilot, email spam filters, and personalized recommendations on platforms like Netflix.

AI technology has been surrounding human beings for the last decades without us acknowledging it.

Why does AI matters?

The tourism and hospitality industry has faced numerous challenges in recent years, including labor shortages and the need for enhanced guest experiences. AI has emerged as a crucial solution to these challenges, helping to alleviate labor shortages and streamline operations.

Hotels were shutting down as the result of the social distancing curbs across the country, hardly meeting 20% occupancy compared to the previous period. As a matter of fact, even well-thought-out plans and scarcity marketing policy such as half-price room rate promotions, buy 1 get 1 extra night off for free, etc. didn’t seem to work out. Hoteliers had to come up with budget cuts and excessive laying off to survive through the pandemic. Consequently, the labor shortage has become a major issue for the industry alarmingly. AI technology has become the optimal solution amidst this chaos.

Contributing to relieving the labor shortage crisis, AI technology has helped hotel employees to executive tasks in a much shorter timeframe.

Thanks to AI, your front desk shall no longer have to be hesitated among welcoming a long-line of guest check-in, picking up the disturbing phone ringing, determining whether or not to answer the series of questions from the guests standing by, or your colleagues. All the phone calls shall be routed to the relevant departments based on the algorithm of past phone calls. Guests can proceed with online check-in right at the phone and skip the front desk. All housekeeping requests are synchronized across the system. Perspectively, with AI technology as a back-bone, hotels are getting very close to the smart hotel model – the ideal hotel model of the future.

Applications of AI in the hospitality

AI has revolutionized hotel operations by automating tasks and improving efficiency. For instance, AI can handle guest check-ins, route phone calls to appropriate departments, and synchronize housekeeping requests. This reduces the workload on staff and enhances the guest experience. AI-powered systems are also used to forecast room occupancy rates and optimize pricing strategies, maximizing revenue.

• Robots: Used for delivering room service, cleaning, and providing guest information, reducing physical contact and enhancing safety. For instance, Hilton Hotels introduced “Connie,” a robot concierge powered by IBM’s Watson AI. Connie assists guests with information about hotel amenities, local attractions, and dining options, providing a unique and interactive guest experience.
• Predictive Analytics: AI forecasts room occupancy and helps in strategic planning to maximize profits. AI algorithms analyze data from various hotel systems to predict when maintenance is needed, preventing equipment failures and reducing downtime.
• Personalization: AI analyzes guest data to offer personalized experiences, improving guest satisfaction.
• Real-Time Translation: Solutions like CiHMS offer real-time translation chat via QR Service Center, supporting more than 103 languages, enhancing communication with international guests.
• Analyze guests’ data to elevate their experience on future stays.
• And more can be found throughout hotel operations that CiHMS shall go into more details in the later blogs.

Challenges and Considerations

Despite its advantages, AI is not without flaws. Complex algorithms and machine learning models can still make errors. Additionally, the financial investment required to implement AI can be significant, making it crucial for hotels to balance costs and benefits effectively.

Conclusion

AI is now an integral part of the hospitality industry, driving operational efficiency and enhancing guest experiences. Solutions like CiHMS have demonstrated significant improvements in hotel performance and revenue. As AI continues to evolve, its role in the hospitality sector is expected to grow even further.

Thanks to AI’s high reliability, safety, and security, CiHMS has delivered exceptional growth for hotels’ revenue and performances. Interested in our solution? Contact our consultants to dig a bit deeper into CiHMS.