AI in the Hotel and Hospitality Industry

AI can be thought of as a machine's ability to think and make a decision on its own. The enormous potential of this technology in the hospitality industry allows you to better serve customers by providing a curated and personalised experience for each traveller. For example, AI-driven content provides provide guests with the rooms, rates and offers most relevant to them based on each guest's unique behavioural attributes.

Arvoia AI’s founder and CEO, Mike Webster, recently spoke with Director and Lead MarComs Consultant Ryan Haynes on Travel Market Life’s podcast about the increasingly important role of artificial intelligence in the hotel and hospitality industry.

In this article, we have summarised the conversation between the two thought leaders to give you an insight into the impact of artificial intelligence on the travel and hospitality industry. 

How can you use artificial intelligence in the travel and hospitality industry?

AI is the driving force behind some of the world’s biggest companies, such as Spotify, Netflix, Instagram, and YouTube. While human behaviour is unpredictable, it is measurable by looking at past activities. AI harnesses large amounts of user data, allowing these companies to tailor each user's experience.

Let’s look at Spotify as an example. When you open Spotify’s app, you can tell that the app understands you. It understands your music preferences and offers similar suggestions. It even knows when you’re in your car and activates Car Mode, making it safer to use while driving.

Netflix is another great example of a company that uses AI to improve the user experience. When you turn on Netflix, you will see various recommended TV shows and movies that cater to your tastes and the content genres you like to watch. Based on your consumption history, Netflix will understand what kind of content you prefer and remove the rest from your suggestions. Netflix invests heavily in machine learning, and its algorithm is designed to understand your tastes and personalise the entire experience.

Similarly, AI allows the hotel and hospitality industry to go beyond traditional marketing and upselling methods to present customers with individualised journeys.

For example, if a guest goes on a hotel’s website, they expect to receive better service than they would from an online travel agency or other third parties. They want to see options that cater to their needs whether in terms of the type of room, additional services available, relevant imagery or even price bracket. This helps them feel understood and makes them more likely to make a booking.

Alternatively, when working in the hospitality industry, you are constantly pressured to sell guests additional products and services even without knowing their preferences, e.g., if the guest would be interested in booking a romantic dinner for two. 

AI can remove this burden of upselling from hospitality workers. In a long trail of variables, including the source, destination, lead time, device, time of the year, and so on, a machine can spot what a human might not. AI can consume information, make a prediction, and transform the entire customer journey into a curated experience.

By understanding travellers' online behaviour and analysing data patterns, AI can be combined with a human touch to deliver a more personalised guest experience.

How can my hotel leverage AI? 

There is a general shortage of data science talent available to build an industrial-level AI platform capable of simultaneously serving tens of thousands of hotels. The solution is to collaborate. Large brands can collaborate with companies like Arvoia AI, which has already built a full tech stack at scale and is plugged into multiple booking engines.

Smaller hotels simply have to activate the AI as part of their hotel technology, for example, many leading booking engines have integrated with Arvoia AI so their hotel clients can easily avail of this innovative technology without any work required. The AI is always on and learning; it aims to serve customers better and humanise the journey.

At the core, if you improve your guest experience, your revenue goes up. Instead of changing marketing strategies or pricing, let AI do the heavy lifting for you. It will help you understand your customers and learn about their preferences. There are hundreds of models built explicitly for this very purpose.

For example, AI will cater to a customer who booked via TikTok differently than how it would treat someone who came via a LinkedIn ad. There could be a different model for Ramadan and a different model for Christmas.

Artificial intelligence in the travel and hospitality industry is based on constantly changing models depending on how users interact with platforms. It learns from these behavioural patterns and constantly improves itself to serve the customer better.

Serving customers, giving them a better guest experience, and building a better digital handshake between the brand and the user allows you to focus on hospitality. If you improve your customer service, you will attract more guests and drive revenue growth.

 

Discover Arvoia AI

Arvoia AI offers advanced AI technology to help hotel and hospitality retail providers provide individualised experiences for each guest.

Arvoia AI processes billions of data points and trillions of customer interactions to predict and measure customer behaviour. Our data scientists constantly strive to improve travel technology to create a custom AI model for your hotel.

Arvoia AI learns and adapts to your guests to deliver hyper-personalised booking experiences for their expectations, preferences, and needs.

Learn more about the future of AI in hospitality with Arvoia AI. Contact a member of our team.

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