Beyond the hype: The rise of conversational AI in hospitality

Conversational AI is the modern way of booking hotels

conversational ai hotels

There is still a belief that no technology can potentially replace human service delivery. Providing guests with information on the functionality of voice assistants and issuing clear instructions on how to use them helps eliminate the barriers for those consumers who have never used smart speakers. Extra guidance from hotels provides more tech-savvy guests with deeper understanding of the usability and utility of voice devices. Conversational AI has improved rapidly in recent years and is gaining popularity in the hospitality industry as hoteliers face staff shortage and need to reduce costs in the aftermath of the COVID-19 pandemic.

A consumer isn’t concerned with whether you are chatting with 50, 500, or 5,000 other people; they’re just worried about the problem they are trying to solve. Collect and access users’ feedback to evaluate the performance of the chatbot and individual human agents. Provide an option to call a human agent directly from the chat if a guest’s request cannot be solved automatically. Gather particular feedback while guests are on the premises to reveal insights into how to improve their current experience. Hoteliers are adopting AI to increase guest satisfaction and get rewarded with retained customers, positive reviews and referrals.

Conversational Search – A Report from Dagstuhl Seminar 19461

An AI front desk receptionist can provide information about the hotel, city, and nearby attractions. It can help with various tasks for guests, such as suggesting restaurants and making reservations, booking concert tickets. It can inform guests about things to do at the hotel and recommend them to visit the hotel’s casino, spa, swimming pool, etc. The AI system can be trained to recognize the guest’s voice, preferences, and patterns of behavior. It can then use that information to provide the guest with a personalized conversation.

However, and this is key, structured data only represents a small portion of the data that is actually available to hoteliers. It doesn’t accurately reflect the reality of one’s business, yet it’s on which hoteliers base most if not all of their business decisions. As discussed, Quicktext enlarges your sales funnel and drives qualified customers to your booking process.

How Conversational AI Can Benefit Your Hotel

With less hospitality staff to aid in customer service and hotel occupancy increasing, hotels have been left with backlogs in customer service and frustrated guests. Engaging with many customers 7/24 via live agents is not an efficient strategy for the hotels. Therefore, they can leverage their customer service with hospitality chatbots.

Artificial Intelligence Rapidly Making Inroads in Hotel Industry – CoStar Group

Artificial Intelligence Rapidly Making Inroads in Hotel Industry.

Posted: Mon, 18 Sep 2023 12:44:15 GMT [source]

By this past November, hotel occupancy was starting to climb back towards its pre-pandemic levels as travelers’ comfort increased. According to STR, U.S. occupancy rates in November of last year were at 57.6%, which was still down 6.2% compared to 2019. For example, it can aid in the development of layered security systems, the detection of security risks and breaches, and the assistance of programmers in writing better code, ensuring quality, and optimising servers. In September 2019, IDC forecasted that 97.9 billion dollars would be spent on AI technology by 2023. AI continues to grow at a steady rate as more people accept the concept of AI and recognise its significance in today’s digital world. Extensions are ready-to-use conversational modules that can provide rapid assistance for common needs without forcing you to mold the AI.

What differentiates HiJiffy’s conversational app?

“What will thrive in the future is unique experiences, high touch that AI can’t give us,” Paterson says. While there are many use cases of AI emerging, it’s helpful to look at where AI is not going to help you or your hotels. As data security and privacy protection become more important than ever, smart hotel operators will be using AI to ensure security.

conversational ai hotels

What people do on their mobile influences their behavior and expectations even on other devices such as PC. In fact, mobile features such as instant messaging are becoming huge on PC. With the implementation of segmented campaigns targeting happy customers right after their stay, hotels are able to get more positive reviews on TripAdvisor, Google My business, etc. Hotels can avoid having to hold on to a customer to attend to their request and guests are able to solve +85% of their usual queries instantly.

This transition calls for redesigning your online sales process according to 3 essential principles. Successfully integrating the use of instant messaging, AI and chatbots is easier said than done. By routing to the relevant team members and/or departments the guests’ requests based on their specificity, hotels can significantly improve both staff productivity and guest satisfaction. Modern voice-activated devices consist of conversational AI that allows people to communicate with machines in the same way they would with other people. Typically, conversational AI includes Automatic Speech Recognition (ASR), Natural Language Processing (NLP) and Text-to-Speech (TTS). ASR takes the audio stream, transcribes it into text and then passes to the NLP and its components for analysis [1].

However, most of those language learning models never reached the level of sophistication needed to solve problems at scale. But it was many years in the making, and a direct result of the failures of voice search and chatbots that ushered in this next era of conversational AI. Meaningful discussions should occur whenever and wherever the customer wishes – whether in real-time after they have finished their meeting or later that night when they have a free minute. While companies must be able to communicate with customers in real-time on a conversational marketing platform, it is as crucial for them to be able to complete a discussion at the speed that the consumer wishes to. And NLU systems like IBM Watson or Microsoft LUIS are the rough planks you can use to create your own furniture design.

Conversational AI in the Hospitality Industry

This adds a layer of complexity to the discussion of artificial intelligence. Ultimately, hotel owners and operators are focused on increasing profitability, which requires also focusing on cost reductions. A tight labor market, supply chain shortages, and inflation have made this more challenging. Because of this, hotel owners – and the operators and brands that work for them – are focusing on top-line revenue growth now more than ever before. Let’s take a quick look at where we are now and how this should guide the way we evaluate artificial intelligence.

Thanks to AI’s deep reach across disparate systems, conversational interfaces will transform chatbots into actual free-flowing experiences that build on existing data to drive deeper impact. Guests should be able to make and change bookings, receive personalized destination recommendations, and ask for relevant information on all aspects of their relationship with a hotel. That has massive implications for how hotels prioritize their customer service investments. By embedding a conversational layer across its systems, hotels can provide better service to guests (who overwhelmingly prefer self-service) without having to invest in more labor resources. Thus, make sure you include conversational marketing in your business strategy.

Which communication channels can hotels deploy chatbots?

What I like about using AI for sustainability initiatives is how this can programmatically reduce energy needs and environmental impact instead of just hoping people make the right choices. IHG began using technology for this several years ago, and Spanish hotel group Iberostar is now implementing AI-powered technology with a goal of reducing food waste by 50% this year and sending zero waste conversational ai hotels to landfill by 2025. AI for training and coaching is a great example of using technology to empower better human interaction at scale. My view on hotel check-in is slightly different but this is a shrewd observation. Imagine a world where all the recommendations were personalized to each guest. For all the hype around AI-powered chat now, it’s a poor example of where it should be used.

  • “Protecting RevPAR and generating profit in the face of changing market conditions, changing mix of travelers, and overall uncertainty has driven a lot of the technological change from hoteliers over the past few years,” Rothaus observed.
  • Guests should be able to make and change bookings, receive personalized destination recommendations, and ask for relevant information on all aspects of their relationship with a hotel.
  • We take consistency for granted and expect a baseline of quality, cleanliness, and service.
  • Operational efficiency, that is usually mentioned in literature with regards to automated workflows, has also a strong influence on guests’ satisfaction [24].

IT ensures that the gadgets and technology we use are secure, reliable, and efficient. ‍Hence, the hospitality industry is a great example of conversational AI applications. When dealing with voice interfaces, you’ll almost certainly need to employ speech-to-text transcription to generate text from a user’s input and text-to-speech to convert your responses back to audio. Language understanding techniques such as sentiment analysis, question classification, intent identification, and entity and subject extraction are likely to be relevant for both speech and text interfaces to grasp what the user is saying. From its capabilities to handing over conversational dialogue to your employees.

This video is not meant specifically for hotels so it is interesting to see what is happening in other industries as well. Conversational AI can help reduce operating costs by reducing the no-show and cancellations. This will help in saving a lot on customer service and customer acquisition costs.

conversational ai hotels

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