5 minute read
AI ushers in a new era of efficiency for the industry
AI is no longer a futuristic concept – it’s here, transforming every corner of the accommodation industry. Whether it’s enhancing guest experiences or optimising internal operations, artificial intelligence is making waves.
Research from the McKinsey Global Institute even ranks travel as the industry with the most to gain from AI.
The possibilities are endless. From reservations to housekeeping, AI is revolutionising the way we do business –and the best part? This is just the beginning. In reservations and bookings, AI-driven chatbots and virtual assistants provide 24/7 customer support, answer enquiries, offer tailored recommendations, and handle bookings. By analysing historical data, these systems can also anticipate demand fluctuations, adjusting pricing dynamically to maximise occupancy.
In property management, AI streamlines routine tasks like room assignments and maintenance requests. Machine learning algorithms predict when repairs or maintenance are needed, reducing downtime and ensuring smooth operations, allowing management to largely “set and forget.”
Energy management is another area where AI is making strides. Smart thermostats and lighting systems, controlled by AI, can learn guest preferences and adjust settings to conserve energy without compromising comfort. This not only reduces operational costs but also aligns properties with sustainability goals.
In HR and administration, AI tools assist with recruiting by scanning resumes for relevant skills, automating onboarding processes, and managing payroll.
For marketing, tools like ChatGPT can help staff write captions for social media posts and create other marketing content.
In housekeeping, AI-powered robots and predictive analytics ensure rooms are cleaned efficiently, monitor product inventory, and even predict when additional cleaning services may be required based on guest preferences or occupancy trends.
To learn more about the future of AI in the accommodation industry, AccomNews spoke to ibooked.online CEO
Can you explain how AI is currently being integrated into various aspects of the accommodation industry?
The overall uptake of AI technology has varied in speed and scope. It's important to put it in context by understanding the difference between machine learning and AI. AI refers to machines being able to carry out tasks that we would consider to be smart or autonomous, that is, the way a human would do it. Machine learning, on the other hand, is a subset of AI, where we train a machine on how to learn.
Machine learning has been in the industry for many years, helping with revenue management, reporting, stock-taking, accounting, etc. The biggest changes now are that AI has made these tools a lot more accessible. Think of it as a human interface where we can talk to it, ask questions, and even program it to perform various tasks.
Without getting too technical, the current AI revolution is accelerating the usefulness of many tech tools we already use, while allowing us to do things we never thought possible, such as full automation of the guest experience, from booking through to checkout, or speaking to guests in a foreign language.
How do you see AI transforming the operational efficiency of accommodation providers? Are there particular areas where AI has had a significant impact?
There are tools being developed that will allow you to control all facets of your hotel or STR business using natural language. Let’s say we want to increase all rates by five percent on two-person rooms – you’ll just ask, and it will do it. You may ask it to compare your pricing with competitors across seasons, then create rules to increase or decrease rates. The difference with AI is that you’re using natural language to make requests, and it will take vast amounts of data to make the right decisions for you.
In what ways can AI enhance the guest experience in accommodation settings?
The biggest advance of AI will be personalisation. We are now entering an era where we can automate personalisation, which used to be a manual process. Guests will interact with AI, which will answer questions and execute tasks. Want a late checkout? AI will check availability and offer a solution. Want to replace chips with salad for your steak when ordering room service? AI will handle it. Want to know more details about each dish? AI will answer.
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As AI takes care of these tasks, our role as hoteliers will be to guide the AI in how we want it to operate, define our standards, and act as the 'puppet master.'
What are some of the key challenges and considerations that accommodation providers should be aware of?
AI tools, as we know them, are in their infancy – this is just the beginning. Think of it like the first version of the iPhone – it revolutionised the world. But all the technology built on top of the iPhone, like Uber, Google Translate, mobile games, and video calling, came later as developers understood the technology and consumers’ demands and created the products.
Right now, there is an AI gold rush where everyone is embedding the latest AI tool into their tech.
The reality is that a lot of the time, they just don’t work well – yet! So be cautious of the promises along the way.
By Sarah Davison, Industry Reporter
