Artificial intelligence in hotels: Who is already using it and how

According to a recent InsightAce Analytic study, the global market size of artificial intelligence in the hospitality sector is set to increase exponentially over the next decade, with an annual growth rate of 11.26% from 2023 to 2030.

Italian hoteliers are also aligning with the global trend: the latest Europe-wide Hospitality Structures Barometer Summer 2023 conducted by Booking.com and Statista reveals that

• 5% of hoteliers surveyed in Italy are already using AI-based tools, such as chatbots and dynamic pricing algorithms.
• 28% plan to introduce such tools by early 2024

This latest data - highlights Booking.com - could equate to quintupling AI users in the Italian hospitality sector in a very short period, laying the groundwork for a significant technological and competitive gap compared to those who do not yet plan to implement AI-based solutions.

Choosing to leverage AI in your accommodation facility means gaining easier and faster access to a series of competitive advantages that in the past would have required enormous resources and means.

To summarize the main advantages of artificial intelligence in the hotel and extra-hotel sector, they are:

• Greater simplicity and operational efficiency: by automating processes and decisions, AI streamlines daily operations and simplifies them, reducing the staff workload as well as the risk of human errors,
• Increase in revenues and cost optimization: thanks to data-driven predictive analysis, AI allows for the reduction of operating costs and the optimization of prices and services, maximizing profit;
• Improvement of the experience: AI helps offer tailored experiences based on each guest's preferences, past behavior, and demographics, providing a more satisfying travel experience and encouraging loyalty.

Continuing to read, you will see how it is possible to apply artificial intelligence in every specific area of your accommodation facility.

Artificial intelligence invests the entire field of hotel operations, coming into action as soon as a guest books a room and continuing to ensure maximum fluidity and quality throughout the stay. Here are some examples of how AI can improve hotel operations:

• Inventory and booking management: AI can optimize and monitor inventory by cross-referencing existing bookings and incoming requests, ensuring rooms are always available when needed. Chatbots can facilitate customer service during the booking phase by answering questions about availability, prices, and services, and providing recommendations based on customer preferences, such as room type and location.
• Contactless check-in: the most modern self-service kiosks with facial recognition technology allow guests to check in quickly by entering their data and receiving keys, eliminating waiting times and streamlining the process.
• Digital concierge: it's a virtual assistant always available to guests to provide assistance, suggest activities, book restaurants and additional services, as well as answer any questions. Its constant availability allows for personalized service even in the absence of staff on-site, greatly enhancing the overall experience.
• Maintenance and cleaning: using sensors and monitoring data, AI can automatically detect maintenance needs in rooms, highlighting any technical problems. Additionally, it can optimize the cleaning schedule, reducing room downtime.
• Sustainability and energy efficiency: by analyzing data such as energy consumption and resource costs, artificial intelligence can help the hotel optimize distribution and reduce costs. At the same time, it demonstrates a commitment to sustainability, an increasingly relevant aspect for competitiveness.

If traditionally, specific training or in-depth knowledge, perhaps acquired through experience, was needed for Revenue Management, thanks to artificial intelligence this is no longer strictly necessary.

The entire process of determining rates, in fact, is automated and simplified, allowing even those unfamiliar (or lacking sufficient time) to reap all the associated benefits.

Artificial intelligence, and in particular its methodology called machine learning (ML), allows for the analysis of a multitude of internal and external data of the accommodation, forecasting demand and calculating the most profitable rates in real-time.

This not only frees staff from manual and time-consuming activities but also allows for a more accurate and timely forecast, improving the ability to respond to every market fluctuation.

AI applied to Revenue Management can also facilitate the creation of personalized upselling and cross-selling strategies and the analysis of financial data to identify trends or unexpected behaviors, providing new insights to increase revenues.

The rapid rise of ChatGPT has shown how easy AI can be to use and how amazing the results can be. The automated content creation is one of the most exploited AI functions in marketing, and hotel marketing is no exception.

From room and service descriptions to social media posts, to responses to reviews on booking platforms, artificial intelligence allows saving valuable time and effort.

AI is also able to improve the effectiveness of marketing strategies: by analyzing enormous datasets, it can identify the most promising customer segments and customize marketing campaigns based on their preferences, behaviors, and demographic data.

Finally, hotels can use AI to automate and optimize online advertising campaigns , identifying the most effective channels, audiences, and times, optimizing the advertising budget, and significantly improving the conversion rate.

Artificial intelligence is also a great ally when it comes to improving sales performance and attracting specific segments, such as MICE.

Thanks to AI-based tools, sales directors can monitor demand trends, identifying the needs of their target in advance and adopting a proactive strategy based on timing and tailor-made offers.

Artificial intelligence can also automate and make tasks such as data entry, follow-up activities, and data analysis more efficient, allowing the sales department to focus on customer relationships and business development.

Finally, real-time monitoring of sales and market performance can highlight areas for improvement and new earning opportunities.

Artificial intelligence is already revolutionizing the customer experience in hotels, accompanying the guest at every stage of their journey, from choosing a stay to check-out, ensuring efficiency, personalization, and innovation and redefining expectations of the stay.

In the planning phase, AI-powered chatbots are already able to create tailored travel itineraries, taking into account the traveler's specific needs and preferences.

During the booking process, made smooth and intuitive thanks to automation, the virtual concierge can become a trusted advisor, suggesting rooms, services, activities, restaurants, and attractions based on the customer's needs.

Besides the already mentioned contactless check-in and the virtual concierge always ready to provide information, upon arrival at the hotel, guests are welcomed in rooms made even more comfortable by artificial intelligence, where they can enjoy a series of advanced services, from temperature control to lighting and audio management.

Even the AI-enhanced check-out becomes smooth and seamless, with the possibility of concluding the journey directly from the room.

AI-powered upselling reaches a level of customization and success previously unimaginable.

Thanks to its ability to analyze vast amounts of data in real time, AI can precisely identify the preferences and behaviors of guests. This allows hotels to offer additional services and products tailored to each individual guest, increasing the perceived value received and promoting loyalty.

Furthermore, AI's ability to continuously learn from data allows it to constantly monitor and optimize upselling strategies quickly and effectively.

In this article, you have seen how artificial intelligence is already transforming both work in hotels and guest experience.

The adoption by hospitality facilities, especially medium and small ones, has just begun, but the use of artificial intelligence is set to spread more and more, becoming a necessary condition to remain competitive in the market.

That's why we have prepared a useful guide to help you navigate the currently available proposals, with the list of the best software based on artificial intelligence and intended for the hotel and non-hotel sectors.