AI in Hospitality: Key Trends, Use Cases & Benefits

The hospitality industry is known for its superior guest comfort and tranquility. Their only motive is to content their guests in order to make them loyal customers and provide more business. 

The hospitality industry, like the others, has also integrated new and improved technology. It is not just the guest experiences; advanced technology is opening doors to exciting opportunities and improving operational efficiency.

In 2023, a survey was conducted in the chains of hotels, they expect to make innovations in their business using AI. Statista also observed the famous Booking.com, in Europe, around 11% of hotels have already integrated AI into their plan. 

Also, when surveyed during 2024, it was observed that 65% travel and mobility sector made tech investments in artificial intelligence and machine learning solutions.

AI Use in Hotels and Accommodations 

AI, the self-learning technology, has been used for a very long time in the hotels and accommodations sector. They have been using their algorithms that helped them streamline their pricing strategies and forecast demand. 

With time, companies have increased their dependency on AI to predict property operations as well. The estimated value of AI in hospitality is forecasted to reach $8,120 million by 2033 from $90 million in 2022 with a 60% CAGR. 

On the front side, AI is used for redundant while time-consuming tasks like check-ins, bookings, etc. AI has made check-ins contactless, helping guests with concierge services, local tourism suggestions, hotel amenities information, and more. 

IBM developed a revolutionary AI bot, “Connie,” that is capable of the aforementioned services. It not only helps customers without the need for human intervention but also helps staff. This AI bot is capable of gathering insights into guests’ opinions and behaviour that leverage a data-driven approach. 

It is equally important to understand the views of customers about AI, after all the hospitality revolves around customer satisfaction. The 2024 survey gave surprising results, as 65% of the US younger generation had a favourable view of the technology.

Upon asking their views on integrating and using AI, 70% of the millennials agreed and favoured AI for customer service support. Additionally, 60% of North Americans said they use AI for travel inspiration and planning itineraries. 

To summarize, generative AI-powered hotels and flight recommendations rank highly on the search list compared to those using traditional methods to captivate customers or meet their needs.

Advantages You Can Offer With Integrating AI in Hospitality

1. Tailored Experiences

How contented your guests will be when they can simply relax and manage lights as per their mood or adjust room temperature without lifting their buts! AI-integrated with manual operations can bolster and double the guest experience.

2. Higher Occupancy

When customers know and enjoy additional perks effortlessly, they tend to become loyal. Who wouldn’t want that extra pampering and feel like a king/queen while they are in a relaxed mode! AI is capable of strengthening customer-hotel relationships, speeding up interactions while maintaining the quality of the services. 

3. Managed Revenue

Revenue management is the biggest issue for any organization, especially businesses with chains. Too many handlings can lead to errors, which can impact the entire structure. Machine learning and AI algorithms can analyze and calculate huge amounts in minutes without human intervention. It can further provide higher opportunities during peak seasons, increasing omnichannel sales. 

4. Smart Marketing

Old and traditional marketing are no longer reliable; customers want new and exciting. With AI, the hospitality sector can provide smart and intriguing methods to market. The enhanced analytics and content development strategies can accelerate the engagement on social media while responding to reviews for active participation.

5. Crisis Management

Yes, it can certainly help! How? The new and improved generative AI is capable of predicting unwanted crises or events that can put the business at risk. With that, businesses can prepare, communicate effectively to minimize risks and ensure the safety of the business as well as customers.

6. Sustainability

With the crisis managed, businesses can ensure long-term sustainability. Effective planning and energy management integration can reduce wastage and save energy. Automated AI systems can be integrated in all systems that manage water & electricity to further reduce the carbon footprint & meet sustainability goals. 

7. Robust Security

Physical safety has always been the most influential factor for guest experience. Professionals in hospitality say that guests and staff both look for safety with AI integration. AI can quickly anticipate suspicious behaviour and alert to caution to handle mishaps effectively. Additionally, AI can set accessibility to prevent unwanted and malicious activity to exploit critical data.

8. Efficient Operations

When asked, around 51% of the hoteliers and accommodation services providers claim that AI can reshape hotel operations efficiently. AI-powered automation can seamlessly set pricing strategies as per surge, forecast demand for effective planning, and personalize guest treatment to maximize occupancy even during off seasons.

Also Read: AI in Entertainment: Key Trends, Use Cases and Benefits

How to Integrate AI in Hospitality?

As easy AI is to use, it is easy to integrate into your system. However, there are various methods to integrate, which we are going to share with you to pick that suits best for your business best. 

Recommendation System: Did you know that around 80% of the hotels plan to use AI in their plan for personalized offers. AI can be integrated with marketing campaigns tuned into customer segments used at booking time. The predictive and personalized recommendations can captivate the right customers at the right time, ensure revenue boost, and elated customer satisfaction. 

Smart Rooms: One of the best AI use cases in hospitality is preparing a smart room for the customers. Offering opulent services like setting the climate, multimedia, and lighting upon check-ins. Activating these services when welcoming the guests can enhance the overall guest experience and satisfaction.

Energy Management: AI-powered hotels can optimize the energy being constantly used in the hotels, such as ventilation, air conditioning, lighting systems, and more. The technology can leverage intelligence to reduce the energy costs, lowering the impact on the environment significantly.

Automated Reservations: Hotel bookings have been simplified from the olden times. AI integration makes reservations seamless by allowing guests to pre-book the room of their choice. AI can also provide recommendations based on previous bookings. 

Real-time Surveillance: AI offers continuous monitoring to avoid unwanted activities. The technology can detect a security breach or anyone trying to gain unauthorized access. AI in hospitality leverages a layer of protection to prevent incidents from before they escalate. 

Feedback Analysis: AI tools can analyze more than just behavioral patterns. They can automatically analyze the feedback and guests’ experiences for continuous improvements. This, in turn, enhances the quality of service offerings based on guest experiences. 

Practical Examples of AI in Hospitality

Dynamic Pricing Engine

The renowned international hospitality and concierge service provider, Marriott International, is leveraging the power of AI. AI analyzes the market demand, events, and other factors for Marriott to strategize competitive pricing. Leveraging technology in hotels and accommodation management systems can give a strategic advantage and be responsive to the changing market.

Robot AI

IBM developed “Connie,” which is used by multiple brands, including the Hilton Hotel chain. The advanced NLP integrated bot provides swift and accurate information to the customers about local attractions, amenities & services offered by the hotel. This enhances guests’ experience, increasing loyalty. 

Luxury Guest Experience

A very renowned luxury brand that owns a yacht offering a spectacular and unbelievable experience to its customers. The experience offered is completely different as their yacht are customized for the enhanced episode. The brand allows customer to personalize lights, climate, and service offerings as per their choices with the help of AI. This personalized method leaves a unique experience with every customer accommodated on the yacht.

Predictive Maintenance

The chain of hotels, Kempinski, uses AI in their systems to predict maintenance needs. The luxury hotel is known to maintain consistency in its quality regardless of off or on season. Their utmost goal is to always maintain the standard and luxury they offer their customers, enhancing their experience every time they visit. 

What Should You Consider When Integrating AI in Hospitality

When adopting new technology for your hotel or chain of hotels, there are a few aspects that should be taken into consideration.

Limitations of AI Adoption

Certainly, implementing AI can be pricey in order to take advantage of all its features. Additionally, considering an AI development company or solution experts can ensure reliable and requisite integration. 

For a budget-friendly solution, budding hotels and accommodation services providers can opt for cost-effective, scalable tools. These tools do not demand expertise in the technology as they are easy to understand and integrate, offering superior customer support.

Phased/Incremental Approach

The phased approach is a method to address immediate needs first and then further implement them entirely. For instance, integrating an AI bot or dynamic tools for customer support can be the beginning before expanding into critical operations. 

Once the initial implementation proves successful, you can then add AI for revenue management, predictive analytics, operational automation, safety, and maintenance. 

Software Options

Which part of the operation do you want to focus on more, is it customer-relation or, property management or security, and maintenance? The hospitality industry should prioritize integrating AI tools that suit them best and benefit them to enhance their customer experience slowly yet steadily. 

Asking certain questions like seamless integration with the existing tools, software growth, ongoing assistance, ensuring security & compliance, and more to support the AI journey and the scalability of the business.

Read More: AI in Telecommunications: Key Trends and Benefits

What to Expect With AI In Hospitality 

The use of AI in hospitality will offer greater opportunities. Along with tailored experiences, AI is expected to provide more and continue to transform the industry:

IoT Integration 

The Internet of Things is one of the best technologies to integrate with AI. IoT and AI integration can provide smarter rooms, communications, and operational management. The combination of the two technologies can enhance the overall comfort and experiences of the guests, converting them into loyal customers. 

AR/VR Integration

Like IoT, AR/VR will offer promising results when tied with powerful Artificial Intelligence. SaaS development services providers always recommend integrating potential technologies for enhanced results. With AR/VR, guests can have realistic previews of the local attraction they want to visit as well as amenities offered by the hotel.

Advanced Analytical Data

AI offers powerful and easy-to-customize tools that can be integrated with the systems for efficiency. You can incorporate AI tools into every system or software to optimize everything. Optimized energy use to staff allocation can significantly save costs, ensuring seamless operations and customer contentment. 

Voice Assistance

Hotels, too, can integrate virtual assistance for their customers within their rooms. The new and improved room-in service can provide utmost royalty and effortless assistance. The hands-free solution offers control to the guests for every request they make within their room.

Reputation Management

Asking customer for their real-time feedback is the best way to earn trust. An AI-integrated reputation management system analyzes customer feedback and highlights the issues. Addressing the issue immediately can not just ensure customer satisfaction but also demonstrate that their feedback is valued. 

Generative AI

Generative AI is the new face of AI that dynamically customizes customer needs. The advancement in technology is to provide personalized solutions, such as room environment, entertainment options, dining suggestions, and much more. The Gen AI can also provide tailored travel guides with multilingual support to improve communication and enhance experiences.

Final Words

AI is reshaping the hospitality industry, bringing efficiency, personalization, and innovation to the forefront. From smarter guest experiences to streamlined operations, AI technologies are becoming integral to how hospitality businesses evolve and compete. While challenges like implementation costs and data privacy concerns remain, the potential benefits far outweigh the drawbacks. As AI continues to mature, its role in hospitality will only expand, offering even more dynamic, guest-centric solutions and setting new standards for excellence in the industry.

Frequently Asked Questions