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Artificial Intelligence

7 ways in which AI is changing hospitality

7 ways in which AI is changing hospitality

Artificial intelligence (AI) is no longer a vague concept discussed at TED Talks; it’s a reality that any property owner can implement to convert users into guests and guests into loyal customers.

Here are seven ways hospitality businesses use AI to enhance the guest experience.

1. Personalized booking experiences

Hospitality booking websites now host millions of properties and vacation rentals.

But even with advanced filters, travelers often face the daunting task of browsing through countless pages.

AI-powered recommender systems personalize search results to surface the best-fitting properties.

Just like Netflix suggests your next movie, platforms like Airbnb, Hotels.com, and Expedia predict user needs by analyzing past preferences and behaviors.

2. Smart image selection

Photos play a crucial role in attracting guests, and AI ensures that the most appealing images are displayed first.

Expedia, for instance, uses deep learning to rate hotel images, ensuring that the highest-rated photos appear at the top.

Similarly, Airbnb sorts photos to highlight the most attractive features of a property. By using computer vision techniques, these platforms enhance visual appeal and draw potential guests in with the best first impressions.

3. Dynamic pricing

Pricing in hospitality is dynamic and changes based on factors like seasonality, competitor pricing and even local events.

AI automates this process, analyzing internal and external factors in real-time to suggest optimal prices.

This ensures that hotels can maximize revenue while keeping occupancy rates high. Unlike manual adjustments, AI-driven dynamic pricing adapts swiftly to market changes, providing a competitive edge.

4. Talking to guests in their language

Hotels get guests from all over the world, so speaking different languages is important.

AI tools like HeyGen provide translation services, helping hotels communicate clearly with guests who speak different languages.

This is especially useful for global hotel chains like Four Seasons, which host guests from various countries. With AI-powered translation, guests can receive personalized services in their native language, enhancing their stay experience.

5. Virtual assistants and chatbots

Virtual assistants and chatbots powered by natural language processing (NLP) provide seamless, 24/7 guest support.

Guests can use voice assistants like Amazon Alexa or Google Assistant to ask questions, make requests, and get information about their stay.

For example, guests might ask, “Hey Disney, what time does the park open?” or “Can I get more towels in my room?” These AI tools enhance the guest experience by making services more accessible and interactive.

6. Sentiment analysis

Understanding guest feedback is crucial for improving services.

AI-driven sentiment analysis processes thousands of reviews to extract insights about guest satisfaction.

For hotels, it provides invaluable marketing insights and competitive analysis, helping to fine-tune offerings based on real guest sentiments.

7. Fraud detection and security

Fraudulent chargebacks are a significant issue in the hospitality industry.

AI excels in detecting fraudulent transactions by analyzing numerous attributes of each payment.

Machine learning models can identify anomalies that might indicate fraud, prompting additional verification steps only when necessary.

This not only saves money but also enhances security. Additionally, platforms like Airbnb use predictive analytics to screen high-risk reservations, ensuring safer stays for all.

Balancing technology and human touch

AI automates repetitive tasks, allowing hospitality professionals to focus on delivering warm, personalized experiences.

It is not about replacing the human touch but augmenting it. By leveraging AI, hospitality businesses can offer smarter, more personalized, and secure experiences, making guests feel valued and understood.

As we move forward, the blend of technology and human hospitality will define the future of the industry.

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