How Artificial Intelligence is Transforming and Updating the Business Models of Hospitality Industry

Artificial Intelligence has evolved over the years and has become an essential tool in many industries, including the hospitality industry. Hoteliers and other hospitality businesses are already adopting AI tools and systems to maximize their efficiency or find more revenue-boosting avenues.

According to a report published by in 2021, they predicted that the use of AI in the hospitality industry will increase by 10% each year. It seems that this advanced technology has a bright future in the world of hospitality, with others even going as far as to say that hotels will need to implement it in order to stay relevant in the market.

Artificial Intelligence (AI) has emerged to create machines capable of emulating human intelligence. These computers are equipped with tools that allow them to perform more complex tasks, just like humans.


How is AI Relevant in the Hospitality Industry?

AI-operated machines are capable of essential human functions with minimal errors and greater efficiency. This means a more efficient system that will improve customer experience and satisfaction while minimizing financial loss for hotels.


Ask any hotelier how to become successful in this industry, and they will tell you that good customer service is crucial. Without efficient and positive customer service, customers are highly likely to seek other hotel chains to take their business to.


Hotels that have already implemented AI technology are already reaping the rewards since their ability to address the needs of their clients has improved considerably. These hotels can personalize their services to guests, providing a more enjoyable stay.


This is why it is not surprising that businesses in the hospitality industry are keen on adopting AI-based solutions that will give them an edge over their competitors.


AI Applications in the Hospitality Industry

There are several AI applications that are being used in the hospitality industry today that have helped them become more customer-oriented. Let’s take a look.


1.   In-Person Customer Services

Hotel guests need information and fast. Instead of waiting in line at the front desk to get answers, they can simply approach any AI-based machines or robots to help them with their queries. Hilton Hotels has employed the robot, Connie, to assist guests with the information they need. Not only does this speed up the process of providing helpful information, but the robot also learns more through interaction, which it can adapt to improve its function.


2.   Reduced Turn-Around Time for Messages and Requests

Customers hate having to wait for a response to their query, no matter what industry it is. For hotels, having potential customers wait can reduce your chances of securing their booking. Just imagine how many guests you have missed out on because it took you a while to answer their queries.

Fortunately, AI-based tools like chatbots can be deployed to handle basic queries so that customers will receive answers immediately. The best part is that these chatbots can run 24/7, so guests can reach them anytime.


3.   Pricing and Forecasting

Hoteliers rely on data to help them determine how to steer their business in the right direction. However, analyzing tons of data, such as occupancy rates, market trends, and competition, can be tedious. Implementing AI-based tools in the business can help gather important data, analyze it, and provide owners with a clear and concise report on how the business is faring.


Additionally, AI can compare the current prices of competitors to adjust the hotel’s pricing in real-time. This can contribute to the hotelier’s competitiveness, especially during the peak season. With the amount of data that AI can process, it can also predict shifts in customer demands, market prices, and more. This is critical for those in the hospitality industry because they are in the best position to make smarter decisions regarding how to run their hotels.


4.   Hotel Booking

Hotel booking is often tedious for many, especially when they do it by phone. On the other hand, conversational interactions offer a more relaxed booking process, which can be done with the aid of an AI virtual assistant.


The same AI-based virtual assistant will be the one to follow up with any customer they talked to if they fail to book. A series of steps will need to be identified so the virtual assistant can handle the booking process instead of the hotel staff.


5.   AI Concierges

Concierges are part and parcel of any hospitality industry. They are the ones who greet guests and ensure that they are directed to where they are supposed to go. They are also the ones who handle any issues that customers are having. On top of that, they take on the task of booking restaurants, cars, and even tours for their guests. You can already imagine the amount of work these people need to do 24/7.


This is why many hotels are now adopting AI concierges to handle these tasks. Having one means that your hotel guests will be able to get concierge service any time of day. Some can even be texted by guests to get the assistance they need, which frees up employees to do more customer service tasks.


Why the Hotel Industry Should Look Into the Use of AI

Digital transformation is happening in various industries, including hospitality. This data-rich environment requires ample processing power to use the information gathered. What’s more, customer interaction has changed over the years. Many prefer to book hotels where they receive a quick response to their questions, and customer service gives them the best experience.


Adopting AI-based tools and systems can elevate hotel operations and improve customer relations, which can lead to an increase in revenue. Hoteliers can also benefit from this in terms of staffing since they are freeing their workers from mundane tasks. This way, they can direct their teams to become more efficient.


Hospitality is still largely a high-touch industry, but having AI integrated into how a hotel operates can make its operations go smoothly. Now that hoteliers can quickly access data, they have the tools and information they need to make informed decisions about their operations and get the highest return on investment. The question now is, what kind of AI solution does your hotel need at this time?


AITS and Their AI-Based Solutions

Artificial Intelligence is constantly changing. It has evolved over the years and now plays a big role in various industries, including hospitality. Both large and small hotels are looking into how they can adopt this technology, as everything is going digital these days.


Artificial Intelligence Technology Solutions (AITS) has been developing AI-based business solutions designed to improve operations, enable predictive maintenance, speed up facility booking processes, and perform other building management functions. These solutions are geared towards automating processes and procedures, enabling companies to focus their efforts on running their businesses.


People Counting Camera is an AI-based solution that can be integrated into the hospitality sector. These cameras use facial recognition to determine the number of people in an area at any given time. This is helpful to hoteliers who want to know how much foot traffic they receive. They can also monitor staff movement and ensure that the number of people in the room does not exceed the maximum for social distancing purposes.


In addition to this technology, AITS also offers a booking system that allows staff to reserve hotel facilities, such as conference rooms, for guests on business trips and other occasions. Since everything is digitalized, not only does it speed up the process, but it also minimizes contact.


Integrate AI Solutions in Your Hotel with AITS

Integrating AI solutions in your hotel can be challenging as each hotelier has unique needs and preferences. However, AITS is here to help you find the right AI program that is customized to your needs. Our team can determine the best option based on the issues your company is facing so that you can focus on running operations smoothly.


If you are a hotel owner looking for AI tools and systems, we are ready to assist you. Please send us a message at, and we will get started. In today’s era of AI, it is crucial not to let your business fall behind.

Digital Transformation, Hospitality, Uncategorized