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 in order to maximize their efficiency or even find more avenues that will boost their revenues.


According to a report that was 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 them in order to stay relevant in the market.


Artificial Intelligence (AI) branched out to create machines that are capable of emulating human intelligence. These computers are equipped with the tools that allow them to do more complex tasks just like humans.


How is AI Relevant in the Hospitality Industry?

Machines that are operated by AI are capable of basic human functions with minimal errors and with more efficiency. What this means for hotels is a more efficient system that will improve customer experience and satisfaction while minimizing financial loss.


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, it is highly likely that customers will 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 are in a much better position to personalize their services to their guests for 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 the 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 have employed the robot, Connie, to assist guests with the information they need. Not only does this speed up the process of providing useful information, but the robot also learns more with the 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 any time of the day.


3.   Pricing and Forecasting

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


Additionally, AI can also compare the current prices of competitors in order 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 go through, 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 a tedious process for many especially when they are doing it by phone. The small screen makes it difficult to search for hotels to get the information they need. 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 for the virtual assistant to 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 the use of AI concierges that can 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 in order to make use of the information gathered. What’s more, customer interaction has changed over the years. Many prefer to book in hotels where they receive a quick response to their questions and where customer service gives them the best experience.


Adopting AI-based tools and systems can elevate the operations of hotels and improve customer relations which can lead to an increase in revenue. Hoteliers can also benefit from it in terms of staffing since they are freeing their workers from doing mundane tasks. This way, they will be able to 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 their operations go smoothly. Now that hoteliers are able to go through data quickly, they have the tools and information they need to make informed decisions with regard to their operations to get the highest return of 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 wherein it 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 that are designed to improve operations, enable predictive maintenance, speed up facility booking process, and other building management functions. These solutions are geared towards automating processes and procedures to enable companies to focus their efforts on running their business.


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


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


Integrate AI Solutions in Your Hotel with AITS

Finding the right AI program to implement in your hotel is easier said than done. After all, each hotelier has its own needs and preferences. That said, AITS welcomes the opportunity to discuss AI solutions that are customized to your needs. We are here to determine the best option based on what issues your company is facing so you can start going back to what you do best, which is running operations at the helm.


If you are one of the hoteliers that are in need of AI tools and systems, we are more than happy to help you out. You can send us a message at and we’ll get started. In these times when AI is being used left and right, you should not let your business get left behind.

Hospitality Business Models