Why is Conversational AI becoming a trend in Hospitality?

Elevating Guest Experiences in Intelligent Hotels

conversational ai hotels

Virtual concierges offer personalized recommendations and automated room controls for a customized environment. Although the hospitality industry is no stranger to chatbots, their importance will only continue to increase. This is why luxury hotel brand Dorchester Collections uses it to personalize guest experiences from booking to dining. “As hotels struggle with the lack of staff, many managers across the globe are looking for technological solutions that can increase productivity and optimize resources while enhancing their guest’s experience”, explains Tiago Araújo.

The best conversational AI solutions will have integrations with a range of property management systems to enable the inclusion of personalised information and offers in such campaigns. With that in mind, Salesforce and other companies have taken that concept one step further by looking for ways to combine conversational intelligence with technology. In fact, through these efforts, AI-powered conversational intelligence has vastly improved over time. This started with simple text recognition in which it’s fairly easy to achieve a significant degree of accuracy. But text recognition can be somewhat two-dimensional, which is why research has progressed to include automated speech recognition.

This lets customers track deals and get competitive pricing data to understand the best time to book a holiday. Conversational AI, like a chatbot, can collect customer data and keep track of their activities. The information can be further utilised to offer various personalised recommendations for fun activities, restaurants, hotels, etc.


It performs live chat operations in response to real-time user interactions using rule-based language applications. Customer behaviour has changed in an unprecedented way following the COVID-19 pandemic. Many organisations have swiftly implemented chatbots to adapt to the sudden shift towards interacting with customers primarily, if not exclusively, through digital channels. The ultimate goal of a chatbot is to improve customer self-service, provide information, deliver continuous and cost-effective support, and delight customers with personalised experiences. Read on to learn more about chatbots and how they benefit hotels and their customers. Conversational AI is a branch of AI that focuses on understanding and answering questions using natural language processing (NLP) techniques.

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  • This involves implementing conversational AI systems to allow guests to easily get and stay informed about the status of their reservations, view their reservations and compare them with others, and receive suggestions to increase their stay.
  • The room rates for hotels dropped significantly, and low room rates are likely to continue to cause issues in the industry.

Consider chatbots for your hotel if you’d like to create consistent guest experiences and free up time for front desk staff to provide the best possible service for guests who are physically present. The hotel industry should look at how conversational AI can be used to make travel more enticing for guests. This involves implementing conversational AI systems to allow guests to easily get and stay informed about the status of their reservations, view their reservations and compare them with others, and receive suggestions to increase their stay.

AI use case: Revenue management

It is from chatbots facilitating seamless guest communication to predictive analytics. Automated check-ins, personalized recommendations, and dynamic pricing models enable more guest-centric experiences. Also, it places hotels at the forefront of technological novelty in the hospitality industry.

conversational ai hotels

For instance, travel and tourism can analyse customers’ previous activities and suggest personalised recommendations for exotic places and adventures. Join us on our blog as we explore the world of hospitality chatbots. Discover their numerous benefits, explore real-world use cases, and delve into the critical components of conversational AI technology that powers them. Let’s manage how this innovative technology improves operational punch.

Andrei is CEO at NLX, a provider of automated and frictionless multimodal self-service tools powered by conversational AI. He built the Natural Language Understanding platform for American Express, processing millions of conversations across AmEx’s main servicing channels. Previously, he deployed AWS across the business units as Director of Engineering of Argo Group, a publicly traded US company. He teaches graduate lectures on Cloud Computing and Big Data at Columbia University.

The question becomes how do you use all of the AI-powered tools available and that are coming out – from RPA to ChatGPT – to drive a better customer journey and a better employee experience. Provide your guests with a personalized and digital hotel experience. To begin, Delafosse explained where conversational AI falls under the broader overarching term of artificial intelligence.

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Artificial Intelligence makes it easy to spot opportunities to increase efficiency and improve service by keeping a close eye on communications. Let’s understand why AI is emerging as a big trend regarding the improvement of teamwork and productivity in the hospitality industry. So, let’s understand what kind of improvements are hotels expecting from AI in this regard.

Opportunities in hotel technology today (No Vacancy podcast)

Also, such sway enhances sustainability and elevates overall guest satisfaction. However, and this is key, structured data only represents a small portion of the data that is actually available to hoteliers. It doesn’t accurately reflect the reality of one’s business, yet it’s on which hoteliers base most if not all of their business decisions.

As data becomes ever more important to business operations, the data this technology can provide to hoteliers will eventually become invaluable. And third, conversational AI elevates the guest experience by providing a new, innovative way for customers to interact within the room. That means that completely replacing hotel staff with AI counterparts is unlikely.

Artificial intelligence has developed to the point where chatbots and virtual assistants can have more nuanced interactions with humans—and that opens a wealth of possibilities. Embrace the power of conversational AI and revolutionise your guest experience today with Verloop.io. Machine learning can handle massive amounts of data and can perform much more accurately than humans.

conversational ai hotels

By learning the many ways people behave and interact, the system’s response becomes more accurate. Going well beyond simple text recognition, natural language understanding is where AI is truly bringing its strengths to bear. By facilitating deeper, more nuanced conversation, it increases the efficacy of human-AI interactions. When an AI-powered customer service system is better equipped to recognize and discern natural language with fewer errors, it can guide a customer through an entire interaction without having to engage a human service agent. Not only that, but conversational AI also studies the past booking history of the guest, their online behaviour, and social media activities, and based on that, provides personalised recommendations for rooms and amenities. And once the guest is happy, the chatbot instantly confirms the reservation.

They decide on a preferred destination and then start to research accommodation options. The challenge for hoteliers at this stage of the guest journey is to capture attention, spark imagination and resolve any initial doubts and hesitations travellers may have. For Messina, partnerships with technology companies like myDigitalOffice that had existing integrations with property management systems were a way to accelerate conversational ai hotels data aggregation. If you look outside to an industry like gaming, you’ll be inspired to create a better in-journey experience, provide microtransactions of content and experiences that create a better guest stay and will drive more ancillary revenue for you. Your guest experience begins before your guest steps foot on your property, and this is another strong use case for artificial intelligence in hospitality today.

It can create expectations that you may not be able to deliver on and hurt your reputation. As an evaluation tool, the request for proposal is being jettisoned in favor of bake-offs because the latter approach offers a more hands-on, efficient approach to finding solutions that will meet organizational needs. I can’t tell you how many times I’ve seen technology initiatives that totally missed this. As data security and privacy protection become more important than ever, smart hotel operators will be using AI to ensure security.

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There are a few things hotel operators and investors would benefit from considering. Even as we’ve been wowed by what AI can create now, there’s something in the back of our heads that wonders if this really has an application in hospitality. Ultimately, hotel owners and operators are focused on increasing profitability, which requires also focusing on cost reductions. A tight labor market, supply chain shortages, and inflation have made this more challenging.

For the customer, it will help in creating a better experience and would be necessary to book a room without facing any setbacks. In addition to this, it is a great way to differentiate yourself from your competitors. Benefiting from any technology comes back to an organization’s ability to change. When you digitize your operations on purpose-built tools, you set the stage to take advantage of the power of AI for your operations. AI won’t be able to benefit an area of your business that isn’t digitized. That means you need to be thoughtful about what tech you’re using and which providers you are partnering with.

And while these programs have become every day essentials for most consumers, they’re noticeably absent from hotel guestrooms. You can foun additiona information about ai customer service and artificial intelligence and NLP. During HITEC 2022, Mathieu Delafosse, Business Development Director, Aiello discussed how this technology can fit into the hospitality business model, provide hoteliers with a competitive advantage, and drive revenue via upsells. Addressing the full range of linguistic variations and including more diverse groups and historically under-represented minorities in the process is truly building the future of the human-AI connection. In fact, the biggest competitive differentiator in the future of conversational technology will be the ability to provide robust conversational understanding regardless of language, accent, slang, dialect, or other aspects of social identity.

Using personality profiles of existing team members and gamification-based tests, IHG and other top hotel brands have recruited thousands of employees. Get to know your customers through the feedback they leave on major hotel review sites such as Yelp and TripAdvisor. But instead of always going through the process manually, use an intelligent tool to do it for you. Machine learning (a subset of AI) makes it easy to automatically collect, store, and analyze data from across a variety of online sources. Hoteliers are adopting AI to increase guest satisfaction and get rewarded with retained customers, positive reviews and referrals. Hotels are looking to increase their bottom line by reaching to their guests automatically at the right place at the right time, based on availability and guest segment in order to get some additional revenue per available room.

conversational ai hotels

So, inns can navigate the complexities of AI integration, maximizing the benefits for staff and guests. From its capabilities to handing over conversational dialogue to your employees. You decide how your chatbot operates and what limits it should have. A not-for-profit organization, IEEE is the world’s largest technical professional organization dedicated to advancing technology for the benefit of humanity.© Copyright 2024 IEEE – All rights reserved.

Designed to handle a variety of tasks, as explored in this publication, conversational AI empowers hoteliers to streamline and automate guest communications, boost guest satisfaction, generate more revenue, and reduce the workload on hotel staff. As outlined in this article, hotel chatbots using conversational AI can help solve challenges the hospitality industry is facing and open up new opportunities for hoteliers to improve the overall guest experience. Beyond the benefits discussed already, AI-powered communication tools can also identify trends and analyse guests’ preferences, empowering hotels to adjust their services accordingly and use that as a competitive advantage. According to recent estimates, Gartner predicts that by 2022, 70% of customer interactions will involve emerging technologies such as machine learning applications, chatbots, and mobile messaging. Many hotels, travel agencies, and tour operators use conversational AI to give customers 24/7 customer service. This AI can quickly respond to customer queries, enhancing the customer experience and reducing wait times.

Reneson Hotels Chief Operating Officer Scott Curran uses what he calls “lightweight tech” to digitize operations, providing both data and accountability. Until you can get your data all in one place and start normalizing it, there’s really not a lot AI can do with it. O’Flaherty is a 20-year vet of the hospitality industry and says he still looks outside the industry for inspiration. “Look at industries like retail or gaming.” Since Microsoft owns Xbox, he has a unique view of what’s happening in that industry that I found to be a helpful example. We’ve looked at actions you can take on a personal level to prepare for an increasingly AI-powered world.

They ensure that AI remains a cornerstone in the relentless pursuit of exceptional and tailored guest services. Also, it is a dynamic evolution shaping the futurity of unparalleled guest centricities in this sphere. Hotels can drastically improve the customer experience by removing potential bottlenecks such as manual registration forms or in-person data delivery. In addition, hotels can reduce operational costs by enabling staff to focus on critical guest-related tasks. Bureau of Labor Statistics, there were nearly two million job openings in July 2021, many of which were within the hospitality industry.

“The first place to start is to look broadly at what your business priorities are,” Rothaus advises. To become irreplaceable, create something unique through research and collaborating with others. Originality can happen from creating from your point of view, and it can also come from the research and collaborations you do.

conversational ai hotels

The result is a virtual assistant that can be deployed for any voice channel and can handle any number of trained Q&As, foreign languages, difficult-to-understand accents and muffled sounds from the speaker. Another benefit of AI’s guidance is that it can answer any guest’s questions during the booking process, reducing the drop-off rate. By implementing conversational AI across all communication channels, you also make starting the booking process possible whenever works best for your guest. This publication examines examples and benefits of implementing conversational AI at each stage of the guest journey, aiming to improve the understanding of such advanced technology’s role in guest communications. Conversational AI-driven tools can be used to keep track of customer reviews and comments on social media.

Merging AI delivers a harmonious mix of punch and personalized service. Once your guests arrive at your hotel, you can also send an automated welcome message including useful details like a WiFi password, introducing hotel facilities, and recapping key policies. Take this opportunity to make guests aware of the immediate multilingual virtual concierge service you offer 24/7, thanks to conversational AI.

conversational ai hotels

The AI can quickly analyse and respond to negative feedback, which helps improve guest satisfaction and loyalty. Guest satisfaction is a comprehensive assessment of how happy and fulfilled guests were with your service from start to finish at all touchpoints—from visiting the website to the stay experience to post-stay and customer support. AI analyzes guest preferences, behaviors, and historical data to offer personalized recommendations.

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