It’s everywhere – on the news, social media, industry publications, you name it.
NB: This is an article from Atomize, one of our Expert Partners
You simply can’t escape the ongoing talk about AI and ChatGPT. And there’s a good reason for it. Both solutions are game changers. And they’ve already begun to transform many areas of the hotel and travel industry -from guest communication to marketing and revenue management.
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Here, we’ll look more closely at the impact of AI and ChatGPT on the hospitality industry and how you can benefit from this innovative technology.
What is AI?
Artificial intelligence, or AI for short, is when a computer simulates human-like thinking processes. It uses algorithms to allow machines to do work that would usually require human intelligence. Among other things, this includes learning from data, problem-solving and data-driven decision-making.
AI also involves machine learning in many cases. That means the system learns from its own results as well as human input and corrections. As a result, its output improves over time, and it can adapt to changing circumstances.
The most common AI applications in hospitality today include revenue optimization tools and guest communication platforms.
But many more solutions are in development now, especially since the release of ChatGPT.
What is ChatGPT?
ChatGPT is an AI-language model created by OpenAI. It can process and generate natural language in a very similar way to humans. That’s why you can engage with it via text-based conversations. Ask questions or give prompts and ChatGPT provides the requested information.
Given its AI backbone, ChatGPT can adapt to new information and learn from interactions with humans. This way its output will keep getting better and more refined.
Keep in mind though that ChatGPT relies heavily on the information it’s trained on. That means its answers are only as good as the data it has access to.
How to make the most of AI and ChatGPT at your hotel right now
While AI and natural language models like ChatGPT are still in their early stages, it’s already worth exploring the benefits they offer…
1. Deeper data analysis
Even without AI, business intelligence (BI) tools have brought huge advancements to revenue management. They automate data collection to offer you immediate access to accurate live internal, market and competitor information. This leaves you with more time to optimize pricing strategies, update rates and seize revenue opportunities.
AI takes it to the next level because it also handles data analysis and offers direct suggestions for rate updates or group quotes.
Atomize is a good example. Its algorithm has been using live data and AI to analyze demand trends and understand market behavior from the beginning. These deep insights allow the RMS to make optimal rate recommendations and highlight interesting developments.
Add a ChatGPT integration and it will be even easier for you to drill down on certain areas. It will allow you to use natural language queries to ask for specific data sets or comparisons, e.g. the performance of your suites vs. standard rooms over New Year’s Eve this year vs. last year.
2. Smart rate updates
Today’s leading RMSs go another step further and offer full autopilot. That means letting your AI-powered RMS set rates for you automatically. Of course, the system follows your pre-set pricing guidelines to ensure rates and restrictions remain brand-conform.
