Technological progress is happening faster than ever. Hotels are also having to reshape the way they interact with their guests. One innovation that has gained momentum is the integration of artificial intelligence (AI)-driven automated response tools.
NB: This is an article from Hotellistat, one of our Expert Partners
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These tools promise efficiency, personalisation and improved guest experiences, but like any technology, they have advantages and disadvantages. Especially in skills shortages, it seems tempting to leave the answers of reviews to artificial intelligence. But what are the consequences? In this blog post, we shed some light on the pros and cons of such automated response tools:
Advantages
Efficiency and speed
One of the biggest benefits of AI-powered automated response tools is the speed with which they can respond to guest requests. Whether booking confirmations, check-in details, responses to reviews or simple requests for information, AI responds in real-time, reducing wait times and increasing overall guest satisfaction.
Availability around the clock
Unlike human staff, AI tools are available around the clock, have no vacations or days off and attend to guests’ needs at all times, even in different time zones. This ensures that guests can always get support or information and contributes to a better guest experience.
Personalization
AI can analyze an almost unlimited amount of guest data and preferences, allowing for a tailored experience for the guest. From recommending local attractions to suggesting room upgrades based on past preferences, these tools can create a customized and memorable stay for guests.
Cost efficiency
Implementing AI-driven tools can lead to cost savings for hotels. Although the initial investment can be significant, long-term savings in labour costs and increased operational efficiency can yield substantial financial benefits.
Data analytics
Automated response tools can collect and analyze large amounts of data, providing hotels with valuable insights into guest behaviour and preferences. This data can be used to make informed decisions, improve services, optimize the overall guest experience and, ideally, the hotel’s bottom line to the same extent.
Multilingualism and error prevention
AI-driven tools are proficient in every language and can therefore address a wide range of guests. This ability surpasses human employees who cannot speak every conceivable language. Additionally, automated tools minimize human errors, such as typos or misspellings, resulting in more accurate and reliable communication with guests.
Disadvantages
Lack of human touch
One of the criticisms associated with AI-driven responses is the need for a human touch. While AI can handle routine requests efficiently, it may struggle with nuanced or emotionally charged interactions, which can detract from the personal connection guests are often looking for. Therefore, systems should always be tested extensively before being deployed.
Limited problem-solving capabilities
AI-tools are programmed to complete specific tasks and might struggle when faced with unexpected or complex situations. Human employees can think critically and overcome unique challenges. AI is currently not always able to do this.
Privacy concerns
The collection and analysis of guest data by AI-driven tools may raise privacy concerns. Hotels need to be transparent about their data usage policies to ensure that guests feel comfortable with the processing of their data. Hotels should also select their software providers carefully to implement a reputable solution that complies with all applicable data protection regulations.
Implementation challenges
Implementing AI-driven tools sometimes requires significant investments in technology, training and integrations with existing systems. Hotels may encounter challenges during the initial stages, including technical issues and staff training requirements. The plethora of technology solutions currently available can lead to a certain amount of training overload and staff overload. A solution must be found that takes into account the factors of technological progress, guest experience and employee acceptance.
Guest resistance
Some guests may object to interacting with AI and prefer the familiarity of human interaction. Hoteliers need to strike a balance between utilizing technology and ensuring guests are satisfied with their overall experience.
Influence on guest behaviour
The increased use of AI-driven responses could, for example, influence the rating behaviour of guests. Guests who take the trouble to write detailed reviews themselves could be disappointed if they only receive automated responses. This could lead to a decrease in authentic guest reviews, as guests may be less inclined to share their experiences in detail if they can only expect an automated response. It is important to keep the human and emotional aspects in guest communication to foster a positive relationship and authentic guest feedback.
The introduction of AI-driven automated response tools in hotels promises improved efficiency, personalization and data analysis, but also poses challenges. While technology can positively impact the guest experience, particularly through 24/7 availability and multilingualism, there are concerns about the lack of human touch and limited problem-solving capabilities.
Data protection aspects and implementation hurdles also need to be considered. Of particular interest is the potential impact on guest review behaviour. The danger is that guests who go out of their way to write detailed reviews may be disappointed if they only receive automated responses.
An important consideration for the future is the clear labelling of all AI-based interactions with guests. The ability to choose between an AI and a human contact could be crucial. Not only would this promote transparency, but it would also give guests control over their preferences and ensure that the human aspect is retained in communication. With these considerations in mind, the challenge lies in harnessing the benefits of automation without neglecting authentic guest communication.
AI systems will become better and more accurate in their responses as development progresses. Until then, the AI-supported application must allow users to add the emotional aspect manually. This ensures that automated communication is enriched by human emotionality and that guests continue to be offered an authentic experience.
