smiling guest at check-out reflecting the impact of ai powered hotel guest messaging and the potential future of direct bookings

Giving guests enough attention is a balancing act that’s always playing out in hotel lobbies, and it’s often limited by team size and sheer bandwidth.

NB: This is an article from Canary Technologies

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But here’s the game-changer: AI-powered hotel guest messaging. Using AI to automate communication frees up hotel staff for better in-person interactions while giving guests instant service 24/7.

What Is Guest Messaging for Hotels​?

Guest messaging is a simple way for hotels to communicate with potential and current guests. It taps into a behavior familiar to all of us: messaging on our devices. That makes it an intuitive choice for guests of all kinds: 73% of travelers prefer booking with companies that communicate travel plans, reminders and updates via text.

Whether answering questions on a hotel’s website to lock in a booking, offering pre-stay support or providing updates during a stay, guest messaging is the trifecta of effortless communication, better guest experiences and more direct bookings.

5 Reasons to Leverage Automated Guest Messaging in Hotels

If you think hotel guest messaging is only about freeing up staff and creating operational efficiency, it’s time to think even bigger. On top of handling traveler’s questions, automated guest messaging lets you handle more communication in less time to hit key hotel metrics.

1. Improve Booking Ratios

Website visitors browse, compare prices…then often, they hesitate. Yet, your website is where you have the most power to turn browsing into booking. With AI chatbot software, guests always get instant help when they need it. This virtual assistant is embedded on your website and available 24/7 to answer questions and guide guests toward a direct booking.

2. Reduce No-Show Rates

Last-minute plan changes happen, but your hotel shouldn’t have to wait until midnight to spot and act on no-shows. AI can analyze past booking patterns to recognize high-risk reservations in advance and send personalized reminders or offer easy modifications. This reduces no-show rates and gives you another opportunity to fill the room for the night, turning potential no-shows into salvaged stays.

3. Increase Upsell and Cross-Sell Opportunities

Every interaction is a chance to upsell or cross-sell, but overwhelmed employees may not always be able to take the time to capitalize on them. Automated guest messaging makes sure you communicate your add-ons with every guest at the right time: offering in-room dining options for late arrivals, a spa discount on day two or a promo when they ask about the lobby bar can boost upsells by up to 200%.

4. Reduce Customer Acquisition Costs

Direct bookings cut third-party fees, but still carry costs and time investment in the form of staff answering calls and emails. Staffing, however, is already a challenge: 65% of U.S. hotels face staffing shortages.

AI-powered messaging is able to handle multiple booking inquiries at once, freeing up time and driving reservations without sacrificing speed or service. With consistently low customer acquisition costs, AI bookings may even become their own category as more hotels begin to adopt this technology.

Read the full article at Canary Technologies