Cutting-edge client-facing technologies can help hotels not only boost revenue but also adapt to fast-evolving customer preferences.
NB: This is an article from RLA Global
Rolling out new digital tools has never been more important as the industry is emerging from the Covid-19 pandemic, which transformed the technology use and purchasing patterns of customers. For example, guest demand rose significantly for contactless, self-service and mobile-based solutions, prompting operators to rapidly update their services.
The majority of hotels already offer or is planning to introduce over the next year mobile booking, mobile check-in and mobile room keys (100% of participants), two-way messaging with guests (95%), contactless payments (88%), check-in and check-out kiosks (62%) and voice-controlled devices (54%), Hospitality Technology said in its 2023 Lodging Technology Study, which surveyed hotel industry professionals representing more than 18,000 properties worldwide.
The customer appeal of some of the more sophisticated technologies appears to be less pronounced, at least for now. For example, just 18% and 16% of travelers rated virtual reality spaces and hotel robots providing contactless services important in the 2022 Customer Engagement Technology Study. The uptake of cutting-edge technologies might have also been affected by challenges in the hotel sector, such as limited IT budgets or difficulties in measuring return on investment (ROI) in technology.
But in a positive development, the average IT budget of hotels globally rose to more than 4% of total revenue in 2022 from less than 3% in 2021, and 74% of hoteliers are now willing to consider using alternative investment metrics for technology projects, Hospitality Technology found. It also said hoteliers can pass on some of the expenses of their developments to customers, about 76% of whom are willing to pay a premium for technology features and services that are important to them.
It is also good news that customers are open to using certain types of advanced technologies if they improve their hotel experience. For example, 73.4% of travelers are interested in hotels using artificial intelligence to analyze their travel data for more targeted and relevant advertisements and offers, according to a 2022 study by Oracle and Skift. It said 51.5% of hoteliers plan to use artificial intelligence and analytics to learn about guest behaviors so that they can offer more personalized offers.
AI Chatbots and Voice Assistants Boost Direct Bookings, Upsells
Artificial intelligence – which refers to the capability of computer systems to carry out tasks that normally require human intelligence – is already used for various tasks, from improving efficiency through automation in back-office operations to enhancing guest experience through personalization in customer service. According to Accenture, the share of travel industry revenue that is “AI-influenced” climbed to 21% in 2021 from just 9% in 2018 and will rise further to 32% in 2024.
Growth will be supported by the accelerating adoption of AI and its machine learning (ML) subcategory – which refers to systems using algorithms and statistical models to analyze and learn from data without explicit instructions. About 73% of IT decision-makers in the travel and hospitality sectors said in a 2023 survey by Rackspace Technology that AI and ML lead their current strategy. Some 74% have already seen certain benefits from AI and ML, with 73% of participants mentioning increased revenue streams and personalized marketing, and 69% improved customer satisfaction and higher sales.
Chatbots offer an outstanding opportunity to integrate AI into customer-facing solutions and unlock its sales and marketing potential. AI-driven chatbots, which are fast becoming a must-have for operators, can work as booking assistants. They learn with each interaction, which constantly improves their capability to generate bookings and reduce the number of abandoned transactions. AI chatbots can reduce customer service costs by up to 30% and have the potential to increase direct bookings by 30%, management platform provider Little Hotelier said.
