Artificial Intelligence in Hospitality: The Impact on Operational Dynamics

The adoption of new emerging technologies has gone on to become quite the trend after receiving inspiration from a myriad of successful use cases. In case of hospitality industry, the real boost of artificial intelligence in hotels sprung from the fact that it has the power to impact and transform the industry completely.

Given the rising need for smart automation of existing processes, AI has entered the traditional hospitality landscape with a promise to enhance hotel reputation, drive revenue and take customer experience to the next level.

Like many industrial systems, the world of hotels revolves around a handful of solutions all driven by intelligent chatbots and voice-enabled services. To meet changing consumer expectations, hotels across the globe must upgrade their operational system and services by integrating intelligence-based predictive analytics in hospitality. In this article, we will see how the adoption of AI further impacts the overall dynamics of hospitality industry.

Booking experience redefined

Chatbots in hospitality are changing the way booking inquiries are handled and visitors are converted into patron customers. The front-desk hotel staff that is normally liable for conducting booking-related queries could well be replaced with conversational bots. These intelligent chatbots are programmed to create simulated conversation (text/voice) in native language, enabling controlled, concise and efficient interactions between humans and computing machines.

The adoption of artificial intelligence in hotels is not expected to face the degree of apprehension as other new technologies, given that people are already accustomed to receiving recommendations from digital platforms. Interactions for hotel booking that are enriched with intelligent chatbots offer immense convenience to customers: 24/7 availability, fast-paced delivery service along with several custom options for booking room services.

Built in combination with call center agents, conversational AI and chatbots in hotels will fuel the digital reservation process helping hotel businesses upsell relevant services.

Machine learning and automation

Hotels need precisely crafted, strategic automation of its internal and customer care services to reduce & optimize service/operational cost. Integrating chatbot software within the sales and marketing departments to ascertain and understand existing offers, changing customer tastes, behavioral patterns and convincing responses would be the first step to making this possible.

Machine Learning in AI tends to observes the shifts and consistency in trends along with delivered responses of previous agent conversations before it begins to produce its own accurate responses, custom offers and personalized suggestions that complement the lifestyle choices of travel planners. Thus, chatbots in hospitality not only help enhance customer service but also result in flawless decisions based on the massive volume of data.

IoT & Intelligence of things

Thanks to wide spread adoption and advent of IoT, we see almost everyone with wearable devices now, measuring their body temperature, energy level, cardiovascular/respiratory levels in minute detail in order to get customized health solutions. You can now juxtapose something very similar with the latest incipient revolutions materializing in the world of hotel industry.

By establishing artificial intelligence and chatbots in hotels, the hospitality industry can create more significant opportunities to deliver excellent guest-friendly services ranging from matching guest preferences, suggesting books or music, nearby sports club to complement customers’ taste, all the way to automatically alerting hotel staff for personalized meal choices, special privileges and complimentary services, etc.


Through interconnected devices, sensors and machine learning, hotel rooms can leverage the existing network of technologies in combination with virtual assistants to further enhance the customer experience.

Leverage data reservoirs for tailored recommendations

The extensive dependency of people on digital technologies means an enormous mine of customer data that hotels can study and assess to perceive specific interest and needs of prospective customers. Although hospitality industry is still in its infancy in adopting the advanced machine learning abilities and analytics, the use of IoT-enabled devices, sensors and full scale artificial intelligence in hotels can offer tremendous opportunities for hoteliers and travel companies to bring in repeat business and drive revenue by leveraging all available data.

Perceptive personalization and on-premise recommendations

Hotel guests are assisted fully from departure to arrival at destination with personalized recommendations that enhance their journey and after-arrival choices at the hotel (dining, drinks, breakfasts, on-property activities, etc.). After garnering heaps of customer data, hotels can use machine learning with business-specific algorithms to generate predictions about what customers are most likely to opt for.

This analytical ability of AI can keep the hotels agile in identifying the next set of trends when it comes to products/service offerings. It can be used to evaluate and identify the traveler or customer persona in order to match them up with relevant services or packages that the hotel provides. Using the brilliance of predictive analytics and personality branding, hotels can identify the future needs and please customers by serving up what exactly they might be looking for before they even ask for it (case in point – Red Roof Inn leveraging weather and flight data to attract potential customers through predictive analytics).

This goes on to show that the power of predictive analytics in hospitality can help formulate and execute relevant offers along with personalized experiences tailored for individual hotel guests.

Voice-enabled Virtual Assistants

As the technology grows more sophisticated and popular, hoteliers find it easy to engage and treat their guests with much more exquisite service through voice technology in hospitality. Guests expect a similar experience with in-room technology as they enjoy at home through interconnected devices.

Thanks to recent advances in artificial intelligence, hotels have begun to equip their rooms with smart devices that have voice recognition system. One such hotel that has equipped as many as 5000 hotel rooms with Amazon’s Echo speaker is Wynn Las Vegas. The guests at Wynn would be able to control many features in the room with Amazon’s Alexa, a voice-controlled VA.

Interestingly, this may not be the only hotel to see Alexa in hospitality. Even Marriott is looking to choose either Alexa or Siri for its Aloft hotel in Boston in order for guests to control their room through just voice.

Hotel-specific intelligence for creating a brand reputation

With voice technology in hotels and IoT devices linking virtual assistants, hotel guests tend to enjoy smart space and even smarter services, leading to fewer interactions with hotel staff. This is the reason why hotels have already started allowing hotel guests to check-in and check-out via mobile apps. The concept of virtual keys enabled with mobile apps also allows them to control air conditioners, light intensity, and other controls.

Now the age of all-in-one devices has begun with virtual assistants to treat guests with an all encompassed personalized customer experience. The combined power of AI, IoT and virtual assistants can cater to hotel guests on the next level by introducing them to a variety of hotel luxuries, amenities, best spots, special attractions etc.

Convenience and solutions of this grade will result into automated guest services for upscale hotels, thereby creating a far better future for hotel brands. Since people expect more specials from hospitality industry, companies that implement voice technology in hotels will be among the most competitive facility providers.

AI crafting polished communications

In 2018, AI’s power to ameliorate communication flow inside the hotels between service and guests will modernize the overall interactions with guests. With that said, the future will still not see hotel personnel being completely replaced with AI and chatbots in hotels. Instead, we will have poised information management and AI-powered virtual assistants functioning as an influential communication tool in synchronicity with hotel staff, which will further give boost to a much capable and streamlined hotel management system to look after daily activities.

Also, with voice technology in hotels, customers can enjoy the speed and seamlessness while accessing the most vital contact points such as restaurants, hotel butlers, in-hotel amenities using frictionless touchscreen gestures on their voice-capable devices and text-based AI chatbots.

Hotel Marketing grows more impactful and emotional

Marketers are increasingly using the term contextual marketing to add effectiveness in their advertising campaigns. Marketing strategies are formed on the basis of human emotions with the idea to strike a chord and resonate with the masses. Artificial intelligence and predictive analytics in hospitality will fuel personalized marketing campaigns that best suit targeted customers.


Hotel marketing experts that proactively ponder the anticipated guest emotions and motivations are likely to gain more momentum in their business growth when compared against the traditional approach usually taken. Hotel companies need to work out a range of emotions and frame a comprehensive strategy so as to determine the effect of specific services on customers.

As AI will improve the ways of collecting customer information, hotel marketing experts will adapt to innovative techniques to enhance their marketing messages. The trend of using AI-powered predictive analytics in hotels for marketing purposes can be successful even for emerging businesses in the hospitality space.

Smart Guest Rooms and Getting Smarter

The world inside and outside our domestic premise is growing smarter every day. Gartner research says that by 2022, a typical American home will have 500 smart devices for smart living. For the hospitality industry, artificial intelligence could drive a new frontier of futuristic opportunities.

With IoT and sensors imbued with AI technology, the following can happen:

·         Hotel’s Wi-Fi network can ably recognize an arriving guest’s smartphone

·         IoT system can alert the management staff for quick, frictionless check-in for the guest

·         AI-enabled system can allow auto-unlocking of the door as guests stand at the door

·         Hotel guests can adjust the light intensity and temperature of the room that matches their predetermined preferences

Market experts predict the invasion of this futuristic experience where most of the amenities and service features are connected to hotel’s property management system to achieve a seamless guest experience. The system of this caliber has multiple devices interacting with each other to provide seamless control over lighting, temperature, TV, water usage, enabling much smarter rooms.

Hoteliers that adopt this intelligent approach gain detailed insight into their operations and take intelligence-driven decisions to retain customers, increase reputation and drive business growth.


With so much pressure to beat the competition and capture wide customer base in tight deadlines, hotels across the globe will require substantial technological innovations to survive increasing demands. In the world that is more interconnected than ever, hoteliers must adopt the innovative fusion of IoT, AI and consolidated service devices to transform their space and redefine current service standards. Highly sophisticated customer experience made possible with artificial intelligence in hotels will make the space smarter and more attractive.

Hotels should collaborate with the right technology partner in order to identify gaps in their processes such as customer support, concierge bookings to in-room technology that can be closed with the help of integrating Artificial Intelligence and Machine Learning.  It is the key to enhancing the customer experience, increasing brand recognition and loyalty along with tangible revenue gains.

About the Author

Mitul Makadia is Founder of Maruti Techlabs and a true technophile. With his industry experience, he has rapidly developed Maruti Techlabs in specialized services like Chatbot Development, Artificial Intelligence, Natural Language Processing and Machine Learning. Makadia has considerable expertise in Chatbot Development and NLP.