Everywhere you turn – whether it’s the news, social media, or industry publications – the buzz surrounding AI and ChatGPT is inescapable.
And for good reason. These two innovations are game changers, already making significant waves in the hotel and travel industry. They’re revolutionizing everything from guest communication to marketing and revenue management. In this article, we’ll delve into the profound impact of AI and ChatGPT on the hospitality sector and explore how you can harness their transformative potential.
AI unveiled
Artificial intelligence, often abbreviated as AI, involves the emulation of human-like cognitive processes by computers. Through complex algorithms, AI enables machines to perform tasks that typically require human intelligence. This encompasses many functions, including learning from data, problem-solving, and data-driven decision-making.
AI frequently incorporates machine learning, a process in which the system learns from its own outputs and human input and corrections. This continuous learning allows AI to enhance performance and adapt to changing circumstances.
In hospitality, AI has found numerous applications, with revenue optimization tools and guest communication platforms being among the most prevalent.
ChatGPT unleashed
ChatGPT, a creation of OpenAI, is an AI-language model that processes and generates natural language like a human. This makes it possible to engage with ChatGPT through text-based conversations, asking questions or providing prompts to receive information.
With its AI foundation, ChatGPT can adapt to new information and learn from interactions with humans, resulting in increasingly refined outputs. However, it’s important to note that ChatGPT’s responses are only as reliable as the data it has been trained on.
Maximizing AI and ChatGPT in your hotel
While AI and natural language models like ChatGPT are still in their nascent stages, the benefits they offer are already worth exploring.
Deeper data analysis
Business intelligence tools have already made significant strides in revenue management by automating data collection. AI takes it further by collecting data, analyzing it, and offering direct rate update suggestions. Atomize, for instance, uses AI to analyze demand trends and market behaviour, providing deep insights for optimal rate recommendations. Integrating ChatGPT allows for natural language queries to access specific data sets, enhancing data exploration.
Smart rate updates
Leading RMSs now offer full autopilot functionality, where AI-powered systems can automatically set rates while adhering to your pricing guidelines. This feature operates 24/7, ensuring faster responses in highly competitive markets. The Revenue Management Software Atomize is an example of a system that leverages AI to recommend rates, ideal restrictions, and accurate demand projections, optimizing revenue and freeing up time for strategic planning.
This well-rounded approach boosts your revenue and leaves you more time to focus on the bigger picture.
“AI has been one of the key technologies driving the price optimization engine at Atomize for a long time and one of the key building blocks when recommending price changes. Our AI is fed data from many different sources, including the hotel and competitor data, and is constantly improving based on this and other enhancements.
ChatGPT has spotlighted AI, but even before that, key AI concepts have been used (machine learning, neural networks). We are looking at how to utilize ChatGPT and the areas it has improved in future versions of Atomize, and we are always working on improving the AI engine where possible,” says Fredrik Hultkrantz, Chief Technology Officer at Atomize.
Accurate forecasting
AI-driven systems accelerate the forecasting process by analyzing historical, current, and forward-looking data. This results in a faster and more precise forecasting process, reducing the reliance on manual estimations.
Targeted marketing campaigns
AI can pull market and demand data to identify opportunities for targeted marketing campaigns. ChatGPT can assist in drafting marketing content quickly, streamlining campaign execution.
Immediate customer support
AI-powered chatbots, including ChatGPT, can provide round-the-clock customer support, responding to queries in real time. This improves the reservation experience and captures more booking intent, although it’s important to note that ChatGPT may not handle complex queries.
Highly personalized service
AI can help personalize guest experiences by analyzing guest data and recommending promotions, services, and add-ons. Oaky, an upselling software for hotels, is an example of AI and ChatGPT integration that enhances guest interactions.
Oaky, the upselling software for hotels, is a great example of leveraging the possibilities of AI and ChatGPT;
“At Oaky, we’re actively harnessing the potential of AI, including innovations like ChatGPT, to reimagine how hotels engage with guests. With the power of AI and ChatGPT, we transform the ordinary into the extraordinary. Our upcoming solution aims to automate the creation of compelling descriptions and translations for deals and room upgrades, promising a more efficient way for hotels to communicate their offerings globally.
By infusing AI into Oaky, we’re on the brink of revolutionising guest experiences, personalising recommendations, and transforming how hotels and guests interact in a tech-savvy world,” says Wouter Wisselink, Head of Product at Oaky.
Improved employee satisfaction
AI automates repetitive tasks, allowing hotel staff to focus on more meaningful and creative aspects of their roles. This leads to higher employee morale and satisfaction across departments.
Here Adam Mogelonsky, Partner at Hotel Mogel Consulting Ltd. sees AI’s massive potential: “Where AI will help immensely is in process automation thereby to activate new layers of service customization and personalization. This is all the stuff that guests want immediate answers for or business workers don’t deem fulfilling or creative work.”
That’s true for all departments. With AI-powered systems, your revenue manager won’t be bogged down with collecting data and collating Excel reports anymore. The reservation and front desk staff can skip answering FAQs and spend more time genuinely engaging and connecting with guests. Finally, marketing will spend less time researching demand and target markets and have more time for creative promotions and ads. All this increases morale and employee satisfaction because people can finally concentrate on the engaging, creative part of their work.
In conclusion, AI and ChatGPT offer immense potential for the hotel industry. Embracing these technologies can increase efficiency, engaged staff, superior guest experiences, and higher revenue. While the industry may not transform overnight, the ongoing evolution of these innovative solutions is certain. By familiarizing yourself with them early, you position your hotel to adapt and thrive in a changing landscape. Explore your options now to gain a competitive edge and stay ahead of the curve.
