Abstract
Artificial Intelligence in Hospitality Industry
Artificial Intelligence (AI) is a comprehensive division of computer science that focuses on developing smart machines that can perform commands that typically require human aptitude. AI has multiple perspectives but is mostly concerned with advancing machinery to perform more effectively in many sectors that require technical competence. The hospitality industry has been a key industry that has benefited from the emergence of AI in the world. The world has transformed into a better place, with technology boosting almost every sector. Having an active hotel backed by intelligent operations is one of the current hospitality industry trends nowadays.
The addition of viability to the concept of hospitality has been due to enhancing AI-centric care, support, and other services in the hospitality industry. For instance, hotel booking procedures have been automated where a guest can book while at their convenient places and even pay before checking in as long as the reservation is confirmed. The purpose of this paper is to explore the use application of AI in the hospitality industries. The paper focuses on the utilization of booking engines, automated communication, and hotel software systems.
Introduction
A couple of years ago, multiple tech changes had boosted the paradigm shift and, at the same time, disrupted countless industries adding value to some while leaving others behind. The adoption of new systems in the hospitality industry has become the sought-after trend due to the changing consumer buying behavior due to globalization (Drexler & Beckman, 2019). Before, people used to present themselves to the physical establishments to confirm the facilities’ types of services, the tariffs, among other considerations. With the emergence of AI, hospitality has been enhanced by raising the return on revenue (ROR) and transforming customer experience to another level (Kimes, 2016). Like any other industry, hotels and travel businesses have revolved around a raft of solutions catalyzed by acumen chatbots and a sound-enabled service area.
Expansion on Booking Engines, Automated Communication, and Hotel Software
Booking engines refer to the specialized websites developed to enhance reservations to hotels, parks, lounges, and other hospitality facilities. Hotels have been making profits by utilizing booking websites as they can be interlinked with traveling services from various destinations such as from the airport to the hotel establishment. There is no need to visit the hotel physically to obtain some information since the systems have been configured to send messages to the hotel management where there is attention is required. Examples of popular hotel booking engines include HotelMinder, Octorate, and FrontDesk master.
Automated communication and hotel software are compatible and can be used for a given purpose. For instance, Micros Fidelio V8 can assign guest rooms, bill the guest on the projected amount that should be paid, and show when the stay is due. Therefore, Fidelio can link with a parallel system to show when there is a need to have a different arrangement. Automated communication means that when a guest pays their bill in the hotel, an automated receipt can be generated and sent to their email. There are many types of hotel software such as Maestro Property Management System (PMS), Hotelogix, Point of Sale (POS), and SkyTouch Hotel OS.
The launch of new hotel booking platforms powered by AI has bettered online reservations because guests can undertake direct bookings to the hotel booking websites. The advantage of modern booking websites is that they analyze a wide range of data and identify the variations hence achieving the best booking configuration. Systems such as Allora usually allow customer interaction and can shift the process from a cookie-cutter method. Avvio company is responsible for launching Allora, which became the first direct booking channel in the hospitality industry (Al-Turjman, 2018). The establishment of AI reinforcement has aided global travelers to have the business power since they are equipped with searchability and query over the travel agents. The systems allow clients to receive feedback instantly hence advance the business-to-individual relationship. It means that tourist companies will have to be flexible and respond in kind so that customers can feel honored and valued.
The common factor that booking engines have made a powerful entrance is a booking interface designed in the native language. For instance, if a Japanese guest wants to visit a French park, they can get the information changed to their local way, enabling a communication boost. Through machine learning and automated equipment, services have been offered effectively and conveniently, therefore, offering an opportunity for hospitality industries to grow more (Genç, 2020). For example, with the Micros Autosequence system, hotels do not have to traditionally check entries and compile the required data as the system can offer such services at a go. That makes the work easier; hence, staff working on that matter may be assigned other relevant duties.
At the front desk, AI helps in instant syncing of data that the guest had filled online using key-value database recognition capability to launch a relationship between the range of information. About the room service and expectations, hotel booking engines usually have visuals that enable the guests to explore more about the rooms they want to reside in when they get to the hotel (Kirtil & Aşkun, 2020). Therefore, when the client comes, they will compare what they saw on the website from the actual room and satisfy their demands. Interactions involving hotel booking equipped with intelligent chatbots have offered immense convenience to hospitality guests (Kim et al., 2017). The systems have all-time availability, fast-service delivery that is accompanied by customized options for booking the rooms. Systems such as Allora have built-in combinations with call center correspondents responsible for raising the digital reservation process that can help the hospitality business.
The Change that has Occurred Due to AI Application in Hospitality
Artificial intelligence has changed the way hotels operate to a positive note more significantly. According to Miller (2018), more than 30% of travelers would feel more comfortable by allowing modern technology programs to aid in planning their trip (Miller, 2018). That would be based on the history of their previous experiences. Bu use of AI, the travel entities have personalized recommendations that can be based on unique preferences for their customers. Online tools such as AI Utrip can offer a fair planning service if used in the required way. The sophisticated methods frequently ask travelers to rate the preferred routes according to different divisions of leisure, such as nature and adventure, shopping, and leisure. The tools usually give additional filters such as the desired company to travel with, the purpose of the activity, and the style that a consumer may wish to have (Miller, 2018). That shows how the digitization of platforms can ease booking hotels’ procedures, hence boosting the customer experience significantly.
The reputation of hospitality management can be credited to the level of AI application in operations. That means the usefulness of AI will entice the guests to recommend the hotel to other people by rating how the hotel is managed smoothly. Having reservation websites that do not create problems for the customers enables a given establishment to be given a fair reputation, giving more chances for improved opportunities and enormous revenue accumulation (Miller, 2018). The way management maintains the tools brings out stable and linear hotel management because a skilled workforce will be committed to making the services better. There are many other grounds for securing business by use of AI because globalization keeps on taking people to advanced levels of interaction.
One of the benefits of having digital booking platforms is that they have a rating interface where customers can indicate the level of service from the engine. The essential part of this matter that one needs to note is that hotel businesses will always be to safeguard their reputation so that clients will not have a bad image of the facility (Al-Turjman, 2018). The system’s design allows guests to navigate and check the rating of the establishment before they can make final decisions on whether or not to book in that given hotel. Therefore, it is wise to affirm that hotel online booking platforms can help develop the value chain analysis as the management can notice drawbacks that require rectification and improvement (Millauer & Vellekoop, 2019). However, the subject can be a matter of controversy as rival firms can conspire with online influencers to tarnish and post a bad picture of the affected company, resulting in low sales volume.
Automated communication is seen as a range of departments and activities within the hospitality setting. First, automatic replies have been evident when a customer makes a significant decision towards the business (Kim et al., 2017). For example, if guests email customer care for a given hotel, there is an auto-reply message that appreciates them for having the interest to do business with them. Auto-replies are effective as they keep the conversation active, simultaneous, and relevant. Guests who have explored the hospitality industry can attest that automated replies motivate when one is about to decide. Second, automated communication is evident at the hospitality firm entrance points (Al-Turjman, 2018). For instance, installed security equipment records the number of people who enter by capturing their faces and sending details to the security department. The safety personnel escalates the information via common media platforms in case of any alert. When information is sent requiring concrete attention, the systems have a blinking display to indicate the need for urgent response.
Hotel software systems are used to perform several tasks in the hotel business setting. For example, the Micros Fidelio V8 has various interfaces that users can open depending on the intended purpose (Chibili et al., 2016). Under Fidelio, a receptionist and cashier can access the data and use it for the financial statements that can help bill settling and reimbursement. For instance, the system captures the details of the guest who checks in, allocates them room according to their preference, opens a financial account for them, and sets a calendar when the guest is supposed to check out. Fidelio system is linked with POS that records the entries from the restaurant cashier. That means the total sales need totally in both systems, and it is one way of detecting any fraudulent activity in the hotel (Kim et al., 2017). Additionally, POS connected to work alongside Fidelio allows cashiers to post bills against the guest’s room number, which detects in the Fidelio and enables the front office personnel to have updates concerning the guest.
Automated communication can be in the form of a mobile key where guests can check in their rooms using mobile phones. The process entails the use of encrypted technology that allows scanning of code when the guest is in the process of checking in. when the scanned code matches the one in the server; it makes a quick communication to the door configuration to allow the guest to get in their rooms (Chibili et al., 2016). Therefore, the three elements, namely booking platforms, hotel software, and automated communication, play a key role in the hospitality business’s modernization and efficiency.
Impact of Booking Engines, Hotel Software and Automated Communication in Hospitality
Improved Customer Experience
Guests who book to reside in a given hotel facility have been receiving enhanced experience from delivering services from the hospitality sector. For instance, if a guest can interact with a virtual customer cares system, there is a likelihood for the guest to opt for that establishment since they see the potential customer value (Kim et al., 2017). Due to that reason, modern hotels have had a significant occupancy level, and the number of people who are willing to spend time and visit hospitality institutions is increasing. The effect has led to the opening of hotel chains spread in various parts of the world. An example of chain hotels includes the Intercontinental, Hilton, and Kempinski (Al-Turjman, 2018). The three case examples have employed technology-based services such as booking systems that can be functional while accessing online. The hospitality services have changed for the better, and many investors are willing to incur a cost for the business since it has fair ROR.
Efficiency in Handling Massive Data
The hospitality sector is one of the sophisticated industries that many people may not perceive. The reason is that the sector has financial obligations that need to be completed to succeed (Chibili et al., 2016). The hotel software system has aided in combating any data problems by having AI features that can perform many tasks at a given time. For example, if a conferencing department has hosted more than 1000 guests, it means the billing would be a challenge is handled in an analog way. The challenge comes when all these guests may wish to have individual billing on what they consume or use in the hotel (Belk, 2020). The software captures all the data as a whole and splits it each in a given financial account where a guest can be billed against their expenditure. The software has the intelligence to diversify the content by showing various points of expenditure and billing them all together to appear like one statement. The most notable thing about this software is that they give indications when the guests have huge bills and their stay is due. since a guest can swipe their cards, there are no lines to the cashier for the guest to have their payments done (Kim et al., 2017).
Additionally, the AutoSequence system that works in line with POS has details of sales made in a given day, therefore, giving a track of how business is doing financially. Hotel guest information software helps classify different guests according to their function, guest room wing, and nationality. The receptionist needs to feed the data upon guest’s check-in, and the information will automatically classify itself in the respective interfaces. Night auditors and food and beverage controllers rely on AutoSequence to give financial reports to the management.
Improved Hotel Operations
The hotel has several departments which require inter-connection with each other for better performance. Examples of hotel departments are the front office, the housekeeping department, food and beverage service, laundry and dry-cleaning, public service, reservations office, among others (Chibili et al., 2016). For example, the Property Management System (PMS) allows the front office and housekeeping department to have efficient communication in the room bookings and inventory management, and room allocation (Belk, 2020). The executive housekeeper will use PMS to show the number of unoccupied rooms, the clean rooms, the rooms out of order, and the housekeeper who is assigned there. The receptionist uses the information to know where to allocate a guest.
When a guest requests a certain type of room, the front office personnel do not just assign the key or code randomly. Rather, they check the room’s data to avoid taking the guest back due to mistakes in confirming room availability. Other systems like Fidelio will reject if a room is not clean, does not have all the items, or has been declared faulty. Therefore, the operations between the departments mentioned above are enhanced to avoid individual or group liability. Similarly, the software can communicate to the executive chef about the expected number, guests who have checked in at a given time, and any special service that the guests may need (Kirtil & Aşkun, 2020). From the analysis, hotel operations have been improved significantly, leading to the development of the industry.
The Financial Outcome of Hotel Booking Systems, Automated Communication, and Hotel Software
Revenue Management
PMS, Micros Fidelio, and POS have changed the entire operations of the hospitality industry. The three hotel software systems have contributed to the improved revenue management indicators such as revenue per available room (RevPAR), average daily rate (ADR), and occupancy rates and levels in the firms. The integration of POS with Fidelio helps evaluate the hotel’s financial issues (Drexler & Beckman, 2019). That can help maximize the rates, and managers are aware of what to adjust to achieve better financial results in the revenue-based departments.
From the modules available in the systems, the total revenue has increased from the room, food and beverage, and conference package sales (Kimes, 2016). A financial controller can forecast through the hotel software as one way of optimizing occupancy and deciding whether or not to lower inventory prices. Automated communication using chatbots can help pass a piece of financial information to the cashiers and restaurant managers when necessary. The revenue management enables dynamism in setting the tariffs in various hospitality divisions (Kirtil & Aşkun, 2020). By using intensive algorithms, the integration of hotel software with booking systems helps hospitality firms to base historical data on reservations.
Cutting the Cost
According to the research that Colliers International conducted, the modernization of systems in hotel sectors may increase the revenue by over 10%. Due to the technology of voice and facial recognition, there is a likelihood of cutting costs because many staff will no longer handle various elements. The research further shows that 73% of manual operations in the hospitality sector can use automation (Drexler & Beckman, 2019). Therefore, the maximization of modern equipment can lower the cost of having many employees, which means the firms will not have to incur a cost for salaries and remuneration. However, if a company does not utilize the service well, it might have losses since AI machines are expensive to acquire, run and maintain (Millauer & Vellekoop, 2019). In most cases, hotels hire a multi-level IT technician who can effectively control the software and other modern equipment.
SWOT Analysis
Strengths
Most AI machines have boosted the delivery of services in hospitality firms. Due to the continued use and competency, services to guests have been automated, and there is improved customer experience (Belk, 2020). When customers feel their experience has been enhanced, they are more willing to come back and reside; hence the hotel industry develops more. Use of robotics to park vehicles and show guests facilities have led to increased efficiency in running hotel business which is a key improvement in the industry (Millauer & Vellekoop, 2019). There is also an increase in sales, a decrease in time wastage, and the creation of comfortable residing zones.
Weaknesses
Hotel software needs cloud computing knowledge to develop, run and maintain. If the software is shallow, malicious personnel will hack it easily and steal important resources, leading to losses in the firm. Automated communication using robotics and other equipment might fail if the command that the user applies does not have clear instructions (Kimes, 2016). That leads to inconveniences which might cause complaints during the service delivery. Booking systems have an interface that shows the price for the facilities, and that might scare guests who are not aware of the quality of services they may get if they visit the establishments (Millauer & Vellekoop, 2019). The booking channels do not provide negative information, making the customer curious and expecting more than they can be offered.
Opportunities
When hotels use hotel software such as PMS, they can attract many visitors from different regions. Hotel booking engines provide a multi-lingual interface that ensures every guest can visit the hospitality outlets despite their nationality. That makes the hotel business have the potential to increase sales and have recommendations for more clients from many world regions (Drexler & Beckman, 2019). Automated communication gives hospitality a chance to have a machine learning environment rather than depending on the human workforce for all the duties. When hospitality has opportunities, it can market the services more and gain more customers. Hilton has managed to expand in more than ten countries due to opportunities that come along with the application of AI in the hotel systems.
Threats
The common threat with artificial intelligence applications in hotels is the cybercrime issues. When a hotel revenue system is hacked, funds can be wired to an anonymous account, leading to losses (Genç, 2020). IT departments should be practical in eliminating possibilities for online phishing and other cybercrime issues. The automated communication and hotel booking system have threatened to eliminate the human workforce, leading to loss of jobs (Millauer & Vellekoop, 2019). Additionally, if the machines do not get maintenance services frequently, they can become faulty and cause physical harm in the line of work.
Conclusion
The use of artificial intelligence has changed the many elements in the hospitality industry. There are three examples of AI that the paper has focused on: automated communication, hotel software, and online booking engines. Hotel operations and guest experiences have gone to a more advanced level. Booking systems do not require a physical presence for a guest to have a reservation. Rather, they just need to navigate the system and pay as per the services they need. The use of chatbots in hotel facilities has effectively eased the operation because robotic intelligence has more productivity than human beings. AI has resulted from globalization as many people feel that visiting parks and residing in the hotel is the current trends in leisure and recreational activities.
Due to the adoption of modern hotel systems such as PMS, hotels have effectively managed the revenue, making the hotel business realistic if the management can forecast uncertainties in the business. However, hotel software and booking engines require technical training in IT because a single mistake can cost a given firm. Therefore, to avoid such adverse effects, management can hire competent workers who may be compatible with the modern systems. Additionally, cybercrime issues have been evident because of innovative minds that access web pages illegally. Due to cybercrime, hotels may lose a huge amount of money if hackers and crackers succeed in manipulating the revenue collection systems. Modern technology that relies on AI is recommended if hotels want to improve sales and customer experience.
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