Marriotts Renaissance Hotels debuts AI-powered virtual concierge

Whether you’re a hotelier looking to boost your bottom line or a tech enthusiast fascinated by AI’s real-world applications, this video offers invaluable insights into the future of hospitality. As we venture further into 2024, the hospitality industry is poised for a seismic shift, driven by the integration of AI. By embracing AI as a key driver of your hotel’s Blue Ocean Strategy, you position your property not just to survive but to thrive in an increasingly competitive market. AI-powered predictive analytics tools are becoming essential in helping travelers make informed decisions. These tools use vast amounts of data to predict weather conditions, flight delays, and even crowd levels at popular tourist destinations.

Instead, robots help us create a happier work environment with higher efficiency and enable us to allocate more time to connect with customers. Digital transformation and the leverage of technology play an important role in today’s hospitality industry, especially in the post-pandemic era. Facing the challenges of labor shortage, the rising cost of operation, and the changes in consumer needs and behaviors, hospitality businesses need to pivot their services and products with the latest technology in order to keep their competitive edge. From increasing direct bookings by 25% with AI-powered chatbots to reducing energy consumption by 40%, these AI tools are already helping hotels achieve incredible results. Sixty-two percent admitted that they prefer to use an online chatbot service because it quickly can help them instead of waiting for an actual customer service representative to take their call.

This phenomenon is often termed ‘democratization’, where the lowered SaaS enable even the smallest inns and B&Bs to harness these technological advantages, and then pay that forward into the guest experience. In a nutshell, video analytics can process digital videos and analyze movement patterns, track objects and motions, and detect spatial events in real time. Related to video analytics, virtual reality is a technology that can create a simulated environment. AI can also improve hotel revenue management by determining the best room rates in real-time to help maximize profits and provide in-depth data analysis to help operators leverage customer information to strengthen marketing programs. Powered by its proprietary AI across the full guest journey, HiJiffy allows hoteliers to increase revenue from direct bookings and upselling while automating repetitive tasks to reduce operating costs and mitigate staff shortages. AI can even take it a step further to help tailor itineraries based on personal preferences and time limits.

One study of over 1,700 hotel guests found that personalization was directly linked to customer satisfaction, with 61% of respondents saying they were willing to pay more for customized experiences. However, only 23% reported experiencing high levels of personalization after a recent hotel stay. As the hospitality industry navigates the digital age, the integration of AI provides a golden opportunity for hotels to enhance their ROI through automation, augmentation, and analysis. By performing a thorough assumption-implication analysis—focusing on risk-return, target customers, and business scope—hotels can make informed decisions about how to integrate AI into their operations. In reality, the future of AI in hotels is about human-AI harmony, where people and machines work together to create an enhanced guest experience and optimized business performance. You can foun additiona information about ai customer service and artificial intelligence and NLP. The benefits of AI agents include faster and more accurate task completion, increased efficiency, and improved customer experiences.

ways AI is affecting the travel industry

A major international hotel brand reported a 35% increase in loyalty program revenue after implementing AI-driven personalization. The system’s ability to tailor offers to individual preferences not only boosted direct bookings but also increased the average spend per stay among loyalty members. By integrating AI into travel planning and customer service strategies, hotels can not only improve operational efficiency but also differentiate themselves in an increasingly competitive landscape. The concept of a Blue Ocean Strategy, where businesses create demand in an uncontested market space, is not just theoretical. In the hospitality industry, AI offers the opportunity to create unique value propositions that set your hotel apart from the competition.

RENAI was created based on the understanding that Renaissance Hotel guests are “interested in emerging tech that is clever and has personality,” Marriott said in the announcement. While the long-term financial benefits of AI are clear, the initial investment in technology and training can be substantial. Hotels must carefully consider their AI strategy, focusing on solutions that offer the highest ROI and align with their brand and guest expectations. A case study of a popular beach resort showed that AI-driven inventory management helped increase their occupancy rate by 8% during off-peak seasons, translating to a significant boost in annual revenue. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.

Sign-up bonuses, $20-$30/hour wages will bring only so many employees back to the industry since many other industries are experiencing exactly the same labor issues and are paying even more. However, to my mind, the only question worth asking is ‘is this a better way to do things? A lot of the debate around automation involves discussion around ‘losing the human touch’, or ‘doing more with less’. The innovations are also improving customer experience by, for example, enabling them to choose a room with a view or one close to an elevator, and to prepay for parking. The problem is that there is so much information available today that it leads to overload.

The success of Mobile Requests inspired Marriott to expand the number of guest-facing mobile communications options, including chatbots for its Marriott Rewards members. Edwardian Hotels London employs the aptly-named virtual host Edward who can take amenities requests, give directory and review information, facilitate complaints and connect guests to an immediate call-back if they need human assistance. Robo-advisors are digital platforms that provide automated, algorithm-based financial planning services with little to no human supervision. When it comes to travel industry chatbots, a few key themes arise, which may correlate with an industry shift to millennial audiences. When a user first opens the HelloGBye app, they are asked a few multiple-choice travel preference questions on a page which looks like a simple online survey. Once this step is complete, HelloGBye opens to a chat interface, similar to Apple’s IMessage.

The hotel sector’s current approach to artificial intelligence is very much driven by potential savings and the opportunity to replace team members. This means a focus on chatbots, with technology standing in for people and performing basic tasks, leaning on the artificial aspect of AI, rather than the intelligence. Netguru is a company that provides AI consultancy services and develops AI software solutions. The team of proficient engineers, data scientists, and AI specialists utilize their knowledge of artificial intelligence, machine learning, and data analytics to deliver creative and tailored solutions for companies in different sectors. As part of its 2024 roadmap, Maestro PMS will also announce new mobile tools for housekeeping designed to improve the employee experience and boost loyalty in this labor-intensive department.

The Hilton company relinquishment of an AI robot serves as a fitting illustration of this. The capability to acclimatize to different people and learn from the mortal speech is most astounding. In the end, this means that as further druggies interact with it, the better it will chatbots in hospitality industry emerge. Each implemented idea would earn the employee not just a one-time bonus, but ongoing royalties based on the AI’s performance and cost savings. Furthermore, employees could be granted «AI equity» – shares in a pool that grows as the hotel’s AI capabilities expand.

When staff are busy with their heads down in the PMS or spending time on labor intensive tasks, this magic is nearly impossible to create. Automation stands to benefit everyone by removing the barriers (clunky systems, tasks, or processes) between hotel staff and guests. Checkin kiosks for hotels (all levels incl. 5 star) are fine as checkin transactions are functional and offer little added value, but there needs to be a human on hand to handle exceptions, or to give advice eg things to do nearby. Even properties with a future-forward ‘contactless customer journey’ need guests to fill out forms, download apps, create accounts and passwords, scan ID’s and credit cards and generally do all manner of work just to check-in online and get a digital key. And at the end of all this additional work, the current mobile key experience is arguably inferior to that of an old fashioned RFID card. Emerging hotel systems, crafted within the last decade, have harnessed cloud-hosting services, newer types of system architecture and APIs to outpace ‘legacy’ software solutions, delivering more agile platforms at significantly reduced costs.

But, just because we’ve become accustomed to it, does that mean it’s the best possible experience? Chatbots, booking portals, smart apps / appliances, and even a few robots all work together to create the ideal hotel environment for guests. Looking ahead, the continuous evolution of AI promises even greater personalization and operational efficiency. Future AI developments will further refine guest experiences, leveraging real-time data to anticipate and meet needs more effectively.

The announcement follows Azizi’s recently revealed plans to enter the hospitality sector, with its new chief operating officer — hospitality, Michael Zager, leading the developer’s newly established hospitality division. The developer also said that it has already acquired most of the necessary plots of land for its hotels and is planning to launch the construction before the end of 2023. AI systems in hospitality often rely on large amounts of customer data, raising questions about how this information is stored and used. Lastly, there’s the issue of cost and implementation – integrating AI into existing hospitality systems can be expensive and may require significant changes to infrastructure and processes.

Voice-Activated Assistants for Seamless Guest Experiences

While its primary headquarters is in San Francisco, CA, AngelList notes that a secondary headquarters is based in Toronto, Canada. While its user numbers are unclear, the app has a 4.5/5 star rating, and 203 reviews, in the Apple App Store, and a 4.4 rating with over 500 installs on Android’s Google Play. «If the hybrid AI is successfully trained and set, customers won’t feel the frustration usually caused by communicating with bots. In fact, they might not even notice that they are talking to a robot,» said Sorbo. Woebot is used primarily through Facebook Messenger as an artificially intelligent chatbot trained in cognitive-behavioral therapy (CBT), one of the most widely known methods of treating depression. Even things such as booking items to their rooms while they are at the property and paying them immediately, or enhancing their stay are becoming more common.

One limitation of chatbots is their lack of human touch, including empathy, which may make them unsuitable for all customer interactions. AI algorithms can optimize pricing strategies dynamically based on factors such as demand fluctuations, competitor pricing, and historical data analysis, ensuring hotels maximize profitability while remaining competitive in the market. Furthermore, AI can facilitate predictive analytics to forecast demand patterns accurately, allowing hotels to allocate resources efficiently and optimize inventory management.

Perhaps one of the most valuable applications of automation in hospitality is in guest experience management technology. INTELITY’s smart-room tablets and mobile apps automate guest services and enable seamless communication between guests and staff; be it a simple service request or a more complex activity like checking-in to a reservation and being assigned a room. Enabling personalized, frictionless service requests, restaurant reservations, and F&B orders, with the convenience of a few taps on a guest’s mobile device or an in-room tablet, enhances guest engagement and creates a better experience overall. One of the most business-critical areas where automation can assist hotels is with revenue management, whether collecting and analyzing data, or selecting, pricing, and presenting room, attribute, or non-room products. Automation can help generate incremental revenue specifically focused on the guest life cycle, making upsell offers to guests from booking to on-property, including optimizing room assignment. Machine learning, a type of AI, can target offers to guests without the need for staff manually determining who should be offered an upgrade, and real-time integration to the PMS can automate fulfilment.

AI is breaking down silos in the travel booking process by enabling seamless integration across multiple channels. Travelers can now use voice assistants, chatbots, and mobile apps interchangeably without losing context. This omnichannel approach enhances the convenience of booking and encourages more spontaneous travel decisions. The global travel recovery is uneven, with some regions still grappling with the aftermath of the pandemic. AI can streamline operations by optimizing resource allocation, predicting maintenance needs, and automating routine tasks.

In August 2019, the chatbot achieved unicorn status – allowing it to surge ahead with an aggressive expansion plan. Apartment Ocean is used by over 1,000 companies and helps real estate firms increase customer satisfaction while reducing customer acquisition ChatGPT App costs. Kasisto launched financial chatbot KAI in 2016, with a second iteration launching in 2018. In 2020 Business Insider Intelligence reported that the AI finance vendor raised $22 million in series B funding to expand its chatbot’s capabilities.

In 2017, Four Seasons conducted a pilot program of the chat service in 30 hotels and found that half of its guests made use of it, averaging more than six chats during a stay. Which isn’t to say the renowned Canadian hotel group isn’t making use of innovative technology. For starters, the messaging platform translates 100-plus languages in real time, allowing for response times reportedly averaging 90 seconds or less.

The Middle East and North Africa region is expected to witness a 36 percent increase in international visitors between June and August, according to travel data firm ForwardKeys. The surge in demand is likely to be led by Saudi Arabia, with a 475 percent increase in travelers compared to last year and a 56 percent increase from pre-pandemic levels. International arrivals in Qatar for this period are also expected to be 20 percent above 2019 levels and 62 percent above last year. Olivier Ponti, vice president of insights at ForwardKeys, said the region’s tourism industry is poised to sustain its robust recovery during the summer season. Ponti noted a significant surge in travel intent, with flight searches for international trips growing by 39 percent in the first quarter, compared to the same period in the previous year, and improved flight connectivity.

Travel booking companies can use predictive AI to inform travelers about the best time to book a hotel or buy a flight to a certain location. Predictive technology can also help forecast flight operations based on weather patterns and historical flight data. Artificial intelligence is already making its mark on the industry, particularly in guest experience management. There, it transforms customer interactions and provides instant, around-the-clock assistance to guests. At the same time, it’s freeing hotel staff to spend more of their time on the little details that delight customers and make them smile. AI is transforming the way hotels market to potential guests and upsell to existing ones.

AI chatbot offers immediate assistance to customer inquiries, providing real-time responses without the need for human intervention. Their automated and efficient nature enables them to swiftly resolve routine queries, leading to quick resolution and improved customer satisfaction. AI-powered apps will be able to analyze online behavior and booking history to create personalized marketing messages that are more likely to convert past guests into repeat customers.

• For AI and people to work in harmony, the right approach ensures that technology is both cost-effective and a key differentiator for your hotel in a competitive market.
• Travel booking companies can use predictive AI to inform travelers about the best time to book a hotel or buy a flight to a certain location.
• In the context of AI, Blue Ocean Strategies provides a powerful framework for hotels to differentiate themselves in a crowded market.
• Accor has signed a master development agreement with Saudi Arabia’s Amsa Hospitality to develop and franchise 18 hotels across second-tier cities within Saudi Arabia over the next 10 years.

This is one of the most compelling examples of machine learning-based automation in our industry, driving revenue, streamlining operations, and engaging guests. The pandemic underscored the need for hospitality providers to have flexible systems that can be adapted quickly to exceed changing guest expectations. Automation, powered by artificial intelligence (AI), will be a key driver for hotel profitability, and a growing number of innovative hoteliers are offering unique new experiences leveraging AI-based initiatives.

In today’s fast-paced world, AI has emerged as a game-changer for hotels, optimizing everything from guest services to operations while amplifying the most critical element of hospitality—the human touch. Whether it’s enhancing customer service through chatbots, refining pricing strategies with dynamic algorithms, or delivering unforgettable personalized experiences with AI-driven concierge services, the benefits are undeniable. Automation can create seamless guest experiences (e.g., automated check-ins and smart room controls), while Augmentation ensures that human staff can focus on high-value interactions.

When hotels consider incorporating AI into their operations, it’s essential to conduct an assumption-implication analysis. This helps them navigate the complexities of AI integration and ensure that it delivers real value. We’ll break this down into three key areas—Risk-Return, Target Customers, and Business Scope—while also highlighting how Automation, Augmentation, and Analysis play pivotal roles in each ChatGPT area. Once the company has identified its needs and goals, the next step is pinpointing the specific use cases for Generative AI. These could encompass anything from personalized marketing campaigns, email blast calendars, and guest sentiment analysis to trends analysis from analytics. By determining the use cases, companies can devise a plan for employing Generative AI to achieve their objectives.

In fact, as progress continues, tourism could be a world leader for cutting-edge technology and advanced AI. Its chatbot will then respond with a full trip itinerary, with clickable links to hotel and flights recommendations, which can then be approved and adjusted by the user. This seems to be based on an approach similar to recommendation engines in media and other sectors. Once a trip is booked through the app or website, a user can then send a voice or text message to request travel adjustments, such as cancellations. This Austin startup has developed an IOS application which allows a user to interact with a chatbot through voice or text commands, similarly to Apple’s Siri.

Having received 185,000 visitors last year, AlUla has set a target of 250,000 visitors for this year. “AlUla is ready to receive up to 250,000 visitors in 2023, the majority of which will come from neighboring nations. Musafir.com will promote holiday packages to AlUla and collaborate on various promotional and marketing initiatives to increase tourist arrivals,” said Sachin Gadoya, Musafir.com’s CEO and co-founder. Musafir.com has curated a range of all-inclusive packages for AlUla with flights, hotels, airport transfers, breakfast and visa assistance.

For instance, ChatGPT can already handle requests like «3-day itinerary in Las Vegas for my 70-year-old parents» with flying colors. Just add a calendar and payment terminal to that functionality and you’ve got a fully fledged e-travel agent that can identify the best destination pairs and the most profitable routes and dates by combining over 30 factors in seconds. According to a report from Skift Research, using generative AI in travel is set to be a $28 billion opportunity for the travel sector.

This approach reduces operational downtime and maintenance costs while ensuring that guest services remain uninterrupted. By addressing maintenance needs proactively beforehand, hotels can extend the lifespan of their facilities and enhance the reliability of their service offerings. AI-driven solutions allow hotels to predict guest preferences, personalize communications, and manage in-house services more effectively, all of which contribute to a superior guest experience and increased operational productivity. While AI in hospitality brings numerous efficiencies and enhanced guest services, it also poses challenges, particularly in terms of employment.