The global smart hospitality market size was valued at $18.8 billion in 2021 and is projected to reach $133.7 billion by 2031, growing at a CAGR of 22% from 2022 to 2031.
To stay ahead of the rest, businesses adapt intelligent cognitive agents that can easily manage raw data, indulge in human-like behavior, and enhance their functionalities.
The hospitality industry has understood the significance of AI and Machine learning services in their zone since it is yielding benefits like personalized service, automation of repetitive tasks, enhancing business, predictive analytics, trend analysis, etc. Key factors that drive AI & ML in the hospitality sector are operational efficacy, customer experience, sustainable growth, and revenue improvement.
The global artificial intelligence market size is projected to expand at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030. It is projected to reach $1,811.8 billion by 2030.
It is interesting to see how AI & ML have been transforming the hospitality industry and its corresponding workflows. This article throws light on the key benefits of AI & ML in this business and how it can affect functioning.
AI & ML – An Overview
Artificial Intelligence (AI) is a novel technology that focuses on the performance of intelligent actions by computers/machines that are almost human-like. It helps computers/machines in simulating the decision and problem-solving capabilities of humans. It helps machines to perceive from experience and collaborate with newer inputs. AI relies heavily on other cutting-edge technologies like Natural Language Processing, and Deep Learning to fulfill specified activities, process huge bulks of data, and recognize patterns in the data.
Machine Learning (ML) is a vital subset of AI that best uses algorithms and data to reproduce the human style of learning, getting accurate results. It offers computers/machines the capability to learn and understand accordingly. ML is being leveraged today amongst all industry segments, in their respective manner.
Key Benefits of Using AI & ML in the Hospitality Industry
As we talk about the influence of AI & ML in the hospitality industry, we realize the following benefits that the domain enjoys, and key reasons why these technologies are now an integral part of the hospitality sector:
- Enhanced client satisfaction – AI offers a personalized experience because of which visitors and guests are most comfortable. It uses chatbots, virtual assistance, voice-activated devices, IoT based devices to operate the rooms and other areas.
- Futuristic Insight and Decision Making – AI can help in collating data from different hotel units, Point of Sale systems, and all types of transactions being managed in between. This can help in extracting meaningful information that can help in taking data-driven decisions.
- Increased Productivity – AI is apt at automating repetitive tasks and hence gives a lot of free time to the task force to focus on their specific work. This results in more productivity and cost savings.
- Predictive Analytics and Maintenance – AI and ML offer tools and algorithms to predict futuristic steps in terms of analytical reports and maintenance issues, downtime, etc. This helps administrative staff in being prepared for the future and taking preventive steps in advance.
- Robust Security and Privacy Protection – AI & ML can implement high-end security protocols and smart algorithms that can detect any kind of malicious attacks, cyber threats, and phishing activities much in advance so that necessary steps can be taken. This way, client information remains private and confidential.
- Maximizing Revenue – AI is apt for complicated activities like revenue reconciliation from different sources, automation of back-office tasks, robotic process automation, etc. This leads to timely collection of revenue and an increase in figures due to timely availability.
How to Leverage AI & ML in the Hospitality Sector?
As AI & ML embrace the hospitality sector, a variety of features can be availed. Here are the different ways in which new-age technologies can assist the hospitality segment, grow big time:
- Real-time Recommendations on Pricing
AI can administer huge volumes of data to come up with statistics on demand, possession, and patterns regarding rates of rooms. This assures hotels of striking a balance between over-pricing and under-pricing.
- Chatbots and Messengers
AI & ML have brought along cutting-edge chatbot services for direct messaging and online chats. Chatbots and messengers are the new trendy front face of any unit in the hospitality sector, be it on the website or social media.
- Voice-centered Digital Aid
Voice recognition has been one major achievement in the field of AI. Voice assistance can be of great use to visitors in hotels through their smartphones, tablets, or laptops. Features such as controlling the temperature of the AC, the volume of the TV, ordering room service, etc. can be leveraged.
- Multilingual AI for International Visitors
The hospitality sector witnesses visitors from the world over. AI can help big time through language translators in interacting with foreign guests, in their language, with ease. Chatbots can even converse with visitors in their language.
- Smart Hotel Amenities and Rooms
AI, integrated with IoT and other modern technologies, can offer a smart and personalized experience to visitors. There can be AI-controlled devices and sensors with voice assistance, that can control lighting, temperature, volume, etc.
- Sentiment Analysis
AI and ML algorithms can be of great help in analyzing the huge bulk of data that gets generated through different mediums, in the industry. It can automatically track parameters like visitor conversations, complaints, feedback, likings, etc.
- Use of Robots for In-Person Client Service
Robots, with AI capabilities, are increasingly being used for in-person service and their usage is being leveraged by many. These robots can offer detailed information when asked or answer queries, serve food and amenities, and much more.
- Leverage Loyalty Agendas
AI can create personalized loyalty offers for visitors, to allure them often and keep them glued to the property, each time they visit. It uses a big chunk of data to customize loyalty offers and thereby attract guests.
- Optimal Usage of Resources
In any hospitality unit, there are multiple resources like food, water, and other perishable things whose usage must be monitored. AI can help in doing so by accurately managing their utilization details and recommending further actions.
Summing It Up
The future of AI & ML in the hospitality sector is rewarding and bright. As these technologies continue to evolve and bring in newer ways of enriching technology, the industry is embracing these novel implementations with open arms.
Some of the futuristic trends include advanced personalization with tailored recommendations based on experience, seamless integration of IoT with AI-based output for enhanced involvement, and offering AR and VR-based experiences tagged with AI for more interactivity and involvement.
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Note: This Post Was First Published On https://ridgeant.com/blogs/ai-ml-hospitality-industry/
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