How Artificial Intelligence is Shaking Up the Hospitality Industry

Today, artificial intelligence is becoming the norm for many industries worldwide. We see robots in medical laboratories and kiosks for self-ordering in fast food restaurants, and we can even use AI to help us craft content. But what about hospitality? Is there a way for us to use artificial intelligence in the hotel industry? 

The truth is that artificial intelligence is more than just a buzzword. It’s a game-changer for the hospitality industry as long as you understand it.  In this article, we’ll explore the impact of artificial intelligence on the hospitality industry, its benefits, and some of its drawbacks. By the end of this article, you’ll understand how this could help your company, too! 

The Impact of Artificial Intelligence in the Hospitality Industry

While you might think that artificial intelligence has less of an impact on the hospitality industry, think again! Artificial intelligence in the hotel industry has already impacted the industry in varying ways, from speeding up and enhancing customer interactions with real-time recommendations and assistance to optimising the pricing and revenue management your team engages in so you remain competitive compared to others. 

A great example of the changes that have already become noticeable is Hilton, a global leader that has embraced AI in its operations. Their AI-powered virtual assistants make it easier to interact with customers anytime, anywhere, and with more concerns and requests. However, even despite the clear impact this has had on operations, customer interactions, and more, there are some pros and cons. Let’s explore these more in-depth!

Advantages of Artificial Intelligence in the Hospitality Industry

As you might expect, there are many advantages of using artificial intelligence in the hospitality and tourism industry, some of which you might not have even considered. The most apparent benefit of using AI as a hospitality brand includes how it can improve your efficiency and increase your cost savings. That’s because many AI tools can analyse data, allowing your company to look at new alternatives and areas of improvement you might not have identified before. 

Not only that, but artificial intelligence in the hotel industry can also upgrade your data security and privacy. With AI, you can encrypt your data and authentication protocols to make them more robust. This can benefit your entire team, but think about what it could do for your customers. The more you implement these tools, the more you show your customers that they matter and that your brand is open to embracing the future of AI in hospitality. 

Even if you only want to use chatbots or personalised AI-driven tools, you can enhance your customer support and improve your guest experience! The benefits of artificial intelligence in the hospitality industry are clear, but there are some drawbacks we should also touch upon. 

Disadvantages of AI in the Hospitality Industry

While the hospitality industry could benefit from new and innovative tools like artificial intelligence, there are some notable challenges that you should know about. For instance, because it’s still relatively new to the world, there is a high initial investment that some small business owners might not be prepared for. We all know how important it is to ensure a return on investment, so this might be a barrier for many considering this revolutionary tool. 

For many considering AI's future in hospitality, job displacement is another issue. We’ve already seen it with fast-food restaurants, where machines replace people. Even if people are not displaced from their jobs, some employees could be upset by using AI, leading to more turnover, according to one study published in Current Issues in Tourism. With proper implementation, however, you can avoid this and ensure your employees stay happy and motivated!

The final challenge that must be explored is one that you likely have already thought of:  what if the AI doesn’t work or there are technical difficulties? When relying on any sort of technology to get the job done, there is always the worry of how to handle technological challenges. The truth is we can’t prevent these issues. They can even happen with computers! For that reason, if you are in the hospitality industry, artificial intelligence should be treated like a new development that requires constant monitoring and improvement, mainly to ensure you don’t run into privacy or data security issues.