# Enhancing the guest experience in hospitality Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-01 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Unlocking Commercial Growth with Predictive AI for Hotels Meta Description: Discover how predictive AI is reshaping the hotel industry, from customised guest experiences to increased revenue and direct bookings. Learn more here! URL: https://financedigest.com/enhancing-the-guest-experience-in-hospitalityhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1308530136-1736815518539-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/376-1736815518482-compressed.jpg)_ _By **Mike Webster,** Founder and CEO of Arvoia_ Artificial intelligence (AI) is helping the hotel sector move to an on-demand, customised approach for every guest. While well-publicised AI applications include robot concierges and chatbots, which prove popular with a lot of guests. Arguably even more significant are the predictive AI technologies which drive commercial growth particularly those that augment the [digital guest journey to provide customised experiences](https://www.financedigest.com/digital-experience-and-security-the-crucial-combination-for-banks.html "Digital experience and security – the crucial combination for banks") during the booking and retailing process. In the age of Netflix, Amazon and other digital platforms, customers demand convenience and instant results on their [apps and mobile](https://www.financedigest.com/why-mobile-apps-are-crucial-for-a-successful-business.html "Why Mobile Apps are Crucial for a Successful Business") devices. For the past two decades, the Online Travel Agents (OTAs) have generally been better at providing the level of convenience consumers want. In 2019, for example, [US hotels splurged US$28 billion on OTA commission fees.](https://www.hospitalitynet.org/viewpoint/125000132/126001275.html) Selling rooms via these third-parties was a costly but necessary strategy for hotels. But hotels have begun to [fight back](https://www.financedigest.com/2016-the-fight-back-of-the-established-brand.html "2016 – THE FIGHT BACK OF THE ESTABLISHED BRAND"). During the pandemic more guests felt less happy with their experience of OTAs. In Europe, [direct bookings rose](https://www.hospitalitynet.org/news/4111111.html) to 59.7% from 54.5% and the OTA share fell from 29.4% to 28.7%. But hotels have to build on these trends, or the OTAs will find a [way to win back the lost business](https://www.financedigest.com/5-simple-ways-in-which-your-business-can-save-water.html "5 simple ways in which your business can save water"). **[Innovative AI helping hospitality](https://www.financedigest.com/innovation-to-trigger-the-hospital-acquired-pneumonia-prevention-market.html "Innovation to trigger the Hospital Acquired Pneumonia Prevention Market") companies** The good news is the type of predictive AI used by the OTAs, as well as Netflix and Amazon, is much more affordable than it used to be. Predictive AI recognises individual preferences and responds with personalised content. Using AI means hotels can offer visitors to their websites a more sophisticated experience. Potential guests will receive [offers and prices](https://www.financedigest.com/online-brokerage-robinhood-jumps-29-to-surge-past-offer-price.html "Online brokerage Robinhood jumps 29% to surge past offer price") that are relevant to them rather than generic. No two guests are the same. Whether they are travelling for work or leisure, with family, for a business conference, guests have diverse expectations. Hotels have to respond quickly and efficiently to those personal needs. AI makes a big difference to revenue. Studies show that [improving a guest’s online](https://www.financedigest.com/improving-online-visibility-for-insurers.html "IMPROVING ONLINE VISIBILITY FOR INSURERS") experience increases conversion rates and booking value. Hotels that use AI in their booking engine experience have seen up to [10% increases in monthly revenue and 30 times](https://www.financedigest.com/britains-purplebricks-to-cut-more-than-10-of-jobs-the-times.html "Britain’s Purplebricks to cut more than 10% of jobs – The Times") the return on investment (ROI) within the first six months. The benefits of predictive AI don’t end there. It increases average lead times, reduces the [time from search to book](https://www.financedigest.com/best-selling-books-of-all-time.html "Best selling books of all time") and encourages repeat bookings. It [delivers deeper insights](https://www.financedigest.com/research-delivers-insight-into-the-global-polymer-surfactants-market-during-the-period-2021-2029.html "Research Delivers Insight Into The Global Polymer Surfactants Market During The Period 2021-2029") into visitor behaviour and booking patterns. Predictive AI is also self-learning and its models learn to adapt to individual requirements over time. [Insights from AI help hotel marketing](https://www.financedigest.com/musical-instruments-market-insights-deep-analysis-of-key-vendor-in-the-industry-2022-2026.html "Musical Instruments Market Insights, Deep Analysis of Key Vendor in the Industry 2022-2026") too. They can be used to improve loyalty recognition, upselling and offers. These processes will be automatic, leaving staff to focus on strategic planning, or providing guests with face-to-face interaction. Google data shows huge potential for hotels to win [back business](https://www.financedigest.com/generali-pulls-back-from-russia-intesa-reviews-business.html "Generali pulls back from Russia, Intesa reviews business") from the OTAs. Of visitors who book via an OTA, 52% check the hotel’s website as well. The problem is that a lot of hotel websites are not up to scratch. They load slowly and they don’t cater well enough for individual preferences. [Google data shows 53% of customers will abandon a mobile site that takes over three seconds to load](https://www.thinkwithgoogle.com/consumer-insights/consumer-trends/mobile-site-load-time-statistics/). When that happens, [visitors go hurrying back](https://www.financedigest.com/visitors-trickle-back-but-climbing-mecca-nepal-seeks-more.html "Visitors trickle back, but climbing mecca Nepal seeks more") to the OTA. Fortunately, it’s surprisingly easy to integrate AI into existing platforms. A single line of computer code can be enough. And [hospitality providers don’t need](https://www.financedigest.com/hospitality-needs-to-join-the-contactless-revolution.html "Hospitality needs to join the contactless revolution ") to worry about building complex solutions. Existing platforms are able to run thousands of AI models at once, all self-learning in [real time](https://www.financedigest.com/its-time-for-real-time-accountancy.html "It’s time for real time accountancy "). **How AI is applied throughout your hotel stay** Once a guest arrives at your hotel, AI has many other applications that can enhance the stay. It depends on the guest so it’s best to give them a choice. Some prefer face-to-face interaction with people. But an increasingly large proportion of guests embrace everything digital. Some hotels are using AI concierges to check guests in and answer questions 24/7. Meanwhile, chatbot translators in international destinations are able to identify multiple languages quickly and provide simultaneous translations. AI can also be used to enhance the guest experience: in bedrooms, AI can operate smart TVs, sensors, auto-curtains, coffee machines, [advanced lighting and heating systems](https://www.financedigest.com/sensor-based-glucose-measuring-systems-market-by-2028-with-technological-advancements-growth-of-industry-overview-and-dynamics-with-affecting-factors-2.html "Sensor Based Glucose Measuring Systems Market by 2028 With Technological Advancements, Growth Of Industry, Overview and Dynamics with Affecting Factors"). The work of a [hotel’s AI continues](https://www.financedigest.com/hotel-group-accor-continues-post-covid-recovery-after-a-gorgeous-summer.html "Hotel group Accor continues post-COVID recovery after a ‘gorgeous’ summer") after guests depart. Data analytics help shape guest profiles. AI takes into account previous visits to make personalised offers. It suggests customised [services to new guests](https://www.financedigest.com/do-you-need-to-buy-guest-post-services-why.html " Do You Need to Buy Guest Post Services? why?") based on previous visitors with similar profiles. And it analyses the [big data](https://www.financedigest.com/big-data-suggests-leicesters-football-success-could-usher-in-economic-boom.html "Big data suggests Leicester’s football success could usher in economic boom") from visitor behaviour to make overall improvements to hotel services. In the past, hotel tech stacks have tended to make life complicated for hotel staff and, at times, guests. Solutions like pop-ups and banners have fragmented the guest journey. With AI, hotels no longer need to show blanket offers to online visitors, providing a more tailored and customised [digital experience](https://www.financedigest.com/key-considerations-for-building-an-inclusive-digital-banking-experience-fit-for-the-future.html "Key considerations for building an inclusive Digital Banking Experience fit for the Future"). Now is the time for hotels to recognise we’re living in a new era of travel booking. Buying and consumption have been disrupted by digital-first [tech companies](https://www.financedigest.com/uk-to-fine-tech-companies-that-fail-to-remove-self-harm-material.html "UK to fine tech companies that fail to remove self-harm material"), propelling the internet to Web 3.0. From simple search and book, Web 2.0 introduced OTAs, metasearch and smartphone apps. However the new generation is shaped by on-demand, direct and convenient digital retail. Ease of use is critical and hotels who use AI to personalise the guest digital experience are in a much better position to win [back a far higher share](https://www.financedigest.com/uks-bellway-to-buy-back-shares-hike-social-housing-output.html "UK’s Bellway to buy back shares, hike social housing output") of direct business. **_About the author_** _Mike Webster is CEO and founder of Arvoia. Driven to forge a new [way of using behavioural data](https://www.financedigest.com/5-ways-data-integration-solutions-are-helping-financial-organizations-deliver-improved-outcomes.html "5 Ways Data Integration Solutions Are Helping Financial Organizations Deliver Improved Outcomes") for economic and social good through the ethical and democratic application of powerful technology, Mike is an advocate of hospitality and travel businesses of all sizes having access to purposeful AI. He [holds a Bachelor of Technology](https://www.financedigest.com/is-your-technology-provider-holding-you-back.html "Is your technology provider holding you back?") from the University of Limerick, an MBC from the Michael Smurfit Graduate School of Business and completed the summer strategy programme at Harvard Business School._ _Arvoia uses the power of AI to return hotels to the forefront of the traveller experience by fuelling behaviour-based retailing. Their solutions facilitate a closer relationship between hoteliers and guests, cementing [customer experience](https://www.financedigest.com/is-your-customer-experience-exceptional.html "IS YOUR CUSTOMER EXPERIENCE EXCEPTIONAL?") at the heart of hotels. Find out more at_ [_arvoia.com_](http://www.arvoia.com/) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---