Artificial Intelligence as a Hospitality Business and Education Tool | By Robert O’Halloran

Artificial Intelligence (AI) is evident all around us.

It is the next level up of being technology proficient and effective in running a business and or in all sectors of the economy, including education.

My business perspective is education-based. In that area, we are in the business of hospitality business education. AI has and will continue to have a place, some educators think of generative AI and their students using that tool to author their essays, reports, or complete assignments. What is generative AI? The name refers to artificial intelligence algorithms – probably the best known being ChatGPT – that can be used to create new content, including audio, code, images, text, simulations, and videos.

On the operations front, this powerful technology has the potential to transform the hotel guest experience, smooth the digital customer journey, improve the efficiency of hotel operations, and enhance the working experience of staff. Part of our role as hospitality business educators is to identify, study and engage with new teaching and learning tools as well as identify new operational content for hotels, restaurants, meeting places and more. Discussions I have been part of have had a diverse collection of opinions. One opinion is that students using AI in a course could be considered cheating, another group thinks that students can use it but that they need to cite the sources, and another opinion is to embrace it as a teaching and learning tool. I am in the last group.

I do not claim to be at the forefront of AI, but it is evident that it is here to stay, and if that is the case, let’s use it to enhance hospitality and tourism education and enhance business opportunities, efficiencies and productivity. I do not see AI as a force to take away jobs, but a force that will impact and change jobs; freeing employers, managers, and staff to focus on guest service and utilize AI technologies to enhance business efficiency. Some of us can remember when Wall Street met and merged with the hotel and greater hospitality industries. When that happened, it changed the focus of the industry, but overall, it did make hospitality businesses more profitable.

Initially people need to understand what AI is and where they will encounter it. If one reviews synonyms for artificial intelligence, one can find terms such as robotics, development of ‘thinking’ computer systems, systems, intelligent retrieval, knowledge engineering, machine learning, natural language processing, and neural networks. As noted in one Forbes article, you may remember, watching the old television show The Jetsons, which aired in 1962. The show included all the futuristic and imaginative technology, including Rosey the Robot. The show was an example of what things might be in terms of technology and smart machinery. For example, here are ten things “The Jetsons” got right about our tech-enabled lives: Flying cars, George Jetson commutes to work in a flying car that folds down to the size of an attache case, vertical cities, smart bathrooms, robot assistance, smart homes and appliances, video meetings, 3d printed food and jet packs.

What is Artificial Intelligence?

AI is a field of computer science that focuses on developing computer systems that are able to think, learn and act as humans do. AI can recognize patterns, draw conclusions, and even make decisions based on data and information that already exists. As a result of its ‘intelligence,’ AI technologies can be used for a variety of tasks that are currently carried out by humans.

AI refers to the performance of seemingly intelligent behaviors by computers or machines. AI as a concept, has been around since the 1950s, but only in recent times has the technology advanced to the point where it can be considered reliable enough to be implemented in important business tasks. Essentially, AI refers to computers or machines that perform tasks that were traditionally thought to require cognitive function to perform. It is associated with concepts such as automation and big data. Today, the collection of customer data, combined with improvements in computer technology, means that AI can be used for a wide variety of functions, from basic customer service to personalization tasks, troubleshooting more advanced issues, and even for sales processes and direct messaging.

In a hotel or hospitality business AI can be used in diverse scenarios. AI-powered technologies, such as machine learning and natural language processing, have the potential to streamline operations, personalize guest interactions and drive revenue growth. Through AI, hotels can provide round-the-clock assistance to guests, addressing their queries, handling reservations and even suggesting personalized recommendations. For a guest, this can mean personalized recommendations and services, streamlining operations and improving efficiency, and ensuring data security and privacy.

To start a journey with AI, like all innovations, it is necessary for hotels and all hospitality businesses need to understand how AI can address your needs. Symptoms and or problems in hotels may be observed and tracked, including losing calls and reservations because people are tired of waiting for your front desk to pick up the phone. Are hotel guest satisfaction scores suffering because your staff is busy answering repetitive questions, e.g., what are the pool hours, where is my room and more.

A question for some focuses on whether your guests will be accepting of AI interactions rather than interacting with a person, which occurs at multiple service points throughout a hotel. Things like check-in and check-out seem a natural place to begin. What are the points of service that are causing problems? In a busy checkout time, can AI help to lessen the stress and guest times waiting?

For example, years ago, I remember attending the International Hotel Show in New York.. Hoteliers from across the country and the world attended, as well as meetings for the American Hotel and Lodging Association (AHLA) membership. The line of people at the hotel check in was enormous, wrapping around the lobby. It is important to note that everyone in the lobby line was a hotelier and or hotel industry vendor or buyer of hotel products. The conversations in the line were not pleasant and the front desk stations were, what appeared to be, fully staffed. Too many people standing and not checking people in, due to a technology issue. The issues were finally dealt with, but it took a lot of time.

For hoteliers, would AI-enhanced check-in and check-out have prevented this problem? An AI solution can be tied to the hotel’s reservation, check-in and check-out processes. A different question could be, does your hotel provide AI telephony ? AI in mobile phones refers to the integration of advanced machine learning algorithms and technologies that enable smartphones to perform tasks typically requiring human intelligence.

As Berman points out, AI is not a panacea. It must be tailored to your hotel to be really beneficial. AI has to be empowered with the right knowledge, and ultimately it must be smart enough to garner valuable data throughout the guest journey. Which means all AI systems need good data and the right facts fed to it by linking AI to the functional software of a front office, a menu, inventory, facilities maintenance, heat and cooling via HVAC etc. These facts and software connections are intended to enhance AI decision making.

What are the best fits for AI in a hotel operation? The answer, “it depends.” As previously noted, analyze your needs and goals for AI applications. More specifically, AI can improve customer experience. For example, Arrival-AI orchestrates a personalized welcome experience, assigning rooms with guests’ preferred views, temperatures, and amenities. F&B-AI suggests tailored menus based on guests’ dietary preferences and past dining experiences, ensuring a delightful culinary journey. Additionally, for operational efficiency, AI optimizes inventory management, resource allocation, and service delivery, leading to seamless operations and minimizing waste. Other hotel AI functions can include:

• Predictive analytics to help hotel professionals analyze data and forecast customer behavior and market trends.
• Five benefits of AI for pricing and forecasting decisions are offered below:
  • Enhanced Accuracy: AI algorithms discern intricate patterns and trends in vast datasets, leading to more precise demand forecasting and pricing decisions, reducing the risk of underpricing or overpricing rooms.
  • Improved Efficiency: AI streamlines data analysis and reporting tasks.
  • Consistent Performance: AI-powered systems ensure consistent performance: data-driven insights, minimizing biases.
  • Scalability: AI enables revenue management systems to process substantial data volumes and make informed decisions at scale, making it valuable for hotel chains.
  • AI-powered personalization and recommendation engines can better target personalized guest experiences.
• Hotel operations by automating repetitive tasks such as booking and contactless check-in processes. Also by using AI for forecasting demand, inventory management, and logistics optimization, ultimately enhancing the guest experience by providing more personalized recommendations and experiences.
• Chatbots and virtual assistants that can assist guests with booking reservations, answering questions, and providing recommendations.
• Housekeeping room assignments and maintenance by using sensors and cameras to monitor and control the temperature, lighting, and security of guest rooms, optimizing pricing and revenue management through data analysis and predictive modeling, and improving energy efficiency by using smart building systems.
• AI can also optimize inventory management by forecasting demand and adjusting room availability, accordingly, resulting in increased revenue by selling more rooms at higher prices during peak periods and reducing unsold inventory during off-peak periods.
• AI is also being employed to improve the security and safety standards in hotels. Facial recognition technology can be used to detect unauthorized individuals and prevent potential security threats.

As previously noted, the intention of most AI system is not to eliminate humans, but the intent is likely to make the human interaction with guests more valuable. As discussed, will guests accept AI interactions as good value for the service required, given the money paid? Hotel operators may find that AI needs may differ from hotel to hotel depending on the level of service being provided and the complexity of the hotel business.

Hotel Robots

Robots have come a long way since then, and the robotization of the industry is accelerating rapidly as technology and connectivity improves. The use of AI in the field of robotics has also opened up enormous opportunities for the hospitality sector. Closer to home, walking across campus, we see delivery robots bringing food to dormitories, offices and nearby apartments. Grubhub and Starship Technologies have partnered with East Carolina University to offer a futuristic delivery service. They navigate busy business streets and abide by cross walk instructions. They have their problems from time to time, for example, I saw one stuck on a street curb and it could not right itself to move any further. A passerby helped it to level the ground and the robot said thank you! You have to be impressed with efficiency and manners.

More recently, COVID-19 has played an essential role in developing this trend. Robots now allow certain skills, actions and services to be executed more safely than human beings. This non-negligible fact is beneficial for ensuring a safe customer experience and protecting the employees during a pandemic. Robots can be easily sanitized between each guest and, therefore, ensure safe in-room delivery, for instance. Besides service robots, digital interfaces driven by AI are likely to become omnipresent across the industry.

Hospitality Business Education and Artificial Intelligence

As previously discussed, AI as a topic or as a tool in the classroom is here to stay. You could elect to ignore it and or refuse to recognize it, but then our students would wonder why and isn’t part of our job to identify the trends and even better, be at the forefront for using new teaching and learning tools? In a university course, the use of channels like ChatGPT can be considered tools that help to shape current and future discussions about hospitality content and learning methods. Practically speaking, we need to identify how best generative AI can be used to improve customer experiences, that is guests and students, while enhancing efficiency, and also support manager, staff and student education, training and development.

Additionally, as with any emerging technology, it’s important to consider the ethical implications of generative AI. Our colleagues at Les Roches in Switzerland note that one key consideration is ensuring that the use of generative AI is transparent and accountable. Guests should be made aware of when and how their data is being used, and hotels and other hospitality providers should be transparent about how they are using generative AI to enhance the guest experience.

ChatGPT

Hospitality business education, in an effort to embrace generative AI, will need to be proactive. In a fast-changing world of technology and artificial technology students, soon to be graduates will forever be in a learning mode, arguably as we all should. Faculty can identify and utilize AI and ChatGPT as opportunities for learning in courses across the curriculum. Cronin at Les Roches noted, we can embrace this tool, as we embraced previous new technologies such as Google, spell check, and Grammarly, by using ChatGPT to challenge students in areas of authenticity and critical thinking to improve customer experience. Ultimately the skill set of our graduates needs to be continually updated. Part of that update may be enhanced via AI.

For example, the technology skills set for the young graduate of a program will be much different than when I graduated from university. As an AI experiment I set myself up on ChatGPT and then asked it a question. Given the content of this article I asked a question focused on AI and the lodging industry. Below is the question and ChatGPT’s response (verbatim).

How best can a hotel integrate AI into the operation of the hotel and increase effectiveness and efficiency?

Integrating artificial intelligence (AI) into hotel operations can significantly enhance effectiveness and efficiency across various aspects of the business. Here are several ways a hotel can leverage AI:

1. Guest Services and Personalization:

• Implement AI-powered chatbots or virtual assistants to handle routine guest inquiries, reservations, and requests. These systems can provide quick responses and enhance the overall guest experience.

2. Predictive Analytics for Demand Forecasting:

• Use AI algorithms to analyze historical data and predict future demand for rooms. This can help optimize pricing strategies, allocate resources efficiently, and improve revenue management.

3. Dynamic Pricing:

• Implement AI-driven dynamic pricing models that adjust room rates based on real-time factors such as demand, competitor pricing, and local events. This can maximize revenue and occupancy rates.

4. Facial Recognition for Check-in and Security:

• Integrate facial recognition technology for streamlined check-in processes and enhanced security. This can improve the overall guest experience by reducing wait times and enhancing the security of guest information.

5. Smart Room Controls:

• Implement AI-powered smart room systems that allow guests to control room features (temperature, lighting, entertainment) through voice commands or mobile apps. This enhances guest convenience and can lead to energy savings when rooms are unoccupied.

6. Predictive Maintenance for Facilities:

• extend the lifespan of assets.

7. Robotic Process Automation (RPA):

• Implement RPA to automate repetitive and rule-based tasks in various departments, such as finance, HR, and customer service. This frees up staff to focus on more complex and guest-centric activities.

8. Data Analysis for Customer Insights: 

• Utilize AI to analyze guest data and feedback to gain insights into preferences and behaviors. This information can be used to personalize marketing efforts, improve services, and enhance guest loyalty.

9. AI-Powered Revenue Management:

• Implement AI-driven revenue management systems that continuously analyze market trends, competitor pricing, and other factors to optimize pricing strategies and maximize revenue.

10. Voice Recognition Systems:

• Integrate voice-activated systems in hotel rooms for tasks such as setting alarms, ordering room service, or controlling room features. This provides an additional layer of convenience for guests.

11. Employee Training and Performance:

• Use AI for employee training and performance monitoring. AI can analyze employee performance data, identify areas for improvement, and provide personalized training programs.

12. Energy Management:

• Implement AI-based energy management systems to optimize the use of lighting, heating, and cooling systems in unoccupied areas, leading to cost savings and environmental sustainability.

13. Security and Fraud Detection:

• Employ AI algorithms for enhanced security, including monitoring for suspicious activities and detecting potential fraud in payment transactions.

14. Social Media Monitoring:

• Use AI tools to monitor social media platforms for guest feedback and sentiment analysis. This allows for prompt responses to guest concerns and helps manage the hotel’s online reputation.

When integrating AI into hotel operations, it’s crucial to consider data privacy and security, provide proper training to staff, and ensure that the technology aligns with the hotel’s overall strategic goals and guest experience objectives.

These responses were based on a general question and provided a lot of information quickly. There is nothing specifically actionable here, but it was quick and thorough as a response. For the classroom, this is a great way to act as a catalyst to a discussion on a topic. I see that as a value for discussion and then fact checking. I note that at least in part and based on the specificity of questions, ChatGPT may say that it can make mistakes and the questioner should check the facts. It is also noted that ChatGPT does not have real time data so there are limits to what information it can share and ChatGPT will tell you that! So to utilize AI as a business tool and a teaching and learning tool, maybe the next few steps would help get the optimal answers you are searching for.

1. What is the goal of your search using ChatGPT? Background research? Historical research? What specifically do you want to know? Practical applications of data and information that are accessible?
2. How should you ask the questions? Well thought out questions may yield better responses. We now that some people are better online researchers than others, but why? I would theorize that it is the way they ask the questions, and the way adjust their questions when a response is not what they are looking for?
3. Reminder: You are not asking a machine to make your decisions. AI can provide options and recommendations. You are the decision maker.

For hotel operators this could be a great tool for training and background information. I am a believer that history matters. Yes, we need to move forward but there are lessons in history that we must learn. AI can access facts and figures and tell us what has happened and why it might be important. To maximize the benefits of ChatGPT, hospitality businesses must ensure that the chatbot is integrated with their existing systems, adheres to relevant data privacy regulations, and provides accurate and personalized responses to customer queries.

By doing so, they can improve the overall customer experience and gain a competitive edge. Hoteliers and educators and their students who understand how to leverage AI tools to become more efficient and effective will become more valuable than ever. Those who don’t educate themselves may find themselves in a more challenging situation.

Wrap Up

Hoteliers who do not educate themselves about artificial intelligence (AI) risk falling behind in the hospitality industry. With the increasing use of AI in the hospitality industry, hoteliers who fail to embrace this technology will miss out on the benefits it can bring to their business. It’s important to understand that this is a two-sided coin. Hoteliers who understand how to leverage AI tools to become more efficient and effective will become more valuable than ever. Those who don’t educate themselves may find themselves in a more challenging situation.

Finally, operators should have a plan of action when it comes to AI. Maybe answering some of these simple questions can help formulate that plan for implementing AI at your hotel.

• What are the needs of the hotel?
• Are their bottlenecks in operations?
• Is marketing effective?
• How are we using our revenue management systems?
• Can we improve our guest service with AI?
• What are the functional areas that AI could enhance?: staffing and human resources systems, engineering and maintenance and utility utilization, security, pricing etc.

Know what you need and integrate those needs with effective software systems and tie these to AI to make a difference. AI, in my opinion, will help us yield a different guest experience, a different skill set for employees and managers and potentially greater efficiencies. The variables involved are diverse and many, but my advice, embrace the moment as you can. You cannot do it all at once but when you begin, take it one stop at a time.

Reprinted from the Hotel Business Review with permission from http://www.hotelexecutive.com/.