„How can I help you today?” – A Look at the Use of Artificial Intelligence in the Hospitality Industry

What can AI do for the Hospitality Industry?

„Of course, we have to deal with it. AI will have a huge impact on our future,” says Dr. Andreas Färber, a physician and co-owner of the wellness hotel Klosterhof – Alpine Hideaway & Spa in Bayerisch Gmain, Germany. He sees how AI could be used in medicine and believes the technology offers great benefits, especially when working together. At the same time, he is concerned that, in some cases, there is no control over what the AI comes up with.

„At the Klosterhof, we now use a dynamic revenue management system, which partly works with AI, but is monitored by us. The pricing is also partly artificial, but also monitored by us,” he tells Green Pearls® when asked about his use of AI. With a smile, he adds: „These are elements that you may not like sometimes, but which are now necessary to remain competitive. “

Given the pervasive shortage of skilled labor in the industry, it seems almost inevitable that AI will be used to streamline and automate workflows.

The range of possible tasks is wide

• Maintenance procedures
• Price adjustments
• Administrative tasks
• Room reservations
• Communicating with guests (e.g. on-boarding or excursion tips)
• …

Tim Muller from the Lifestylehotel SAND summarizes the application areas: „AI can be used wherever numbers are involved and data is stored in databases, such as in revenue management or analyzing guest behavior. […] In the hotel industry, AI can support forecasting and evaluating business figures. “

«In the hotel business, operational activities predominate; hands-on work and service are provided, so the opportunities to use AI are limited.»

Tim Muller, Lifestylehotel SAND

The Lifestylehotel SAND on the Baltic coast of Schleswig-Holstein, Germany, uses dynamic pricing that employs AI to increase the effectiveness of the pricing strategy and simplify workflows. This is done by collecting data from various sources and monitoring market trends. „The prerequisite for good results is having access to data from several years. This in turn requires that the hotel management system has already been digitized, ideally for several years as well”, he explains, pointing out the difficulties of using AI. They only work as well as the input they receive and the data they can access. This is another reason why the SAND does not use an AI chatbot. „Guests often have unusual questions that an AI cannot constructively answer,” he explains.

Dr. Andreas Färber adds: „I would be delighted if we could use AI for processes in ecology. For example, for a more ecological form of cleaning in which the AI learns from the mistakes we humans make.“ But for that, the right products are currently missing.

Using AI in the Hospitality Industry: Real-World Examples

While large hotel chains are already integrating AI into their operations, the situation is different for smaller, owner-operated properties. Implementation is generally slower and more uncertain. AI-driven systems, such as dynamic pricing or an intelligent management system, are often introduced individually and gradually. Intelligent chatbots for the hotel website are also an „entry-level” tool for implementing AI in everyday hotel life, as is the use of ChatGPT, Midjourney, and the like in marketing.

AI applications in hospitality fall into three broad areas: Guest communication, Content & Marketing, and Revenue Management. The Green Pearls® network provides real-world examples in all three categories. Green Pearls® itself provides a platform for sustainable hotels and accommodations to showcase their sustainability efforts in a transparent and authentic way.

1. Guest Communication

In guest communications, the use of AI includes chatbots, service robots, and digital intelligent concierges. It may also include automated, customized social media messages or push notifications.