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Hrushikesh Datar, Decision Analytics Manager, ZS, Rising Revenue Optimization Leader Council Member
AI is coming our way in the hospitality industry, particularly within revenue management. Early adopters are already leveraging technology to stay ahead, and it’s essential for rising leaders to understand and embrace these changes. But the pressing question remains: Are we prepared for this change?
According to industry estimates, AI is projected to contribute substantially to the hospitality sector in the coming years. I brought the topic to a recent HSMAI Rising Revenue Optimization Leader Council Meeting recently to get my contemporaries take on the matter.
How We’re Using AI
AI’s applications in hospitality are diverse and continually expanding. Here are some notable examples discussed:
- AI for KPI Development and RFPs: Participants mentioned using AI tools to suggest KPIs when evaluating vendors, significantly reducing the time required to draft RFPs.
- Personalized Marketing Content: We discussed the use of AI to personalize website content and images, optimizing user engagement and conversion rates.
- Enhanced Notetaking and Meeting Summaries: RROLC members shared how AI tools assist in summarizing meetings and refining messaging.
- Creative Team Engagement: One professional recounted creating personalized materials for team members using AI, fostering team spirit and appreciation with minimal effort.
What We’re Considering
Through our discussion we found several areas that hospitality professionals must address to fully capitalize on AI’s potential.
- Improving Efficiency: AI tools can unlock significant efficiencies in day-to-day revenue management work. This would allow our teams to focus on revenue-generating activities rather than being tied up with running reports.
- Skill Enhancement and Training: As AI tools become integral to daily operations, professionals must upskill to effectively utilize these technologies.
- Data Security and Privacy: We discussed the need to implement advanced security protocols to protect privacy and data integrity.
- Organizational Support and Leadership: Companies must foster a culture that encourages innovation and provides the necessary resources for AI integration.
- Legal and Compliance Considerations: Legal teams must work closely with IT and operational departments to navigate the complexities of AI adoption, ensuring that all implementations adhere to industry standards and regulations.
- Collaboration with Tech Providers: Engaging with technology providers to develop AI solutions tailored specifically for the hospitality industry can drive more effective and relevant applications, addressing unique industry challenges. We do not need to build everything in-house!
The path to AI integration is fraught with challenges, but the rewards are substantial. My fellow RROLC members unanimously agreed that personalization stands out as a pivotal area where AI can revolutionize guest experiences. By leveraging algorithms to anticipate and cater to individual preferences, hotels can offer bespoke services that differentiate them in a competitive market. One member shared:
“Personalization is going to take guest experiences to the next level. AI algorithms can understand and predict guest preferences without explicit input, creating seamless and tailored interactions.”
Further Reading
Questions for Your Team
- What are some of the prevalent applications of AI in the hospitality industry that you have observed? How do you envision AI transforming Revenue Management?
- Do you leverage AI in your day-to-day work to boost productivity? What percentage of your time is spent on administrative tasks that could potentially be automated by AI?
- Do you feel empowered to initiate discussions about AI within your organization?
- What support do you require from your leaders or organization to fully capitalize on the opportunities presented by AI?