In recent years, artificial intelligence (AI) has made significant strides in enhancing hotel operations and streamlining efficiency. By automating tasks like booking and contactless check-in, AI has liberated staff members to dedicate their attention to delivering exceptional, tailored experiences to guests in a prompt and cost-effective manner.
Consequently, it comes as no astonishment that AI has emerged as a transformative force within the hospitality industry. However, the extent to which hotel guests embrace AI technology has remained an elusive query, until now. A recent study conducted by the University of Houston sheds light on the degree of acceptance among hotel guests regarding AI technology.
Customer perceptions
“We looked at a number of things that could influence customers when they delegate some of their decisions to AI,” the researchers explain. “And the most important factors were perceived ethics, followed by benefits. For instance, it is important for hotels to be accountable and transparent about data privacy and security to ensure AI is used ethically and responsibly.”
The transformative impact of AI technology on society is already palpable, as highlighted in a recent report by PwC. According to their estimations, AI has the potential to contribute nearly $16 trillion to the global economy by 2030, accounting for almost half of the overall economic advancements resulting from product enhancements, enhanced consumer personalization, and improved affordability over time.
Notably, the research asserts that the most substantial economic gains from AI are projected to occur in China, with a predicted 26% boost to GDP by 2030, followed by North America, expected to experience a 14.5% increase, collectively representing 70% of the total global impact.
Reshaping the landscape
As AI technology continues to reshape the hospitality landscape, hotels stand to offer even more highly customized services. Leveraging AI-powered data systems and chatbots, hotels can tailor their recommendations, anticipate guest preferences, and facilitate seamless interactions, thereby augmenting guest satisfaction and fostering loyalty.
“Imagine you arrive at the hotel, you’ve already checked in and got your mobile room key and you don’t have to wait in line at the front desk,” the authors explain. “And now, based on what it knows about you, the AI has already made a dinner reservation for you.”
AI technology holds the potential to enhance hotel revenue management by dynamically assessing optimal room rates in real time, thereby maximizing profits. Additionally, it offers comprehensive data analysis capabilities, enabling operators to leverage customer information to bolster their marketing initiatives.
However, hotels must exercise vigilance regarding the potential risks associated with AI technology and its impact on the guest experience. Researchers emphasize the importance of guests being assured that AI systems are making decisions that align with their individual preferences and needs.
“When guests perceive the AI decision as unethical or incompetent, it has a negative impact on their experience and willingness to engage with it,” the researchers conclude. “The more hotels focus on the ethics and benefits of the decisions the AI makes, the more likely consumers would use the technology and incorporate it into their entire experience. It just needs to be integrated with humans because they’ll always want that personal touch.”
