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Hotel & Tourism SMARTreport #40

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In The Field<br />

with David Esseryk<br />

<strong>Hotel</strong> & <strong>Tourism</strong><br />

<strong>SMARTreport</strong> <strong>#40</strong><br />

2018 Autumn Edition 43<br />

THE "INSIDE LINE" ON WHAT'S HOT IN HOSPITALITY TECHNOLOGIES<br />

PART 23<br />

HOSPITALITY AND A.I.<br />

CLOSE-UP ON<br />

ARTIFICIAL<br />

INTELLIGENCE<br />

– PART II<br />

In this edition of his regular report, David<br />

Esseryk takes another close look at how<br />

Artificial Intelligence is impacting the<br />

industry, and what we can expect to see in<br />

the future.<br />

AUTOMATION AND MACHINE<br />

LEARNING FOR EMERGING<br />

HOTELS<br />

Much of the hopeful promises made for ​<br />

Artificial Intelligence in the hospitality<br />

industry​are intended for established<br />

brands. Small, less celebrated hotels<br />

receive less attention even though they<br />

form a big enough segment to reap<br />

the best out of AI offerings. Since<br />

large hotels can hire more<br />

competent staff to work<br />

on a myriad of tasks,<br />

smaller brands with<br />

a limited budget<br />

and members<br />

can’t reach<br />

the goals of<br />

revenue growth and<br />

business intelligence<br />

management, eventually<br />

settling for weak solutions and<br />

average profit margins.<br />

THE DOMINANT UBIQUITY OF<br />

DIGITAL VIRTUAL ASSISTANTS<br />

The rise of digital concierge and virtual<br />

assistants can be attributed to evolving<br />

travellers, vacationers and business<br />

guests who desire exemplary customer<br />

experience. Hence, to enable digital<br />

experiences with hotels, companies rely on ​<br />

Natural Language Processing​of famous AI<br />

leaders such as Apple’s Siri, Amazon’s Alexa<br />

and Microsoft’s Cortana. To augment the<br />

experience furthermore, we will see AR<br />

purge the linguistic barriers by enabling<br />

English speaking employees to converse<br />

effortlessly with hotel guests from any part<br />

of the world using AR headsets for realtime<br />

translation.<br />

AR is also becoming as integral as AI.<br />

UK’s largest hotel chain Premier Inn has<br />

outfitted each guest room of their Hub<br />

<strong>Hotel</strong> with an interactive wall map that<br />

contains local spots of the surrounding<br />

neighbourhood. To view interesting local<br />

sites, the facility allows travellers to point<br />

their smartphones at the map.<br />

When it comes to serving customers with<br />

AI-powered virtual assistants, ​Edwardian<br />

<strong>Hotel</strong>s London​leads the chart. The<br />

hotel in May 2015 introduced the<br />

GUESTS<br />

WILL<br />

ENJOY HYPER-<br />

PERSONALISATION IN<br />

THE FORM OF REAL-TIME<br />

NOTIFICATIONS THROUGH<br />

CHATBOTS FROM DINNER<br />

SPECIALS, CASINO FACILITIES<br />

first ever AI-based chatbots with<br />

which guests can interact via<br />

text using a smartphone<br />

to order room service<br />

and request various<br />

recommendations<br />

for spa,<br />

restaurant,<br />

hotel specials and<br />

other local attractions.<br />

TO EVEN BABYSITTING<br />

SERVICES FOR THE<br />

FAMILY PERSONALISATION<br />

ON A LARGER SCALE<br />

Incorporating Artificial Intelligence<br />

in hotels is stipulated to transform room<br />

services completely by 2025 through<br />

the process of creating personalised<br />

experiences that will incorporate individual<br />

preferences. <strong>Hotel</strong>s will integrate ​chatbots<br />

and AI​as a useful tool to acquire and<br />

retain various demographics. McKinsey​<br />

claims in their research that companies<br />

are effectively personalizing their services<br />

can increase revenue by 10% to 15% and<br />

diminish service cost by 15% to 20%.<br />

Over time, with broad adoption of Artificial<br />

Intelligence in hotels, we will see guests<br />

will enjoy hyper-personalisation in the form<br />

of real-time notifications through chatbots<br />

from dinner specials, casino facilities to<br />

even babysitting services for the family.<br />

SEE YOU AGAIN IN THE NEXT EDITION

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