How is AI changing the customer experience?

 Nirav Akshay Oza, CEO, Efcee Hotels - A Leela Worldwide Venture, speaks about how the Indian luxury hotel industry is striving for continued growth and innovation through AI and technology

Here are some ways AI is transforming customer experience in the hotel industry: 

● Personalized recommendation’s

AI-powered algorithms analyze guest data to offer personalized recommendations, such as room preferences and dining suggestions. As personalization becomes increasingly important to customers, hotels that provide tailored experiences can improve customer satisfaction. A recent report revealed that 60% of customers expect personalized experiences from hotels, and 50% are more likely to return to hotels offering such experiences. 

● Streamlined check-in processes

Facial recognition and chatbot technologies can significantly reduce check-in times for guests. For instance, a Chinese hotel has implemented facial recognition technology to expedite the check-in process. A study by Oracle Hospitality found that 89% of hotel guests would prefer using their smartphones to hasten the check-in process, and 64% would opt for facial recognition technology for identification purposes. 

● Predictive maintenance

AI-powered predictive maintenance helps hotels detect potential issues before they escalate into major problems. This technology enables hotels to identify malfunctioning equipment before it breaks down, reduce downtime, and minimize repair costs. According to a recent report, predictive maintenance can decrease maintenance costs by up to 30% and reduce downtime by up to 45%

● Chatbots for customer service

Chatbots have gained popularity in the hotel industry, providing 24/7 customer service and assisting guests with queries and complaints. Additionally, chatbots offer recommendations and personalized promotions. A recent survey found that 73% of customers prefer using chatbots for customer service, and 55% would be willing to book a hotel room through a chatbot. 

● Voice assistants in hotel rooms

Voice assistants like Amazon’s Alexa and Google Home are increasingly being integrated into hotel rooms. Guests can use voice commands to control room temperature, lights, and even order room service. A recent report indicated that 73% of hotel guests would like to use voice assistants in their rooms, and 63% would be more likely to book a hotel room equipped with voice assistants. 

● AI-powered pricing strategies

AI-powered pricing strategies help hotels optimize room rates and maximize revenue by analyzing market trends, demand, and other factors. Additionally, these strategies enable hotels to adjust room rates in real time. A recent report found that AI-powered pricing strategies can increase revenue by up to 15% and reduce the time spent on pricing by up to 90%.

Source:https://www.hotelierindia.com/operations/how-is-ai-changing-customer-experience

New technological advancements in the Hospitality industry after the pandemic

 The COVID-19 pandemic has significantly impacted the hospitality industry, and many businesses have had to adapt to the new normal to survive. Here are some of the new technological advancements that have emerged in the hospitality industry in response to the pandemic:

Contactless Check-in and Check-out: Many hotels and vacation rentals have implemented contactless check-in and check-out processes to minimize the risk of transmission. Guests can now use their mobile devices to check-in, access their room keys, and make payments.

Mobile Room Keys: Mobile room keys allow guests to access their rooms without having to touch a keycard. This technology uses Bluetooth technology to detect when a guest is near their room and automatically unlocks the door.

Virtual Concierge: To reduce face-to-face interactions, many hotels have implemented virtual concierge services. Guests can now communicate with staff via text messaging or chatbots to request services or ask questions.

Air Quality Monitoring: Many hotels have started using air quality monitoring systems to ensure that the air in their buildings is clean and safe for guests. These systems can detect pollutants, humidity, temperature, and other factors that affect air quality.

Robotics: Some hotels have started using robots to perform tasks such as cleaning, room service delivery, and luggage handling. These robots help reduce the need for human interaction and can operate 24/7.

Contactless Payments: Contactless payment methods such as mobile payments and QR codes have become more popular in the hospitality industry. Guests can now pay for services and products without having to touch cash or credit cards.

Online Menus: Many restaurants and cafes have started using online menus to minimize the handling of physical menus. Guests can access the menu via their mobile devices or scan a QR code.

Social Distancing Monitoring: To ensure that guests are adhering to social distancing guidelines, some hotels have implemented social distancing monitoring systems. These systems use sensors and cameras to monitor guest movements and alert staff when social distancing rules are being violated.

Overall, these technological advancements have helped the hospitality industry to adapt to the challenges posed by the COVID-19 pandemic and provide a safer and more convenient experience for guests.

What are the significant changes that can be observed in the Hospitality Industry post Covid 19 pandemic?

 The COVID-19 pandemic has had a significant impact on the hospitality industry, and there are several changes that have been observed as a result. Here are some of the significant changes:

Increased emphasis on health and safety: Since the outbreak of COVID-19, the hospitality industry has placed a greater emphasis on ensuring the health and safety of guests and staff. This has led to the adoption of various protocols, such as frequent cleaning and disinfecting, mandatory mask-wearing, and social distancing measures.

Contactless technology: Many hotels and restaurants have implemented contactless technology to reduce the risk of transmission. This includes contactless check-in, digital menus, and mobile payments.

Changes in food and beverage offerings: The pandemic has also led to changes in food and beverage offerings. Buffets have been replaced by a la carte menus, and restaurants have started to offer more outdoor dining options.

Shift towards domestic travel: With international travel restricted, there has been a shift towards domestic travel, leading to increased demand for local tourism and hospitality services.

Increased adoption of technology: The pandemic has accelerated the adoption of technology in the hospitality industry. Hotels and restaurants are now using technology to enhance guest experiences, such as virtual concierge services and digital keyless entry systems.

Flexible cancellation policies: Many hotels and airlines have introduced more flexible cancellation policies, allowing guests to cancel or reschedule bookings without penalty.

Overall, the hospitality industry has had to adapt quickly to the challenges posed by the pandemic. While some of these changes may be temporary, others are likely to become permanent features of the industry.

Taj Mansingh Hotel auction flops, Indian Hotels Company sole bidder

A Business Standard report read that the New Delhi Municipal Council’s ambitious plan to auction the Taj Mansingh Hotel has almost drawn a blank, with only Tata Group-owned Indian Hotels Company (IHCL), the current operator, bidding for the property. The NDMC will now have to conduct a fresh round of auction for the luxury hotel, thereby delaying the process by at least several months.

Thursday was the last day for submission of bids for the Taj Mansingh as well as two other hotels in the capital —the Connaught and Hotel Asian International — built on NDMC land. In contrast to the Taj, the two lesser-known hotels have got three bidders each, allowing the auction process to move forward.

A new auction date will be decided for the Taj Mansingh (as the hotel is widely known, based on its Mansingh Road address), an official said. The tender rules said the bid process would be annulled in case there were less than three bidders. An official at the NDMC who is part of the tender process did not respond to calls. SBI Capital Markets is the transaction advisor to the auction.

Surinder Singh, an AAP legislator from Delhi and an NDMC member, said the current auction process of the Taj Mansingh was no less than a ‘’conspiracy’’. He told that the next tender should be done properly to attract more bidders.

The cold response from the hotel industry was unexpected, especially at a time when the sector is seeing an uptrend. Representatives of hotel companies said they were not enthused with the financial terms and certain conditions of the tender. In spite of a relaxation in certain conditions in the second tender floated by the NDMC in April, a number of hotel companies failed to qualify. Some said the responses to queries raised by prospective bidders in a pre-bid meeting were not satisfactorily answered.

One of the conditions that put off companies was that if a bidder failed to meet the eligibility conditions specified in the tender documents, the security amount (INR 250 million) was to be kept by the NDMC as ‘liquidity damages’. The first tender was floated by the NDMC in December last year and the auction was supposed to be held on January 30, 2018.

This date was postponed multiple times after prospective bidders raised several queries and finally the tender lapsed. Companies said the tender conditions were too ‘restrictive’. The first tender did not allow a cross-holding of five per cent or more between two bidders. It said a bidder must own assets as well as a brand which is not the usual practice in the hotel industry. These were relaxed in the second tender.

Some companies also said the financial demands of NDMC from the winner was on the higher side. It did not change in the second tender. The next operator of this property will have to assure a minimum revenue share of 17.25% and a minimum guarantee fee of Rs 29.64 million per month, with a clause for escalation, according to current terms. There is also an upfront non-refundable fee of INR 533 mn. NDMC is seeking a performance security of INR 355 mn as well. The lease period for the property was kept at 33 years, the same duration awarded to IHCL over four decades ago, in 1976.

An expert specialising in hotel industry related transactions said that the auction process of Taj Mansingh was being conducted with a ‘landlord’ attitude. “There is no rent free period for the winner. The winning firm will have to start paying money to NDMC from day one even though the actual hotel operation and income may take multiple months to begin”, he said. The hotel needs a complete renovation and it may take more than a year during which the regular guests of Taj Mansingh would have to be shifted to other hotels, said an industry executive. “You cannot re-open it and expect a tariff of INR 10,000 per room from first month.’’

(Source: Business Standard)