There’s no escaping Artificial Intelligence (AI) these days – it’s across every news outlet, it’s splattered across our social media profiles and it’s even become a hotly debated topic in the pub.
And it’s easy to see why. AI (technology that enables machines to learn and make decisions on their own, without human intervention) has developed at an unprecedented rate compared to previous technologies.
It was almost 50 years between the creation of the internet and the first smartphone and it took decades to go from 2G to 5G, yet generative AI has experienced such rapid progress in only a few years, it has already reached (and in many cases surpassed) human-level intelligence.
It is set to reshape entire industries, disrupt job roles, transform healthcare and ultimately change the way we live, work and interact with each other, but because it is evolving so fast, we don’t exactly know how yet.
We’ve been thinking a lot about this and how AI will impact our venue hosts and the hospitality sector generally. While its rapid progress can be alarming, it also brings with it a lot of opportunity for the sector’s future growth. Here’s how:
- It can enhance the customer experience
The customer experience has always been at the heart of hospitality, but it’s taken on a whole new level of importance given how much competition venues now face, not to mention the fact that customer spending habits have dramatically changed due to the cost of living crisis. We are far more selective when it comes to how we spend our money and so an outstanding customer experience is vital to securing new and repeat customers.
AI has the potential to revolutionise the customer experience, while also creating efficiencies and driving revenue at the same time. For example, AI can provide instant responses to an infinite number of customer inquiries, it can guide visitors to their seats or facilities and provide highly personalised recommendations based on previous purchasing behaviour. Not only that but it can analyse customer feedback and sentiment in real time, helping venues identify areas for improvement and tailor their offerings accordingly.
It has the power to enhance the customer experience like nothing before it.
- It creates operational efficiencies
AI can create huge operational efficiencies, specifically when it comes to bookings and check-ins, as well as distribution channels, inventory management, reporting and even recruitment and onboarding. With AI-powered tools, venues can automate and streamline all of these processes. This makes them more efficient and effective, but also frees up staff to focus their time on more critical customer facing activities.
By analysing data such as energy consumption and resource expenditure, AI can also help venues optimise their distribution and reduce costs. Saving on energy and resources is not just a cost-saving exercise vital in the midst of an energy crisis, but its environmental benefits are also widely acknowledged.
And finally AI algorithms can help venues adjust their prices in real-time by analysing data from a variety of sources, such as booking patterns, competitor prices and even weather forecasts, maximising revenue in the process.
- It’s drives personalised marketing
Not only can AI actually generate content for marketing campaigns, including text, images and video, it can also drive highly targeted and personalised communications based on a customer’s previous interactions with a venue including historical bookings, reviews and orders.
This enables venues to deliver highly targeted and personalised marketing campaigns, promotions and offers which ultimately increases their effectiveness and drives customer engagement.
Looking forward
While the adoption of AI may seem daunting, it’s an incredibly powerful tool that can help venues operate much more efficiently, while improving the customer experience and freeing up staff to focus on other business critical activities.
And as the industry continues to recover from the pandemic and grapple with the cost of living crisis that has dramatically reduced consumer spending, AI is going to play an increasingly important role in helping venues stay competitive and thrive in these particularly challenging circumstances.
