3 Ways AI Improves Hotel Guest Experiences

The hospitality industry is typically known as a technology laggard. As a result, hotels and casino resorts often compete by trying to offer better versions of similar and highly subjective amenities, products, or services. 

But the “my steak is better than your steak” approach to doing business is beginning to change. Despite initial concerns that AI might cause a cultural shock due to its perceived lack of human touch, a 2023 Rackspace survey reveals that nearly three-quarters of hospitality IT decision-makers now consider AI a core part of their business strategy. 

The reality is that much of the apprehension surrounding AI is unfounded. This fear often arises from misunderstandings about AI capabilities. One crucial area where AI can help hotels and casino resorts stand out is by improving guest experiences. 

Here I’ll explain three ways AI can accomplish that.

AI Personalizes Booking

The best hotels and casino resort operators know that the guest experience begins at booking. Rooms are no longer based on a linear calculator of past rates or what other hotels are charging. When AI is used in a booking platform, it can consider the guest’s history and value across all business lines to provide offers that they are most interested in and likely to purchase.

The booking platform can use AI to offer room rates that align with guests' previous preferences, such as king beds, double vanities, handicap access, and more. This level of personalization can help increase the likelihood of booking and maximize room occupancy rates. It can also be used to offer additional expected amenities and add-ons like valet, dining and entertainment.

For example, Marriott uses generativeAI in its Homes and Villas search tool. A guest simply describes their desired vacation, and the search tool suggests a list of properties that best-match those preferences. It also provides information that a guest would want to know about their location, like weather and things to do such as hiking, sightseeing, or dining.

The bottom line: A booking experience tailored to guests' preferences, needs and wallets not only speeds up the process but also fosters a deeper connection between guests and the hotel brand.

AI Delights Guests

With AI, all of a hotel’s products, services and systems can talk to each other and share data instantly (goodbye spreadsheets). AI can automatically analyze data across loyalty programs, credit card purchases, dining, accommodations, entertainment, and more to provide personalized promotions and ensure that guests feel genuinely tended to during their stay. 

For example, the Cosmopolitan in Las Vegas employs an AI chatbot named Rose. Guests can text Rose for anything from restaurant reservations to quick tips about the city. With technology like Rose, guests don’t have to wait for someone to pick up the phone and get fast access to a knowledgeable expert.

Another exciting example I’m watching is Turtle Bay Resort. The resort recently announced it’s using an AI-powered CRM application for marketing personalization and to help the resort augment service agents. The resort has seen promising results so far, with nearly 70% email engagement rate and 40% increase in topline revenue.

In the future, AI will segment guests into what I call “tiers of one.” Patrons are too diverse with their spending patterns and behaviors to lump them into a gold tier with 50,000 others. AI can instead rank individual patrons, providing a unique measurement of their potential value to the business. AI can basically understand individual guests on a granular level and provide information like where to invest, how to communicate, and generate the most robust customer experience possible. 

AI Ensures Consistency

While everyone might have a favorite hotel and resort brand, they also probably haven’t had the same experience at every property. One property in Las Vegas might allow loyalty points to be used on valet services while the same hotel brand in Miami might not. While hotels could have different policies, an inconsistent experience can negatively impact a guest’s perception of a hotel brand.

When I worked in casinos, I had an adage that I used to illustrate the importance of consistent experiences: 100 things, 1% better. Pre-AI, we made a list of 100 guest touchpoints and figured out how to make each of them a little bit better, which improved the experience across the casino. For example, we mandated a minimum number of comps for each host to issue every night. We also figured out how to automatically analyze players who came into the casino but were never greeted, comped, or serviced. These two tasks, in particular, can be completely automated with AI while providing immense value to the casino.

The point is that when guests encounter familiar and reliable experiences both within and across properties, they’re happier and more comfortable with their stay. AI can help hotels deliver consistent experiences across properties through things like:

• Standardized housekeeping: By analyzing guest check-in and check-out data, rooms are cleaned and prepared for guests on-time.
• Fast support: Chatbots and virtual concierges, like Hilton’s Connie, provide guests with speedy support and assistance throughout their stay.
• Accelerated new hire onboarding: New employees are trained faster, while experienced staff can continue to focus on guests.

Problem First, AI Second

AI continues to be a promising tool to help hotels and casino resorts attract guests over competitors and enhance service quality. But it’s also just that – a tool that can be a means to an end. AI doesn’t reveal the secrets of the universe; rather, it requires extensive iteration and refinement to maximize its potential. The beauty of AI is its ability to enable users to quickly modify the questions and data used for analysis, facilitating dynamic outcomes. However, it must be guided towards the specific problem organizations intend to solve.

In other words, hotels should first identify the specific problems that need solving or opportunities to pursue before considering or implementing any AI solution. 

ABOUT THE AUTHOR

Jon Wolfe is President of Global Systems and Services at Light & Wonder, the leading cross-platform global games company.