Beyond Plate and Pillow: 5 Ways AI is Redefining the Future of Hospitality
The introduction of artificial intelligence (AI) and generative AI (GenAI) are reshaping how hospitality businesses operate, enhancing customer experiences, and driving new levels of efficiency. Here are five areas where we are seeing and tasting its impact.
1. AI-amplified marketing
AI is transforming marketing strategies in the hospitality industries by enabling more targeted and personalized campaigns. By analyzing vast amounts of customer data, AI can identify trends and preferences, allowing businesses to better tailor their marketing efforts. Its use thus far has been a game changer, particularly for US mega restaurant chain TGI Fridays, which raked in a total of $150M in revenue in 2018 by employing these AI-powered tactics. The chain’s AI-led campaign collected data from customer email engagement, in-store receipts, and app usage to create and send personalized offers to clients. Their success story demonstrates AI’s potential to craft individualized, high-impact campaigns that resonate more personally with clients.
2. Creativity is on the menu
By analyzing current culinary trends and ingredient compatibility, GenAI can assist chefs in crafting new recipes that are both innovative and aligned with customer tastes - leading to entirely unique dining experiences. More practically, this technology can help reduce food wastage and optimize menu creation depending on consumer behavior, weather, time of day, seasonal trends, ingredient availability, and customer feedback - helping restaurants stay sustainable, ahead of the curve, popular, and profitable.
3. Efficient inventory and supply chain management
Top-notch inventory management is key to a restaurant’s success. It’s also where AI excels, making the whole process smoother by keeping stock levels just right and cutting down on waste. By predicting stock requirements based on historical data and future reservations, AI systems are helping restaurants avoid overstocking or shortages. An example of this can be seen in London-based Indian restaurant chain, Dishoom, which implemented an AI tool for inventory management, managing to reduce their food waste by 20%.
Generative AI can go even further to enhance efficiency. Where AI can help predict supply chain disruptions, GenAI can assist by suggesting alternative suppliers or substitute ingredients, helping restaurants run smoother.
4. A curated guest experience
Hotels are also leveraging AI to enhance the overall guest experience. From smart room controls that adjust lighting and temperature based on guest preferences to chatbots for reservations, seamless check-ins, and robot concierges, AI is making hotel stays enjoyable and efficient. Technology upgrades at the Aloft Hotels are catering to more tech-savvy clientele by exploring new features in lighting and entertainment systems as standard, demonstrating their drive to innovate and evolve with technological advancements and guests’ needs.for example, can take advantage of the AI-enabled thermostats along with voice-controlled lighting and entertainment systems as standard amenities, for example, can take advantage of the AI-enabled thermostats along with voice-controlled lighting and entertainment systems as standard, demonstrating their drive to innovate and evolve with technological advancements and guests’ needs.
5. Targeted profits with AI precision
The use of AI is not limited to elevating customer experiences specifically for hotels—it's also giving their revenue management systems a much-needed upgrade, optimizing pricing strategies and boosting profitability. Today’s revenue management systems, including the one used by Hilton, leverages AI to analyze hotel booking patterns, seasonal trends and local events, optimizing room rates in real-time based on forecasted demand. This dynamic, demand-driven approach opens new avenues for the industry to maximize occupancy rates and their bottom lines.
AI and GenAI continues to rewrite the playbook for the hospitality industry. By offering solutions that enhance efficiency, reduce costs and waste, and create personalized experiences grounded in client feedback, these technologies are reshaping the relationship between businesses and their customers.
As its impact and influence grows, the use of advanced AI tools will be vital for businesses to stay competitive in the fast-moving tech landscape. Whether through dynamic menus, virtual bartenders, or revenue management, the future of hospitality is AI.
About the Author
Jean-Simon Venne is CTO & Co-Founder at BrainBox AI.