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How Hospitality Companies Can Use AI and Data to Enhance Customer Experiences

The right AI-powered customer service technology can provide hospitality companies with the data and insights needed to delight customers at every step of their journey and keep them coming back for more.

The hospitality industry is driven by the pursuit of providing unparalleled customer experiences. Today, brands in this space that want to stand out must find a way to balance efficiency with the need to create personalized and empathetic experiences for their customers. With 81% of consumers wanting brands to get to know them and 95% of customer experiences being driven by AI by 2025, it’s more important than ever for hospitality companies to implement new data-driven technologies to exceed customer expectations.

Over the past few years, the integration of AI and data has been a game-changer. Companies that leverage these technologies stand to revolutionize the way they interact with customers and personalize services, thereby delivering a more elevated customer experience. When the use of AI and data is integrated into daily operations, the benefits can be significant.

Personalized Customer Interactions: One of the most significant impacts of AI and data in this industry is the ability to deliver highly personalized customer experiences. AI-powered customer service platforms are available to help brands not just to resolve problems, but to understand a customer’s needs more holistically. AI algorithms can analyze vast amounts of customer data, including preferences, past reservations and feedback to create detailed customer profiles and tailored recommendations.

This wealth of information enables hotels, travel booking services and rental car companies to better anticipate individual needs, customizing offerings to meet and exceed customer expectations from the very first interaction. Maybe it’s a hotel making a restaurant recommendation based on dietary preferences or a travel booking service sending a proactive update on the flight impact of a winter storm. Companies that maximize data and preferences are better positioned to create a better overall experience, hopefully boosting customer loyalty in the process.

Immediate and Efficient Problem Resolution: When a customer has a question or problem, they want it addressed immediately. If they have to wait longer than they deem to be acceptable to, their satisfaction level can decline quickly. The beauty of AI is that it can automate routine tasks (e.g., hotel check-ins and check-outs, rental car bookings, etc.) and identify and resolve issues that could potentially erode customer satisfaction. In fact, in one survey, several leading hotel groups report that their AI-enabled concierge services, answering guest queries by text and/or voice, have reduced calls to the human concierge desk by 35% or more, freeing associates from routine tasks.

Knowing that mundane or repetitive tasks are being handled by AI, hospitality workers have more time to focus on resolving customer issues that are more complicated or that require more of a human touch. By giving staff the ability to concentrate on higher-level problems, hospitality companies can enjoy improved efficiency and productivity while ensuring customer satisfaction.

Cost Savings and Increased Revenue: AI and data also play a crucial role in decreasing costs and increasing revenue. For example, AI is capable of continuously assessing changing market conditions and competitor pricing, allowing hotels and travel companies to forecast demand for rooms and flights, and adjust pricing strategies dynamically. This flexibility maximizes revenue during peak demand periods, avoids underselling during less busy times, and ensures competitive pricing, attracting a broader customer base.

Elevating the Customer Experience Starts at Day One

As soon as a customer starts researching and exploring where they want to travel or stay, the customer experience begins. The hospitality industry needs to meticulously map and track this experience, from day one. The right AI-powered customer service technology can provide hospitality companies with the data and insights needed to delight customers at every step of their journey and keep them coming back for more. When this happens, customers feel not only accommodated, but understood and valued– the new meaning of modern hospitality.


Brad Birnbaum is an innovator and a trailblazer in creating disruptive enterprise technologies. He has spent more than 25 years as a C level executive and a serial entrepreneur, building companies and solutions for customer service and support. Mission driven and passionate, he believes in leading with purpose and building solutions that solve real world problems.

Today, Brad leads Kustomer, a fully scalable AI-powered customer service conversational CRM platform. Before founding Kustomer, Brad co-founded Assistly which was acquired by Salesforce and rebranded as Brad began his career by founding eShare Communications while in college. Brad held executive roles at Divine Interventures, eAssist and Talisma all the while focusing on improving customer support for enterprise companies. 

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