Hotels Using AI in 2024

24 May 2024

By: Sinead Hammond

Category: Blogs

AI and ML are highly effective in hotels’ revenue planning, with a 60% customer satisfaction rate. The number of hotels using AI has increased dramatically, and the hospitality industry is on the brink of a technological revolution.

Marketing for tourism brands has changed over the last few years. For Marketing Directors and Chief Marketing Officers (CMOs) in the hotel sector, leveraging AI can help brands establish themselves as frontrunners in a crowded market. This blog will explore how AI is reshaping hotel marketing, offering insights and strategies to harness its full potential.

Personalised Guest Experiences

One of the most significant advantages of hotels using AI is the ability to deliver highly personalised guest experiences. According to 37% of hoteliers surveyed, Front Office & Guest Relations are expected to benefit the most from AI. AI algorithms analyse vast amounts of data, including booking histories, online behaviour, and social media interactions, to create detailed guest profiles. This data allows hotels to tailor their marketing efforts to individual preferences, increasing the likelihood of conversions. 

  • Dynamic Pricing: AI can predict demand and adjust room rates in real time, optimising revenue. Hotels using AI can offer personalised discounts and promotions to loyal guests, enhancing customer satisfaction and loyalty.
  • Customised Marketing Campaigns: By understanding guest preferences, AI can help design targeted marketing campaigns. For instance, a guest who frequently books spa treatments may receive exclusive spa offers, while a business traveller might get promotions for conference room bookings. This is an important part of a robust content marketing strategy for hotels.

How Hotels Using AI Benefit from Enhanced Customer Engagement

AI-powered chatbots and virtual assistants are revolutionising customer engagement. These tools provide 24/7 assistance, answering queries, making bookings, and even offering personalised recommendations based on previous interactions.

  • Chatbots: Hotels using AI chatbots on their websites and mobile apps ensure immediate response to guest enquiries, improving customer service and satisfaction. Chatbots can handle a range of tasks, from simple FAQs to complex booking modifications.
  • Virtual Concierges: AI-driven virtual concierges enhance the guest experience by providing personalised recommendations for local attractions, dining options, and activities. They can also manage requests for additional services, such as room service or housekeeping.

Predictive Analytics for Strategic Decisions

AI excels at predictive analytics, which can transform how hotels forecast demand, manage resources, and plan marketing strategies.

  • Demand Forecasting: AI can analyse historical data, market trends, and external factors like weather and local events to predict future demand. This helps create efficient resource allocation, ensuring optimal staffing and inventory management.
  • Market Segmentation: Hotels using AI can identify and analyse different market segments, enabling more precise targeting. By understanding the preferences and behaviours of each segment, hotels can craft tailored marketing messages that resonate more effectively.

Optimised Advertising and Social Media Strategies

AI tools enhance advertising efforts by optimising campaigns across various platforms, ensuring maximum ROI.

  • Programmatic Advertising: AI-driven programmatic advertising allows hotels to target specific audiences with precision. These systems analyse user data to place ads at the right time and on the right platforms, increasing the likelihood of engagement and conversion. Travel PPC campaigns perform extremely well if carried out correctly, and Hotels using AI to inform their strategies will see even better results.
  • Social Media Insights: AI can monitor social media trends and sentiments, providing valuable insights into guest perceptions and preferences. This information can guide content creation and advertising strategies, ensuring they align with current trends and guest interests.

Streamlined Operations and Cost Efficiency

AI not only enhances marketing efforts but also streamlines hotel operations, leading to cost savings and improved efficiency.

  • Operational Efficiency: Hotels using AI can automate routine tasks, such as data entry and report generation, freeing up staff to focus on more strategic initiatives. This boosts productivity and reduces operational costs.
  • Energy Management: AI systems can optimise energy usage in hotels, adjusting heating, cooling, and lighting based on occupancy patterns. This not only reduces costs but also supports sustainability initiatives.

Embracing AI: Strategies for CMOs and Marketing Directors

For hotels using AI, CMOs and Marketing Directors should consider the following strategies:

  1. Invest in AI Technologies: Identify and invest in AI tools that align with your marketing goals. This could include CRM systems, chatbots, predictive analytics platforms, and programmatic advertising solutions. 
  2. Data Integration: Ensure that all data sources are integrated into a centralised system. This will provide a comprehensive view of guest behaviour and preferences, enabling more effective AI-driven insights and actions.
  3. Continuous Learning: AI technologies are constantly evolving. Stay updated with the latest developments and continuously train your team to use new tools and techniques effectively.
  4. Collaborate with AI Experts: Partner with AI specialists and consultants to implement and optimise AI solutions. Their expertise can help in customising AI tools to meet the unique needs of your hotel.
  5. Focus on Ethics and Privacy: While leveraging AI, prioritise guest privacy and data security. Ensure compliance with relevant regulations and maintain transparency with guests about how their data is used.

Join other Hotels Using AI

The global Artificial Intelligence in Hospitality and Tourism Market size was valued at USD 13.85 billion in 2022. This is projected to reach a value of USD 158.40 billion by 2030.

Hotels using AI are transforming the landscape of hotel marketing, and getting ahead of their competition. AI in digital marketing offers unprecedented opportunities for personalisation, efficiency, and strategic decision-making. For Marketing Directors and CMOs, embracing AI is key to staying ahead in a competitive market. By investing in AI technologies and integrating them into your marketing strategies, you can create exceptional guest experiences, optimise operations, and drive sustainable growth. The future of hotel marketing is here, and it’s powered by AI.

If you’re considering hiring a hotel digital agency, we would love to help you. With some of the latest insights and our extensive range of experience, we can help you on the path to integrating AI into your digital estate to improve your marketing strategy.

As the online hotel booking industry continues to expand, investing in a robust digital infrastructure and adopting a multi-channel approach is paramount for success when marketing for travel brands. Additionally, partnering with experienced agencies like Sagittarius, a Sitecore agency, can offer invaluable expertise. As Platinum Sitecore Partners, have a proven track record of working with world-leading hotel and travel brands like  Red Carnation Hotels to Contiki and SkiWeekends to build experiences that not only captivate but also convert. If you would like us to help you take your hotel brand to the next level, contact us today.

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