Artificial intelligence (AI) has become more precise and dependable thanks to recent technological advancements, which have increased its significance in the business world. And the hotel industry is not left behind. In fact, it has been completely transformed by machine learning and AI-powered hotel software.

The hotel business is progressively utilizing hotel software to streamline operations, reduce the need for manual labour, increase reservations, and boost income. With the promise of providing a wonderful guest experience and enhancing a hotel’s reputation, AI and business intelligence have become essential components of the hotel sector.

In this detailed article, you will learn all about the role AI plays in the hotel industry, how AI-based hotel software is driving revenue in the hotel market and what the future holds for hotels using artificial intelligence.

Understanding the Role of AI in the Hotel Industry

For the past few years, text and voice-based assistants in our cell phones have been part of our lives. In the present times, we find that around 61% of businesses have implemented the use of Artificial intelligence (AI). What`s more is that we don’t mind having AI controlling our homes and, with this in mind, it`s only fair to say that the hotel industry shouldn`t get left out either.

In the case of hotels, information can be where all the channels of data have been linked together just like the way arteries and veins in a human body are connected to perform and produce accordingly. Great accommodation experiences lead to the loyalty of guests with loyalty, recommendations, and income will surely follow.

With artificial intelligence, be sure that many tasks in the hotel industry will be streamlined thereby leading to the new wave which dominates in the accommodation of guests. With artificial intelligence reshaping the hotel industry hoteliers are sure to slowly but surely provide valuable perceptions.

First and foremost the customer service is awesome. they are all so nice and very helpful. they strive hard to answer the questions in a timely manner. sometimes there is a whole team working on my issue so it’s done faster. The program itself is simple and really easy to understand (once you have done it a couple of times). It has saved me loads of time as I am able to load items all at once instead of one at a time. It’s very fast and syncs within seconds for real-time availability.

The emails sent by the channel manager are spot on and very quickly sent from actual booking time to email transmission. this helps in keeping my real-time availability up to date. I manage/maintain 8 properties on this channel manager and it’s a breeze. Admin is a piece of cake as well, i also love that you can add as many users as you want, customize their capabilities and send notifications to as many emails as you want as well. All in all the program is wonderful and so affordable. Its perfect for a big corporation or the smallest of properties. A++ in my book.

How AI is used in the hotel industry?

Let’s have a look at the most effective AI implementations within hotels to provide you with ideas on how AI is used in the hotel industry

AI Robot Concierge

A growing number of hotel companies are realizing that providing excellent customer service while effectively utilizing guest intelligence is a key to raising brand value. Some concepts have quickly materialized, and we have begun to see intelligent robot concierges working with service hotel guests.

Due to their voice recognition skills, these AI concierges with the help of cloud-based hotel management systems can engage with visitors, answer queries from guests, and check them in or out. With every encounter, these little mechanical beings pick up new skills, adapt, and grow smarter. Additionally, they are simple to link to other systems like voice-activated services and bots, providing hotels with even more automation.

Chatbots & Virtual Assistants

In the hospitality industry, the use of chatbots and cloud-based hotel management software has produced outstanding outcomes.

Computer programs that have been taught to carry out a certain duty upon request have been referred to as bots or virtual assistants. Consider them as the virtual counterpart of in-person customer support.

When it comes to online chats and direct messaging, digital assistants with seamless integration with cloud-based hotel management software have proven to be quite persuasive. Without exception, they respond immediately to consumer inquiries around-the-clock. As a creative strategy for connecting with potential consumers and fostering stronger connections, hotels are increasingly implementing messaging systems, integrating messaging platforms, and cloud-based hotel management software.

Cloud-based hotel management software along with AI-enabled bots can undertake a variety of duties, including addressing client complaints, ordering beverages and meals, suggesting activities, handling reservations, and more. These jobs are in addition to fostering user engagement.

Digital assistants may be included in messengers as well as your website and other online platforms. If you want to create consistent guest experiences and free up front desk staff members’ time to offer the greatest possible service for your customers, think about using chatbots.

Easy Booking Processes

One of the sticking points for the hotel industry is online reservations. Search and booking are common activities on aggregator websites. Even if customers wish to book directly through the hotel’s website, determining desired dates and check-in information might be difficult and time-consuming. There are few opportunities to speak with hotel workers, and in the age of text messaging, nobody wants to phone and wait for a response. AI-based features integrated into your booking engine and your cloud-based hotel management system may minimize this friction, increase sales potential, and offer a booking experience customised to the preferences of your clients. Travelers’ choices are double-checked by AI algorithms, which then fine-tune the outcomes depending on user data. With the advent of virtual assistants for booking and searching for trips, hotel operators may easily expand their reach.

Putting Reviews to Good Use

The majority of people post their images and reviews of hotel services on social media sites and review websites like TripAdvisor,, Expedia, etc. It matters what customers think and says about your service. Instead of doing it manually, let a computer tool go through the user reviews on dozens of websites. With the use of machine learning, a branch of artificial intelligence, you may evaluate the vast amount of data from a variety of internet sources and gain insightful knowledge about the attitudes of your customers.

The ML algorithms and methodologies enable real-time analysis of all evaluations relating to a brand, identifying favourable and unfavourable terms. You may modify your hotel offers and services using this data to better match the demands of your guests. Additionally, you may quickly post good evaluations about your hotel on your hotel website if you’ve linked Cloud Based Hotel Management Software and the hotel website.

Analysis of Future Trends and Dynamic Pricing

Can’t decide the best time to run promotional offers? You may track demand spikes caused by seasonal fluctuations and other market conditions with the help of central reservation software and cloud-based hotel management software powered by AI and ML. To present rates that optimize earning potential, predictive analytics technologies consider hundreds of variables. These might include information on the forecast, market conditions, consumer booking behaviour, well-known events that will happen close to your hotel, and other things. To reflect changes in demand, the sophisticated program would automatically alter the prices. You may watch local occurrences, forecast what will happen, and then respond appropriately if you use machine learning (ML) in the backend of your systems, such as cloud-based hotel management software.

AI-powered Automation and Efficiency

Small hotel providers may be able to compete on equal terms with the industry’s top companies thanks to AI. All repetitive tasks like check-ins and check-outs, housekeeping deliveries, room assignments, and the like will be automated by robust cloud-based hotel management software with AI at its heart. You will be able to shorten response times, raise customer satisfaction levels, cut expenses, and ultimately boost income by using chatbots and strong analytics tools together.

Five Ways AI is Re-modeling and Generating Income in the Hotel Industry

IoT and Artificial Intelligence enabled connections of motion sensors, room control, and smart voice control are poised to change the way hotels function. Integration of IoT into intelligence-driven software for the hospitality industry will not only personalize hotel guest experience but also impact the business model of the hotel industry in the near future.

The way hotels operate is about to change thanks to connectivity between motion sensors, room control, and smart voice control made possible by the Internet of Things and artificial intelligence. The near future will not only personalize guest experience but also witness changes to the hotel industry’s business model due to the integration of IoT into intelligence-driven software for the hospitality industry. Here’s how:

Demand-specific Optimization to Increase Profit

Hotel and travel organizations are expected to implement need-specific software for the hospitality industry that solves issues related to rush during holidays and other erratic events that occur due to seasonal variations and the demand-centric nature of the industry. Once hotels can accurately record, comprehend, and forecast future market demand trends, they stand to gain significantly.

With the use of AI-enabled software for the hospitality industry, hoteliers can foresee seasonal and traveller demand fluctuations and create an action plan to assist them to optimise their service offerings, pricing policies, and even brand marketing. Being able to foresee using Big Data and Machine Learning frequently leads to a rise in profit, competitive advantage, and a number of consumers in a sector as dynamic as eager travellers.

Automation for Growing Hotels

Due to the high cost of cloud computing and the significant upfront investment, it is practically impossible for smaller businesses to generate the highest possible income during the on-season. However, new businesses in the hospitality sector may automate many of their current activities by relying on software for the hospitality industry that is AI and machine-learning-ready. These hotels stand to gain greatly from the optimization of their working capital and overall operating expenses as automation frees employees from repetitive tasks.

Additionally, when staff members are given more time to concentrate on enhancing customer service and providing the entire range of hotel amenities for visitors, operations become more efficient, which might lead to a rise in annual income.

A Greater Degree of Personalisation

By 2025, it is predicted that using AI-based software for the hospitality industry in hotels would radically revolutionize room services and guest experience by allowing for the creation of tailored experiences that take into account individual preferences. Hotels will utilize chatbots and AI as effective tools to attract and keep a range of demographics.

According to a study by McKinsey, hotels that properly personalize their services may boost sales by 10% to 15% while lowering costs by 15% to 20%.

With the widespread use of artificial intelligence in hotels, customers will eventually experience hyper-personalization through chatbot notifications for anything from family-friendly babysitter services to restaurant deals and casino amenities.

IoT devices are Simple to Maintain

The integration of guest room technology with software for the hospitality industry creates opportunities for IoT deployment to consolidate all currently used devices, lowering the maintenance and acquisition costs for hotel enterprises. With the use of IoT and AI in hotels, hoteliers may focus on the main gadgets like internet access points (in-room), phones using SIP, Bluetooth audio streaming on the hotel alarm clock, tablets specifically for guests, and more.

The entire technology set installation would cost between $800 and $900 in total. The price will be reduced to no more than $500 if hotel companies decide to combine them into a single guest room equipment.

Centralized Data Management

All essential data can be redefined and streamlined by a centralized data management system coupled with software for the hospitality industry. If not there are chances that hotel operations and guest experience would be hindered by isolated solutions that lack sufficient information synchrony.

In order to fulfil the demands of customers for personalized services both during and before their stay, CDM is required to advance the practices of guest information and profile management. The more you know your customers, the quicker you can provide personalized offers and enjoyable experiences for them. Data analysis is also essential for maintaining consumer interest in and engagement with hotel services. Managers may implement a sophisticated CDM framework with AI and analytics that can not only categorize visitor profiles but also comprehend their preferences, behaviours, and future decisions, opening up the potential to increase loyalty.

What the Future Holds with Hotels Using Artificial Intelligence

Artificial intelligence is the new technology in this era, and many businesses will be quick to use this gift to their advantage. For the hotel industry, large and small companies alike can use AI as an opportunity to be well aware of customer and guest trend behaviour.

This can be evident by the fact that algorithms are used in facial recognition, and can identify any person anywhere the same way customer’s preferences can be easily predicted. The staff members can also have a chance to get a personal experience with the new technology.

In the case of guests, the processes for customer services have been automated hence giving an opportunity for the hotels to save up on costs. In this way, not only will it be simplifying the processes, but also making it easier for the customers to discover hotel offers based on the foundation of their personal needs. Customers will also be aided by big and small hotels to achieve purposeful goals as they travel.

Artificial intelligence will also create a new and unique path for the systems and applications to be automated. This will enable the hotelier and management teams to boost up their competition.

Websites for both big and small hotels can use artificial intelligence for booking and advertising their sites uniquely with the help of popular applications such as Facebook and Instagram. With the system being automated, the booking engine will remain active, and the whole process will be personalized thus making it beneficial.

Because the original goal for most hotels is not to have a digital pamphlet, this can be well implemented if a customer is to visit and book online and the hotels will receive the bookings automatically with the assistance of AI chatbot, and without any human handling.

This can prove to be more efficient. This is because the system will not only register the customer’s preferences, but it will also create a platform in case the customer is international. In other words, this means that customers can book using their native languages with the help of chatbots.

With the progression in technology, platforms are offered to customers whereby they can pay using a digital wallet as they book in hotels. Some applications in the hotel industry use RFID recognition for guest services at the hotel and personalizing their experience.

AI can also give suggestions to hotel guests, about where they would be dropped off or picked up. The time is also included especially if one is traveling from the hotel to another destination like the airport.


With experiences that generate loyalty and revenue, AI can revolutionize hotels` accommodation setup in a manner that will lead to guests continuously returning. This will work exceptionally well if hoteliers can tailor AI systems to meet specific customer needs such as ensuring that their preferred toiletries and guest newspapers are offered.

With automated cleaning lighting and air conditioning systems, artificial intelligence can make life much easier for guests. AI can personalize booking experience based on the history of guests’ favorites.

AI, through personalization, can give an opportunity for hoteliers to know more about their customer’s behavior from various angles. With the help of AI, you can easily carve out the entire persona of the customer because it has a 360 degrees view of every guest. With this advantage, the hotelier can connect with guests and create a brand that can be simplified as merely word-of-mouth advancement, and brand reliability.

With the aid of AI, work is made easier because this system is capable of giving suggestions to customers based on their history with the hotel. For example, a Tuna Casserole is suggested to a customer because of their previous orders.

The AI can also give suggestions to customers depending on their nationality. For example, the Yakitori and Sashimi meals are offered as suggestions to Japanese guests. This way time isn’t wasted and furthermore, upgrades and additional services such as spa packages are provided with the aid of customer’s spending patterns.

It is wise to keep in mind that the more you know your customer, the more likely you are going to convey appreciated consumer experience, and personalized offers. Through data analysis, you can keep guests enjoying the services offered by the hotel. In addition to this, hoteliers will be conversant with the preferences, future choices and future patterns hence giving their hotels room to earn more devotion and loyalty which in turn will lead to more revenue generation.

How can the customers show their satisfaction with the services offered? They leave their comments via any social media available, and these comments can be used in the advertisements of the hotel on its website.

AI can learn from the historical records of any customer’s buying and preference patterns. With this feature, hoteliers can do away with boring e-mails or advertisements thus increasing the 77% occupancy rates of hotels in the UK.

With AI, customers can enjoy digital accommodation whereby everything in the room from the Television to the lighting, are all controlled by the use of the registration card and the scan of the customer’s ID.

Demand in Specific Development for Profit Increment

Because of seasonal changes and the demanding nature of the accommodation industry, hotel businesses have adapted to meet with the solutions necessary for the unpredictable and rush holidays. Through the use of AI, hotels can earn a lot from the prediction of future market demand patterns in an intelligent way. If hoteliers can forecast the demand shifts of consumers, they can easily design a plan to take advantage of the services being offered together with the price standards.
This concept has been adopted from the use of artificial intelligence, in the prediction of the stock exchange patterns in businesses and this has contributed both in terms of labour and financially to the business industry. If the 45,000 hotels in the UK are to use a dependable and sturdy AI, system, they will remodel, and renovate their operations with an assurance of increased net profit income.

In the hotel businesses, AI can give a presentation of how one’s meals are made not just the menu. If you are dining with someone, you can easily order food digitally you don’t need a waiter to take your orders. What is even better is that if you are done with your meal and the bill is given to you, it is not a must to pay it then just in case you are staying in the hotel for the night instead, you can pay via your digital wallet if that is your preference.


Artificial intelligence no doubt will be the next trend when it comes to customer experience. The hotel business positions itself to benefit from this technology by tapping into audiences from social media both uncontested and without breaking a sweat. AI, over the next decade, will be the key to opening the hotel business with the learning technology and near-endless amount of data. With this kind of technology, both big and small hotels will be able to overcome barriers of common skills, complications, and levelness. With that, we hope that you have gained a lot from this article.

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About The Author

Deepak Chauhan

Deepak Chauhan is responsible for marketing and positioning of “mycloud” platform and is a veteran in the hotel software industry with over 25 years’ experience giving him a strong understanding of the product requirements in the industry. He has very rare mix of working in operations of various hotels and chains for over 10 years and then co-founding a software product and service company, servicing 5 star hotels and chains for 14 years.

Deepak has led the development and marketing of cloud based hospitality systems to meet the specific, business objectives of small and mid-size properties across the globe and has worked closely with a diverse group of hoteliers and hotel technology vendors.