The following three trends are a few innovative examples AI-based systems that the boutique lodging segment are targeting:
- AI-Powered CRM and Revenue Management
By focusing on centralizing data management from various primary systems and applications, companies such as Dailypoint can provide a single guest profile that allows boutique hotels to strategically target their marketing efforts and focus on the guest’s specific preferences and needs. Using AI to analyze the data collected in the CRM provides hotels with a unique insight into their guest’s behavior. This coupled with two-way interfaces to key operational applications allows hotels to leverage this knowledge across all facets of their operations to anticipate their guest’s specific needs and preferences. It starts with collecting data from a number of strategic sources including the property’s PMS, POS, website traffic and analytics/booking engine, channel managers, OTAs, social media interaction, loyalty programs and email correspondence, among others. From there the data is “cleansed” to ensure accurate data, duplications are removed, and the information is updated with the PMS via a 2-way interface data swap. Once the data is validated and pushed back to the PMS, it ensures that the data is constantly updated across multiple sources. This provides the hotel with accurate and reliable guest information to allow the operations and marketing teams to best target their preferences and requirements, which helps to develop guest loyalty and elevate their retention. Additionally, they can use AI to focus on dynamic pricing systems, analyze market conditions, competitor rates, and demand patterns to maximize guest revenue. Working with a PMS provider that provides seamless integrations with other AI driven revenue generating systems is key to maximize the bottom line and enhance guest experience. - AI-Powered Guest Engagement Platforms
Boutique hotels are also focused on engaging with guests to enhance revenues, streamline operational efficiencies and improve guest satisfaction. Using web-based Guest Management Systems that are mobile-friendly, guests can experience the features of a mobile app without having to go through the pain of having to download a property specific native application to their device. This allows hotels to engage with guests throughout their guest stay from pre-arrival to post-stay and personalize their overall experience. Mews’ CEO Richard Valtr said, “Think of AI as a continuous conversation partner with your property, understanding guest needs and suggesting ways to enhance their experience. You can offer five-star-level service through technology. This creates not just more revenue opportunities but differentiated revenue.”
Using a “digital concierge”, guests can access information, make requests, and manage their stay through this service. AI powered solutions can automate many of the interactions, make personalized recommendations and streamline responses based on guest preferences. This includes connecting guests with authentic local experiences which often feature exclusive partnerships with neighborhood businesses and some experiences that may not typically be available to tourists.
Outside of contactless check-in/check-out features, these platforms can also offer:
- Dynamic upsells – Offer personalized upsell offers at strategic points throughout guest’s stay.
- Personalized communication – pre-arrival, during their stay and post departure (AI messaging helps respond to majority of guest requests faster)
- Digital Concierge – Guests can access information, make requests, and manage their stay through this service. A newer feature is for digital tipping to provide an opportunity for those guests who no longer carry cash to provide a gratuity to hotel staff. This can motivate staff to improve their service efforts and aid in retention.
3. Wellness Tech Integration
With more guests focusing on health and wellbeing, boutique properties are incorporating health-focused amenities like smart mirrors with fitness programs, in-room meditation apps, sleep optimization technology (smart beds, circadian lighting), and air purification systems as a way to differentiate themselves from more traditional hotels. With wellness tourism projected to grow close to 17% in the next few years, hotels need to embrace new technological advances to ensure that they are meeting the demands of their guests.
Hotels are starting to use AI (with the guest’s permission and input) to analyze guest preferences and customize wellness experiences. This is not simply targeted towards a fitness or spa experience, but rather better relaxation, sleep, and diet. Many guests are exhausted by extensive travel schedules and need to unwind and get quality rest when they get to the hotel. AI powered sleep coaches can offer personalized sleep recommendations based on input from the guest on their sleep patterns and preferences.
Some of the more upscale luxury properties even offer biometric health assessments and personalized wellness programs. AI-driven platforms analyze guest health data (with permission) to create customized wellness itineraries, including nutrition plans from in-house dining, fitness recommendations, and spa treatments. Smart beds are also appearing in some hotels to personalize comfort and sleep optimization. Smart beds that are equipped with AI-powered sleep concierge features can personalize and provide tailored sleep options, offer curated sleep environments, and specialized programs to help mitigate jet lag.
AI Benefits to Boutiques
AI applications offer numerous benefits to boutique hotels, including automating tasks, personalizing guest experiences, optimizing operations, and improving marketing efforts. As more and more hotels embrace AI and digital applications to compete for market share, it’s imperative that they also focus on cyber and data security as part of their overall technology strategy. Investments in robust data protection measures to protect their guest’s data, operational and transactional systems is essential to maintaining their guest’s trust – a commodity that hotels can ill afford to lose. The fallout from security breaches can be catastrophic from both a financial and reputation standpoint “AI is ushering in a new era of guest engagement,” said Harman Singh Narula, CEO and co-founder at Canary Technologies. “We know modern travelers expect quick responses and personalized service.
Fortunately, machine learning and natural language processing have made AI solutions more powerful than ever before. Today's hotels of any size have an unprecedented opportunity to leverage them to redefine what's possible in the hospitality industry.”
