Using AI in the Hospitality Industry

Brian Lastovich and Hope Dorman discuss a study that explored the impact of AI on the hospitality industry, centering around how AI will fundamentally change the way that customers and employees interact.
The study’s findings reinforced much of what we know AI can do for hospitality businesses, such as improving operational efficiency and facilitating personalized guest experiences. What’s unique is that the study authors offered a human-centered approach where hospitality brands use AI to empower and engage employees.
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Link to the study: www.sciencedir...
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The academic study had great takeaways that apply beyond the hospitality industry. Here are the key recommendations:
Adopt AI to automate mundane tasks to allow employees to focus on the customer experience
Leverage AI for customer-facing aspects such as 24/7 service, travel planning, and automating check-in and check-out
Empower employees to adopt AI tools to boost job satisfaction
Be proactive about employee training and engagement to drive further innovation
Use AI to safeguard customer and company data
As you’re likely thinking about 2025 initiatives and goals soon, consider which of these makes sense to prioritize.
This study reinforced why Brian is bullish on how AI can transform the customer experience, and that of course includes hospitality. Customer service is vital in the hospitality industry.
Case in point: Ritz Carlton famously has its policy where employees can spend $2,000 a day to resolve customer service problems without needing manager approval. It’s high-quality, but resource intensive. AI can now be a resource for other brands so they can uplevel their service without needing to bring on more staff or inflate budgets.
However, it’s clear customers are not ready for AI to handle the more proactive parts of their hospitality experience. Travelers or diners want deep confirmation that their reservation is real, and they don’t trust AI with that yet.
Part of why at Kustomer, we're excited about the human-in-the-loop model is because that can help consumers build the necessary trust in AI over time. We progressed from using travel agents to directly booking flights, hotels, and rental cars online without talking to a single human. We believe we’ll get there with AI, and human oversight of decisions and bookings is key.
It’s important for all businesses, but especially hospitality brands, to maintain a consistent experience throughout the whole customer journey. Ironically, AI can provide an inconsistent guest experience.
Consider how AI gives you the power to answer your customers' questions in a different language and provide 24/7 support. If that experience you’re creating on the front end doesn’t match what it’s actually like at the hotel or restaurant, it’ll be a worse customer experience. If a guest shows up only to find the front desk has limited hours and no one on staff speaks their language, they’ll recount it as a travel nightmare.
For all brands, but especially hospitality, be mindful of communicating what the real-life guest experience will be like and incorporating that when you roll out AI.
The study discussed how AI can aid the hospitality industry not just with supporting customer service, but also revenue management and demand forecasting. Hospitality brands can and should look into using AI in both areas of the business simultaneously, but these departments need to work together to make it a success.