AI for Hotels is fulfilling César Ritz vision...

Frederick Buhr

Travel and Hospitality innovator | AI specialist | Digital Strategist |

18 june 2024

If there was ever a name that was synonymous with the very best in the world of hotels, it is Ritz. And the man responsible for this was César Ritz, often referred to as “the hotelier of kings and the king of hoteliers.”

Born in Niederwald, Switzerland on February 23rd 1850, he accomplished an unprecedented career in the hospitality industry and rose to legendary status. And he did this with a lot of hard work, innovation, flair and a touch of class.

During his illustrious career, Ritz was the manager of many high-end hotels such as Le Splendide in Paris and The Grand Hotel National in Lucerne but he is most known for his involvement in The Savoy Hotel and?The Ritz Hotel in London and Hotel Ritz in Paris.

Since my hotel school days, César Ritz famous definition of outstanding guest service has always been ingrained in my mind :

"To see everything without looking; to hear everything without listening; to be attentive without being servile and to anticipate desires without being indiscreet."

The rise of AI in the hotel industry is fulfilling César Ritz 19th century definition. As a matter of fact, AI may very well be the embodiment of the founder of modern hospitality timeless wisdom...

Indeed, AI is emerging as an omnipotent force, adept at automating mundane tasks that demand a high degree of personalization, thereby liberating precious human capital to cultivate highly valuable and meaningful client relationships.

Moreover, AI's intrinsic qualities of autonomy and adaptability render it a formidable ally in data analysis and forecasting activities, empowering hotel executives with insights into customer behaviors and market dynamics. Armed with such foresight, industry leaders will be allocating resources judiciously to drive optimal outcomes and sustain competitiveness in an ever-evolving marketplace.

What is the AI mindset of hotel managers?

According to the latest statistics on AI adoption in the hotel industry per Mara, the sentiment tracking app :?

• 3 out of 5 hotels are open to innovation such as AI
• 64% of hoteliers have tried AI tools like ChatGPT
• 55% of hoteliers believe that AI will revolutionize their industry
• 1 out of 2 hotels are planning to use AI in hotel operations
• 50% believe that AI will reduce their operating costs

For true hospitality innovators, AI isn't just a tool—it's a turbocharger for their operations. 51% of these trailblazers already work with AI to increase efficiency, turning clunky tasks like room assignments, inventory juggling, and staffing headaches into seamless, lightning-fast processes thanks to cutting-edge automation and optimization algorithms.

But wait, there's more : AI-driven chatbots and virtual assistants are delivering, instant, tailor-made support that boost direct reservations, bypassing OTAs and travel agents and levelling the playing field for hotels.

The proof is in the bookings ! Velma, the leading AI assistant from Quicktext, generated $579M in booking requests for its hotel clients in one year…

AI humble beginnings : chatbots

Chatbots have learned a lot using Conversational AI models, a branch of AI that focuses on understanding and answering questions using natural language processing (NLP) techniques.?

It is designed to be able to quickly generate an answer from either a library or, when more advanced, a database. Thus if the NLP and the database are perfectly matched the level of understanding is exceptional and the positive response rate can reach a high level of over 85%...

As Conversational AI continues to evolve,? there is a new branch of AI that could also play an important role for hotels.

Talking ‘bout my generative AI…

Generative AI's most famous example is ChatGPT :? it uses neural networks to generate new and original data. It is able to create texts, images and even videos. Generative AI creates an answer based on multiple sources. Since these sources have varying degrees of reliability, the answer may be partially, or completely wrong. Generative AI is a probabilistic model, deducting the next word in the answer from the preceding words in the questions.

However, this article explains why Generative AI models are failing at meeting hotel client expectations by overfitting the model which means that training data size is too small and does not contain enough data samples to accurately represent all possible input data values from the user, in that case the questions of a typical hotel client…

Which AI for your hotel?

Many solutions are available on the market, ranging from generic chatbots, hotel specific chatbots and custom solutions, this decision tree could help sorting it out?:

Steps to ensure positive AI ROI

If, based on the diagram above, hospitality specific AI models such as Quicktext is what you need to :

• boost guest satisfaction and staff productivity
• offer real-time assistance 24/7 in 34 languages
• integrate with PMS and booking engines
• get actionable insights from the data...

it does come at a cost, not only regarding its price but also potential hidden costs that need to be understood before decision and implementation.

To start, it is wise to measure "AI readiness" of the staff that will handle new activities on a daily basis... Implementing AI necessitates a shift in how any team operates. Comprehensive training is essential, as every department, from the front desk to housekeeping, needs to adapt to working efficiently alongside AI...

1. Use this survey to evaluate the sentiment of hotel staff towards AI innovation to make sure that they will embrace change instead of ignoring it or worse : resisting it...
2. Make sure your AI solution does not raise guest privacy concerns instead of delivering guest satisfaction... All guest data must be handled with confidentiality and security.
3. Ideally the solution should pay for itself. Make sure this will happen by defining SMART objectives (specific, measurable, achievable, relevant, and time-bound) and measuring results against these objectives on a monthly basis.
4. Choose a solution that is compatible with your hotel management systems and other tools you are using. Integration headaches can destroy any projects.
5. Phase the implementation, do not boil the ocean. First, deploy the virtual assistant in one or two languages and in a pilot hotel. Measure, rinse and repeat or adapt...
6. Choose a vendor that has already thousands of hotels as clients. Not only to avoid a bad product and a failed implementation but also to access precious data that will jump start the "learning about your hotel" phase...
7. Choose a partner that will be a mentor for you and your team ; helping you set up specific training programs for different roles.

AI is a transformative force delivering the future of hospitality

In today's rapidly evolving hospitality landscape, AI is proving to be the modern embodiment of Ritz's vision. It is not just a tool but a transformative force that automates the mundane, personalizes guest experiences, and provides deep insights into customer behavior. With AI's capabilities, hoteliers can transcend traditional service boundaries, delivering excellence that resonates with Ritz's legacy of unparalleled hospitality.

As we embrace AI, we must remember Ritz's dedication to class and innovation. By ensuring AI solutions are seamlessly integrated, respecting guest privacy, and enhancing—not replacing—human touch, we honor his legacy. Just as Ritz set the gold standard for luxury and service, today's AI-powered hotels are poised to set new benchmarks for efficiency, personalization, and guest satisfaction.

In the spirit of César Ritz, let AI be the catalyst that elevates hospitality to new heights, turning vision into reality and ensuring that the essence of impeccable service remains timeless in humans and machines alike.