How AI-enabled technologies can boost guest loyalty and retention in the hotel industry
Amandine Devergies
Innovation Coach @ CPW | Lean Startup, Strategic Thinking, Leadership, GenAI | I help FMCG organizations develop insightful?strategies and design innovations among the 5% that succeed
Note: This article (and more) is also available on my blog: https://amandinedevergies.com/blog
Guest loyalty and retention are crucial for the success and profitability of any hotel. Loyal guests not only provide a steady source of revenue, but also generate positive word-of-mouth, referrals, and reviews, which can attract new customers and increase market share. Retaining existing guests is also more cost-effective than acquiring new ones, as loyal guests tend to spend more, book more frequently, and require less marketing and promotion.
In the highly competitive and dynamic hotel industry, guests have high expectations and diverse needs, and they can easily switch to other options if they are not satisfied or delighted by their hotel experience. Hotels need to constantly innovate and improve their service quality, value proposition, and customer relationship management to keep their guests happy and loyal.
AI-enabled technologies can help hotels boost their guest loyalty and retention by providing them with data-driven insights, personalized recommendations, real-time communication, and seamless and memorable experiences.
How AI-enabled technologies can help hotels collect and analyze guest data
Guest data refers to the information that hotels collect and store about their guests, such as their preferences, behavior, feedback, and demographics. Guest data can help hotels understand their guests better, anticipate their needs, and personalize their offers and services.
In the era of big data, where the volume, variety, and velocity of data are increasing exponentially, hotels need to deal with the challenges of data quality, integration, security, and privacy, as well as the complexity and diversity of data sources, such as online booking platforms, social media, review sites, and IoT devices.
AI-enabled technologies can help hotels:
Examples of AI tools and platforms that can help hotels with guest data collection and analysis:
How AI-enabled technologies can help hotels segment their guests into different groups
Guest segmentation refers to the process of dividing guests into different groups based on their characteristics, such as their needs, expectations, and motivations. Guest segmentation can help hotels tailor their loyalty programs, rewards, and feedback systems to the specific preferences and requirements of each group, and increase their satisfaction and loyalty.
With asks for personalization, where guests demand customized and individualized experiences, hotels need to deal with the challenges of data complexity, diversity, and dynamism, as well as the trade-off between segmentation granularity and scalability.
AI-enabled technologies can help hotels segment their guests using:
Examples of AI tools and platforms that can help hotels with guest segmentation:
How AI-enabled technologies can help hotels communicate with their guests in real-time and across different channels
Guest communication refers to the process of interacting with guests before, during, and after their stay, and providing them with relevant and timely information, offers, and incentives. Guest communication can help hotels build trust and rapport with their guests, increase their satisfaction and engagement, and encourage their loyalty and advocacy.
In the era of omnichannel, where guests use multiple devices and platforms to communicate with hotels, such as email, SMS, social media, and chatbots, hotels need to deal with the challenges of communication speed, consistency, and personalization, as well as the preferences and expectations of different segments of guests.
AI-enabled technologies can help hotels communicate with their guests:
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Examples of AI tools and platforms that can help hotels with guest communication:
How AI-enabled technologies can help hotels measure and improve their guest loyalty and retention rates
Guest loyalty and retention measurement and improvement refer to the process of tracking and evaluating the performance and impact of the loyalty programs, rewards, and feedback systems, and using the results to optimize and enhance them. Guest loyalty and retention measurement and improvement can help hotels identify and address the strengths and weaknesses of their loyalty strategies, and increase their effectiveness and efficiency.
In times of analytics, where hotels have access to a large amount of data and metrics, but not necessarily the right ones, hotels need to deal with the challenges of data accuracy, relevance, and timeliness, as well as the selection and interpretation of the key metrics, such as repeat bookings, referrals, reviews, and revenue per guest.
AI-enabled technologies can help hotels:
Example of an AI tool and platform that can help hotels with guest loyalty and retention measurement and improvement:
How AI-enabled technologies can help hotels create a seamless and memorable guest journey
Guest journey refers to the process of interacting with guests throughout their stay, from pre-arrival to post-departure, and providing them with seamless and memorable service, support, and experiences. Guest journey can help hotels create a lasting impression on their guests, increase their satisfaction and delight, and encourage their loyalty and advocacy.
With the desire for experience, where guests demand more than just a place to sleep, but a holistic and immersive experience that meets their emotional, social, and personal needs, hotels need to deal with the challenges of service quality, consistency, and differentiation, as well as the expectations and preferences of different segments of guests.
AI-enabled technologies can help hotels provide:
Examples of AI tools and platforms that can help hotels with guest journey creation:
Conclusion
I hope that this article has inspired you to explore the possibilities and benefits of using AI-enabled technologies to boost your guest loyalty and retention, and to create exceptional and personalized guest experiences.
Thank you for reading.
If you are interested by out-of-the-box perspectives on how AI-enabled technologies can boost guest loyalty and retention in the hotel industry, read my additional article here: (link to come soon)
Note: In line with my passion for using technology to help humans’s efficiency and creativity, this article has been written with the support of BingAI & Bing Image Creator.
This article is also available on my blog https://amandinedevergies.com/blog. Use the “Contact Me Today” button to share your comments on it and suggest topics on what I could write about next! ??
Strategic Hospitality Advisor | Hotel Marketing Strategist & Distribution Expert
1 年It's true, but we are still talking about an ideally inclined world, and at present, all AI-based tools are relatively crude. So, indeed, all those things mentioned in the article can be done. However, the success heavily depends on the quality of the prompts given to the AI and some form of control over the AI's output. Otherwise, we risk making significant blunders akin to slipping on enormous banana peels.
Innovation Coach @ CPW | Lean Startup, Strategic Thinking, Leadership, GenAI | I help FMCG organizations develop insightful?strategies and design innovations among the 5% that succeed
1 年If you are interested in going further into the topic and explore out of the box perspectives, you can visit my website and read my complementary blog article https://amandinedevergies.com/blog/out-of-the-box-perspectives-on-how-ai-enabled-technologies-can-boost-guest-loyalty-and-retention-in-the-hotel-industry