Traffic forecasts, personalised advertising, movie recommendations on Netflix - many people don't realise that artificial intelligence is now present in almost every aspect of our lives. However, at the latest since the Chat GPT hype, people are becoming more aware of this. But what is the current state of AI in the hospitality industry?
Accenture reports that artificial intelligence (AI) could double annual growth rates by 2035. This estimate is backed up by a PwC study, which found that AI could add $15.7 trillion to the global economy by 2030. Impressive, right? Definitely, because these figures highlight the huge impact AI will have on society and how important it is for all industries to take this development into account.
However, despite the fact that there are positive developments, there are also challenges and potential negative impacts, especially for the labour market. According to a report by the OECD, around 14% of jobs in 21 countries face a high risk of automation.
It will affect everything
However, in a world of constant technological advances, AI has the potential to transform every industry. From automotive to healthcare, it has already made huge strides and created innovative solutions. Indeed, the hotel and catering industry has also undergone a remarkable evolution in our digital age.
The hospitality industry has been facing many challenges for years, from changing customer preferences to increasing competition. In this momentum, AI has proven to be a powerful tool for businesses to improve services, streamline operations and personalised experiences in providing.
WHAT EXACTLY IS AI?
Although the term AI is becoming more and more common, it is important to clarify what is really behind it. Oliver Feiler, Head of Market Intelligence at Rational, who also works on AI, stresses the importance of a clear definition. “As strange as it may seem, not everything that is AI is what it “claims” to be. AI as computer-assisted learning and the applications that come from it have been around for a relatively long time. Simply put, AI gathers information, recognizes patterns and uses that information to draw conclusions. The more structured and comprehensive the data available, the more easily and efficiently a self-learning system can describe conditions, autonomously make predictions about future events, and possibly even initiate solutions. This is relevant for the hotel and catering industry in some areas.”
Unlike traditional software, which is based on predefined rules and instructions. AI aims to learn autonomously, recognise patterns and gain insights from data. Its development is based on algorithms and mathematical models that allow computers to process data and draw conclusions from it.
WHAT ARE THE BENEFITS FOR THE HOTEL AND CATERING INDUSTRY?
Anyone who thinks there are no exciting use cases for AI is wrong. Take visitor predictions, for example: historical data can be used to calculate trends and patterns that can be used to predict future visitor traffic, depending on the time of year, weather, and so on. Another example is the personalisation of offers and services. With AI, hoteliers and restaurant owners can analyse the behaviour and preferences of their guests and use these to develop personalised offers and services, such as recommendations for restaurants, excursion destinations or activities.
Things get exciting when we go one step further and look at optimising operational processes. By automating processes such as ordering and payment systems or forecasting demand and inventory needs, hoteliers and restaurant owners can save time and resources, which is reflected in higher profit margins.
When we move to inventory management or restaurant planning, it quickly becomes apparent that AI can make a significant contribution to a company's success. This is clearly demonstrated by Rational, which has already started to apply these analytics to maintenance and service. „Because we can make reliable predictions about equipment wear based on available data, we can minimise machine downtime. AI is also of interest for meal planning. Sunshine, rain, the number of outdoor seats, the available workforce - putting all of this together and proposing a course of action is child's play for an AI,” explains Feiler. The processes are not simple, and the algorithm behind them is labour-intensive.
DOES AI HAVE A POSITIVE IMPACT ON OUR WORK?
Feiler still has his doubts. “As far as this question is concerned, time will tell. Until then, we have to keep a critical eye on the technology.” It is important to note that AI is not a substitute for human intelligence, but rather a complement to it. Although AI can perform certain tasks faster and more accurately than humans, it lacks the complex understanding, creativity and emotional perception that characterise human intelligence.
Overall, however, AI offers huge potential for revolutionising the hospitality industry - be it more efficient processes, personalised experiences or better decision-making.
