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CLH News
Feb/Mar 2024
Hospitality Technology
AI and Tourism: Transforming Customer Experiences By Fritz Oberhummer, VP of Travel & Hospitality, Intellias (https://intellias.com/) understand text-based commands and different contextual clues to better deal with incoming customer requests. At the most basic level, AI can help classify and prioritise customer support cases or look up relevant information for agents. More advanced AI use cases include end-to-end customer issue resolution, voice-based support bots, and customer support. AI in tourism can increase support staff productivity by 20% to 50% or more. Airlines like Cathay Pacific already handle 50% of their customer care chats with Gen AI assistants, allowing human agents to focus on more complex tasks.
GEN AI TRAVEL AGENTS
Because travel is an inherently human-centric experience, tourism and hospitality companies have been somewhat sceptical of the impact of AI in the travel industry. But the sentiment is shifting. AI models are very efficient at analysing data — and the travel industry has deep data troves. By using algorithms for advanced data analytics, industry players can reach more customers, elevate service levels, tap into new revenue channels, and increase operating efficiencies. Let’s take a look at how this revolutionary technology is already making waves in this sector.
DEEPER CUSTOMER INSIGHTS Machine learning (ML) and deep learning (DL) algorithms can trawl millions of data points in provided datasets to uncover new correlations, trends, and similarities. In short, AI and ML both enable advanced customer segmentation, sentiment analysis, and behaviour forecasting. Hostelworld, for example, successfully uses machine learning for sentiment analysis and marketing campaign optimisation. By combining the analytical and predictive powers of ML, Hostelworld managed to increase its click-through rate (CTR) for email campaigns by 86% and its email open rate by 12%.
CUSTOMER SUPPORT Thanks to natural language processing (NLP), algorithms can easily
ChatGPT has turned out to be a very capable travel agent. Unlike the early generation of chatbots, which were mostly driven by pre-programmed rules, a generative AI (GenAI) travel agency or travel assistants have more wits and can perform a greater repertoire of tasks. GenAI chatbots can analyse and summarise content from a wide variety of sources to reply to different user queries and create personalised travel itineraries on the fly. From finding a room with the right amenities, to booking group transportation and choosing add-on activities that align with an individual’s personal preferences, GenAI makes it happen seamlessly. On the back end, conversational systems can also interact with other tech systems: they can exchange data, look up information, update records, etc. A GenAI concierge can automatically handle a wide range of tasks, from guest self-check-in to ordering late-night munchies and upselling some neat services in between.
management software, which automatically generates checklists for staff based on guest requests. Thanks to such deep integrations, Lucy can perform a wide range of tasks across all Virgin properties and retain guest preferences for better experience personalisation.
HYPER-PERSONALISATION Due to robust classification capabilities, GenAI travel apps can offer real-time personalised travel recommendations by identifying and continuously tracking new patterns in data representing customers’ purchase intentions, stay preferences, and general travel interests. Similar to Netflix, such algorithms can churn out hyper-personalised travel offers based on customers’ past trips, known room preferences, and data from third-party sources. Accor, for example, uses an AI-powered customer-relationship management (CRM) suite with some 400 customer attributes to run deep segmentation and personalise customer communication. According to the company’s CDO Alix Boulnois, the solution generates a significant uplift in sales, with revenue from emails increasing threefold.
ETHICAL CONSIDERATIONS As we navigate this evolving AI landscape, our collective focus should be on responsibly utilising AI’s capabilities, ensuring it enhances rather than replaces human endeavour while adhering to the highest ethical standards. EU GDPR and AI Act-compliant systems can increase user trust and safety, as these regulations ensure robust data protection and ethical AI practices. Luckily, there are several methods of making AI compliant with GDPR. GANs, XAI, federated learning, transfer learning, and differential privacy can all help develop a GDPR-friendly artificial intelligence system. Partnering with a technology consultancy with expertise in AI can help ensure a responsible AI system guided by a strategic approach is implemented.
At Virgin Hotels, guests are greeted by Lucy — an in-app virtual assistant. Lucy functions as a contactless mobile key to access the room and can automatically adjust the lights, thermostat, and TV. It’s also the one to ring up for room service or ask about any details regarding the stay. Lucy is a capable concierge because it integrates directly with: Virgin’s property management system (PMS), which contains data about guest bookings; a point of sale (POS) system used for managing food and beverage operations; a smart system for controlling every appliance in the room; and guest MCR Systems has over 40 years of experience in providing hospitality, catering and leisure organisations with enterprise management solutions that directly improve the efficiency of their business operations. We do this by combining high-quality software and cutting-edge EPOS technology.
MCR Systems
MCR Systems T: 0116 299 7000 E: enquiries@mcr-systems.co.uk www.mcr-systems.co.uk See the advert on the back cover
SumUp Launches End-To-End Product Package For Quick-Service Businesses Kitting out your business with tools that support your staff and satisfy your customers improves the flow of your venue. SumUp has launched an all-in-one setup for quick-service businesses that transforms how these businesses operate. The quick-service package includes a range of solutions for coffee counters, takeaways and everything in between, with huge savings on hardware, software, transaction fees and more. Each included product optimises a different customer or staff touchpoint, simplifying orders and payments, reducing queues and relieving staff—especially during those busy periods.
POINT OF SALE PRO One POS solution for all of your daily tasks.
SUMUP KIOSK Customers order and pay freely, while your team focuses on the food.
SOLO CARD READER Never miss a sale with reliable payment acceptance.
KITCHEN DISPLAY SCREEN Give your kitchen staff the boost they deserve. Point of Sale Pro, SumUp’s most extensive POS solution, is the central hub within this package. Made up of easy-to-use hardware and software, staff can take orders, accept payments and make important changes in a few clicks. The POS system provides valuable insights through data and reports, and is integrated with tools like Uber Eats, Deliveroo and Xero—ensuring businesses have everything they need in one place. Orders can also be accepted via SumUp Kiosk, a selfservice terminal where customers order themselves—
reducing queues by up to 50%. When it comes to payments, kiosks have an integrated card reader so customers can pay right away. The package also includes a Solo card reader, which can be used to accept flexible payments with POS Pro. All orders—including those from delivery apps—are synced with the kitchen display screen, a separate display that supports staff by organising orders on-screen in real time. With these solutions, SumUp provides an ecosystem of tools that work seamlessly together at an accessible cost. All of these individual products can now be purchased as the quick-service package, priced at £599 (instead of £1,929). Software costs are reduced to £59 per month (instead of £118) and card reader transaction fees are discounted to 0.99%. These fees are guaranteed to never be increased. Businesses can access their daily earnings made via SumUp the next day at 7am—even on holidays and weekends. Talk to the SumUp team +44 20 3936 1981 www.sumup.co.uk/qsr