Professional Documents
Culture Documents
: 2041205010
A
Study On
“INFLUENCE OF ARTIFICIAL
INTELLIGENCE IN
HOSPITALITY INDUSTRY”
DISSERTATION
CERTIFICATE
2
AKASH G
NCHM&CT ROLL NO.: 2041205010
STATE INSTITUTE OF HOSPITALITY MANAGEMENT
VARAKKEL BEACH, WEST HILL, KOZHIKODE, KERALA-673 005
DECLARATION
3
ACKNOWLEDGEMENT
First I would like to thank God Almighty and all my well wishers for their
support, encouragement and blessing for having enabled me to complete my
thesis successfully.
Foremost, I would like to express my sincere gratitude and thanks to my
Research Guide
Mrs,Shivangi Shrivasthava State Institute of Hospitality Management, for his
continuous support during my research and for his patience, motivation,
enthusiasm and immense knowledge. His guidance helped me throughout my
research period.
It is my duty to express my heartfelt thanks to all faculty members and staff
members of the State Institute of Hospitality Management, for assisting me with
adequate guidance and cooperation throughout my study period necessary for
completing my Research.
It’s my privilege to thank my family members for their constant encouragement
throughout my research period.
I am extremely thankful to my Friends & Relatives for their support, which
made this Research a fruitful one.
Date:
4
CONTENT
SI PAGE
TITLE
NO: NO;
1 CERTIFICATE 2
2 DECLARATION 3
3 LIST OF TABLES 5
4 LIST OF FIGURES 6
5 ACKNOWLEDGE 7
6 CHAPTER – 1 8 - 14
INTRODUCTION
7 CHAPTER - 2 15 - 41
REVIEW OF
LITERATURE
8 CHAPTER - 3 42 - 44
METHODOLOGY
9 CHAPTER – 4 45 - 54
DATA ANALYSIS AND
INTERPRETATION
10 CHAPTER – 5 55 - 56
CONCLUSION
CHAPTER – 6
11 QUESTIONNAIRE & 57 - 64
BIBLIOGRAPHY
5
LIST OF TABLES
SIGNIFGICANCE AND
4.5 LEARNING IMPORTANCE OF 45
ARTIFICIAL INTELLIGENCE
6
LIST OF FIGURES
7
CHAPTER 1
INTRODUCTION
8
INTRODUCTION
Artificial Intelligence (AI) is becoming more visible and frequently
used in every business. The term “Artificial Intelligence” refers to a
technology, which endows a computer with a certain level of
intelligence that allows it to carry out work at the human level. In
essence, AI refers to computers or machines that perform tasks that
usually rely on human intelligence for completion. In addition,
processes that involve automation and big data often require the
implementation of AI
– for example, recognizing customers by faces, organizing call
centres, analysing customer needs, and creating personal offers. In
that regard, AI has several advantages: it allows hotels to improve the
quality of service and speed up the workflow. The introduction of AI
in this business presents hotel owners with a wide variety of
opportunities to save a significant amount of money, prevent people’s
mistakes, and individualize their hotels’ offers. However, to correctly
determine the potential of implementing AI into the hotel industry,
further studies are required. Therefore, this study seeks to examine
the general directions and consequences of AI’s implementation in
the hotel business, specifically, its potential to replace human
employees in the workspace. Artificial Intelligence plays a key role in
the work of many businesses and industries. The hotel business is
increasingly introducing Artificial Intelligence into its branches. In
this context, this research paper examines how AI might improve the
quality of service and performance in the hotel industry, as well as the
9
perspectives of the use of this technology in this particular field. For
this study, a method of qualitative analysis was chosen. The results of
the analysis have shown that, overall, Artificial Intelligence proves to
have a positive impact on the quality of hotel services and risk
management. These outcomes are supported by different studies
which determine the challenges and impact AI has on the economy,
as well as the context of its development
10
NEED AND SIGNIFICANCE OF THE STUDY
11
SCOPE OF STUDY
12
In person customer service
Data analysis
AI is also great within the hospitality sector; it can be used for data
analysis by quickly sorting through huge amounts of data and
developing important conclusions about current or potential
customers.
13
Digital technology and modernization are shaking up the
Technologyin hospitality industry. Artificial intelligence is
progressively being used to enhance the customer service experience
and make businesses smarter and stronger.
ManagingBigDataEasily
14
Enabling Travelers to Research Travel Options with a
Chatbot
The list of the features and benefits that the company’s chatbot is
recently capable of providing are-
15
Objectives of study
16
CHAPTER -2
REVIEW OF LITERATURE
17
2 - Artificial intelligence in the hospitality industry
exploring perspectives of employees
During the new millennia, there has been a significant shift towards
automation in practically all industries. This increase in robotic labour
has proven effective in raising efficiency, but it has led to concerns
about how workers can remain necessary in this time of labour
automation. According to Ivanov and Webster (2018), some examples
of the hospitality industry’s growth in this field include “chatbots,
delivery robots, robot-concierge, conveyor restaurants, self-service
information/check-in/check-out kiosks, and many others.”
Hospitality is one of the oldest job fields in the world, as inns and
host-guest relations have been a notable part of our collective cultural
history. For thousands of years, we have tried to make others feel
comfortable and at home, away from home. Trying to personalize
their experience and give them memorable and enjoyable service has
18
been the status quo, quality that all operations have tried to provide.
Especially with the added concerns of the COVID- 19 virus, there are
more challenges particularly aligned against the hospitality sector,
and “anything that happens around the world may affect the business
environment directly or indirectly. We have made strides in how we
operate our hospitality businesses, but we are only just now entering
a technological stage where there can be exponentially smarter tech
in these operations
Guest Services
19
Resource Management
Employee Tools
Problem Statement
There is fear among many workers in the hospitality sector that a rise
in automation will displace jobs, but the human touch is uniquely
necessary and advantageous in this sector, and that automation can be
more effective as a tool to empower employees. Smart technology
can be used as a tool to augment the performance of workers, rather
than making humans obsolete in the industry. It is also essential to
examine the effects on “competitiveness, service quality, and human
resource management” (Ivanov}
20
The data that was collected was categorized by the subjects’ role in
the operation as employees, and focuses on how their experiences
would be impacted by implementation of artificial intelligence. The
results from the interviews and case studies were compiled and
organized based on different parts of the hotel experience, and
contrast with how the operation would be improved with automation.
Collection was done in the lobby of Graduate Fayetteville, presenting
local opinions on the controversy and the possibilities of RAISA. An
interview composed of contextual and open-ended questions was
most fitting.
All of the questions listed below have received approval through the
Streamline program provided by the Institutional Review Board, or
IRB. The questions have been posed to each interview participant on
an individual basis, with some commentary to better contextualize the
responses and situations. The subjects were informed prior that the
21
interviews would be recorded and stored for analysis, and all
consented to being recorded. In this explanation and integration of
responses, the data collected will be compiled based on frequency of
similar answers and positive or negative views of the artificial
intelligence concept. The questions presented in bold denote
particularly pertinent information, where the most thorough responses
have been given.
In 2014, Aloft Hotels became the first hotel brand to use robot
technology, introducing A.L.O ” robotic butler or Botlr ” in its
Cupertino location. The robot can travel the entire hotel to make
deliveries. Its primary purpose was to surprise guest with room
delivery.
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3. Crowne Plaza’s delivery robot
Another early adopter of robot tech was the Crowne Plaza at its San
Jose Silicon Valley location. The robot, called Dash, is all about
delivering snacks, toiletries, and other hotel amenities. When called,
Dash makes its way through the hotel, using a unique Wi-Fi
connection. And to the surprise of many a guest, it then makes a
phone call to announce its arrival. It can even monitor its own power
usage and return to its charging point when needed.
Yotel’s hotel robots aren’t like their competitors. The robot in its
New York hotel ” fondly called Yobot ” automatically collects and
elvers guests’ luggage. Yobot can handle around 300-items of
luggage a day. In doing so, it lets guests quickly check-in, and have
as limited contact with others as they desire.
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3-ARTIFICIAL INTELLIGENCE IN LOOKING INSIDE THE
KITCHEN OF THE FUTURE
THE POTENTIAL OF AI
There is little doubt that AI has significant potential in the hospitality
industry. In an environment of tight margins AI can have a
transformative impact.
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CHRIS NEWMAN, COO OF EMAAR HOSPITALITY GROUP
believes that the hotel sector has lost some of its innovative edge:
“If we go back 50 years, hotel rooms were usually more modern and
advanced than the rooms you would find in the family home.
Somewhere along the way, innovation has become less of a priority.
We need to be proactive once more.” Newman states his belief in
the importance of AI, and encourages businesses to be bold in
pursuing new applications of technology. Nevertheless, there are
concerns that automation will lead to a number of job losses.
25
BENEFITS CAN AI PROVIDE?
“Even with the risks, I feel all businesses have to start making
changes to adopt more AI to support core areas”, says Peter Russell.
26
“If hotels can have an AI system which is constantly learning about
guest preferences, they can serve that guest to a greater level. We
might start to learn that the guest prefers certain types of wine or that
they always request extra towels on the 2nd day of their stay. Once
this has been learned by the AI, a process can be triggered to deliver
the service before the guest has asked – thus delivering service
which is proactive and responsive to the guests needs.”
27
“AI” IN FOOD WASTE CONTOLLING
Winnow has launched a food waste tool enabled with AI, Winnow
Vision - the first time that AI has entered the professional kitchen at
scale. This is a breakthrough product in the fight against food waste
because it offers a pathway to improved data quality, and the
automation of a process that was at worst impossible, and at best a
time-consuming task for kitchen teams.
Food waste data is more accurate with AI. Winnow Vision has
already surpassed human levels with an accuracy rate of over 80%
when identifying food that has ended up in the trash. This will
increase with time as more and more data is collected. Busy kitchen
teams average between 70-75% data accuracy.
29
WINNOW VISION USES A FORM OF AI CALLED
COMPUTER VISION
1. Bin detection: Locates the bin in view of the camera, and crops
the photo to show just the contents of the bin.
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2. Change detection: Compares the new photo with the
photo from the previous transaction, the system detects where
the new food is in the bin and outlines that area.
Food waste is a complex issue but IKEA and Winnow are proving
the solutions to the problem do not have to be. IKEA UK&I forged a
path as the first business in the world to bring AI into its kitchens at
scale to fight food waste. As the first pioneer of Winnow Vision,
IKEA UK&I has played an integral role in its development.
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THE OTHER USES FOR AI IN HOSPITALITY.
ADDITIONAL USES OF AI
Two additional uses of AI stick out for the contributors of this report.
The first is the field of staff training. Russell Partnership Technology
are the leader in simulation programs, having provided solutions
since 1994. They work with over 230 worldwide hotel schools and
with the majority of major worldwide hotel and hospitality companies
to provide hospitality simulation programs.
Our simulation programs are all powered with AI and this approach
enables learners to learn by doing, as we place them in an active
learning environment where they have to complete
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decisions within the virtual marketplace. With high turnover and a
growing industry, training and development will become even more
important than it is today. AI will be of great benefit here to facilitate
this.”
Aside from staff training, there are now several examples of how
automation is enhancing the customer journey and increasing
efficiency
“Self-ordering kiosks are already widespread in several parts of the
world (e.g. Japan) These can reduce customer waiting time and
eliminates the need for a server. In addition, many hotels and
restaurants already use virtual assistants and chatbots to manage
customer inquiries and requests. Already, Hilton has started using a
robot as a concierge in some of their hotels, though this is in early
stages.” says Liz Goodwin.
I was very lucky last year to stay in the Westin in Pazhou , China
which has a robot butler.
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LOOKING TO THE IMPENDING
So, where next for the hospitality sector? We hope the insight and
examples in this report has demonstrated why AI will transform the
hospitality sector in the coming years. AI is improving customer
experience, training the workforce, and making an environmental and
financial impact in the kitchen.
35
can be of benefit, have internal responsibility for digital
transformation projects, and fuse the human touch with digital
innovation. Self-service Kimia offers customers to self-check-in and
check-out. It can save customer time from overlong waiting time.
Customers can also reserve hotel facilities through Kimia, which is
fast and convenient.
Interactive experience
Understand customers
In-room tablet
36
achieve every demand they need in the hotel without leaving their
room.24/7 service AI doesn’t have to take rest. Therefore, customers
can ask questions at any time, 24 hours a day and 7 days a week and
receive instant and accurate responses from the AI ambassador.
Hotels are also able to respond in a timely manner to customers
around the world even late at night, which can enhance customer
experiences and generate more revenue for the hotel.
37
6. ARTIFICIAL INTELLEGNCE IN ENHANCING GUEST
EXPERIENCE OF HOSPITALTY INDUSTRY
38
enabled devices. It explores how devices for enhancing the hotel
guest experience are rapidly evolving in terms of features and
functionality.
Chapter 2 (“Meeting Guest Expectations”) examines the various
demographic and technological forces that have given rise to
heightened guest expectations. It looks at how AI- enabled solutions
can play an instrumental role in meeting (and even exceeding) these
expectations.
Chapter 3 (“Powering Guest Personalization”) explores how, given
access to the right data, AIenabled devices can facilitate relevant
guest interactions and recommendations while automatically taking
“best next actions” based on a guest’s stated and inferred preferences,
interests and behaviors.
Chapter 4 (“Fueling the Guest Journey”) discusses how AI can play
an important role in helping hotel operators hone in on the different
elements of the guest journey — in part, by allowing them to monitor
and assess hotel performance, identifying any issues that may need to
be addressed.
Chapter 5 (“Working Hand in Hand with Hotel Staff”) explains the
complementary nature of AI. It makes the point that, rather than
replace customer service reps, front desk personnel, and other hotel
staff, AI can make humans more valuable by enhancing their
knowledge, performance and speed.
∙
Voice-activated speaker systems, or chatbots, and text-based personal
assistants are in our homes and in our pockets. These devices book
our appointments, monitor our home security, play our music, and
39
create our shopping lists. They tell us when the cake is ready to come
out of the oven and what the weather will be like the next day. We
have come to rely on these devices for our convenience. They drive
efficiency in our day-to-day lives. They practically serve as an
extension of our own brains.
Now as these and other devices that harness the power of artificial
intelligence (AI) make their way into the hospitality industry —
somewhat belatedly in the minds of some observers they are
becoming part and parcel of the hotel guest experience.
With advances in AI, the devices are rapidly evolving in terms of
features and functionality. Chatbots, for example, are becoming
increasingly adept at recognizing not only speech but also
intonation and context. Some systems have begun to incorporate
such futuristic capabilities as “computer vision” to visually identify
objects and people. The fact that these technologies are getting
progressively smarter — literally, by the minute — is a hallmark of
the so-called Fourth Industrial Revolution.
The era is marked by breakthrough technology innovation in such
fields as artificial intelligence, robotics and the Internet of Things
(IoT) — that is, the “These
technology innovations are fast becoming a mainstay of hotels and
resorts across multiple sizes and categories, with new developments
constantly raising the bar on functionality.”
wireless linking of everyday objects. These technology innovations
are fast becoming a mainstay of hotels and resorts across multiple
sizes and categories, with new developments constantly raising the
40
bar on functionality. They are driving competitive advantage and,
in some cases, fundamentally changing the way that properties and
guests interact and transact with one another.
and luggage handlers have generated significant media buzz, more
for the “surprise and delight” novelty aspect than for the actual
benefits they deliver. Over time, these robotic additions to
hospitality guest services teams, whether resembling Star Wars
droids or lifelike humanoids, may come to play a valuable role in
enhancing the guest experience.
Hotels and resorts have always sought to handle the ongoing deluge
of guest requests in a time-sensitive and satisfactory manner. After
all, their reputations largely depend on the degree to which they are
able to consistently deliver a high level of customer service. Their
capabilities in this area serve as key performance metrics for
measuring success.
The challenge today lies in the fact that guest expectations have risen
dramatically. Indeed, the very concept of the hotel guest experience
has
changed in recent years, reflecting demographic and technology c
We live in an economy of convenience. Increasingly, hotel guests
have come to expect a seamless and frictionless experience
throughout their stay with a property. Patience is a virtue, or so goes
the proverbial phrase, but many guests have become impervious to
this virtue. They have grown accustomed to the luxury of technology-
enabled access to information and services in multiple aspects of their
lives, from working, shopping and traveling to news and
41
entertainment, and they expect that luxury to extend to their hotel
experience. “Even guests who normally
like to interact with hotel staff are often happy to augment those
interactions with technology options.”
They expect lightning-fast responses to their inquiries to the front
desk, for example, whether those responses are produced by a human
or by an advanced speech-enabled IVR service. The truth is that a
large percentage of people today actually prefer to interact with a
machine, given the choice.
In fact, according to recent surveys, 40 percent of American internet
users today say that they would rather use digital customer services
than speak to a human CSR on the phone. In a hotel setting, that
preference may be even higher. Nearly all segments of hotel guests
are now reasonably comfortable with using guest-facing
technologies. Even guests who normally like to interact with hotel
staff are often happy to augment those interactions with technology
options.
Millennials, in particular, who now account for nearly 75 percent of
all hotel guests, expect nothing less than state-of-the-art platforms,
applications and interfaces. Spending an average of $4,000 per year
on travel, they inhabit an
always-on technology environment. Smartphones, tablets, laptops and
voice-activated speakers are their constant companions throughout
the course of their day. The guest service expectations of Millennials
tend to be especially high in a hospitality
42
environment, given the inherent promise of superior guest services
that is the cornerstone of upscale hotels and resorts.
Guests who prefer to interact with real humans in some situations
may be perfectly content to interact with AI-enabled technologies in
other situations. With artificial intelligence, hotels are better able to
handle guest inquiries and provide support in a far more efficient and
effective manner, reducing strain on employees while improving
guest satisfaction in the process, and in a way that complements and
enhances existing processes. At a growing number major hotel
groups, artificial intelligence is already
reducing the workload of human customer support reps by orders of
magnitude. Until recently, the team at one major hotel group was
struggling to keep up with the tens of thousands of support tickets it
received each year. Its multiple support systems were running at full
capacity. Responses to guest inquiries were often delayed or
incomplete, putting the company’s reputation at risk. To meet its
capacity demands, the company implemented AI- enabled virtual
assistants with natural language integration and self learning
capabilities that could provide guests with a conversational support
experience.
Integrated with the hotel’s case management tools, the technology
has the ability to adapt over time. It can get up to speed on the
customer support
“At a growing number major
hotel groups, artificial intelligence is already reducing the workload
of human customer support reps by
43
orders of magnitude.” processes quickly while feeding back
information that continues to help improve the guest experience with
each interaction and support engagement.
The complementary nature of AI is such that it can also enhance the
knowledge, performance and speed of human customer service reps.
Some hotel groups are experimenting with an AI- enabled voice-
controlled speaker to listen in on sales reps conversations with
prospective guests. If the rep fumbles on a response, the technology
comes to the rescue.
Some companies are using AI bots to suggest responses to guest
queries which a human agent can then approve or adapt before
sending. In some
cases, this approach has doubled the number of text-based inquiries a
hotel can handle without increasing the number of reps on its payroll.
At one hotel group, the bots are now able to handle upwards of 2
million queries a day, a workload equivalent to around 7,000 human
staff. By offering a virtual concierge that automatically answers
guests’ queries by text, it has reduced calls to the human concierge
desk by 30 percent.
Technology adoption requires an internal culture change. Employees
need to understand the benefits of artificial intelligence and how it
can enhance not only the guest experience but also improve their own
employee experience. They need to overcome any fears, particularly
as they relate to job security, and see how AI allows their jobs to fit
into higher-level roles.
44
Hotels and resorts have always sought to handle the ongoing deluge
of guest requests in a time-sensitive and satisfactory manner. After
all, their reputations largely depend on the degree to which they are
able to consistently deliver a high level of customer service. Their
capabilities in this area serve as key performance metrics for
measuring success.
The challenge today lies in the fact that guest expectations have risen
dramatically. Indeed, the very concept of the hotel guest experience
has
changed in recent years, reflecting demographic and technology
changes.
We live in an economy of convenience. Increasingly, hotel guests
have come to expect a seamless and frictionless experience
throughout their stay with a property. Patience is a virtue, or so goes
the proverbial phrase, but many guests have become impervious to
this virtue. They have grown accustomed to the luxury of technology-
enabled access to information and services in multiple aspects of their
lives, from working, shopping and traveling to news and
entertainment, and they expect that luxury to extend to their hotel
experience. “Even guests who normally
like to interact with hotel staff are often happy to augment those
interactions with technology options.”
They expect lightning-fast responses to their inquiries to the front
desk, for example, whether those responses are produced by a human
or by an advanced speech-enabled IVR service. The truth is that a
large percentage of people today actually prefer to interact with a
machine, given the choice.
45
In fact, according to recent surveys, 40 percent of American internet
users today say that they would rather use digital customer services
than speak to a human CSR on the phone. In a hotel setting, that
preference may be even higher. Nearly all segments of hotel guests
are now reasonably comfortable with using guest-facing
technologies. Even guests who normally like to interact with hotel
staff are often happy to augment those interactions with technology
options.
47
“strongly agree” that targeted personalization – i.e., presenting
guests with highly relevant messages, offers and services at the
right time – is one of the most effective ways to improve the guest
experience and, ultimately, guest satisfaction, loyalty and
favorable brand advocacy.
“The future success of many hotels will rest squarely on how well
they can gain a deep understanding of their guests on an individual
basis and, importantly, how well they can act upon that
understanding to improve the overall quality of the guest
experience.”
And here artificial intelligence is poised to make all the difference
in world, with some hotel groups already effectively leveraging
AI-enabled tools in their efforts to drive guest personalization.
Guest personalization is about data. It is a function of capturing
and leveraging a vast ocean of guest profile information.
Ideally, this information should include hundreds or thousands of
data points gleaned about a guest’s activities, from hotel booking
to hotel checkaccess to large volumes of guest data, integrated
from multiple sources, is needed to build the foundation for guest
personalization.
out and everything in between. All of the booking data, geo-
demographic data, transaction data and behavioral data should
reside in a centralized data repository, which should also include
the complete folio history of charges incurred and payments made
by an individual guest during a stay, or over any specified period
of time, across all of the hotel group’s properties. A single
consolidated view of each guest profile record, both at the property
48
multi-property level, is essential. Every detail, from the food and
drinks a guest orders to their usage of various hotel services and in-
room amenities to every interaction, transaction and documented
experience that takes place between the guest and the hotel property,
updated on a continuous basis, can help paint a more robust,
comprehensive portrait of the guest and can better inform how a hotel
can serve them best. In short,
49
Room customization is an important element of guest personalization.
Artificial intelligence can make it possible for people to enter a guest
room for the first time and find everything exactly as they like it,
from the lighting and temperature control settings, to the blinds
opening automatically in the morning to their favorite music playlists
already cued up for their morning
Even though sci-fi movies have led us to believe that AI’s ultimate
purpose is to take over humanity, its main goal is to serve us and
make our lives better. Serving people and providing them with
pleasant hospitality as some of the goals of AI make it a perfect fit for
the hospitality industry.
So, instead of taking over and telling us what to do, AI can assist
hospitality professionals to improve the experiences of travelers. In
fact, the use cases of AI in the industry is quite impressive, and the
technology seems to be well-positioned to enable people to enjoy
their stay.
But can hotel managers really rely on AI to make decisions? Are AI
algorithms truly ready to supply useful information and streamline
hotel operations?
AI Applications in the Hospitality Industry: Pros
Try to imagine an AI-enabled hotel where technology is responsible
for everything. While it sounds like something that movie directors
should consider for their next project, having such an establishment is
really much closer than you think.
Pro: Answering Guest Questions on Hotel Premises
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Germany-based Model One has been using a robot named Sepp to
answer practical questions and providing helpful information for
guests. Sepp’s knowledge comes from IBM’s Watson Conversation
Services, which helps it with understanding people’s requests and
learning new information to be more useful.
Sepp Greeting Guests at Motel One. Image Credit: IBM
For example, the robot can let guests know when breakfast is served
or give them a quick update on the weather in town, among other
things.
Virginia-based Hilton McLean has also received an upgrade in the
form of Connie, an AI-enabled concierge. This little robot – it’s about
two feet tall – also takes advantage of IBM’s Watson Conversation
Services and helps visitors with finding their way around the hotel
and answers other questions.
“It’s trying to see the person as well as hear the person,” USA Today
quoted Rob High, IBM’s Watson vice president and chief technology
officer, as saying. “It is itself vocalizing and it’s using its arm
gestures and body language. When it is asked ‘where’s the elevator?’,
it says it’s down the hall to the left while pointing down the hall to
the left.
Connie, Hilton’s AI-powered robot concierge. Credit: Hilton
Worldwide
Like all the above mentioned robots, Connie constantly learns from
its interactions with guests and improves the recommendations it
provides. The hotel’s staff also has access to its question log to be
able to make quick improvements.
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Pro: Hotel Surveillance
Europe and the U.S. are not the only destinations where AI-enabled
robots are starting to make a difference. Singapore-based Millennium
Hotels and Resorts properties have been using similar technologies
since 2017. Six service delivery robots perform such duties as taking
amenities to guest rooms and patrolling the buildings.
According to reports, the company has saved the security team 111
manhours, as human employees could now watch live footage
provided by robots instead of monitoring the facilities themselves. In
addition to saving time, the robots also help with handling
unexpected staff absences and high occupancy periods more
effectively.
Pro: More Personalized Search Results
But robot concierges aren’t the only area where AI is impacting the
hospitality industry. Last year, a tech company called Avvio launched
the world’s first booking engine powered by machine learning,
Allora. By utilizing AI, the tool brings insights from users’
interactions together and determines the ways to optimize their
experience by finding the best hotel or experience.
By personalizing search results, the engine maximizes the chances of
conversion, thus taking personalization to a whole new level. All of
this is possible thanks to the intelligent analysis of thousands of
properties and customer preferences based on geography, booking
history, site interactions, and other factors impacting the choice of a
Pro: The Ability to Enable Travelers to Research Travel Options with
a Chatbot
52
This one is also about personalization. A recent study done by
Booking.com revealed that 75 percent of customers preferred self-
service options to get answers for simple requests, which makes
chatbots a perfect option in this case.
Here’s the list of the features and benefits that the company’s chatbot
is currently capable of providing:Assistance with existing
reservations
Answering common questions about property policies
Answering question regarding transport, date changes, arrival and
departure times, and payment.
According to ChatbotGuide.org, Booking.com’s chatbot is capable of
handling about 50 percent of users’ post-booking accommodation-
related requests. In case it can’t provide an appropriate answer, it
redirects the user to a human customer service team member.
53
implement the technology.
Con: AI is Still Developing
AI is currently very, very stupid… It’s not something we could press
to do general- purpose reasoning involving things like analogies or
creative thinking or jumping outside the box
There’s even a term for that, “AI Stupidity,” and people use it to
describe the inability of the technology to make reasonable decisions
based on the available data. For example, since AI’s decisions are
based on human input, it’s possible to feed it biased or incorrect data,
thus causing irrelevant, biased, or inappropriate decisions.
While this con can be overcome with time as the technology
develops, it’s clear that at this point AI can’t be trusted with making
important decisions.
Con: Data Privacy Issues
This is one of the most pressing concerns that all businesses looking
to take advantage of AI will face. Data collected by the technology
during interactions with users can be potentially used for other
purposes, therefore, the risk of data privacy violation is involved.
A recent study by Intouch International also shows that customers
understand this concern very well. Specifically, the company
discovered that 9 in 10 American Internet users say they’re concerned
about the protection of their personal information online. Moreover,
more than 60 percent of the surveyed are also advocating for stricter
national privacy laws.
This means that hotels may face some troubles with getting more
customers to use their AI-based tools. Besides, they’ll also have to
54
obey data privacy laws and ensure the ethical use of data. However, if
they follow all laws and regulations, AI can become a major source
of competitive advantage.
The Verdict
From assisting hotel personnel with answering guests’ questions to
providing personalized recommendations via dedicated search
engines, AI definitely has a future in the hospitality industry.
However, in order for the technology to become the new best friend
for both hoteliers and travelers, some significant challenges will have
to be resolved.
With more and more countries working on data privacy and other AI-
related laws, it’s reasonable to suggest that the hospitality industry
will have to follow a bunch of regulations to take advantage of the
technology. The key to success for hoteliers here will be to show that
it complements the personal side of the hospitality industry and
effectively improves the experience of customers.
55
CHAPTER-3
METHODOLOGY
56
METHODOLOGY
Narrative synthesis is the process of conducting a systematic review
and synthesis of findings from multiple studies that heavily rely on
words and text to summarize and explain the synthesis's findings
(Popay et al., 2006). In this review article, a narrative synthesis was
employed. Moreover, the literature was reviewed systematically to
explore AI in the hospitality industry. The literature and information
were obtained from various books and research articles on EBSCO,
Google Scholar, Scopus, Web of Science, and ScienceDirect.
The inclusion criteria were studies that clearly defined AI in all
aspects of the hospitality industry, were published and written in
English and were peer-reviewed. The data were reviewed between
January 15th, 2022, and April 10th, 2022. To search the database, the
researcher identified a set of keywords related to AI in the hospitality
industry. The keywords identified were "artificial intelligence AI
adoption, AI technology ,smart technologies AI service SAMPLE
DESIGN
PERIOD OF STUDY
57
SOURCES OF DATA
The task of data collection begins after a research problem has been
defined and research design Plan chalked out while deciding about
the method of data collection to be used for the study, the researcher
should keep in mind two types of data which is primary and
secondary
COLLECTION OF DATA
Primary Data
Primary data is defined as data observed or collected directly from first
hand and experiences Questionnaire Is a primary data collection
method. In which list of questions are asked to the respondents on the
basis of research topic and result is formulated on the basis of the
analysis of the answers.
Secondary Data
Secondary Data means that they are already available, that is they
refer to the data which have already been collected and analysis by
someone else when the researcher utilizes secondary Athens he has to
look into various sources from where he can obtain them.
SAMPLE SIZE
58
TOOLS USED
59
CHAPTER- 4
DATA ANALYSIS AND INTERPRETATAION
60
GRAPH OF SHOWING HOW OFTEN STAYS HAPPENS IN HOTELS
PER YEAR
18
16
14
12
10 Series 1
Column1
8
Column2
6
4
2
0
HOTELS DON’T 1 OR LESS THAN 2-4 TIMES MORE THAN 5
USE OFTEN
61
Usage of Artificial intelligence In Hotel booking System
16
14
12
10
8
booking through chat bots
6 booking through websites
4 Series travel agents
KERALA – 14
TAMIL NADU – 13
KARNATAKA – 11
ANDRAPRADESH – 6
MAHARASHTRA - 10
62
TRavel Companion choosed
Other:
With partner 4%
20%
Alone
24%
63
Graph For Showing Age Of Parcipants
0 - 25
35
30
25
20
15
10 25 - 50
5
Series 1
0
Series 2
75 -90 50 - 75
12 15 6 4
64
GRAPH FOR SHOWING AI SERVICES USED BYB CUSTOMERS
14
12
10
6 Column2
Series 1
4
0
SELF CHECK IN CHAT BOTS PORTER SERVING OTHER
MACHINES ROBOTS ROBOTS
65
GRAPH FOR SHOWING HOTEL’S CHOOSING ON THE BASICS OF STAR
RATING
100%
90%
80%
70%
60% Series 3
50% Series 2
40% Series 1
30%
20%
10%
0%
5 STAR 4 STAR 3 STAR 1-2 STAR
66
CHAPTER- 5
CONCLUSION
67
CONCLUSION
69
CHAPTER - 6
QUESTIONNAIRE & BIBLIOGRAPHY
70
Questionnaire
*Required
Background Information
1. Age *
Under 25
25-34
35-44
45-54
55-64
65 or over
2.Gender *
Female
Male
Other
71
3. STATE *
Kerala
Tamilnadu
Karnataka
Andra Pradesh
Maharashra
4. Travel Companion *
Alone
With partner
I am on a group tour
Other:
2-4 times
5 times or more
7. How familiar are you with Artificial Intelligence (AI) and automatic self-
service? *
None
Self-check-in machines
72
Chatbots for online customer
Cleaning robots
Porter robots
Serving robots
Other:
5-star hotels
4-star hotels
3-star hotels
1–2-star
hotels Hostels
Airbnb
Lack of cleanliness
Outdated technology
73
Safety and security concern
Other:
12. What kind of Artificial Intelligence services would you prefer to have
13. What would stop you from staying at a hotel that is applying
AI technology? *
I'd prefer to interact with human employees I'd prefer to stay at old traditional hotels
I'd not have enough money to afford the stay Nothing would stop me from experiencing AI
It'd feel inconvenient to have interaction with automated machines, robots, etc Robots, self-
Other:
74
BIBILOGRAPHY
75
BIBILOGRAPHY
● Allman, T. (2014). China restaurant introduces robot waiters. BBC, 13 December.
https://www.bbc.com/news/av/world-asia-30460737/ china-restaurant-introduces-
robot-waiters
● Hertzfeld, E. (2019). Japan’s Henn na Hotel fires half its robot workforce. Hotel
Management, 31 January. https://www.hotelmanagement.net/ tech/japan-s-henn-
na- hotel-fires-half-its-robot-workforce
● Villaronga, E. F., Kieseberg, P., & Li, T. (2018). Humans forget, machines
remember: Artificial intelligence and the right to be forgotten. Computer Law &
Security Review, 34(2), 304–313. https://doi.org/10.1016/j. clsr.2017.08.007
● Korczak, J., Pondel, M., Sroka, W., 2019. Discovery of customer
communities– evaluation aspects, in: Information Technology for
Management: Cur
● Assa abloy and telkonet extend hospitality automation through intelligent
connectivity. (2018, Jun 18). NASDAQ OMX's News Release Distribution
Channel. Retrieved from
https://search.proquest.com/docview/2056370253?accountid=8361
● Buhalis, D., Leung, R. (2017, December 22). Smart hospitality-Interconnectivity
and interoperability towards an ecosystem. Retrieved from
https://www.sciencedirect.com/science/article/abs/pii/S0278431917301974?via=ihu
b
● Castro, D. (2019, August 30). Who Is Winning the AI Race: China, the EU or the
United States? Retrieved from https://datainnovation.org/2019/08/who-is-
winning- the-ai-race-china-the-eu-or-the-united -states/
● Kuo, C. M., Chen, L. C., & Tseng, C. Y. (2017). Investigating an innovative
service with hospitality robots. International Journal of Contemporary Hospitality
Management
● Lu, T.L. (2019). Opportunities of Artificial Intelligence in Hospitality Industry
for Innovative Customer Services.
● Case: Hotels in Ho Chi Minh City, Vietnam.
● Melton, C. (2019, Feb 08). Ball state survey shows robot workers could become
more common. University Wire. Retrieved from
https://search.proquest.com/docview/2177237234?accountid=8361
76
Number of
Serial Number
References Journal Name
No. Article title of Pages
used
Artificial Intelligence
In Proceedings
and Visual
of the 52nd
Analytics: A Deep-
1 10 52 Hawaii
Learning Approach
International
to Analyse Hotel
Conference on
Reviews &
System
Responses.
Sciences
International
Does Artificial Neural
Journal of
Network Support
2 24 32 Instructional
Connectivism’s
Technology and
Assumptions?
Distance
Learning
Advancement in Scandinavian
computing: Journal of
3 17 61
Implications for Hospitality
tourism and and Tourism
hospitality.
77
Hospitality and tourism
online reviews: Recent Journal of Travel &
4 14 67
trends and future Tourism Marketing
directions.
Assessing budgeting
International
process in small and
journal of
medium enterprises
information
5 in Nairobi’s central 11 45
technology
business district: A
and business
case of hospitality
management
industry.
78
The power of expert
identity: How website-
Tourism
recognized expert
Management
7 reviews influence 10 80
travellers’ online
rating behaviour.
Informatics Tools, AI
Models and Methods Studies in
9 Used for Automatic 10 16 Informatics
Analysis of and Control
Customer
Satisfaction.
79
80