In an era of unprecedented digital revolutions, the world has reinvented itself in terms of efficiency and personalization. Not least, the hotel industry has undergone a remarkable transformation over the past three decades. From the introduction of Property Management Systems to advanced online marketing and check-in procedures, digital innovations have revolutionized the way hospitality is experienced. In response to this rapid development, HotellerieSuisse launched the Hospitality Booster to help hoteliers recognize and successfully navigate upcoming changes in the industry.
The AI Revolution
What is it?
Artificial intelligence is a term that has spread worldwide after OpenAI made ChatGPT 3 public in November 2022. Although AI is a very broad term with implications in various companies with excellent services, we mainly focus on generative AI, the kind seen with ChatGPT. Initially, the influence was not clear to most people, but interest was clearly piqued as it immediately became the most used application within 24 hours, until Facebook released the Threads app, their competitor to X (formerly known as Twitter). Unlike Threads, ChatGPT was able to maintain a large user base and led to the emergence of many competitors like Gemini (Alphabet), Co-Pilot (Microsoft), and Claude (Anthropic). The technology works by predicting text-based answers to questions and requests. This is done in many cases using the internet as well as previous training to respond as accurately as possible. What people need to keep in mind is that these tools are still in their infancy. Like all tools, they will improve and become more precise and efficient over time. Between 2023 and 2024 alone, we have gone from pure text content to generating images, sounds, music, and even videos.
How will this affect hotels?
These tools are already being used by many companies to deliver products that help with media content creation, customer review analysis, or simply answering emails. Regarding the daily use of generative AI, this article from Gokai.co shows the potential for personalization in content creation. With social media and generative AI tools, specific people can be targeted with advertising that appeals to them the most. We have also presented the possibilities for menu design. For example, Accor emphasizes the desire of guests to eat healthier and more sustainable food. With these tools, the chef could easily create a menu without losing much time. It is always important to maintain a certain personalization and authenticity of the restaurant, but it is certainly a useful way to get ideas and create more balanced meals that meet the changing needs of guests. A bigger change is the use of digital concierges. We have often heard how time and cultural differences cause an overload for a concierge or information desk. With these generative AI tools, some of the simpler requests, such as the opening and closing times of breakfast or questions about the check-in process, can be automatically answered by a digital concierge. Depending on the segment and style of the hotel, the approach must be adjusted, but whether it is used to support existing staff or cover night shifts, it can help optimize resources and time.
The Ocean of Data
The hotel industry has a lot of untapped data. It is crucial for hotels to finally use this knowledge. As investor and business coach Peter Sondergaard said, “Information is the oil of the 21st century, and analytics is the combustion engine.” Hotels have a lot of oil but are not yet using the combustion engine to gain insights. This is something we deem necessary to change. Only about 15% of hotels use a revenue management system, according to Scott Dahl from Les Roches, while EHL also notes that 86% of industry executives see data as a driver for profitability. Therefore, it is crucial that hotels start using the data available to them, mainly through cookies on their websites, to increase customer satisfaction and loyalty. This can be done with personalized offers for guests, online marketing campaigns based on customer segments, or strategic hotel positioning to better meet guest demand.
Tradition and Innovation
A concern we often hear from hoteliers is that all these innovations and digitizations will make us lose touch with our traditions. Until 2022, Switzerland was the most innovative country for 13 consecutive years. Switzerland has also been home to numerous innovators and Nobel laureates over the past century.
This shows that Switzerland is traditionally innovative. We must now learn to be innovatively traditional! By using existing tools to present the history and culture of each region, hoteliers can take this direction without losing their Swiss flair. As a thought-provoking question, what is Swiss about a continental breakfast? Too often, we see breakfast buffets in hotels, some claiming to be in the “Swiss style,” offering no local specialties, so much so that HotellerieSuisse decided to develop the regional breakfast book. To give an example, besides creating a menu with local products and dishes with ChatGPT, hotels could collaborate with the regional tourism association to develop a virtual reality experience to explore old sites in Switzerland and see them as they once were. A simpler example, and one without digital changes, would be to conduct workshops and experiences showcasing local history and culture, like the Bretterhotel. Innovation does not always have to be radical and large. Sometimes, the smallest changes can have a big impact.
Contact hospitalitybooster@hotelleriesuisse.ch if you have any questions or if we can support you in any way.
With the support of AI tools: ChatGPT, Perplexity, Dall-E