Artificial Intelligence (AI) can sift through and dynamically draw insights from mountains of data (operational, performance, guest, pricing, comp set, BI, marketing data, etc.) to allow hoteliers automate or augment operations, processes and decision making via various hospitality tech applications in guest services and operations, revenue management, CRM, guest communications, BI, digital marketing, personalization, inventory distribution, etc.

Obviously, it is up to specialized hotel tech vendors to carry the torch and create various AI-powered applications to solve concrete business needs and help the industry overcome its technology deficiencies. In the same time, hoteliers need to monitor, proactively familiarize themselves with and invest in the AI and other next gen technologies that are quickly making their way into hospitality.

The question is, what are the top five AI-powered applications that are must-have today and can solve the most immediate issues and deficiencies in hospitality?

What is house balancing and why is it important? AI can greatly help here!

Every hotel's market mix fluctuates by weekday, throughout seasonal patterns, and with the occasional special event. Room inventories made available for sale often include tactical sell limits. These are set based on predicted demand, usually on a per day basis. In today's uncertain market, it is one of the revenue manager's most potent tools to accommodate for where the demand is, without diluting the value of premium inventory.

A hotel's mix of room categories however is fixed and real guests will stay in real rooms. Balancing the house is to bring back together what was sold, and what is truly available. It means deciding every day, how to best accommodate upcoming arrivals and whom to upgrade to better categories. Except in hotels with mostly one night stays, it can be one of the most difficult tasks to master, requiring deep knowledge of the hotel's rooms and excellent understanding of guests' needs.

Why automate?

The operating environment of a hotel is no longer the same. Staff shortage is endemic at all levels, past experts have taken on more responsibilities or changed hotels. Many have left the industry for good. At best they are short on time, at worst no longer there. Retraining the expertise it takes for house balancing would take months and possibly years. Under unstable conditions in the labor market, it is an untenable position to be in. Speaking of the labor market, rooms also need to be cleaned with some of the hardest to find staff. Rooms may need to be left dirty for a night or more to flatten the demand over multiple days. We now begin to see clearly, how much of the hotel operation was reliant on expert decision making.

How Automation and AI can help here:

A hotel's best chance to balance the house while boosting ADR and RevPAR, is by upselling the right guests to the right room categories. A good upsell system continuously evaluates balancing needs in real time, prices to achieve a real Win Win situation for guests and the hotel, and boosts guest satisfaction in the process.

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